What is "Construction"
Under the Illinois Employee Classification Act
(Formerly H.B. 1795 - Now Public Act Public Act 95-0026)?

By
Nancy E. Joerg, Esq.
Senior Attorney and Shareholder
Wessels Pautsch & Sherman P.C.
St. Charles, Illinois
(630) 377-1554
najoerg@stch.w-p.com
http://www.w-p.com/

The Employee Classification Act (formerly House Bill 1795) is a frightening and radical new Illinois law which will go into effect January 1, 2008. It applies to construction and construction-related companies (including trucking companies) who use independent contractors in construction and construction related jobs. It is very punitive towards companies who are found to have misclassified its independent contractors!!

Many nervous clients understandably ask, "Exactly what is construction and am I considered a construction or construction-related company?" As used in this far-reaching Act, "construction" means:

•1) any constructing;

•2) any altering;

•3) any reconstructing;

•4) any repairing;

•5) any rehabilitating;

•6) any refinishing;

•7) any refurbishing;

•8) any remodeling;

•9) any remediating;

•10) any renovating;

•11) any custom fabricating;

•12) any maintenance;

•13) any landscaping;

•14) any improving;

•15) any wrecking;

•16) any painting;

•17) any decorating,

•18) any demolishing;

•19) adding to or subtracting from any building, structure, highway, roadway, street, bridge, alley, sewer, ditch, sewage disposal plant, water works, parking facility, railroad, excavation or other structure, project, development, real property or improvement or to do any part thereof; and

•20) construction shall also include moving construction-related materials on the job site to or from the job site.

Note that certain trucking companies will be classified as "construction" under this harsh new law because of the final sentence: "Construction shall also include moving construction-related materials on the job site to or from the job site."

Of course, as the law is not in effect until January 1, 2008, there aren't any audits, investigations, Court cases, or Regulations yet, so we don't know how the above list of activities considered to be "construction" under the Act will be expanded once the law is enforced and interpreted.

If you wish a free copy of the Illinois Employee Classification Act, contact Legal Assistant Tammy Nelson at 630-377-1554 or tanelson@stch.w-p.com.

If you have any questions about the Illinois Employee Classification Act, contact Senior Attorney and Shareholder Nancy Joerg at 630-377-1554 or najoerg@stch.w-p.com.

Biographical Information for Nancy E. Joerg

Nancy E. Joerg is a senior attorney and shareholder at Wessels Pautsch & Sherman P.C., a labor and employment law firm concentrating exclusively in the representation of management. Wessels Pautsch & Sherman P.C. maintains offices in St. Charles and Chicago, Illinois; Milwaukee, Wisconsin; Davenport, Iowa; Minneapolis, Minnesota; and Indianapolis, Indiana. (Ms. Joerg can be reached at the St. Charles, Illinois office at 630-377-1554.)

Ms. Joerg defends trucking, construction, and many kinds of companies in audits and hearings before various state agencies (including the Illinois Department of Employment Security and the Illinois Department of Labor) on the issue of independent contractor status and other issues of employment law. She is deeply involved in consulting with construction and trucking companies who are concerned about the Illinois Employee Classification Act. Ms. Joerg reviews and drafts IDES owner-operator leases, independent contractor agreements, and employee handbooks. Ms. Joerg also defends companies before the EEOC and the IDHR as to discrimination cases of all kinds.