Independent Contractors: Illinois

Federal law and guidance on this subject should be reviewed together with this section.

Authors: Stuart R. Buttrick, Stacey Smiricky and Tareen Zafrullah, Faegre Drinker Biddle & Reath LLP

Summary

• There is no unified methodology in Illinois to determine whether an individual is an employee or an independent contractor. Instead, such evaluations are made on the basis of the circumstances and particular context. See Determining Whether a Worker Is an Employee or an Independent Contractor.
• The Illinois Department of Labor uses a six-factor test in determining the application of minimum wage and overtime laws. See The IDOL Test for Minimum Wage and Overtime.
• The ABC Test is used to decide whether an individual is an employee entitled to receive unemployment benefits. See The ABC Test for Unemployment Benefits.
• To decide whether an individual is an independent contractor or an employee who enjoys legal protection under state workers' compensation and discrimination laws, Illinois courts use a six-factor economic realities test. See The Economic Realities Test for Workers' Compensation and Discrimination Law.
• The Illinois Service Member Employment and Reemployment Rights Act includes a six-factor right-to-control test for determining whether an individual is a covered employee or an independent contractor. See The Six-Factor Test for the Illinois Service Member Employment and Reemployment Rights Act (ISERRA).
• Illinois has a special law pertaining to construction contractors, in which individuals who perform services for contractors are presumed to be employees unless certain factors are met. See The Three-Factor Test for Construction Contractors.
• The Illinois Freelance Worker Protection Act regulates covered business that hire freelance workers to perform services in the state of Illinois. See Illinois Freelance Worker Protection Act.