Unfortunately, some employers misclassify their employees. While this can be a genuine mistake, it is possible for companies to intentionally underpay you. If you are facing this, you may seek legal protection.
Understanding employment and wage laws in Illinois is critical to protecting your rights.
Using the ABC Test
According to the Illinois Unemployment Insurance Act, the state assumes you are an employee unless your employer proves all three factors of the ABC Test, which are:
- Control: You can decide how to perform your job and work at your preferred time.
- Location and nature: Your work is outside the company’s main business or all of the employer’s places of business.
- Independence: You engage in an independently established business or trade that exists separately from your employer.
The goal of this test is to prevent employers from intentionally misclassifying employees as contractors to avoid paying unemployment taxes.
Why misclassification might be wage theft
Failing any part of the ABC Test can prove that you are an employee. This means you are entitled to protections under the Illinois Wage Payment and Collection Act, unless you hold a state or federal position.
If you have been working overtime without receiving proper compensation, your employer may owe you years of back wages plus statutory damages of 5% per month of the unpaid amount.
Reclaiming the missing wages
Misclassifying you as an independent contractor should not be an excuse for your boss to underpay you. While an honest conversation can sometimes fix a clerical error, proving misclassification can be a complex battle. Seeking legal advice can also be helpful for your unique situation, especially if your employer refuses to correct your employment misclassification.