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Sunday, December 22, 2024

Freelance Worker Protection Act now active in Illinois

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Jane Flanagan Director at Illinois Department of Labor | Official website

Jane Flanagan Director at Illinois Department of Labor | Official website

The Freelance Worker Protection Act has been implemented in Illinois as of July 1, providing new protections for independent contractors. This legislation applies to freelancers who create products or services within the state or work for a hiring entity based there.

Under this law, freelance workers are entitled to a written contract if their work's value reaches or exceeds $500 over a 120-day period. The contract must detail the products and services provided, deadlines for service completion, and compensation terms. Full payment is required by the due date specified in the contract or within 30 days if no due date is mentioned.

Illinois Department of Labor Director Jane Flanagan stated, "The Freelance Worker Protection Act establishes a framework of understandable and transparent expectations for independent workers in Illinois, to better protect their work, and compensation."

This act does not apply retroactively to contracts made before July 1, 2024, nor does it cover construction services or employees of an employer. Employees seeking back wages from employers can file claims with the Department of Labor.

State Rep. Will Guzzardi (D-Chicago) emphasized the importance of these protections: "Freelance workers, like all workers, deserve to have basic protections like timely pay and the right to a written contract." He noted that many freelancers live paycheck-to-paycheck and these measures help set clear expectations between workers and hiring entities.

Additional resources including frequently asked questions and sample contracts are available on the Department's website at labor.illinois.gov/freelance.

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