Business owners use a number of different strategies to ensure that their companies can continue to be successful. These strategies include determining the best ways to handle different types of workers. Many full-time and part-time workers will be considered employees, and minimum wage and overtime laws will apply to them. Employees will also be eligible for certain benefits, including workers’ compensation and unemployment. A business owner may also hire freelancers to perform certain types of work, or they may hire contract workers on a temporary or long-term basis. 

Since different rules apply to employees and independent contractors, it is important to understand how to properly classify workers. Misclassification of workers may result in penalties, so even if it may seem financially advantageous to treat workers as independent contractors, employers should be sure they are following correct practices when hiring workers as employees.

Determining How a Worker Should be Classified

Since every business is unique, multiple factors play a role in determining whether workers should be considered employees or independent contractors. An employer will need to look at the nature of their business, the types of work being performed, and the ongoing relationships with their workers. Generally, the determination of a worker’s classification will be based on what is known as the “ABC test.” This test looks at the following factors, and if they are all true, the person may be classified as an independent contractor:

There are multiple laws that are meant to protect the rights of workers, and employers can face significant penalties if they violate their legal requirements. Wage and hour disputes may occur if employees claim that an employer has not properly paid them for the hours they have worked. These may include disputes related to minimum wage, overtime pay, or requirements related to hourly wages, breaks, or other factors. To avoid potential penalties or costly legal disputes, Illinois employers will need to understand the laws that address these issues.

Illinois Laws Affecting Employee Hours and Wages

Employers in Illinois must meet the following requirements:

• Minimum wage - As of January 1, 2022, the minimum wage in Illinois is $12.00 per hour. For the first 90 days of employment, an employer may pay a training wage of $11.50 per hour.

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If you are like most employers, staffing issues are probably one of your top concerns lately. Hiring and retaining quality staff is a constant struggle for many companies – especially during the “Great Resignation,” in which people are leaving positions in droves.

One of the best things employers can do to increase their workforce's efficiency and protect their company against lawsuits is to draft a robust employee handbook. If you are a business owner and do not yet have an employee handbook, consider working with an employment law attorney to make sure all of your bases are covered.

Avoiding Employment-Related Lawsuits

Drafting a detailed employee handbook and following through with its provisions is one of the best ways for employers to avoid lawsuits. Being sued for discrimination or wrongful termination can be devastating to your company’s reputation as well as your bottom line. A strong employee handbook is the first defense against allegations and lawsuits.

Several years ago, the country exploded with the #metoo movement, triggered by accusations of sexual violence and sexual harassment against producer Harvey Weinstein. The movement led to sweeping societal changes, including many states banning nondisclosure agreements that cover sexual harassment. Illinois passed such a law in 2019

Under federal law, every employee has the legal right to work in a safe and discrimination-free workplace. If an employer fails to provide that environment, the company could face significant penalties. If an employee has accused your company of workplace discrimination, contact an Illinois employment law attorney for legal assistance.

What Is Workplace Discrimination?

The Equal Employment Opportunity Commission (EEOC) is the federal agency that is in charge of enforcing the laws that make it illegal to discriminate against an employee or a job applicant. The laws that fall under the EEOC’s jurisdiction apply to work issues such as benefits, firing, hiring, promotions, training, and wages.

There is a myriad of risks that a business may face in all areas of operation, however, one area that some business owners overlook until it is too late is the risk that is posed by their employees’ actions. Under the law, this is known as “vicarious liability” and every business owner should be aware of what the potential legal and financial ramifications could be.

What Is Vicarious Liability

Per the legal doctrine of vicarious liability, a victim who sustains injury as a result of a business’s employee is entitled to receive financial compensation from the employer as long as the employee’s actions or conduct occurred within the scope of that employee’s employment.

One example of vicarious liability would be a delivery driver who runs a red light while rushing to make a delivery and crashes into another vehicle, resulting in the driver of that vehicle suffering serious injury. The business the delivery driver works for would be liable for the victim’s damages since the delivery driver was performing their work duties when they ran the light.