If so, there’s a new law in Illinois that may impact your business.
The Illinois Freelance Workers Protection Act (the “FWPA”) went into effect on July 1st of this year. The FWPA provides protections for freelancers who provide services or products in Illinois or who work for a hiring entity located in Illinois, with some exceptions of course.
Under the act, certain freelancers (also known as independent contracts) may be entitled to some rights when the value of their work totals $500 or more within a 120-day period. This means that business owners who contract freelance workers or independent contractors should assess whether their business complies with the FWPA or if any changes are necessary.
Under the law, certain freelance workers are entitled to the following:
A written contract that includes:
Name and contact information of both parties
Itemization of products and services
Rate and method of compensation
Date of compensation due
Dates of services to be provided
Full payment for the services by due date in contract
If due date is not specified, within 30 days of completing the services outlined in contract
Protection from retaliation and/or negative action for exercising rights under the FWPA
Businesses are required to retain records of written contracts for at least two years. Freelancers can file a direct complaint regarding their employer’s non-compliance of the FWPA with the State of Illinois, triggering potential audits through various state agencies.
This act is a reminder for the business community to engage in regular compliance reviews of their independent contractor relationships and agreements.
You can read more about the FWPA here: https://labor.illinois.gov/laws-rules/legal/freelance-worker-protection-act.html
And if you’d like to work with us to assess whether you are complying with the FWPA, make sure and book a free discovery call with our team to discuss!
Please contact Serna Legal Services at 312-601-9859 or info@sernalegalservices.com if you’d like to learn more about protecting your business's trade secrets. If you’re ready to protect your trade secrets, we can work with you to help you protect your valuable intellectual property!
This content is published by Serna Legal Services, LLC and is available for informational purposes only and is not considered legal advice on any subject matter. By viewing this content, the reader understands there is no attorney-client relationship between the reader and the publisher. The content should not be used as a substitute for legal advice from a licensed professional attorney, and readers are urged to consult their own legal counsel on any specific legal questions concerning a specific situation
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