Illinois Members Help Lawmakers Stop Crooked Contractors
Governor Signs New Law Targeting Worker Misclassification
Earlier this year, articles in the Journal reported on efforts by the International Union and the Illinois District Council #1 to build support among the public, political leaders, and the construction industry for stopping the unlawful practice of misclassifying construction workers as independent contractors to avoid paying legally-mandated taxes like Social Security, workers’ compensation and unemployment insurance. “I could name a hundred jobs going on right now in the Chicago area where they are getting away with it,” Local 21 Illinois President James Allen told reporters during an interview with Chicagoland News in August. Contractors who cheat the system get an unfair competitive advantage over the ones who abide by the rules and pay appropriate taxes on their employees. The hard work by Allen and his staff to document this unlawful practice played an important role in exposing the problem and raising the Governor’s awareness of how much the state was losing in tax revenues.
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| From left, former Local 67 IL Business Manager and current Secretary-Treasurer of the Chicago and Cook County Building Trades Frank O’Lone, Local 21 IL Vice President John Thompson, Local 52 IL Vice President Jeff Bloom, and IU Executive Vice President Ken Lambert attended the signing of the Employee Classification Act into state law. |
On August 6, 2007, their efforts resulted in a victory for BAC members in Illinois, as well as all reputable contractors and their employees in the state, with the signing of the Employee Classification Act by Governor Rod Blagojevich. “The new law is a positive step towards eradicating this practice by contractors intent on cheating the system,” says Local 21 Vice President John Thompson who was instrumental in raising this as an issue with state lawmakers.
The signing of this bill into law is the culmination of many months of hard work and collaboration on the part of Local 21, the Illinois District Council, and others to address and reverse the growing scope of this problem. The new law sets rigid limitations on the use of individuals as independent contractors within the construction industry. Companies found to be misclassifying workers can be fined up to $2,500 and face felony charges.
“It will go far toward ending the use of misclassified workers by contractors that try to cheat the system,” says IU Executive Vice President Ken Lambert.
The new bill didn’t come about in a vacuum. “It came about because
BAC officers and members banded together with others who share our
goal of putting an end to this disreputable practice,” IU President John J. Flynn told attendees at the Local Leadership Conference just days after the new law was signed. “Our Locals in Illinois didn’t wait to be asked to work on this issue, they led the charge,” added Flynn.
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