Public Act 103-1030
SB3650 EnrolledLRB103 38728 SPS 68865 b SB3650 Enrolled LRB103 38728 SPS 68865 b
SB3650 Enrolled LRB103 38728 SPS 68865 b
AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Day and Temporary Labor Services Act is
amended by changing Sections 5, 10, 11, 42, 45, 55, and 85 and
by adding Section 43 as follows:
(820 ILCS 175/5)
Sec. 5. Definitions. As used in this Act:
"Applicant" means a natural person who seeks a work
assignment at a day and temporary labor service agency.
"Day or temporary laborer" means a natural person who
contracts for employment with a day and temporary labor
service agency.
"Day and temporary labor" means work performed by a day or
temporary laborer at a third party client, the duration of
which may be specific or undefined, pursuant to a contract or
understanding between the day and temporary labor service
agency and the third party client. "Day and temporary labor"
does not include labor or employment of a professional or
clerical nature.
"Day and temporary labor service agency" means any person
or entity engaged in the business of employing day or
temporary laborers to provide services, for a fee, to or for
SB3650 Enrolled LRB103 38728 SPS 68865 b
any third party client pursuant to a contract with the day and
temporary labor service agency and the third party client.
"Department" means the Department of Labor.
"Interested party" means an organization that monitors or
is attentive to compliance with public or worker safety laws,
wage and hour requirements, or other statutory requirements.
"Labor dispute" means any controversy concerning wages,
hours, terms, or conditions of employment.
"Third party client" means any person that contracts with
a day and temporary labor service agency for obtaining day or
temporary laborers.
"Person" means every natural person, firm, partnership,
co-partnership, limited liability company, corporation,
association, business trust, or other legal entity, or its
legal representatives, agents, or assigns.
(Source: P.A. 103-437, eff. 8-4-23.)
(820 ILCS 175/10)
Sec. 10. Employment notice and application receipt.
Notice.
(a) Employment notice. Whenever a day and temporary labor
service agency agrees to send one or more persons to work as
day or temporary laborers, the day and temporary labor service
agency shall provide to each day or temporary laborer, at the
time of dispatch, a statement containing the following items
on a form approved by the Department:
(1) the name of the day or temporary laborer;
(2) the name and nature of the work to be performed,
including a list of basic job duties, and the types of
equipment, protective clothing, and training that are
required for the task;
(3) the wages offered;
(4) the name and address, including county, of the
destination of each day or temporary laborer;
(5) terms of transportation; and
(6) whether a meal or equipment, or both, are
provided, either by the day and temporary labor service
agency or the third party client, and the cost of the meal
and equipment, if any; and .
(7) for a day or temporary laborer entitled to the pay
requirements described in Section 42, either:
(A) the seniority and hourly wage of the
comparator being used to determine the wage if the
wage is determined under paragraph (1) of subsection
(a) of Section 42; or
(B) the standard occupational classification used
if the wage is determined under paragraph (2) of
subsection (a) of Section 42.
If a day or temporary laborer is assigned to the same
assignment for more than one day, the day and temporary labor
service agency is required to provide the employment notice
only on the first day of the assignment and on any day that any
of the terms listed on the employment notice are changed.
If the day or temporary laborer is not placed with a third
party client or otherwise contracted to work for that day, the
day and temporary labor service agency shall, upon request,
provide the day and temporary laborer with a confirmation that
the day or temporary laborer sought work, signed by an
employee of the day and temporary labor service agency, which
shall include the name of the agency, the name and address of
the day or temporary laborer, and the date and the time that
the day or temporary laborer receives the confirmation.
(b) (Blank). No day and temporary labor service agency
may send any day or temporary laborer to any place where a
strike, a lockout, or other labor trouble exists.
(b-5) Application receipt. If an applicant seeks a work
assignment as a day or temporary laborer with a day and
temporary labor service agency, including in-person, online,
or through an app-based system, and is not placed with a third
party client or otherwise contracted to work for that day by
the day and temporary labor service agency, the day and
temporary labor service agency shall provide the applicant
with a confirmation that the applicant sought work, signed by
an employee of the day and temporary labor service agency, on a
form approved by the Department, that shall include:
(1) the name and location of the day and temporary
labor service agency and branch office;
(2) the name and address of the applicant;
(3) the date and the time that the applicant sought
the work assignment;
(4) the manner in which the applicant sought the work
assignment; and
(5) the specific work sites or type of jobs sought by
the applicant, if applicable.
(c) The Department shall recommend to day and temporary
labor service agencies that those agencies employ personnel
who can effectively communicate information required in
subsections (a) and (b-5) (b) to day or temporary laborers in
Spanish, Polish, or any other language that is generally
understood in the locale of the day and temporary labor
service agency.
(Source: P.A. 99-78, eff. 7-20-15; 100-517, eff. 6-1-18.)
(820 ILCS 175/11)
Sec. 11. Right to refuse assignment to a labor dispute.
(a) No day and temporary labor service agency may send a
day or temporary laborer to a place where a strike, a lockout,
or work stoppage other labor trouble exists because of a labor
dispute or where a picket, bannering, or handbilling exists
because of a labor dispute without providing, at or before the
time of dispatch, a statement, in writing and in a language
that the day and temporary laborer understands, informing the
day or temporary laborer of the labor dispute and the day or
temporary laborer's right to refuse the assignment without
prejudice to receiving another assignment.
(b) The failure by a day and temporary labor service
agency to provide any of the information required by this
Section shall constitute a notice violation under Section 95.
The failure of a day and temporary labor service agency to
provide each piece of information required by this Section at
each time it is required by this Section shall constitute a
separate and distinct notice violation. If a day and temporary
labor service agency claims that it has provided a notice as
required under this Section electronically, the day and
temporary labor service agency shall bear the burden of
showing that the notice was provided if there is a dispute.
(Source: P.A. 103-437, eff. 8-4-23.)
(820 ILCS 175/42)
Sec. 42. Equal pay for equal work.
(a) A day and temporary labor service agency shall pay a A
day or temporary laborer who is assigned to work and performs
work at the same a third party client for more than 720 hours
within a 12-month period, beginning on or after April 1, 2024,
in accordance with one of the following methods: 90 calendar
days shall be paid not less than the rate of pay and equivalent
benefits as the lowest paid
(1) Third party client employee compensation as a
basis for compensation. The day or temporary laborer shall
be paid as follows:
(A) if there is a directly hired comparator
employee of the third party client with the same or
substantially similar level of seniority at the
company and performing the same or substantially
similar work on jobs the performance of which requires
substantially similar skill, effort, and
responsibility, and that are performed under similar
working conditions, not less than the straight-time
hourly rate of pay or hourly equivalent of the lowest
paid directly hired comparator employee of the third
party client who is entitled to overtime under the
Fair Labor Standards Act of 1938, as amended, with the
same or substantially similar level of seniority at
the company and performing the same or substantially
similar work on jobs the performance of which requires
substantially similar skill, effort, and
responsibility, and that are performed under similar
working conditions; or .
(B) if If there is not a directly hired comparator
comparative employee of the third party client, the
day or temporary laborer shall be paid not less than
the straight-time hourly rate of pay or hourly and
equivalent benefits of the lowest paid directly direct
hired employee of the third party client who is
entitled to overtime under the Fair Labor Standards
Act of 1938, as amended, company with the closest
level of seniority at the third party client company.
A day and temporary labor service agency may pay the
hourly cash equivalent of the actual cost benefits in
lieu of benefits required under this Section.
(2) Bureau of Labor Statistics data as a basis for
compensation. At the sole discretion of the third party
client, the day or temporary laborer shall be paid as
follows:
(A) if a day or temporary laborer has been
assigned to work and performs work at the same third
party client for more than 720 hours within a 12-month
period, not less than the median base hourly rate, or
hourly equivalent if paid on a salary basis, of
workers working in the same or a substantially similar
job classification, as reflected in the detail level
of the most recent Standard Occupational
Classification System published by the United States
Department of Labor's Bureau of Labor Statistics, in
the same metropolitan area or non-metropolitan area of
Illinois where the work is performed, as reflected in
the most recent Occupational Employment and Wage
Statistics Survey, or any successor publication,
published by the United States Department of Labor's
Bureau of Labor Statistics; or
(B) if a day or temporary laborer has been
assigned to work and performs work at the same third
party client for more than 4,160 hours within a
48-month period, not less than the 75th percentile
base hourly rate, or hourly equivalent if paid on a
salary basis, of workers working in the same or
substantially similar job classification, as reflected
in the detail level of the most recent Standard
Occupational Classification System published by the
United States Department of Labor's Bureau of Labor
Statistics, in the same metropolitan area or
non-metropolitan area of Illinois where the work is
performed, as reflected in the most recent
Occupational Employment and Wage Statistics Survey, or
any successor publication, published by the United
States Department of Labor's Bureau of Labor
Statistics.
The Department shall provide on its website a link to
the publications specified in this paragraph and a link to
the United States Department of Labor's guidance on
determining standard occupational classifications.
(b) A day and temporary labor agency shall provide a day or
temporary laborer who is assigned to work and performs work at
the same third party client for more than 720 hours within a
12-month period, beginning on or after April 1, 2024,
substantially similar benefits to the job classification of
employees performing the same or substantially similar work on
jobs and performed under similar working conditions. A day and
temporary labor service agency may pay the hourly average cash
equivalent of the actual cost of the benefits the third party
client provides the applicable directly hired employees in
lieu of benefits required under this subsection.
(c) Upon request, a third party client to which a day or
temporary laborer has been assigned to work and performed work
for more than 720 hours within a 12-month period or 4,160 hours
within a 48-month period 90 calendar days shall be obligated
to timely provide the day and temporary labor service agency
with all necessary information related to job duties, working
conditions, pay, seniority, and benefits it provides to the
applicable classification of directly hired employees
necessary for the day and temporary labor service agency to
comply with this Section. Upon receipt of the accurate and
complete information described in this subsection from the
third party client, it shall be the responsibility and duty of
the day and temporary labor service agency to calculate and
determine the straight-time hourly rate of pay and the
benefits it shall offer to the day or temporary laborer,
including any cash equivalent. The failure by a third party
client to provide any of the information required under this
Section shall constitute a notice violation by the third party
client under Section 95. For purposes of this Section, the day
and temporary labor service agency shall be considered a
person aggrieved as described in Section 95. For the purposes
of this Section, the calculation of the 90 calendar days may
not begin until April 1, 2024.
(d) For purposes of this Section, "seniority" means the
number of calendar months a day or temporary laborer has been
assigned to and worked at the third party client compared to
the number of calendar months a directly hired comparator
employee has been employed by the third party client.
(Source: P.A. 103-437, eff. 8-4-23; 103-564, eff. 11-17-23.)
(820 ILCS 175/43 new)
Sec. 43. Exception to equal pay requirements. The
requirements set forth in Section 42 shall not apply to any
company where the direct hire employees of the third party
client performing the same or substantially similar work as
the day or temporary laborers assigned to work at the third
party client are covered by a valid collective bargaining
agreement in effect on April 1, 2024 for the period covered by
that current collective bargaining agreement. Thereafter, the
hourly cash payment specified in subsection (b) of Section 42
shall not be required if the direct hire employees of the third
party client performing the same or substantially similar work
as the day or temporary laborers assigned to work at the third
party client are covered by a valid collective bargaining
agreement for any period covered by that collective bargaining
agreement.
(820 ILCS 175/45)
Sec. 45. Registration; Department of Labor.
(a) A day and temporary labor service agency which is
located, operates or transacts business within this State
shall register with the Department of Labor in accordance with
rules adopted by the Department for day and temporary labor
service agencies and shall be subject to this Act and any rules
adopted under this Act. Each day and temporary labor service
agency shall provide proof of an employer account number
issued by the Department of Employment Security for the
payment of unemployment insurance contributions as required
under the Unemployment Insurance Act, and proof of valid
workers' compensation insurance in effect at the time of
registration covering all of its employees. If, at any time, a
day and temporary labor service agency's workers' compensation
insurance coverage lapses, the agency shall have an
affirmative duty to report the lapse of such coverage to the
Department and the agency's registration shall be suspended
until the agency's workers' compensation insurance is
reinstated. The Department may assess each day and temporary
labor service agency a non-refundable registration fee not
exceeding $3,000 per year per agency and a non-refundable fee
not to exceed $750 for each branch office or other location
where the agency regularly contracts with day or temporary
laborers for services. The fee may be paid by check, money
order, or the State Treasurer's E-Pay program or any successor
program, and the Department may not refuse to accept a check on
the basis that it is not a certified check or a cashier's
check. The Department may charge an additional fee to be paid
by a day and temporary labor service agency if the agency, or
any person on the agency's behalf, issues or delivers a check
to the Department that is not honored by the financial
institution upon which it is drawn. The Department shall also
adopt rules for violation hearings and penalties for
violations of this Act or the Department's rules in
conjunction with the penalties set forth in this Act.
(a-1) At the time of registration with the Department of
Labor each year, the day and temporary labor service agency
shall submit to the Department of Labor a report containing
the information identified in paragraph (9) of subsection (a)
of Section 12, broken down by branch office, in the aggregate
for all day or temporary laborers assigned within Illinois and
subject to this Act during the preceding year. This
information shall be submitted on a form created by the
Department of Labor. The Department of Labor shall aggregate
the information submitted by all registering day and temporary
labor service agencies by removing identifying data and shall
have the information available to the public only on a
municipal and county basis. As used in this paragraph,
"identifying data" means any and all information that: (i)
provides specific information on individual worker identity;
(ii) identifies the service agency in any manner; and (iii)
identifies clients utilizing the day and temporary labor
service agency or any other information that can be traced
back to any specific registering day and temporary labor
service agency or its client. The information and reports
submitted to the Department of Labor under this subsection by
the registering day and temporary labor service agencies are
exempt from inspection and copying under Section 7.5 of the
Freedom of Information Act.
(b) It is a violation of this Act to operate a day and
temporary labor service agency without first registering with
the Department in accordance with subsection (a) of this
Section. The Department shall create and maintain at regular
intervals on its website, accessible to the public: (1) a list
of all registered day and temporary labor service agencies in
the State whose registration is in good standing; (2) a list of
day and temporary labor service agencies in the State whose
registration has been suspended, including the reason for the
suspension, the date the suspension was initiated, and the
date, if known, the suspension is to be lifted; and (3) a list
of day and temporary labor service agencies in the State whose
registration has been revoked, including the reason for the
revocation and the date the registration was revoked. The
Department has the authority to assess a penalty against any
day and temporary labor service agency that fails to register
with the Department of Labor in accordance with this Act or any
rules adopted under this Act of $500 for each violation. Each
day during which a day and temporary labor service agency
operates without registering with the Department shall be a
separate and distinct violation of this Act.
(c) A day and temporary labor service agency applying for
registration with the Department An applicant is not eligible
to register to operate a day and temporary labor service
agency under this Act if the day and temporary labor service
agency applying for registration with the Department applicant
or any of its officers, directors, partners, or managers or
any owner of 25% or greater beneficial interest:
(1) has been involved, as owner, officer, director,
partner, or manager, of any day and temporary labor
service agency whose registration has been revoked or has
been suspended without being reinstated within the 5 years
immediately preceding the filing of the application; or
(2) is under the age of 18.
(d) Every agency shall post and keep posted at each
location, in a position easily accessible to all day or
temporary laborers s, notices as supplied and required by the
Department containing a copy or summary of the provisions of
the Act and a notice which informs the public of a toll-free
telephone number for day or temporary laborers and the public
to file wage dispute complaints and other alleged violations
by day and temporary labor service agencies. Every day and
temporary labor service agency employing day or temporary
laborers who communicate with the day and temporary labor
service agency by electronic communication shall also provide
all required notices by email to its day or temporary laborers
or on a website, regularly used by the employer to communicate
work-related information, that all day or temporary laborers
are able to regularly access, freely and without interference.
Such notices shall be in English and any other language
generally understood in the locale of the day and temporary
labor service agency.
(Source: P.A. 103-201, eff. 1-1-24; 103-437, eff. 8-4-23;
revised 12-15-23.)
(820 ILCS 175/55)
Sec. 55. Enforcement by the Department. It shall be the
duty of the Department to enforce the provisions of this Act
when, in the Department's judgment, there is cause and
sufficient resources for investigation. The Department shall
have the power to conduct investigations in connection with
the administration and enforcement of this Act and any
investigator with the Department shall be authorized to visit
and inspect, at all reasonable times, any places covered by
this Act and shall be authorized to inspect, at all reasonable
times, contracts for the employment of all day or temporary
laborers entered into by a third party client if the
Department has received a complaint indicating that the third
party client may have contracted with a day and temporary
labor service agency that is not registered under this Act.
The Department shall conduct hearings in accordance with the
Illinois Administrative Procedure Act upon written complaint
by an investigator of the Department or any interested person
of a violation of the Act. After the hearing, if supported by
the evidence, the Department may (i) issue and cause to be
served on any party an order to cease and desist from further
violation of the Act, (ii) take affirmative or other action as
deemed reasonable to eliminate the effect of the violation,
(iii) deny, suspend, or revoke any registration under this
Act, and (iv) determine the amount of any civil penalty
allowed by the Act. The Director of Labor or his or her
representative may compel, by subpoena, the attendance and
testimony of witnesses and the production of books, payrolls,
records, papers, and other evidence in any investigation or
hearing and may administer oaths to witnesses. Nothing in this
Act applies to labor or employment of a clerical or
professional nature.
(Source: P.A. 103-437, eff. 8-4-23.)
(820 ILCS 175/85)
Sec. 85. Third party clients.
(a) It is a violation of this Act for a third party client
to enter into a contract for the employment of day or temporary
laborers with any day and temporary labor service agency not
registered under Section 45 of this Act. A third party client
has a duty to verify a day and temporary labor service agency's
status with the Department before entering into a contract
with such an agency, and on March 1 and September 1 of each
year. A day and temporary labor service agency shall be
required to provide each of its third party clients with proof
of valid registration issued by the Department at the time of
entering into a contract. A day and temporary labor service
agency shall be required to notify, both by telephone and in
writing, each day or temporary laborer it employs and each
third party client with whom it has a contract within 24 hours
of any denial, suspension, or revocation of its registration
by the Department. All contracts between any day and temporary
labor service agency and any third party client shall be
considered null and void from the date any such denial,
suspension, or revocation of registration becomes effective
and until such time as the day and temporary labor service
agency becomes registered and considered in good standing by
the Department as provided in Section 50 and Section 55. Upon
request, the Department shall provide to a third party client
a list of entities registered as day and temporary labor
service agencies. The Department shall provide on the Internet
a list of entities registered as day and temporary labor
service agencies. A third party client may rely on information
provided by the Department or maintained on the Department's
website pursuant to Section 45 of this Act and shall be held
harmless if such information maintained or provided by the
Department was inaccurate. Any third party client that
violates this provision of the Act is subject to a civil
penalty of not less than $100 and not to exceed $1,500. Each
day during which a third party client contracts with a day and
temporary labor service agency not registered under Section 45
of this Act shall constitute a separate and distinct offense.
(b) If a third party client leases or contracts with a day
and temporary service agency for the services of a day or
temporary laborer, the third party client shall share all
legal responsibility and liability for the payment of wages
under the Illinois Wage Payment and Collection Act and the
Minimum Wage Law.
(c) Before the assignment of an employee to a worksite
employer, a day and temporary labor service agency must:
(1) inquire about the client company's safety and
health practices and hazards at the actual workplace where
the day or temporary laborer will be working to assess the
safety conditions, workers tasks, and the client company's
safety program; these activities are required at the start
of any contract to place day or temporary laborers and may
include visiting the client company's actual worksite. If,
during the inquiry or anytime during the period of the
contract, the day and temporary labor service agency
becomes aware of existing job hazards that are not
mitigated by the client company, the day and temporary
labor service agency must make the client company aware,
urge the client company to correct it, and document these
efforts, otherwise the day and temporary labor service
agency must remove the day or temporary laborers from the
client company's worksite;
(2) provide training to the day or temporary laborer
for general awareness safety training for recognized
industry hazards the day or temporary laborer may
encounter at the client company's worksite. Industry
hazard training must be completed, in the preferred
language of the day or temporary laborer, and must be
provided at no expense to the day or temporary laborer.
The training date and training content must be maintained
by the day and temporary staffing agency and provided to
the day or temporary laborer;
(3) transmit a general description of the training
program including topics covered to the client company,
whether electronically or on paper, at the start of the
contract with the client company;
(4) provide the Department's hotline number for the
employee to call to report safety hazards and concerns as
part of the employment materials provided to the day or
temporary laborer; and
(5) inform the day or temporary laborer who the day or
temporary laborer should report safety concerns to at the
workplace.
Nothing in this Section shall diminish any existing client
company or a day and temporary labor service agency's
responsibility as an employer to provide a place of employment
free from recognized hazards or to otherwise comply with other
health and safety or employment laws. The client company and
the day and temporary labor service agency are responsible for
compliance with this Section and the rules adopted under this
Section.
(d) Before the day or temporary laborer engages in work
for a client company, the client company must:
(1) document and inform the day and temporary labor
service agency about anticipated job hazards likely
encountered by the day or temporary laborer;
(2) review the safety and health awareness training
provided by the day and temporary labor service agency to
determine if it addresses recognized hazards for the
client company's industry;
(3) provide specific training tailored to the
particular hazards at the client company's worksite
consistent with training requirements provided for in
standards, guidances, or best practices issued by the
federal Occupational Safety and Health Administration; and
(4) document and maintain records of site-specific
training and provide confirmation that the training
occurred to the day and temporary labor service agency
within 3 business days of providing the training.
(e) If the client company changes the job tasks or work
location and new hazards may be encountered, the client
company must:
(1) inform both the day and temporary labor service
agency and the day or temporary laborer; and
(2) inform both the day and temporary labor service
agency staffing agency and the day or temporary laborer of
job hazards not previously covered before the day or
temporary laborer undertakes the new tasks and update
personal protective equipment and training for the new job
tasks consistent with training requirements provided for
in standards, guidances, or best practices issued by the
federal Occupational Safety and Health Administration, if
necessary.
(f) A day and temporary labor service agency or day or
temporary laborer may refuse a new job task at the worksite
when the task has not been reviewed or if the day or temporary
laborer has not had appropriate training to do the new task.
(g) A client company that supervises a day or temporary
laborer must provide worksite specific training to the day or
temporary laborer and must allow a day and temporary labor
service agency to visit any worksite where the day or
temporary laborer works or will be working to observe and
confirm the client company's training and information related
to the worksite's job tasks, safety and health practices, and
hazards.
(Source: P.A. 103-437, eff. 8-4-23.)