Illinois Freelance Worker Protection Act

Intent of the law

• Effective date applies only to contracts taking effect after the effective date of Illinois Freelance Worker Protection Act, July 1, 2024
• No waiver of rights any provision of a contract purporting to waive rights is void as against public policy.
• Intent is to supplement not diminish or replace, any other basis of liability, remedy, or requirement established by statute or common law.
• Act is not a determination of legal classification of any such worker as an employee or independent contractor.

Major Provisions

• “Freelance worker” means a natural person who is hired or retained as an independent contractor by a contracting entity (non-governmental unit or school district) to provide products or services in Illinois in exchange for equal to or greater than $500 immediately preceding 120 days. Freelance workers does NOT include performing construction services. 
• Freelance workers should be paid on or before due date in contract or no later than 30 days after the completion of the contract.
• Contract must be in writing and contracting entity must furnish a copy to the freelance worker.
• Written contract must contain at a minimum the following information: Name and contact information of parties; an itemization of products and services provided by the freelance worker; their value; and the rate and method of compensation.
• Contract must have payment date:  the date by which the freelance worker must submit a list of products or services.
• Contracting entity must retain a copy of the written contract for no less than 2 years.

Enforcement of the contract by the freelance worker in Circuit Court of Illinois

• Civil enforcement. Worker can recover double the amount of underpayments, injunctive relief costs, and reasonable attorney fees.
• Complaint at the Illinois Department of Labor: Worker’s complaint must be filed within two years after the date that the final compensation was due.
• Illinois Attorney General may enforce the Freelance Worker Protection Act and seek fines and penalties.

How to prepare for the new Law:

• Review your use of freelance workers.
• Review your contracts with freelance workers.
• Become familiar with the law.

Questions? Contact Anthony J. Caruso, Jr, in our St. Charles office by email or at 630-377-1554