Illinois has enacted the Freelance Worker Protection Act (“FWPA”) which provides broad protections for independent contractors. Starting July 1, 2024, independent contractors have been afforded protections for the services or products provided in Illinois. They are also afforded protection if their hiring entity is located within the state of Illinois. To qualify for protection under FWPA, the value of their work must be equal to or greater than $500 in a 120-day period.
The Protections
Under the FWPA, freelance workers are entitled to all of the following:
A written contract that includes:
- Name and contact information of both the hiring entity and freelance worker;
- Itemization of products and services;
- Rate and method compensation;
- Date of compensation due; and
- Dates of services to be provided.
Full payment for the services by the due date listed in the contract, or if the due date is not specified, within thirty (30) days of completing the services outlined in the contract. Also, protection from retaliation and/or other negative action for exercising rights under the FWPA.
Exceptions to FWPA
Exceptions under the FWPA include the following: construction workers, individuals performing services as an employee under Section 10 of the Employee Classification Act, employees as defined under Section 2 of the IWPCA, and individuals contracted by a government entity. The FWPA does not apply retroactively; all claims brought must arise from contracts that have taken effect after July 1, 2024.
Important Things to Note
The statute of limitations is two years after the date that final compensation was due. The Act’s definition of “employer” includes individuals, so individuals contracting a protected independent contractor can be held liable. All claims brought under this Act must be commenced with the Illinois Department of Labor.
By Amanda Burns, Caffarelli & Associates Ltd.
