HB5543 102ND GENERAL ASSEMBLY

LRB102 23895 SPS 33093 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5543

Introduced 1/31/2022, by Rep. Edgar Gonzalez, Jr.

SYNOPSIS AS INTRODUCED:

20 ILCS 1505/1505-225 new

Amends the Department of Labor Law of the Civil Administrative Code of Illinois. Provides that the Department of Labor shall develop and administer a Day and Temporary Labor Service Agencies Seal of Approval Program to bring day and temporary labor service agencies into compliance with the provisions of the Day and Temporary Labor Services Act. Provides for a voluntary Code of Conduct for day and temporary labor service agencies. Provides that, as part of the Program, a day or temporary labor service agency shall submit itself to audits conducted at the Department's discretion. Provides for benefits and partnerships with other State agencies and community partners. Provides that the Department may adopt rules to implement the Program.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Department of Labor Law of the Civil Administrative Code of Illinois is amended by adding Section 1505-225 as follows:

(20 ILCS 1505/1505-225 new)

Sec. 1505-225. Day and Temporary Labor Service Agencies Seal of Approval Program.

(a) The Department shall develop and administer a Day and Temporary Labor Service Agencies Seal of Approval Program to bring day and temporary labor service agencies into compliance with the provisions of the Day and Temporary Labor Services Act. To apply for the Program, a day or temporary labor service agency shall comply with the following:

(1) provide their check history and check cashing reports;

(2) submit to a voluntary audit of time and pay records;

(3) participate in required training as determined by the Department;

(4) agree to abide by the Code of Conduct described in subsection (b); and

(5) rectify any underpayment of wages to employees, judgments, and penalties awarded in private lawsuits before receiving the certification.

(b) As part of the Program, the Department shall establish a Code of Conduct for day and temporary labor service agencies. The Code of Conduct shall require day and temporary labor service agencies to comply with the following:

(1) use the Department's standard code-compliant check stubs, employment notices, and demographic reporting forms;

(2) maintain demographic info of all laborers seeking work assignments;

(3) provide 24-hour notice of work schedules; and

(4) provide employment notices that include a complaint hotline number, sexual harassment policies, and conversion fees charged to client companies.

(c) As part of the Program, a day or temporary labor service agency shall submit to audits conducted at the Department's discretion, including, but not limited to, staggered periodic audits of time and pay records if determined necessary by the Department.

(d) Day and temporary labor service agencies participating in the Program shall operate a hotline for the purpose of guiding workers through the Department's complaint and investigation process.

(e) Day or temporary labor service agencies participating in the Program shall receive the following benefits from the Department:

(1) a waiver of penalties for violations found in the initial voluntary audit during certification process;

(2) a reduced maximum penalty for violations found after the first audit as determined by the Department; and

(3) a waiver of liquidated damages for wage underpayments found by the Department.

The benefits provided for in this subsection do not apply to violations alleged in workers' private lawsuits.

(f) A day or temporary labor service agency may lose its seal of approval if one of the following occur:

(1) after a voluntary initial audit is performed, a day or temporary labor service agency fails to come into compliance with the Day and Temporary Labor Services Act after 2 additional audits by the Department, unless a day or temporary labor service agency can show it was acting in good faith; or

(2) if no voluntary audit is performed, a day or temporary labor service agency fails to come into compliance with the Day and Temporary Labor Services Act after 2 audits by the Department.

A day or temporary labor service agency that fails to comply with the requirements of the Program, including, but limited to failure to provide records, falsifying records, and willful violations will be immediately withdrawn from the Program.

Upon losing seal, the agency shall be subject to a fee of $2,500 per violation as well as any other fines and penalties for the violations.

(g) The Department shall work with other State agencies and community partners to confer the following benefits to day or temporary labor service agencies participating in the Program:

(1) priority access in the procurement of State, county, and municipal contracts;

(2) priority access to contracts in union shops;

(3) priority placement by workforce development providers;

(4) priority access to contracts from socially responsible user companies;

(5) priority access to contracts in anchor-based development projects;

(6) marketing Program participants to job seekers and workers;

(7) discounted workers' compensation and unemployment compensation rates; and

(8) access to federal Work Opportunity Tax Credit funding to be awarded for temp worker transitions to direct-hire positions.

(h) The Department shall establish community partnerships with interested stakeholders to train community organizations to check on the status of investigations prompted by hotline calls on a quarterly basis, including, but not limited to, training workers on using the hotline, assisting workers through the investigation process, and cross-training between Department investigators and community partners.

(i) The Inspector General shall audit the Program and periodically report to the Department on the effectiveness of the Program.

(j) The Department may adopt rules to implement this Section.