Bill Text: IL HB1122 | 2023-2024 | 103rd General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Reinserts the provisions of the bill as amended by House Amendment No. 2 with the following changes: Provides that except as otherwise provided by law, a freelance worker shall be paid the contracted compensation amount on or before the date the compensation is due under the terms of the contract. Provides that if the contract does not specify when the hiring party must pay the contracted compensation or the mechanism by which the date will be determined, compensation shall be due no later than 30 days after the completion of the freelance worker's services under the contract. In provisions concerning contracts for products and services of freelance workers, removes a provision that requires each party to the written contract to retain a copy for a period of 2 years after the products or services are provided. Provides that the definition of "freelance worker" does not include an individual performing construction services. Defines "construction". Makes other changes. Effective July 1, 2024.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Passed) 2023-08-04 - Public Act . . . . . . . . . 103-0417 [HB1122 Detail]
Download: Illinois-2023-HB1122-Introduced.html
Bill Title: Reinserts the provisions of the bill as amended by House Amendment No. 2 with the following changes: Provides that except as otherwise provided by law, a freelance worker shall be paid the contracted compensation amount on or before the date the compensation is due under the terms of the contract. Provides that if the contract does not specify when the hiring party must pay the contracted compensation or the mechanism by which the date will be determined, compensation shall be due no later than 30 days after the completion of the freelance worker's services under the contract. In provisions concerning contracts for products and services of freelance workers, removes a provision that requires each party to the written contract to retain a copy for a period of 2 years after the products or services are provided. Provides that the definition of "freelance worker" does not include an individual performing construction services. Defines "construction". Makes other changes. Effective July 1, 2024.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Passed) 2023-08-04 - Public Act . . . . . . . . . 103-0417 [HB1122 Detail]
Download: Illinois-2023-HB1122-Introduced.html
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1 | AN ACT concerning employment.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | |||||||||||||||||||
5 | Freelance Worker Protection Act.
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6 | Section 5. Definitions. As used in this Act: | |||||||||||||||||||
7 | "Construction contractor" means any person, sole | |||||||||||||||||||
8 | proprietor, partnership, firm, corporation, limited liability | |||||||||||||||||||
9 | company, association, or other legal entity that by itself or | |||||||||||||||||||
10 | through others offers to undertake, holds itself out as being | |||||||||||||||||||
11 | able to undertake, or does undertake a construction project. | |||||||||||||||||||
12 | "Construction project" means the providing of any labor or | |||||||||||||||||||
13 | services, and the use of any materials or equipment in order to | |||||||||||||||||||
14 | alter, build, excavate, add to, subtract from, improve, | |||||||||||||||||||
15 | repair, maintain, renovate, move, wreck, or demolish any | |||||||||||||||||||
16 | bridge, building, highway, road, railroad, land, tunnel, | |||||||||||||||||||
17 | sewer, drainage, or other structure, project, development, or | |||||||||||||||||||
18 | improvement, or the doing of any part thereof, including the | |||||||||||||||||||
19 | erection of scaffolding or other structures or works in | |||||||||||||||||||
20 | connection with the construction project.
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21 | "Department" means the Department of Labor. | |||||||||||||||||||
22 | "Director" means the Director of Labor, or his or her | |||||||||||||||||||
23 | designee. |
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1 | "Freelance worker" means any person or organization
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2 | composed of no more than one person, whether or not | ||||||
3 | incorporated
or employing a trade name, that is hired or | ||||||
4 | retained as an independent
contractor by a hiring party to | ||||||
5 | provide services in exchange for an amount equal to or greater | ||||||
6 | than $250, either by itself
or when aggregated with all | ||||||
7 | contracts for services between the same
hiring party and | ||||||
8 | freelance worker during the immediately preceding 120 days. | ||||||
9 | "Freelance worker" does not include: | ||||||
10 | (1) any person who is a sales
representative under the | ||||||
11 | terms of the contract at issue; | ||||||
12 | (2) any person engaged in the practice of law under | ||||||
13 | the terms of the
contract at issue and who is a member in | ||||||
14 | good standing of the bar of the
highest court of any state, | ||||||
15 | district, or territory and who is not under any order of | ||||||
16 | court suspending,
enjoining, restraining, disbarring, or | ||||||
17 | otherwise restricting such person
in the practices of law; | ||||||
18 | (3) any person who is a licensed medical professional; | ||||||
19 | or | ||||||
20 | (4) any person who is a construction contractor. | ||||||
21 | "Hiring party" means any person who retains a freelance | ||||||
22 | worker to
provide any service, other than: | ||||||
23 | (1) the United States government; | ||||||
24 | (2) the State of Illinois, including any office, | ||||||
25 | Department, agency,
or other body of the State, including | ||||||
26 | the General Assembly and the
judiciary; |
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1 | (3) a municipality, including any office, Department, | ||||||
2 | agency, or
other body of a municipality; or | ||||||
3 | (4) any foreign government.
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4 | Section 10. Guarantee of compensation to freelance | ||||||
5 | workers. | ||||||
6 | (a) Except as otherwise provided by law, the contracted | ||||||
7 | compensation shall be paid to a freelance worker either: | ||||||
8 | (1) on or before the date such compensation is due | ||||||
9 | under the terms of
the contract; or | ||||||
10 | (2) if the contract does not specify when the hiring | ||||||
11 | party must pay
the contracted compensation or the | ||||||
12 | mechanism by which the date will be
determined, no later | ||||||
13 | than 30 days after the completion of the freelance | ||||||
14 | worker's services under the contract. | ||||||
15 | (b) Once a freelance worker has commenced performance of | ||||||
16 | the services
under the contract, the hiring party shall not | ||||||
17 | require as a condition of
timely payment that the freelance | ||||||
18 | worker accept less compensation than
the amount of the | ||||||
19 | contracted compensation.
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20 | Section 15. Required contracts between hiring parties and | ||||||
21 | freelance workers. | ||||||
22 | (a) Whenever a hiring party retains the services of a | ||||||
23 | freelance
worker, the contract between
the hiring party and | ||||||
24 | the freelance worker shall be reduced to writing. The hiring |
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1 | party must
furnish a copy of the written contract, either | ||||||
2 | physically or electronically, to the freelance worker and each | ||||||
3 | party to the written contract
shall retain a copy. | ||||||
4 | (b) The written contract shall include, at a minimum, the | ||||||
5 | following
information: | ||||||
6 | (1) the name and mailing address of both the hiring | ||||||
7 | party and the
freelance worker; | ||||||
8 | (2) an itemization of all services to be provided by | ||||||
9 | the freelance
worker, the value of the services to be | ||||||
10 | provided under the terms of the
contract, and the rate and | ||||||
11 | method of compensation; | ||||||
12 | (3) the date on which the hiring party must pay the | ||||||
13 | contracted
compensation or the mechanism by which the date | ||||||
14 | will be determined; and | ||||||
15 | (4) the date by which a freelance worker must submit a | ||||||
16 | list of
services rendered under the contract to the hiring | ||||||
17 | party in order to
meet any internal processing deadlines | ||||||
18 | of the hiring party for the
purposes of compensation being | ||||||
19 | timely rendered by the agreed-upon date
as described in | ||||||
20 | paragraph (3). | ||||||
21 | (c) The Department may adopt rules requiring additional | ||||||
22 | terms to a written contract to ensure
that the freelance | ||||||
23 | worker and the hiring party understand their obligations under | ||||||
24 | the written contract. | ||||||
25 | (d) The hiring party shall be required to keep the written | ||||||
26 | contract for a
period of no less than 6 years and shall make |
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1 | the contract available
to the Director upon request. The | ||||||
2 | failure of a hiring party to
produce a contract upon request of | ||||||
3 | the Director shall give rise
to a presumption that the terms | ||||||
4 | that the freelance worker has presented
are the agreed upon | ||||||
5 | terms. | ||||||
6 | (e) The Director shall make available model contracts on | ||||||
7 | the Department's
website for use by the general public at no | ||||||
8 | cost. The
model contracts shall be made available in English, | ||||||
9 | Spanish, and the next 4 most commonly used languages in the | ||||||
10 | State.
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11 | Section 20. Prohibition on coercive acts by hiring | ||||||
12 | parties. No hiring party shall threaten,
intimidate, | ||||||
13 | discipline, harass, deny a work opportunity to, or | ||||||
14 | discriminate against a freelance worker, or take any other | ||||||
15 | action that penalizes a freelance worker for, or is reasonably | ||||||
16 | likely to deter a freelance worker from, exercising or | ||||||
17 | attempting to exercise any right
guaranteed under this Act, or | ||||||
18 | from obtaining any future work opportunity because the | ||||||
19 | freelance worker has exercised or attempted to exercise any | ||||||
20 | right
guaranteed under this Act.
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21 | Section 25. Complaints. | ||||||
22 | (a) Any freelance worker or his or her authorized | ||||||
23 | representative
may file with the Director a complaint claiming | ||||||
24 | a violation of this
Act and the Director shall investigate the |
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1 | complaint. The Director shall keep the names of
freelance | ||||||
2 | workers who are the subject of an investigation confidential
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3 | until the time that disclosure is necessary for the resolution | ||||||
4 | of the complaint. Failure of a hiring party to keep adequate
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5 | records or provide a written contract as required under this | ||||||
6 | Act, in
addition to exposing the hiring party to penalties | ||||||
7 | authorized under
this Act, shall not operate as a bar to the | ||||||
8 | filing of a complaint by a
freelance worker. If the hiring | ||||||
9 | party fails to keep accurate records in violation of this Act, | ||||||
10 | the hiring party shall
bear the burden of proving that the | ||||||
11 | complaining freelance worker was paid in
accordance with this | ||||||
12 | Act. | ||||||
13 | (b) Each freelance worker who files a complaint regarding | ||||||
14 | a violation
of this Act or a rule or regulation adopted in | ||||||
15 | accordance with this Act, shall
be provided with a written | ||||||
16 | description of the anticipated processing of the complaint, | ||||||
17 | including investigation, case conference,
potential civil and | ||||||
18 | criminal penalties, and collection procedures. | ||||||
19 | (c) Each freelance worker and his or her authorized | ||||||
20 | representative
shall be notified in writing of any case | ||||||
21 | conference before it is held
and given the opportunity to | ||||||
22 | attend. | ||||||
23 | (d) Each freelance worker and his or her authorized | ||||||
24 | representative
shall be notified in writing of any award and | ||||||
25 | collection of civil
penalties.
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1 | Section 30. Powers and duties of the Director. | ||||||
2 | (a) The Director shall have the following powers and
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3 | duties: | ||||||
4 | (1) The Director shall investigate and attempt to | ||||||
5 | adjust equitably
controversies between freelance workers | ||||||
6 | and hiring parties relating to
the provisions of this Act. | ||||||
7 | (2) The Director may take assignments of claims for | ||||||
8 | wages under
this Act from freelance workers or third | ||||||
9 | parties in trust for such
freelance workers or for the | ||||||
10 | benefit of various funds for such freelance
workers. All | ||||||
11 | such assignments shall run to the Director and his or her | ||||||
12 | successor in office. The Director may sue hiring parties | ||||||
13 | on wage
claims assigned to it, with the benefits and | ||||||
14 | subject to the provisions of existing law applying to | ||||||
15 | actions by freelance workers for the collection of
wages. | ||||||
16 | The Director may join in a single action any number of wage | ||||||
17 | claims
against the same hiring party. | ||||||
18 | (b)(1) The Director is authorized and empowered to enter
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19 | into reciprocal agreements with the labor department or | ||||||
20 | corresponding
agency of any other state or with the person, | ||||||
21 | board, officer, or commission authorized to act on behalf of | ||||||
22 | the department or agency, for
the collection in the other | ||||||
23 | state of claims and judgments for wages
based upon claims | ||||||
24 | assigned to the Director. | ||||||
25 | (2) The Director may, to the extent provided for by any | ||||||
26 | reciprocal agreement entered into by law or with any agency of |
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1 | another state
as provided in paragraph (1), maintain actions | ||||||
2 | in the courts of the other state
for the collection of claims | ||||||
3 | and judgments for wages and may assign the
claims and | ||||||
4 | judgments to the labor department or agency of the other
state | ||||||
5 | for collection to the extent that an assignment may be
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6 | permitted or provided for by the law of the other state or by | ||||||
7 | reciprocal
agreement. | ||||||
8 | (3) The Director may, upon the written consent of the | ||||||
9 | labor
department or other corresponding agency of any other | ||||||
10 | state or of
any person, board, officer, or commission of the | ||||||
11 | state authorized to
act on behalf of the labor department or | ||||||
12 | corresponding agency,
maintain actions in the courts of this | ||||||
13 | State upon assigned claims and
judgments for wages arising in | ||||||
14 | the other state in the same manner
and to the same extent that | ||||||
15 | the actions by the Director are
authorized when arising in | ||||||
16 | this State. Actions may be
maintained only in cases where the | ||||||
17 | other state by law or reciprocal
agreement extends a like | ||||||
18 | comity to cases arising in this State. | ||||||
19 | (c) Nothing in this Section shall be construed as | ||||||
20 | requiring
the Director in every instance to investigate and | ||||||
21 | attempt to
adjust controversies, or to take assignments of | ||||||
22 | wage claims.
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23 | Section 35. Civil actions brought by freelance workers. | ||||||
24 | (a) A freelance worker alleging a violation of this Act | ||||||
25 | may
bring an action in any court of competent jurisdiction for |
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1 | damages as follows: | ||||||
2 | (1) Any action alleging a violation of Section 15 | ||||||
3 | shall be brought within 2 years after the acts alleged to | ||||||
4 | have
violated this Act occurred. A freelance worker who | ||||||
5 | solely alleges a violation of Section 15 must prove that | ||||||
6 | he or she requested a written contract
before the | ||||||
7 | contracted work began. | ||||||
8 | (2) Any action alleging a violation of Section 10 or | ||||||
9 | Section 20 shall be brought within 6
years after the acts | ||||||
10 | alleged to have violated this Act occurred. | ||||||
11 | (b) Within 10 days after having commenced a civil action | ||||||
12 | under
this Section, a freelance worker shall serve a copy of | ||||||
13 | the complaint upon
an authorized representative of the | ||||||
14 | Director. Failure to serve a copy of the
complaint to the | ||||||
15 | Director does not adversely affect any freelance worker's | ||||||
16 | cause of action. | ||||||
17 | (c)(1) A freelance worker who prevails on a claim alleging | ||||||
18 | a violation of
Section 10 shall be awarded damages equal to | ||||||
19 | twice the amount of the contracted compensation, injunctive | ||||||
20 | relief, reasonable attorney fees and costs, and other remedies | ||||||
21 | as may be appropriate. | ||||||
22 | (2) A freelance worker who prevails on a claim alleging a | ||||||
23 | violation of
Section 15 shall be awarded statutory damages of
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24 | $250. | ||||||
25 | (3) A freelance worker who prevails on a claim alleging a | ||||||
26 | violation of Section 20 shall be awarded statutory damages |
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1 | equal to
the value of the underlying contract for each | ||||||
2 | violation. | ||||||
3 | (4) A freelance worker who prevails on a claim alleging a | ||||||
4 | violation of this Act and one or more claims alleging a | ||||||
5 | violation of any other State law regarding wage payment shall | ||||||
6 | be awarded statutory damages equal to the value of the | ||||||
7 | underlying contract for the violation of this Act in addition | ||||||
8 | to the remedies specified for the other wage payment | ||||||
9 | violations. | ||||||
10 |
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11 | Section 40. Civil actions brought by the State. | ||||||
12 | (a) Where reasonable cause exists to believe that a hiring | ||||||
13 | party
is engaged in a pattern or practice of violations of this | ||||||
14 | Act, the
Attorney General may commence a civil action on | ||||||
15 | behalf of the State in a
court of competent jurisdiction. A | ||||||
16 | civil action brought by the Attorney General under this | ||||||
17 | paragraph shall be
commenced by filing a complaint setting | ||||||
18 | forth facts relating to such
pattern or practice and | ||||||
19 | requesting relief, which may include injunctive
relief, civil | ||||||
20 | penalties, and any other appropriate relief. | ||||||
21 | (b) Nothing in this Section prohibits: | ||||||
22 | (1) a person alleging a violation of this Act from | ||||||
23 | filing a civil
action based on the same facts as a civil | ||||||
24 | action commenced by the Attorney General under this | ||||||
25 | Section; or |
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1 | (2) the Director from sending a notice of complaint, | ||||||
2 | unless otherwise barred from doing so. | ||||||
3 | (c) In any civil action commenced under this Section, the
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4 | trier of fact may impose a civil penalty of not more than | ||||||
5 | $25,000 for a finding that a hiring party has engaged in a
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6 | pattern or practice of violations of this Act. Any civil | ||||||
7 | penalty so
recovered shall be paid into the General Revenue | ||||||
8 | Fund.
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9 | Section 45. Scope of contracts. | ||||||
10 | (a) Except as otherwise provided by law, any provision of | ||||||
11 | a
contract purporting to waive rights under this Act is void as
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12 | against public policy. | ||||||
13 | (b) The provisions of this Act supplement, and do not | ||||||
14 | diminish or
replace, any other basis of liability or | ||||||
15 | requirement established by
statute or common law. | ||||||
16 | (c) Failure to comply with the provisions of this Act does | ||||||
17 | not
render any contract between a hiring party and a freelance | ||||||
18 | worker void
or voidable or otherwise impair any obligation, | ||||||
19 | claim, or right related
to the contract or constitute a | ||||||
20 | defense to any action or proceeding to
enforce, or for breach | ||||||
21 | of, the contract. | ||||||
22 | (d) No provision of this Act relating to freelance workers | ||||||
23 | shall
be construed as providing a determination about the | ||||||
24 | legal classification
of any such worker as an employee or | ||||||
25 | independent contractor.
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1 | Section 50. Public awareness campaign. The Department | ||||||
2 | shall conduct a public awareness campaign,
that shall include | ||||||
3 | making information available on its website, otherwise | ||||||
4 | informing hiring parties of the provisions of this Act, and
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5 | establishing a means for assistance by a person through phone
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6 | and email.
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7 | Section 55. Surveys; information collection; reporting | ||||||
8 | requirements. | ||||||
9 | (a) No later than 6 months after the Director sends to a
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10 | freelance worker either a hiring party's response and | ||||||
11 | accompanying materials or a notice of non-response in | ||||||
12 | accordance with this Act, the Director shall send the | ||||||
13 | freelance
worker a survey requesting additional information | ||||||
14 | about the resolution
of the freelance worker's claims. The | ||||||
15 | survey shall ask whether or not
the freelance worker pursued | ||||||
16 | any such claims in court or through an alternative dispute | ||||||
17 | resolution process and whether or not the hiring
party | ||||||
18 | ultimately paid any or all of the compensation the freelance | ||||||
19 | worker alleged was due or if the matter was resolved in a | ||||||
20 | different manner.
The survey shall state clearly that response | ||||||
21 | to the survey is voluntary. | ||||||
22 | (b) The Director shall collect and track information about
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23 | complaints alleging violations of this Act. The information
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24 | collected shall include, at minimum: |
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1 | (1) the identity of the hiring party alleged to have | ||||||
2 | violated this
Act; | ||||||
3 | (2) the freelance worker's occupation; | ||||||
4 | (3) the Section of this Act that was alleged to have | ||||||
5 | been
violated; | ||||||
6 | (4) the value of the contract; | ||||||
7 | (5) the response or non-response from the hiring | ||||||
8 | party; and | ||||||
9 | (6) information from a completed survey identified in | ||||||
10 | subsection (a). | ||||||
11 | (c) One year after the effective date of this Act, and | ||||||
12 | every 5
years thereafter by November 1, the Director shall | ||||||
13 | submit to the
General Assembly and publish on its website a | ||||||
14 | report regarding the effectiveness of the provisions of this | ||||||
15 | Act at improving freelance
contracting and payment practices. | ||||||
16 | Such report shall include, at a
minimum: | ||||||
17 | (1) the number of complaints the Director has received | ||||||
18 | in accordance with the provisions of this Act; | ||||||
19 | (2) the value of the contracts disaggregated into | ||||||
20 | ranges of $500 and by the Section of this Act allegedly | ||||||
21 | violated; | ||||||
22 | (3) the numbers of responses and non-responses | ||||||
23 | received by the
Director disaggregated by contract value | ||||||
24 | into ranges of $500 and by the Section of this Act | ||||||
25 | allegedly violated; | ||||||
26 | (4) the proportion of surveys received from freelance |
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1 | workers that
indicate that they pursued their claims in | ||||||
2 | court and the proportion of
surveys received from | ||||||
3 | freelance workers that indicate that they pursued
their | ||||||
4 | claims through an alternative dispute resolution process | ||||||
5 | and a
summary of the outcomes of such cases; and | ||||||
6 | (5) legislative recommendations, including | ||||||
7 | consideration of whether
certain occupations should be | ||||||
8 | exempted from the scope of the definition
of "freelance | ||||||
9 | worker" in this Act.
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10 | Section 99. Effective date. This Act takes effect upon | ||||||
11 | becoming law.
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