Laws For Contractors In Chicago
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FAQ
Am I eligible for unemployment insurance benefits? Even if you are considered an independent contractor for tax purposes, you may be eligible for unemployment insurance.
The Freelance Worker Protection Act provides protections for independent contractors who provide products or services in Illinois or who work for a hiring entity located in Illinois when the value of that work is equal to or greater than $500 in a 120-day period.
The common law control test states that a worker is an employee, and not an independent contractor, if the business has the right to control the means by which the worker performs his services.
The general rule is that an individual is an independent contractor if the person for whom the services are performed has the right to control or direct only the result of the work and not what will be done and how it will be done. If you are an independent contractor, then you are self-employed.
“Contractors are required by law to be licensed and regulated by the Contractors State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four years of the date of the alleged violation.
A City of Chicago general contractor license is required to perform most types of building construction, alteration, repair, and demolition work within the City of Chicago.
The ”ABC” Test In addition to the U.S. DOL guidelines outlined above, the Illinois Department of Labor uses the “ABC” test, as do several other states, to determine whether a worker is an employee or a contractor.
Complaints against any individual or entity regulated by the Division of Professional Regulation may be filed by contacting the Complaint Intake Unit. For a complete list of professions regulated by DPR, please click here: .
But, unlike most parts of the country, Illinois doesn't actually license general contractors at the state level. So, while a particular city or county may not require a full license, you will still need to fill out some form of registration and meet the municipal requirements.
While the Prairie State doesn't require a general contractor license at the state level, licenses are typically regulated at the city or county level, and those requirements often vary. There are exceptions for roofing and plumber licenses, which require state permits.
