Bill Text: IL SB1660 | 2013-2014 | 98th General Assembly | Introduced


Bill Title: Amends the Workers' Compensation Act and the Unemployment Insurance Act. Sets forth the conditions under which a person who operates a motor vehicle for a carrier of property is an independent contractor and not an employee.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB1660 Detail]

Download: Illinois-2013-SB1660-Introduced.html


98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB1660

Introduced 2/13/2013, by Sen. Gary Forby

SYNOPSIS AS INTRODUCED:
820 ILCS 305/1 from Ch. 48, par. 138.1
820 ILCS 405/212.2 new

Amends the Workers' Compensation Act and the Unemployment Insurance Act. Sets forth the conditions under which a person who operates a motor vehicle for a carrier of property is an independent contractor and not an employee.
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A BILL FOR

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1 AN ACT concerning employment.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Workers' Compensation Act is amended by
5changing Section 1 as follows:
6 (820 ILCS 305/1) (from Ch. 48, par. 138.1)
7 Sec. 1. This Act may be cited as the Workers' Compensation
8Act.
9 (a) The term "employer" as used in this Act means:
10 1. The State and each county, city, town, township,
11incorporated village, school district, body politic, or
12municipal corporation therein.
13 2. Every person, firm, public or private corporation,
14including hospitals, public service, eleemosynary, religious
15or charitable corporations or associations who has any person
16in service or under any contract for hire, express or implied,
17oral or written, and who is engaged in any of the enterprises
18or businesses enumerated in Section 3 of this Act, or who at or
19prior to the time of the accident to the employee for which
20compensation under this Act may be claimed, has in the manner
21provided in this Act elected to become subject to the
22provisions of this Act, and who has not, prior to such
23accident, effected a withdrawal of such election in the manner

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1provided in this Act.
2 3. Any one engaging in any business or enterprise referred
3to in subsections 1 and 2 of Section 3 of this Act who
4undertakes to do any work enumerated therein, is liable to pay
5compensation to his own immediate employees in accordance with
6the provisions of this Act, and in addition thereto if he
7directly or indirectly engages any contractor whether
8principal or sub-contractor to do any such work, he is liable
9to pay compensation to the employees of any such contractor or
10sub-contractor unless such contractor or sub-contractor has
11insured, in any company or association authorized under the
12laws of this State to insure the liability to pay compensation
13under this Act, or guaranteed his liability to pay such
14compensation. With respect to any time limitation on the filing
15of claims provided by this Act, the timely filing of a claim
16against a contractor or subcontractor, as the case may be,
17shall be deemed to be a timely filing with respect to all
18persons upon whom liability is imposed by this paragraph.
19 In the event any such person pays compensation under this
20subsection he may recover the amount thereof from the
21contractor or sub-contractor, if any, and in the event the
22contractor pays compensation under this subsection he may
23recover the amount thereof from the sub-contractor, if any.
24 This subsection does not apply in any case where the
25accident occurs elsewhere than on, in or about the immediate
26premises on which the principal has contracted that the work be

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1done.
2 4. Where an employer operating under and subject to the
3provisions of this Act loans an employee to another such
4employer and such loaned employee sustains a compensable
5accidental injury in the employment of such borrowing employer
6and where such borrowing employer does not provide or pay the
7benefits or payments due such injured employee, such loaning
8employer is liable to provide or pay all benefits or payments
9due such employee under this Act and as to such employee the
10liability of such loaning and borrowing employers is joint and
11several, provided that such loaning employer is in the absence
12of agreement to the contrary entitled to receive from such
13borrowing employer full reimbursement for all sums paid or
14incurred pursuant to this paragraph together with reasonable
15attorneys' fees and expenses in any hearings before the
16Illinois Workers' Compensation Commission or in any action to
17secure such reimbursement. Where any benefit is provided or
18paid by such loaning employer the employee has the duty of
19rendering reasonable cooperation in any hearings, trials or
20proceedings in the case, including such proceedings for
21reimbursement.
22 Where an employee files an Application for Adjustment of
23Claim with the Illinois Workers' Compensation Commission
24alleging that his claim is covered by the provisions of the
25preceding paragraph, and joining both the alleged loaning and
26borrowing employers, they and each of them, upon written demand

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1by the employee and within 7 days after receipt of such demand,
2shall have the duty of filing with the Illinois Workers'
3Compensation Commission a written admission or denial of the
4allegation that the claim is covered by the provisions of the
5preceding paragraph and in default of such filing or if any
6such denial be ultimately determined not to have been bona fide
7then the provisions of Paragraph K of Section 19 of this Act
8shall apply.
9 An employer whose business or enterprise or a substantial
10part thereof consists of hiring, procuring or furnishing
11employees to or for other employers operating under and subject
12to the provisions of this Act for the performance of the work
13of such other employers and who pays such employees their
14salary or wages notwithstanding that they are doing the work of
15such other employers shall be deemed a loaning employer within
16the meaning and provisions of this Section.
17 (b) The term "employee" as used in this Act means:
18 1. Every person in the service of the State, including
19members of the General Assembly, members of the Commerce
20Commission, members of the Illinois Workers' Compensation
21Commission, and all persons in the service of the University of
22Illinois, county, including deputy sheriffs and assistant
23state's attorneys, city, town, township, incorporated village
24or school district, body politic, or municipal corporation
25therein, whether by election, under appointment or contract of
26hire, express or implied, oral or written, including all

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1members of the Illinois National Guard while on active duty in
2the service of the State, and all probation personnel of the
3Juvenile Court appointed pursuant to Article VI of the Juvenile
4Court Act of 1987, and including any official of the State, any
5county, city, town, township, incorporated village, school
6district, body politic or municipal corporation therein except
7any duly appointed member of a police department in any city
8whose population exceeds 500,000 according to the last Federal
9or State census, and except any member of a fire insurance
10patrol maintained by a board of underwriters in this State. A
11duly appointed member of a fire department in any city, the
12population of which exceeds 500,000 according to the last
13federal or State census, is an employee under this Act only
14with respect to claims brought under paragraph (c) of Section
158.
16 One employed by a contractor who has contracted with the
17State, or a county, city, town, township, incorporated village,
18school district, body politic or municipal corporation
19therein, through its representatives, is not considered as an
20employee of the State, county, city, town, township,
21incorporated village, school district, body politic or
22municipal corporation which made the contract.
23 2. Every person in the service of another under any
24contract of hire, express or implied, oral or written,
25including persons whose employment is outside of the State of
26Illinois where the contract of hire is made within the State of

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1Illinois, persons whose employment results in fatal or
2non-fatal injuries within the State of Illinois where the
3contract of hire is made outside of the State of Illinois, and
4persons whose employment is principally localized within the
5State of Illinois, regardless of the place of the accident or
6the place where the contract of hire was made, and including
7aliens, and minors who, for the purpose of this Act are
8considered the same and have the same power to contract,
9receive payments and give quittances therefor, as adult
10employees.
11 3. Every sole proprietor and every partner of a business
12may elect to be covered by this Act.
13 An employee or his dependents under this Act who shall have
14a cause of action by reason of any injury, disablement or death
15arising out of and in the course of his employment may elect to
16pursue his remedy in the State where injured or disabled, or in
17the State where the contract of hire is made, or in the State
18where the employment is principally localized.
19 However, any employer may elect to provide and pay
20compensation to any employee other than those engaged in the
21usual course of the trade, business, profession or occupation
22of the employer by complying with Sections 2 and 4 of this Act.
23Employees are not included within the provisions of this Act
24when excluded by the laws of the United States relating to
25liability of employers to their employees for personal injuries
26where such laws are held to be exclusive.

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1 The term "employee" does not include persons performing
2services as real estate broker, broker-salesman, or salesman
3when such persons are paid by commission only.
4 The term "employee" does not include a person operating a
5motor vehicle for a carrier of property if each of the
6following factors is substantially present:
7 (1) The person makes a material investment or incurs a
8 material obligation related to equipment contracted to the
9 carrier and used in performing service.
10 (2) The person has direction and control in meeting and
11 performing contract obligations subject to conformance
12 with governmental dictates, lawful requirements of third
13 parties relative to the transport or other contractual
14 obligations undertaken, and any reasonable administrative
15 and clerical procedures needed for contract
16 administration.
17 (3) The person has the principal burden of the
18 operating costs and personal expenses related to contract
19 work.
20 (4) The person's compensation is based primarily o
21 factors related to contract work and not on the number of
22 hours worked and affords the person the opportunity to
23 realize a profit or loss based upon the relationship of
24 business receipts and expenditures.
25 (5) The person is responsible for hiring or otherwise
26 engaging and paying the necessary personnel to operate the

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1 equipment and meet any contract obligations related to it.
2 (6) A written contract governs the relationship and
3 specifies the relationship of the parties to be that of
4 independent contractor and not an employer-employee
5 relationship.
6 (c) "Commission" means the Industrial Commission created
7by Section 5 of "The Civil Administrative Code of Illinois",
8approved March 7, 1917, as amended, or the Illinois Workers'
9Compensation Commission created by Section 13 of this Act.
10 (d) To obtain compensation under this Act, an employee
11bears the burden of showing, by a preponderance of the
12evidence, that he or she has sustained accidental injuries
13arising out of and in the course of the employment.
14(Source: P.A. 97-18, eff. 6-28-11; 97-268, eff. 8-8-11; 97-813,
15eff. 7-13-12.)
16 Section 10. The Unemployment Insurance Act is amended by
17adding Section 212.2 as follows:
18 (820 ILCS 405/212.2 new)
19 Sec. 212.2. Motor vehicle operator; independent contractor
20determination.
21 The term "employment" does not include services performed
22by a person operating a motor vehicle for a carrier of property
23if each of the following factors is substantially present:
24 (1) The person makes a material investment or incurs a

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1 material obligation related to equipment contracted to the
2 carrier and used in performing service.
3 (2) The person has direction and control in meeting and
4 performing contract obligations subject to conformance
5 with governmental dictates, lawful requirements of third
6 parties relative to the transport or other contractual
7 obligations undertaken, and any reasonable administrative
8 and clerical procedures needed for contract
9 administration.
10 (3) The person has the principal burden of the
11 operating costs and personal expenses related to contract
12 work.
13 (4) The person's compensation is based primarily o
14 factors related to contract work and not on the number of
15 hours worked and affords the person the opportunity to
16 realize a profit or loss based upon the relationship of
17 business receipts and expenditures.
18 (5) The person is responsible for hiring or otherwise
19 engaging and paying the necessary personnel to operate the
20 equipment and meet any contract obligations related to it.
21 (6) A written contract governs the relationship and
22 specifies the relationship of the parties to be that of
23 independent contractor and not an employer-employee
24 relationship.
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