Resources for Illinois Gig Workers: Understanding Your Rights on the Job

Chicago gig, contract, and self-employed workers often tell us they love what they do. They enjoy setting their own hours and the opportunity to take time off when they need it.

But, occasionally employers don’t play by the rules and workers don’t always know what to do about it.

Although they do a wide variety of different part-time, one-time, and gig work, several self-employed workers we spoke with had at least one negative experience:

• Annette*, one of the gig workers in our community design session, had a freelance job she never got paid for. She also had another job that was completely different from what was described and required her to lie to potential customers as part of her sales pitch.
• Joshua* a budding filmmaker who does part-time and gig work to support himself also was never paid by one of the contract employers he completed a project for.
• Kellye*, another worker who combines part-time financial planning work with other gig jobs, shared an example of being hired for a one-time project that was supposed to be in one neighborhood but ended up being in an entirely different community too far for her to drive to and from.

Others had similar experiences although most of their work had gone well.

While more protections are needed for gig workers across the country, there are steps gig and contract workers can take to know their rights and protect themselves from unfair treatment.

Even if you aren’t a full-time employee, you have basic rights whenever you agree to do work for an employer. Although many federal employment laws do not apply to independent contractors, Illinois passed the Freelance Workers Protection Act (FWPA) in 2023 which has expanded the rights of freelancers and gig workers and goes into effect July 1, 2024. The law applies to anyone who has been retained as an independent contractor by a contracting entity in exchange for $500 or more within a 120-day period. However, it does not apply to construction workers or employees.

Workers who join the not yet opened ChiFlexi pilot** will technically be employed by an employer of record who pays them for work done for a number of different short-term or one-time jobs. The platform is designed to give these workers the right to set their pay, set their hours, and determine where they are willing to work. They also will be issued a W-2 at the end of each year and receive pooled benefits like paid sick days.

For gig and contingent workers operating on their own, the following describes some but not all of your core rights.

1099 vs. W-2 Classification

If your employer or employers send you an IRS 1099 form to show your pay over the past year, you are considered an independent contractor.

If your employer gives you an IRS 1099 form rather than a W-2 form, they technically are not allowed to:

• Set your hours
• Determine exactly how, where, and when you do your work
• Keep you from performing similar services or work for other clients

For W-2 employees, employers must maintain workmen’s compensation insurance or they may receive fines. They must also withhold payroll taxes from W-2 employee checks to cover things like state taxes and the federal payroll tax FICA, which goes to fund Medicare and Social Security.

Workers who participate in ChiFlexi or a similar pilot from The Workers Lab in another location should have these taxes withdrawn from their combined W-2 across multiple gigs allowing them to build up a safety net in the case of unemployment or for old age.

Here are general distinctions between independent contractors and employees:

Employers cannot simply call you an independent contractor and give you a 1099 to avoid legal requirements-- that is called misclassification. If your job is similar to those of an employee, they must give you the rights of an employee.

Right to a Contract In Illinois, the FWPA requires a written contract that includes products, services, and method of compensation, as well as the date when payment is due.

Right to Pay No matter how many hours you work for an employer, you are entitled to be paid fairly for that time. In Illinois, under the FWPA you must be paid within 30 days. In addition, you may file an administrative complaint with the Illinois Department of Labor (IDOL) or sue on behalf of yourself or a group of workers, but it must be within two years of the date the final compensation was due.

Right to Breaks If you are an independent contractor, your employer cannot set your hours. As a result, you should not have to work for extensive periods of time without a break.

Right to Organize Even though independent contractors are not considered employees under federal labor law, you can still join a union. The obligations of employers and protections are different than for employees. However, in Illinois employers are no longer able to retaliate against workers for exercising their rights under the FWPA or take any action that is likely to deter them from exercising their rights. In addition, there are some groups that are organizing freelancers, gig workers, or temp workers including Chicago Gig Alliance, Chicago Workers Collaborative, and Freelancers Union in New York.

Right to a Safe Workplace When freelancers work from home or their own workspace, they are responsible for making sure it is safe and free of hazards. However, employers need to clearly define safety requirements or expectations and provide them with any important safety information such as how to handle hazardous materials or use equipment safely. Employers should not require workers to engage in unsafe work practices or work in an unsafe environment.

Rights for Immigrants Employers may not exploit noncitizens and then threaten them based on their immigration status. If immigrant workers feel they have been treated unfairly, they can request deferred action from a number of different sources in the government. Deferred action protects workers from immigration-related retaliation by employers.

Hopefully, you’ll never need to file a complaint against an employer. However, there are a number of resources that can help if you think your rights are being violated.

Workers rights centers can help answer your questions and let you know if your rights have been violated. There are several centers in Chicago. Some are based on geography and others are organized by type of work. In the City of Chicago, the Office of Labor Standards can be helpful. The Chicago Federation of Labor can also help.

Work-seekers taking part in The Workers Lab ChiFlexi project with New America, Cara Connects, and National Able Network will be able to fill out a form to alert the team to problems with an employer. This form can be completed both for good employers and bad actor employers. This will allow the team to support good employers and block employers who have repeated violations of worker rights.

Be Prepared

Keeping track of some important documents can help you be prepared if you ever have to report misbehavior by an employer. Workers who think they have been taken advantage of can use this information to document their claims. (Adapted from: UIUC Labor Education Program Workers’ Rights Curriculum, 2019)

Keep a work documents folder at home or on a computer or online folder like Google Docs. Keep important papers there about each job.

If you can’t keep electronic copies, use a 2-pocket folder, an expandable folder, something sturdy that will last. Keep it at home in a safe place that you can find easily. Don’t bring it to work.

Include these documents:

• Employee handbook, memos about policies or rules
• Job description
• Copies of any documents you sign
• Time cards, pay stubs
• Records of attendance, paid leave accrual, and use of paid leave time
• Performance evaluations to prove your performance
• Disciplinary statements
• Production or attendance awards to prove your performance
• Contact information for employer: name of company, staff person, phone number, license plate (especially important in temp work situations)

Keep a work calendar where you write down your hours and wages/tips every day.

Write in a notes document on your smartphone or a small notebook. Write about any incidents or issues that arise.

Additional Resources

In Illinois, there are a number of different resources to help you file a complaint when you’ve been mistreated by an employer.

How to file employment discrimination charge: https://dhr.illinois.gov/filing-a-charge/employment.html

How to file a minimum wage, overtime, unpaid wages complaint form: https://labor.illinois.gov/faqs/how-to-file-a-claim.html

How to file a health or safety complaint if you are working in the public sector: https://labor.illinois.gov/laws-rules/safety/hazards.html

How to file a health or safety complaint if you are working in the private sector: https://www.osha.gov/form/osha7

How to file an fatality or injury if you are working in the private sector: https://www.osha.gov/report

How to file a fatality or injury if you are working in a public sector:

https://labor.illinois.gov/laws-rules/safety/public_reporting.html

Petition for U Nonimmigrant Status: https://www.uscis.gov/I-918

Request a letter of support for deferred action: https://labor.illinois.gov/laws-rules/legal/deferredaction.html

You can also visit the Illinois Department of Labor website’s Frequently Asked Questions sections for any questions you may still have.

For more details about your rights and how to protect yourself, contact a labor attorney.

* Name changed to protect workers’ privacy

**Information about when ChiFlexi is open to the public will be made available soon.