Independent Contractor Test in Illinois
Illinois uses the ABC test for unemployment insurance and in its Wage Payment and Collection Act.
Last checked . General information, not legal advice.
Illinois at a glance
- Test for wage and hour law
- ABC test (Wage Payment and Collection Act)
- The ABC test is written into the Wage Payment and Collection Act; it was not confirmed for the Minimum Wage Law.
- ABC test for wage law
- Yes (Wage Payment and Collection Act)
- Test for unemployment insurance
- ABC test
- Free from control, work outside usual course or places of business, independent trade
- ABC test for unemployment
- Yes
The rules in Illinois
Which test does Illinois use to classify independent contractors under its wage and hour laws?
Test for wage and hour law in Illinois: ABC test (Wage Payment and Collection Act). The ABC test is written into the Wage Payment and Collection Act; it was not confirmed for the Minimum Wage Law.
Does Illinois apply the ABC test under its wage and hour laws?
Yes (Wage Payment and Collection Act). ABC test for wage law in Illinois: yes (wage payment and collection act).
Which test does Illinois use to classify independent contractors for unemployment insurance?
Test for unemployment insurance in Illinois: ABC test. Free from control, work outside usual course or places of business, independent trade.
Does Illinois apply the ABC test for unemployment insurance?
Yes. ABC test for unemployment in Illinois: yes.
Where do the Illinois independent contractor tests come from?
The rules above come from 820 ILCS 115/2 and 820 ILCS 405/212. Each source is linked on this page. We last checked them in October 2026.
Good to know
The Wage Payment and Collection Act's part B is not met by work outside the employer's places of business if the employer is in the business of placing employees with third parties.
What this means in practice
Write down how the working relationship actually operates: who sets the hours, who supplies tools, whether the worker serves other clients and whether the work is part of the business's usual line of work. These facts drive every classification test, and a written independent contractor agreement helps only if it matches them.
Check each law separately. A worker can be a contractor under one statute and an employee under another, because wage laws, unemployment insurance, workers' compensation and tax rules may each use their own test. Federal law also applies its own tests alongside the state rules.
Misclassification can lead to back wages, unpaid unemployment contributions, interest and penalties. If a role is close to the line, read the statute and agency guidance for the state where the work is performed, or ask the state labor or unemployment agency how it applies its test.
General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.
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