Bill Text: IL SB2041 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Freelance Worker Protection Act. Provides that freelance workers must be compensated by hiring parties for their services in a timely manner. Provides that whenever a hiring party retains the services of a freelance worker, the contract between the hiring party and the freelance worker shall be reduced to writing and signed by both parties. Provides that 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. Contains provisions concerning enforcement; civil enforcement; public policy and intent; public awareness; reports; coordination; and rulemaking by the Department of Labor. Effective July 1, 2024.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2023-06-12 - Chief Sponsor Changed to Sen. Don Harmon [SB2041 Detail]

Download: Illinois-2023-SB2041-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2041 Introduced 2/9/2023, by Sen. Cristina H. Pacione-Zayas SYNOPSIS AS INTRODUCED:
New Act
Creates the Freelance Worker Protection Act. Provides that freelance workers must be compensated by hiring parties for their services in a timely manner. Provides that whenever a hiring party retains the services of a freelance worker, the contract between the hiring party and the freelance worker shall be reduced to writing and signed by both parties. Provides that 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. Contains provisions concerning enforcement; civil enforcement; public policy and intent; public awareness; reports; coordination; and rulemaking by the Department of Labor. Effective July 1, 2024.
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A BILL FOR
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AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Freelance Worker Protection Act.
Section 5. Definitions. As used in this Act:
"Department" means the Department of Labor.
"Director" means the Director of Labor, or his or her
designee.
"Freelance worker" means a natural person who is hired or
retained as an independent contractor by a hiring party to
provide products or services in Illinois or for a hiring party
located in Illinois in exchange for an amount equal to or
greater than $500, either by itself or when aggregated with
all contracts for products or services between the same hiring
party and the freelance worker during the immediately
preceding 120 days. "Freelance worker" does not include an
individual performing services as an employee under Section 10
of the Employee Classification Act or an employee as defined
in Section 2 of the Wage Payment and Collection Act.
"Hiring party" means any person who retains a freelance
worker to provide any service, other than:
(1) the United States government;

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(2) the State of Illinois;
(3) a unit of local government; or
(4) any foreign government.
"Natural person" means an individual human being.
"Person" means any natural person, individual,
corporation, business enterprise or other legal entity, either
public or private, and any legal successor, representative,
agent or agency of that individual, corporation, business
enterprise, or legal entity.
Section 10. Payment of compensation for freelance workers.
(a) Except as otherwise provided by law, a freelance
worker shall be paid the contracted compensation amount no
later than 30 days after the freelance worker provides the
product or completes the services under the contract.
(b) Once a freelance worker has commenced preparation of
the product or performance of the services under the contract,
the hiring party shall not require as a condition of timely
payment that the freelance worker accept less compensation
than the amount of the contracted compensation.
Section 15. Contract for products and services of
freelance workers.
(a) Whenever a hiring party retains a freelance worker,
the contract for such products or services shall be reduced to
writing and signed by the freelance worker and the hiring

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party. The hiring party shall furnish a copy of the written
contract, either physically or electronically, to the
freelance worker and each party to the written contract shall
retain a copy thereof.
(b) The written contract for the product and service of a
freelance worker shall include, at a minimum, the following
information:
(1) the name and mailing address of both the hiring
party and the freelance worker;
(2) an itemization of all products and services to be
provided by the freelance worker, the value of the
products and services to be provided under the terms of
the contract, and the rate and method of compensation;
(3) the date on which the hiring party must pay the
contracted compensation or the mechanism by which such
date will be determined; and
(4) the date by which a freelance worker must submit a
list of products or services rendered under such contract
to the hiring party in order to meet any internal
processing deadlines of the hiring party for the purposes
of compensation being timely render by the agreed-upon
date as stipulated in paragraph (3).
(c) The Department may adopt rules as necessary to enforce
this Act, including, but not limited to, requiring additional
terms to ensure that the freelance worker and the hiring party
understand their obligations under the contract.

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(d) The hiring party shall retain the contract for the
service of a freelance worker for no less than 6 years and
shall make such contract available to the Department upon
request. The failure of the hiring party to produce such
contract within 5 business days upon the request of the
Department shall give rise to a presumption that the terms the
freelance worker has presented are the agreed upon terms.
(e) The Department shall make available model contracts on
its website for use by the general public at no cost. Such
model contracts shall be made available in English and in the 8
languages most commonly spoken by limited English proficient
individuals in the State.
Section 20. Nondiscrimination. No hiring party shall
threaten, intimidate, discipline, harass, deny a freelance
opportunity to, 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 by this Act, or from obtaining any future
work opportunity because the freelance worker has done so.
Section 25. Enforcement.
(a) It shall be the duty of the Department to inquire
diligently for any violations of this Act, and to institute
the actions for penalties provided by this Act, and to enforce
generally the provisions of this Act.

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(b) A freelance worker may file a complaint with the
Department alleging violations of the Act by submitting a
signed, completed compensation claim application on the form
provided by the Department and by submitting copies of all
supporting documentation. The form provided by the Department
shall include requests for information to facilitate its
report making requirements under Section 50, including, (1)
the general sector or occupation of the freelance worker
submitting a claim under this Act, (2) the county where the
work by the freelance worker was performed, and (3) the
demographic data of the freelance worker submitting a claim
under this Act, to be provided by the freelance worker on a
voluntary basis. Complaints alleging violation of Section 15
shall be filed within 2 years after the date the final
compensation was due. Complaints alleging violation of Section
10 shall be filed within 3 years after the date the final
compensation was due. Applications shall be reviewed by the
Department to determine whether there is cause for
investigation. Failure of a hiring party to keep adequate
records or provide written contract as required by this Act
shall not operate as a bar to a freelance worker filing a
complaint. The Department shall keep the names of freelance
workers who are the subject of an investigation confidential
until such time that disclosure is necessary for resolution of
an investigation or complaint.
(c) Each freelance worker who files a completed

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compensation claim application alleging a violation of this
Act or a rule adopted thereunder shall be provided with a
written description of the anticipated processing of the
complaint, including investigation, case conference, potential
civil and criminal penalties, and collection procedures. Each
freelance worker and his or her authorized representative
shall be notified in writing of any case conference before it
is held and given the opportunity to attend. Each freelance
worker and his or her authorized representative shall be
notified in writing of any award and collection of civil
penalties.
(d) The Department shall have the power to investigate and
attempt equitably to adjust controversies between freelance
workers and hiring entities in respect of compensation claims
arising under this Act and to that end the Department through
the Director or any other person in the Department designated
by him or her, shall have the power to administer oaths,
subpoena and examine witnesses, to issue subpoenas duces tecum
requiring the production of such books, papers, records and
documents as may be evidence of any matter under inquiry and to
examine and inspect the same as may relate to the question in
dispute. Service of such subpoenas shall be made by any
sheriff or any person. Any court in this State, upon the
application of the Department may compel attendance of
witnesses, the production of books and papers, and the giving
of testimony before the Department by attachment for contempt

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or in any other way as the production of evidence may be
compelled before such court. The Department may initiate a
mediation conference.
(e) Where reasonable cause exists to believe that a hiring
party is engaged in a pattern or practice of violations of this
Act, the Attorney General may commence a civil action on
behalf of the State in a court of competent jurisdiction. The
Attorney General may receive injunctive relief, civil
penalties, and any other relief deemed appropriate by the
court.
(f) Nothing in this Act shall be construed to prevent any
freelance worker from making complaint or prosecuting his or
her own claim for compensation. Any freelance worker aggrieved
by a violation of this Act or any rule adopted under this Act
may file suit in circuit court of Illinois, in the county where
the alleged violation occurred or where any freelance worker
who is party to the action resides, without regard to
exhaustion of any alternative administrative remedies provided
in this Act. Actions may be brought by one or more freelance
workers for and on behalf of themselves and other freelance
workers similarly situated.
(g) Nothing in this Act shall be construed to limit the
authority of the State's attorney of any county to prosecute
actions for violation of this Act or to enforce the provisions
thereof independently and without specific direction of the
Department.

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Section 30. Civil enforcement.
(a) Any freelance worker not timely paid final
compensation by a hiring party as required by Section 10 shall
be entitled to recover through a claim filed with the
Department or in a civil action, but not both, double the
amount of any such underpayments, injunctive relief, and other
such remedies as may be appropriate. In a civil action for
violation of Section 10, such freelance worker shall also
recover costs and all reasonable attorney's fees. Civil
complaints alleging violation of Section 10 shall be filed
within 3 years after the date the final compensation was due.
(b) Any freelance worker who was retained in violation of
Section 15 despite the freelance worker's request for a
written contract prior to commencing the contracted work as
required by Section 15 shall be entitled to recover through a
claim filed with the Department or in a civil action, but not
both, statutory damages of $500. However, a freelance worker
who prevails on a claim alleging violation of Section 15 and on
one or more claims under other Sections shall be awarded
statutory damages equal to the value of the underlying
contract or $500, whichever is greater, in addition to the
other remedies provided. Civil complaints alleging violation
of Section 15 shall be filed within 2 year after the date the
final compensation was due.
(c) Any freelance worker who is threatened, intimidated,

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disciplined, harassed, denied a freelance opportunity, or
penalized by a hiring party in violation of Section 20 of this
Act shall be entitled to recover through a claim filed with the
Department or in a civil action, but not both, statutory
damages equal to the value of the underlying contract for each
violation of Section 20. In a civil action for violation of
Section 20, such freelance worker shall also recover costs and
all reasonable attorney's fees.
Section 35. Criminal penalties. In addition to the other
remedies provided in this Act, any hiring party or any agent of
a hiring party, who, being able to pay final compensation and
being under a duty to pay, wilfully refuses to pay as provided
in this Act, or falsely denies the amount or validity thereof
or that the same is due, with intent to secure for the hiring
party or other person any underpayment of such indebtedness or
with intent to annoy, harass, oppress, hinder, delay, or
defraud the freelance worker to whom such indebtedness is due,
upon conviction, is guilty of:
(1) for unpaid final compensation in the amount of
$5,000 or less, a Class B misdemeanor; or
(2) for unpaid final compensation in the amount of
more than $5,000, a Class A misdemeanor.
Each day during which any violation of this Act continues
shall constitute a separate and distinct offense.
Any hiring party or any agent of a hiring party who

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violates this Act a subsequent time within 2 years of a prior
criminal conviction under this Section is guilty, upon
conviction, of a Class 4 felony.
Section 40. Public policy and intent.
(a) Except as otherwise provided by law, any provision of
a contract purporting to waive rights under this Act is void as
against public policy.
(b) The provisions of this Act are intended to supplement,
and do not diminish or replace, any other basis of liability,
remedy, or requirement established by statute or common law.
(c) Failure to comply with this Section does not render
any contract between a hiring party and a freelance worker
void in total, voidable, or otherwise impair any obligation,
claim, or right related to the contract, nor does it
constitute a defense to any action or proceeding to enforce,
or for breach of, such contract.
(d) No provision of this Act relating to freelance workers
shall be construed as providing a determination about the
legal classification of any such worker as an employee or
independent contractor.
Section 45. Public awareness. Subject to appropriation,
the Department may conduct a public awareness campaign, that
shall include making information available on its website,
otherwise informing hiring parties of the provisions of this

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Act, and establishing a means for assistance by a natural
person through phone or email.
Section 50. Reports. One year after the effective date of
this Act, and by November 1 every 5 years thereafter, the
Department shall submit to the General Assembly and publish on
its website a report regarding the effectiveness of this Act
at improving freelance contracting and payment practices. The
report shall include, but is not limited to:
(1) the number of complaints received;
(2) the value of the contracts disaggregated into
ranges of $500 and by the Section of this Act the
associated hiring party is alleged to have violated;
(3) the numbers of responses and non-responses
received by the Department disaggregated by contract value
into ranges of $500 and by the Section of this Act the
associated hiring party is alleged to have violated;
(d) the number of freelance workers that pursue their
claims of violation of this Act through civil action or an
alternative dispute resolution process, and a summary of
the outcomes, if known;
(4) the general sector or occupation of the freelance
workers submitting claims pursuant to this Act;
(5) the counties where violations of this Act are
alleged to have occurred, including the number of
violations from each county;

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(6) to the extent available, demographic data of the
freelance workers who allege violations of this Act; and
(7) legislative recommendations, including
consideration of whether certain occupations should be
exempted from the scope of the definition of freelance
worker.
Section 55. Coordination.
(a) The Department is authorized to coordinate enforcement
efforts with other agencies and combine claims under this Act
with claims under other Acts.
(b) The Department is authorized to enter into agreements
with other states to collect unpaid compensation from
out-of-state hiring entities and to perform reciprocal
services for such states in the State of Illinois.
Section 60. Rulemaking. The Director, or his authorized
representatives, shall administer and enforce the provisions
of this Act. In order to accomplish the objectives of this Act
and to carry out the duties prescribed by this Act, the
Director, or his authorized representative, shall adopt rules
necessary to administer and enforce the provisions of this
Act, including the procedures that shall be followed for
hearings under Section 25. The adoption, amendment, or
rescission of rules shall be in conformity with the
requirements of the Illinois Administrative Procedure Act.

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Section 99. Effective date. This Act takes effect July 1,
2024.