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Recent efforts have resulted in the passage of an Employee Classification bill designed to make it harder for employers to illegally classify their employees as 1099 subcontractors when they actually meet the definition of employees and should be classified as such. Doing so allows them to avoid a host of employment costs and gives them an unfair advantage when bidding for work against companies that classify their employees properly.
LECET helped the effort to pass this bill in a number of ways, including the partial funding of an important study conducted by the Department of Economics at the University of Missouri-Kansas City. The study is titled "The Economic Costs of Employee Misclassification in the State of Illinois", and examines just that - what is the affect to the economy of misclassification - how much unemployment insurance is being lost, how much income tax revenue is being lost, how much it raises workers compensation premiums, etc. Read the full study here:
The Economic Costs of Employee Misclassification
Also, view the full text of the Employee Classification Act (Public Act 095-0026) here, which takes effect January 1, 2008.
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