Freelance Worker Protection Act Takes Effect
New law provides protections for independent contractors in Illinois

 

[July 09, 2024] 

The Freelance Worker Protection Act, which provides protections for independent contractors who create products or services in Illinois or who work for a hiring entity located in Illinois, took effect on July 1st.

Under the law, freelance workers are entitled to the following when the value of their work is equal to or greater than $500 in a 120-day period:

A written contract outlining the products and services to be provided, the dates by which services are to be performed, and the rate and method of compensation (sample available online)

Full payment for the services by the due date in the contract, or if the due date is not specified, within 30 days of completing the services outlined in the contract

Protection from retaliation and/or other negative action for exercising rights under the FWPA

“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,” said Illinois Department of Labor Director Jane Flanagan.

The law only applies to freelance contracts taking effect after July 1, 2024. It does not apply to individuals performing construction services, nor does it apply to employees of an employer. Employees owed back wages from their employer may file a wage claim with the Department of Labor here.

“Freelance workers, like all workers, deserve to have basic protections like timely pay and the right to a written contract,” said State Rep. Will Guzzardi (D-Chicago). “Many freelancers say they live check to check; these protections ensure there are clear expectations for the workers and hiring entities.”

Frequently asked questions and a sample freelance worker contract (which is available in multiple commonly-spoken languages) can be found at the Department’s website: labor.illinois.gov/freelance.

[Illinois Office of Communication and Information]