When you think of Illinois, what comes to mind? Is it the iconic Chicago Bean? The scenic beauty of the Great Lakes? The deep-dish pizza? For businesses hiring freelancers in Illinois, worker protection legislation may be top of mind.
As of July 1st, Illinois has enacted the Freelance Worker Protection Act (FWPA), a landmark piece of legislation aimed at providing critical rights and protections to freelance workers. This act not only supports freelancers but also places new responsibilities on businesses hiring them. Here’s what this new legislation means for your business.
Under the FWPA, hiring entities must adhere to several new requirements to ensure the fair treatment of freelance workers. Understanding these provisions is crucial for compliance and maintaining positive working relationships. Here are the main provisions:
Freelance workers are entitled to a written contract outlining the scope of work and details about their contributions. This contract serves as a clear agreement between the freelancer and the hiring entity, ensuring both parties understand their responsibilities and expectations.
The FWPA mandates full payment for services by the due date or within 30 days of the completion of services. This provision aims to eliminate delays in payment, which can significantly impact the livelihood of freelancers.
Freelancers are protected from retaliation or other negative actions when exercising their rights under the act. This protection ensures that freelancers can assert their rights without fear of losing future work or facing other punitive measures.
To be eligible for protections under the FWPA, a freelancer must:
Businesses must review and possibly revise their contracts and payment practices to comply with the FWPA. Ensuring contracts are in writing and payments are made promptly will be critical to avoid legal repercussions.
Adhering to the FWPA will likely improve your relationship with your freelance workers. Clear agreements and timely payments can enhance trust and collaboration, which are vital for successful long-term business partnerships.
Non-compliance with the FWPA can result in legal disputes, financial penalties, and damage to the business's reputation. Businesses should consult compliance experts – such as TCWGlobal – as they consider law requirements and implement necessary changes.
While the primary goal of the FWPA is to protect freelancers, businesses also benefit from clear contracts and timely payments. These practices can lead to better work relationships and higher-quality outcomes.
The FWPA applies to all businesses, regardless of size. Small businesses must also ensure compliance to avoid legal issues and foster positive freelance engagements.
The FWPA requires written contracts for all freelance work. Verbal agreements do not provide the necessary legal protections and clarity that written contracts do.
The Freelance Worker Protection Act represents a significant step forward in protecting the rights of freelance workers in Illinois. For businesses, understanding and complying with the FWPA is essential to maintaining lawful and productive freelance engagements.
With over 15 years of experience in regulatory compliance and workforce management, TCWGlobal is equipped to guide your business through these evolving standards. Our proprietary software and expert teams ensure that your business remains compliant, regardless of how the regulatory winds may shift.
To get ahead of these changes and ensure seamless transitions, reach out to our global support team at (858) 810-3000 or hello@tcwglobal.com.