What is "Construction" Under the Illinois Employee Classification Act?

By Nancy E. Joerg, Esq.

The Employee Classification Act (formerly House Bill 1795) is a frightening and radical Illinois law which went 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 are classified as "construction" under this harsh law because of the final sentence: "Construction shall also include moving construction-related materials on the job site to or from the job site."

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