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State legislators approved a law that will help employers distinguish between employees and contractors.

About the FWPA

The Freelance Worker Protection Act (FWPA) was created to help ensure that independent contractors in Illinois are paid in a timely manner and to require written contracts for each job. It says: “no hiring party shall threaten, intimidate, discipline, harass, deny a work opportunity to, or discriminate against a freelance worker, or take any other action that penalizes a freelance worker for, or is reasonably likely to deter a freelance worker from, exercising or attempting to exercise any right guaranteed under the Act.”

This law goes into effect on July 1, 2024.

Protections For Contractors

Contractors do not have the same benefits that employees typically receive. A few states have laws to help protect the rights of these workers and establish a fair experience for all parties.

The FWPA stipulates:

• Contractors must be paid on or before the date the compensation is due.
• Written contracts between freelancers and employers must include:
• Names and contact information for both entities.
• An itemized list of all products and services to be provided by the contractor, along with the expected pay rate and method of compensation.
• The date a contractor must submit a list of products or services rendered to the employer, if one is necessary to meet any internal processing deadlines.
• The date that payment is due.

Employers will be required to retain copies of these contracts for at least 2 years.

Complaints

Section 25 of the FWPA establishes a method for contractors to file complaints against employers. Each one will be reviewed by the Department of Labor (DOL) and, within 20 days, the DOL must initiate an "information facilitation process" by sending the employer a written notice which:

• Informs them a complaint has been filed.
• Includes a copy of the complaint.
• Says that failure to respond by the deadline will create a “rebuttable presumption in any civil action commenced in accordance with this Act that the contracting entity committed the violations alleged in the complaint.”

If an organization is found to not have paid a contractor on time, they could be made to pay double the amount along with injunctive relief and other costs such as reasonable attorney’s fees.

Screening Contractors

While contractors are not full-time employees, they still represent the businesses for which they do work. It is highly recommended that organizations run comprehensive background checks on anyone who will represent their brand, even temporarily.

Background checks help hiring managers make informed decisions, maintain safe workplaces and conduct due diligence. They also help employers avoid the risk of negligent hiring claims. We think of them as small but powerful insurance policies which protect employers during the hiring process.

Need Background Checks?

If your business needs background checks for employment purposes, please contact us. Our experienced team can help you customize screening packages that are ideal for contractors, employees or volunteers.

Backgrounds Online is based in California and our highly trained, experienced team is available to assist you Monday through Friday from 5am to 6pm PT.