AUTHORITY: Implementing and authorized by Section 45 of the Day and Temporary Labor Services Act [820 ILCS 175/45].

SOURCE: Adopted at 24 Ill. Reg. 6901, effective April 17, 2000; amended at 25 Ill. Reg. 856, effective January 5, 2001; amended at 30 Ill. Reg. 11557, effective June 22, 2006; amended at 32 Ill. Reg. 8736, effective May 29, 2008; emergency amendment at 47 Ill. Reg. 12457, effective August 7, 2023, for a maximum of 150 days.

SUBPART A: GENERAL PROVISIONS

 

Section 260.100  Definitions

 

            "Act" means the Day and Temporary Labor Services Act [820 ILCS 175].

 

"Contract" means an agreement, written, oral or otherwise as agreed to between the parties.

 

            "Day" means a calendar day.

 

            "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 and temporary laborers to provide services, for a fee,  to or for any third party client pursuant to a contract with the day and temporary labor service agency and the third party client, and which is located, operates or transacts business within the State of Illinois. [820 ILCS 175/5]

 

            "Department" means the Illinois Department of Labor.

 

"Director" means the Director of Labor or a duly authorized representative.

 

"Hours worked" has the meaning ascribed to that term in 56 Ill. Adm. Code 210.110.  [820 ILCS 175/30(a)(2)]

 

            "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.

 

"Professional" means, for purposes of the Day and Temporary Labor Services Act [820 ILCS 175], any person who meets the duties test of a professional under 29 CFR 541.3 as of March 30, 2003 (no later dates or editions).  Specifically, this means any employee engaged in work predominantly intellectual and varied in character, rather than routine mental, manual, mechanical or physical work.

 

            "Third Party Client" means any person that contracts with a day and temporary labor service agency for obtaining day or temporary laborers. [820 ILCS 175/5]

 

(Source:  Amended at 32 Ill. Reg. 8736, effective May 29, 2008)

SUBPART B: COMPLAINT AND INVESTIGATION

 

Section 260.200  Complaint

 

The Department may investigate any alleged violations of the Act or this Part.  

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.210  Investigation

 

a)         The investigation may be made by written or oral inquiry, field visit, conference or any method or combination of methods deemed suitable in the discretion of the Department.  The Director may examine a day and temporary labor agency's books and records, as well as any other documents reasonably related to the investigation, to determine whether a violation of the Act has occurred.

 

b)         The Director shall notify all parties of the results of the investigation and shall issue a violation notice when the investigation has established that a violation of the Act or this Part occurred or is occurring.

 

c)         If the Director issues a written decision, a party shall have the right to appeal a violation in accordance with the procedures set forth in Section 260.610 of this Part. 

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

SUBPART C: REGISTRATION PROCESS

 

Section 260.300  Registration

 

a)         No person shall employ day laborers to provide services to or for any third party client pursuant to a contract with itself and the third party client unless that person or entity has obtained a non-transferable certificate from the Department evidencing the person is registered with the Department.

 

b)         A day and temporary labor service agency must register each location or branch office with the Department from which it will be operated.

 

c)         A day and temporary labor service agency shall keep, and prominently display, the certificate of registration in the public access area at each location where it operates.

 

d)         A person that is licensed as a private employment agency must also register with the Department as a day and temporary labor service agency if it engages in the business of employing day and temporary laborers to provide services to or for any third party client pursuant to a contract with the person or entity and the third party client.

 

e)         A person or entity must register as a day and temporary labor service agency with the Department when, on an isolated or incidental basis, it employs persons to provide professional or clerical services to or for any third party client pursuant to a contract with the person and the third party client, in addition to its primary business of employing day and temporary laborers to provide services to or for any third party client pursuant to a contract with the person and the third party client.

 

f)         In the case of a day and temporary labor service agency that operates both day and temporary labor locations and separate locations providing professional, clerical or other non-day labor services, the requirements of subsections (c) and (d) of this Section shall apply only to the agency's day and temporary labor locations.

 

(Source:  Renumbered from Section 260.200 and amended at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.310  Content of Application to Register

 

An application to register a day and temporary labor service agency, and an application for registration renewal, shall be made on a form provided by the Department. The application shall contain but is not limited to the following:

 

a)         The name, address, federal employer identification number, and telephone number of the person, including the trade and/or assumed name by which the person does business;

 

b)         If the person is a corporation, a copy of its articles of incorporation, a copy of its current bylaws and the names and addresses of its officers and directors and the names and addresses of shareholders owning more than 5% of the corporation's stock shall be provided for the initial registration. Application for registration renewal shall contain any amendments to the articles of incorporation and bylaws, the names and addresses of any new officers and directors, and the names and addresses of any new shareholders owning more than 5% of the corporation's stock;

 

c)         If the person is a partnership, the names, business or personal addresses, and telephone numbers of all partners. Application for registration renewal shall contain the names, business or personal addresses, and telephone numbers of all new partners;

 

d)         If the person is a limited liability company, a copy of the articles of organization, the operating agreement, and the names and addresses of all organizers and members owning more than 5% of the membership;

 

e)         The name, address, federal employer identification number, and telephone number of the registered agent for the place of business, including the position held by that person or entity with the person. Application for registration renewal shall contain the name, address, federal employer identification number, and telephone number of any new registered agent for the place of business, including the position held by that person or entity with the day labor service agency;

 

f)         The name and locations of premises from which the day and temporary labor service agency will provide services. Application for renewal shall contain any new name and locations of premises from which the day and temporary labor service agency will provide services;

 

g)         The name and address of the person under whose management or supervision the day and temporary labor service agency will be operated. If, during the period when the registration is effective, the person under whose management or supervision the day and temporary labor service agency operates changes, the day and temporary labor service agency will notify the Department within 30 days after the change.  Application for registration renewal shall include the name and address of any new person under whose management or supervision the day labor service agency will be operated;

 

h)         Certification that the applicant, if an individual, is 18 years of age or older;

 

i)          A bond in due form, to the People of the State of Illinois, for the penal sum of $5,000 with one or more sureties, to be approved by the Department of Labor and conditioned that the obligor will conform to and not violate any of the duties, terms, conditions, provisions or requirements of the Act or this Part;

 

j)          A certification that the agency will comply with all applicable State and federal employment laws, including, but not limited to, the Illinois Wage Payment and Collection Act [820 ILCS 115] and state and federal laws relating to employee compensation and overtime compensation (Illinois Minimum Wage Law [820 ILCS 105]), social security taxes, State and federal income taxes, workers' compensation (Workers' Compensation Act [820 ILCS 305]), and unemployment taxes (Unemployment Insurance Act [820 ILCS 405]);

 

k)         A copy of the form to be used for the employment notice, as required by Section 10 of the Act and Section 260.400 of this Part.  The form shall include, but is not  limited to, the items listed in Section 260.400;

 

l)          An oath or affirmation certifying that all information contained within, and attached to, the application is true and complete;

 

m)        The notarized signature of the individual submitting the application;

 

n)         Copies of financial responsibility and liability insurance required under the Motor Vehicle Code [625 ILCS 5] for any transportation provided by or referred by the day and temporary labor service agency or a third party client, or a contractor or agent of either, to transport day or temporary laborers to a work site;

 

o)         Proof of an employer account number for payment of unemployment insurance contributions as required by Section 45 of the Act; and

 

p)         Proof of valid workers' compensation insurance in effect at the time of and for the duration of the registration period covering all of the day and temporary labor service agency's employees, as required by Section 45 of the Act.

 

(Source:  Amended at 32 Ill. Reg. 8736, effective May 29, 2008)

 

Section 260.320  Expiration and Renewal of Registration

 

a)         Registration of a day and temporary labor service agency shall be for a term of one calendar year and shall expire at the end of the calendar year unless the Department revokes or suspends the registration sooner. A period of suspension does not extend the registration for any period of time.

 

b)         A day and temporary labor service agency must apply for renewal at least 60 days prior to the expiration of its registration with the Department.

 

(Source:  Renumbered from Section 260.220 and amended at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.330  Registration Fees

 

a)         The initial application to register a day and temporary labor service agency must be accompanied by a $1,000 fee for each agency and a $250 fee for each branch office or other location where the agency regularly contracts with day or temporary laborers for services.  

 

b)         The application for renewal of registration for a day and temporary labor service agency must be accompanied by a $1,000 fee for each agency and a $250 fee for each branch office or other location where the agency regularly contracts with day or temporary laborers for services.

 

c)         The fee to initially apply for, or renew, a registration may be paid by certified check, cashier's check or money order made payable to the Illinois Department of Labor.

 

d)         The fee to initially apply for, or renew, a registration is not refundable.

 

(Source:  Renumbered from Section 260.230 and amended at 30 Ill. Reg. 11557, effective June 22, 2006)

SUBPART D: DUTIES AND RESPONSIBILITIES OF DAY AND TEMPORARY LABOR SERVICE AGENCIES

 

Section 260.400  Employment Notice

 

a)         A day and temporary labor service agency shall provide at the time of dispatch, to each day and temporary laborer who is sent to work as a day and temporary laborer, a statement that contains the following information:

 

                        1)         the name of the day or temporary laborer;

 

2)         the name and nature of the work to be performed;

 

3)         the wages offered;

 

4)         the name and address of the destination of each day or temporary laborer;

 

5)         the terms of transportation;

 

6)         whether a meal or equipment or both is provided by either the day and temporary labor service agency or the third party client and the cost of the meal and equipment, if any; and [820 ILCS 175/10(a)(1)-(6)]

 

7)         if using codes on the day or temporary laborer's paycheck stub to identify third party clients, the code or codes that correlate to where the day or temporary laborer is being sent to work.

 

b)         The statement provided by the day and temporary labor service agency shall be certified and signed by an authorized agent of the agency stating that the information contained in the statement is true and correct.  If a day or temporary laborer is not dispatched directly to the work site from the office or other location of the day and temporary labor service agency, the statement shall be provided to the day or temporary laborer by hand, email, facsimile or U.S. mail.  If the day or temporary laborer is dispatched by telephone, the day and temporary labor service agency shall send the statement to the day or temporary laborer by hand, email, facsimile or U.S. mail.  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 only required to provide the employment notice on the first day of the assignment and on any day that any of the terms listed on the employment notice are changed [820 ILCS 175/10(a)].

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.410  Recordkeeping

 

Pursuant to Section 12 of the Act, day and temporary labor service agencies shall keep the following records during regular business hours at the place the records are kept:

 

a)         the name, address and telephone number of each third party client, including each work site, to which day or temporary laborers were sent by the agency and the date of the transaction;

 

b)         the name and address, the specific location sent to work, the type of work performed, the number of hours worked, the hourly rate of pay and the date sent, for each day or temporary laborer;

 

c)         the name and title of the individual or individuals at each third party client's place of business responsible for the transaction;

 

d)         any specific qualifications or attributes of a day or temporary laborer requested by each third party client;

 

e)         copies of all contracts, if any, with the third party client and copies of all invoices for the third party client;

 

f)         copies of all employment notices provided in accordance with Section 10 of the Act and this Subpart;

 

g)         deductions to be made from each day or temporary laborer's compensation made by either the third party client or by the day and temporary labor service agency for the day or temporary laborer's food, equipment, withheld income tax, withheld social security payments and every other deduction;

 

h)         verification of the actual cost of any equipment or meal charged to a day or temporary laborer; [820 ILCS 175/12]

 

i)          the race and gender of each day or temporary laborer sent by the day and temporary labor service agency, as provided by the day or temporary laborer;

 

j)          number of hours billed by the day and temporary labor service agency to each third party client for each day or temporary laborer; and

 

k)         a legend or explanation sheet for the code or codes used on a day or temporary laborer's paycheck stub that identifies the third party client or third party clients for whom the day or temporary laborer worked.

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.420  Inspection and Maintenance of Records

 

a)         The Department is authorized to inspect and copy any records or notices required to be kept under the Act and this Part during regular business hours at the place where the records are maintained.  The records or notices required to be kept under the Act and this Part shall be kept within the State of Illinois at an office of the day and temporary labor service agency.  The refusal of an agency to produce for inspection or copying of the records will be considered grounds to revoke the agency's registration.

 

b)         Records required under this Section shall be maintained for a period of three years from their creation.  However, records shall be maintained for a longer period while there is an open case pending against the agency.

 

c)         Day and temporary labor service agencies shall make the records described in Section 260.410 (a), (b), (c), (f), (g), and (h) of this Part available to a day or temporary laborer during normal business hours within 5 days following a written request.   In addition, during normal business hours and within 5 days following a written request, day and temporary labor service agencies shall make available to the individual making the request records relating to the number of hours billed to a third party client for that individual day or temporary laborer's hours of work.

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.430  Meals

 

A day and temporary labor service agency shall not charge a day or temporary laborer for any meal not consumed by the day or temporary laborer.  If a meal is consumed by the day or temporary laborer, no more than the actual cost of the meal may be charged.  The purchase of a meal cannot be a condition of employment for the day or temporary laborer.  (See 820 ILCS 175/15.)

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.440  Transportation

 

a)         A day and temporary labor service agency  or a third party client or contractor or agent of either shall not charge a fee to transport a day or temporary laborer to or from the designated work site.

 

b)         A day and temporary labor service agency is responsible for the conduct and performance of any person who transports a day or temporary laborer from the agency to a work site, except as provided in Section 20 of the Act.  [820 ILCS 175/20]

 

c)         A day and temporary labor service agency shall not refer a day or temporary laborer to any person for transportation to a work site, except as provided in Section 20 of the Act.

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.450  Wage Payment and Notice

 

a)         At the time of payment of wages, a day and temporary labor service agency shall provide the following information on the day or temporary laborer's paycheck or on a form approved by the Department:

 

1)         the name, address, and telephone number of each third party client at which the day and temporary laborer worked;

 

2)         the number of hours worked by the day or temporary laborer at each third party client each day during the pay period.  If the day or temporary laborer is assigned to work at the same work site of the same third party client for multiple days in the same work week, the day and temporary laborer service agency may record a summary of hours worked at that third party client's worksite so long as the first and last day of that work week are identified as well;

 

3)         the rate of payment for each hour worked, including any premium rate or bonus;

 

4)         the total pay period earnings;

 

5)         all deductions made from the day or temporary laborer's compensation made either by the third party client or by the day and temporary labor service agency, and the purpose for which deductions were made, including the day and temporary laborer's food, equipment, withheld income tax, withheld social security payments, and every other deduction [820 ILCS 175/30(a)]; and

 

6)         if using codes on the day or temporary laborer's paycheck stub to identify third party clients, the legend or explanation sheet for the code or codes that correlate to where the day or temporary laborer worked shall be made immediately available to the day or temporary laborer upon request and during normal business hours.

 

b)         A day or temporary laborer who is contracted by a day and temporary labor service agency to work at a third party client's work site, but is not utilized by the third party client, shall be paid by the day and temporary labor service agency for a minimum of 4 hours of pay at the agreed upon rate of pay.  However, if the day and temporary labor service agency is able to place the day or temporary laborer at another work site during that same shift, the day or temporary laborer shall be paid by the agency a minimum of 2 hours of pay, at the agreed upon rate of pay, in addition to all hours worked by the day or temporary laborer during that shift.  [820 ILCS 175/30]

 

c)         All wage payments must be in compliance with all laws relating to wages contained in 820 ILCS.

 

(Source:  Amended at 32 Ill. Reg. 8736, effective May 29, 2008)

 

Section 260.460  Deductions from Wages

 

Except as provided in Section 9 of the Illinois Wage Payment and Collection Act, no deductions from wages shall be made unless the day or temporary laborer provides express written authorization for a deduction given freely at the time the deduction is made in accordance with Section 9 of the Illinois Wage Payment and Collection Act [820 ILCS 115/9], the Act and this Part.  Deductions may not cause a day or temporary laborer's hourly rate to fall below the State or federal minimum wage.  The Department shall provide a form to be used for all deductions made under the Act and this Part.   

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.470  Placement Fees

 

a)         A day and temporary labor service agency may charge a placement fee to a third party client who employs a day and temporary laborer for whom a contract for work was effected by the agency.  The fee shall not exceed the total daily commission rate the agency would have received over a 60 day period reduced by the total amount of the daily commission rate the agency has received each day the day or temporary laborer has performed work for the agency in the preceding 12 months.

 

b)         Days worked at the agency in the 12 months prior to January 1, 2006 shall be included for purposes of calculating the maximum placement fee.

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.480  Public Access Area

 

A day and temporary labor service agency shall provide adequate seating in the public access area of the offices of the agency.  The public access area shall allow for access to restrooms and suitable drinking water.  (See 820 ILCS 175/35.)

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.490  Postings

 

A day and temporary labor service agency shall post and keep posted at each location, in the public access area, easily accessible to all employees, notices as supplied and required by the Department containing a copy or summary of the provisions of the Act and 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.  The public access area shall also be the location for any other State or federally mandated posting.  (See 820 ILCS 175/35.)

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.495  Liability Insurance

 

Any day and temporary labor service agency that provides transportation, as provided in Section 20 of the Act or this Part, to a day or temporary laborer to transport the laborer to a work site shall be required to notify the Department if the insurance policy is cancelled.  The day and temporary labor service agency shall ensure that the insurance company provides the Department notice of cancellation of the insurance.

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.497 Workers' Compensation Insurance

 

Valid workers' compensation insurance covering all day or temporary laborers shall be in effect at the time of and for the duration of the registration period.  The day and temporary labor service agency shall have an affirmative duty to report any lapse of coverage to the Department.

It shall also be required that the day and temporary labor service agency ensure that the insurance

company provide the Department notice of cancellation of the insurance.

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

SUBPART E: DUTIES AND RESPONSIBILITIES OF THIRD PARTY CLIENTS

 

Section 260.500  Wage Payments and Legal Responsibility

 

All wage payments must be in compliance with all laws relating to wages contained in 820 ILCS.  Third party clients that contract with day and temporary labor service agencies for the services of day or temporary laborers shall share with the day and temporary labor service agency all legal liability and responsibility for the payment of wages.

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.510  Verification of Registration

 

Third party clients have a duty to verify that a day and temporary labor service agency is registered with the Department before entering into a contract with the agency, and again on March 1 and September 1 of each year.  Third party clients may verify that an agency is registered by consulting the Department's website.

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.520  Work Verification Form

 

For each day or temporary laborer who is contracted to work a single day, the third party client shall provide the day or temporary laborer with a work verification form at the end of the work day.  The form shall be provided by or approved by the Department and shall contain the date, the name of the day or temporary laborer, the work location and the hours worked on that day.  (See 820 ILCS 175/30(a-1).)

 

(Source:  Added at 30 Ill. Reg. 11557, effective June 22, 2006)

SUBPART F: SUSPENSION, REVOCATION, DENIAL OF REGISTRATION, AND HEARINGS

 

Section 260.600  Suspension, Revocation, or Denial

 

The registration of a day and temporary labor service agency with the Department shall be suspended, revoked or denied for, but not limited to, any of the following reasons:

 

a)         A violation of, or failure to comply with, any provision of the Act or of this Part;

 

b)         Knowingly making any misrepresentation or false statement in connection with an application for, or renewal of, a registration of a day and temporary labor service agency with the Department; or

 

c)         For any conduct or practice found, as a result of an administrative hearing, to be detrimental to public health and safety.

 

(Source:  Renumbered from Section 260.300 and amended at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.610  Initiation of Hearing

 

a)         A hearing shall be initiated upon the request of a party after the party has received a written decision of a violation of the Act or this Part.  The request must be made in writing and mailed by certified mail or delivered in person to the Department within 10 working days after receipt after the written decision of a violation.

 

b)         Hearings shall be conducted pursuant to the provisions of Article 10 of the Illinois Administrative Procedure Act [5 ILCS 100/Art. 10] and the Department's Rules of Procedure in Administrative Hearings (56 Ill. Adm. Code 120).

 

(Source:  Renumbered from Section 260.310 and amended at 30 Ill. Reg. 11557, effective June 22, 2006)

 

Section 260.620  Considerations in Reaching a Decision (Repealed)

 

(Source:  Renumbered from Section 260.320 and repealed at 30 Ill. Reg. 11557, effective June 22, 2006)