Rep. Edgar Gonzalez, Jr.

Filed: 3/17/2023

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1604

2    AMENDMENT NO. ______. Amend House Bill 1604 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Day and Temporary Labor Services Act is
5amended by changing Sections 2, 5, 10, 12, 30, 40, 45, 50, 55,
670, 85, 90, and 95 and by adding Sections 11, 42, 67, and 87 as
7follows:
 
8    (820 ILCS 175/2)
9    Sec. 2. Legislative Findings. The General Assembly finds
10as follows:
11    Since the passage of this Act, the number of Over 300,000
12workers who work as day or temporary laborers in Illinois has
13risen from approximately 300,000 to more than 650,000
14according to data collected by the Department of Labor.
15    Since the passage of this Act, the number of Approximately
16150 day labor and temporary labor service agencies registered

 

 

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1in Illinois has risen from approximately 150 with 600 branch
2offices to over 300 with over 800 branch offices with nearly
3600 branch offices are licensed throughout Illinois. In
4addition, there still exists is a significant large, though
5unknown, number of unregistered unlicensed day labor and
6temporary labor service agencies that operate outside the
7radar of law enforcement.
8    Recent studies and a survey of low-wage day or temporary
9laborers themselves have consistently found finds that as a
10group, they are particularly vulnerable to abuse of their
11labor rights, including unpaid wages, failure to pay for all
12hours worked, minimum wage and overtime violations, and
13unlawful deduction from pay for meals, transportation,
14equipment and other items. Recent studies and surveys of the
15day and temporary staffing industry have also found that day
16or temporary laborers are more than twice as likely to live in
17poverty, that more than one in 3 depend on public assistance to
18survive, that such workers are commonly part of a 2-tier pay
19structure, and that such workers have an occupational injury
20rate 2 to 3 times higher than directly hired employees.
21    As a result of the imbalance of negotiating power between
22a day or temporary laborer and a day and temporary service
23agency and its client companies due to laborers' precarious
24and contingent employment relationship, many day or temporary
25laborers are subjected to abusive contracts that they are
26required to sign under duress and from which they need to be

 

 

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1protected.
2    It is in the interest of the State of Illinois to ensure
3compliance with this Act, and it is in the interest of Illinois
4taxpayers to mitigate the cost of enforcement of this Act by
5assessing civil penalties against day and temporary service
6agencies and their client companies that have been found to
7have violated this Act. Illinois employers who comply with
8this and other Illinois wage and hour laws are also at a
9competitive disadvantage with employers who do not comply with
10such laws, and it is in the interest of the State of Illinois,
11law-abiding Illinois employers, and Illinois taxpayers to
12disgorge law-breaking employers of any ill-gotten gains as a
13result of unlawful practices and to ensure payroll taxes are
14paid on any such unpaid wages. Therefore, the public good
15justifies the establishment of the mechanism set forth in this
16Act for the Department, the Attorney General, aggrieved
17employees, or interested parties to disgorge from an Illinois
18employer who does not comply with this or other Illinois laws
19referenced herein the amount of such unpaid wages and other
20remedies, as well as unpaid payroll taxes.
21    Current law is inadequate to protect the labor and
22employment rights of these workers.
23    At the same time, in Illinois and in other states,
24democratically run nonprofit day labor centers, which charge
25no fee for their services, have been established to provide an
26alternative for day or temporary laborers to solicit work on

 

 

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1street corners. These centers are not subject to this Act.
2(Source: P.A. 94-511, eff. 1-1-06.)
 
3    (820 ILCS 175/5)
4    Sec. 5. Definitions. As used in this Act:
5    "Applicant" means a natural person who seeks a work
6assignment at a day and temporary labor service agency.
7    "Day or temporary laborer" means a natural person who
8contracts for employment with a day and temporary labor
9service agency.
10    "Day and temporary labor" means work performed by a day or
11temporary laborer at a third party client, the duration of
12which may be specific or undefined, pursuant to a contract or
13understanding between the day and temporary labor service
14agency and the third party client. "Day and temporary labor"
15does not include labor or employment of a professional or
16clerical nature.
17    "Day and temporary labor service agency" means any person
18or entity engaged in the business of employing day or
19temporary laborers to provide services, for a fee, to or for
20any third party client pursuant to a contract with the day and
21temporary labor service agency and the third party client.
22    "Department" means the Department of Labor.
23    "Family member" means an employee's child, spouse, or
24party to a civil union or legal guardianship, parent,
25grandparent, grandchild, sibling, or any other individual

 

 

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1related by blood, marriage, or civil union, or whose close
2relationship with the employee is the equivalent of a family
3association as determined by the employee.
4    "Interested party" means a person, organization, or entity
5with an interest in compliance with this Act. An interested
6party includes, without limitation, a labor organization, a
7nonprofit organization whose mission or past practice includes
8advocating for the workplace rights of day or temporary
9laborers, a current or former day or temporary laborer
10employed by the entity subject to allegations of the
11violations, whether or not still aggrieved by a violation of
12this Act at the time of taking any action under this Act, a
13family member of such a day or temporary laborer, or a
14competitor of a day and temporary labor service agency or an
15employee of a competitor of day and temporary labor service
16agency.
17    "Third party client" means any person that contracts with
18a day and temporary labor service agency for obtaining day or
19temporary laborers.
20    "Person" means every natural person, firm, partnership,
21co-partnership, limited liability company, corporation,
22association, business trust, or other legal entity, or its
23legal representatives, agents, or assigns.
24(Source: P.A. 94-511, eff. 1-1-06; 95-499, eff. 8-28-07.)
 
25    (820 ILCS 175/10)

 

 

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1    Sec. 10. Employment Notice and Application Receipt.
2    (a) Employment notice. Whenever a day and temporary labor
3service agency agrees to send one or more persons to work as
4day or temporary laborers, the day and temporary labor service
5agency shall provide to each day or temporary laborer, at the
6time of dispatch, a statement containing the following items
7on a form approved by the Department:
8        (1) the name of the day or temporary laborer;
9        (2) the name and nature of the work to be performed and
10    the types of equipment, protective clothing, and training
11    that are required for the task;
12        (3) the wages offered;
13        (4) the name and address of the destination of each
14    day or temporary laborer;
15        (5) terms of transportation; and
16        (6) whether a meal or equipment, or both, are
17    provided, either by the day and temporary labor service
18    agency or the third party client, and the cost of the meal
19    and equipment, if any.
20    The failure of a day and temporary labor service agency to
21provide a day or temporary laborer with the equipment,
22protective clothing, and training identified in an employment
23notice required by this Section shall be a health and safety
24violation under Section 95.
25    If a day or temporary laborer is assigned to the same
26assignment for more than one day, the day and temporary labor

 

 

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1service agency is required to provide the employment notice
2only on the first day of the assignment and on any day that any
3of the terms listed on the employment notice are changed.
4    (b) Application receipt. If the applicant seeks a work
5assignment, including in-person, online, or through an
6application-based system, and day or temporary laborer is not
7placed with a third party client or otherwise contracted to
8work for that day by a day and temporary labor service agency,
9the day and temporary labor service agency shall, upon
10request, provide the applicant day and temporary laborer with
11a confirmation that the applicant day or temporary laborer
12sought work, signed by an employee of the day and temporary
13labor service agency, on a form approved by the Department,
14which shall include:
15        (1) the name and location of the agency and branch
16    office; ,
17        (2) the name and address of the applicant; day or
18    temporary laborer, and
19        (3) the date and the time that the the applicant
20    sought the work assignments; day or temporary laborer
21    receives the confirmation.
22        (4) the manner in which the applicant sought the work
23    assignments; and
24        (5) the specific work sites or type of jobs sought by
25    the applicant, if applicable.
26    (b) (Blank). No day and temporary labor service agency may

 

 

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1send any day or temporary laborer to any place where a strike,
2a lockout, or other labor trouble exists.
3    If the day or temporary laborer seeks a work assignment
4online or through an application-based system only, and is not
5placed with a third party client or otherwise contracted to
6work for that day, the day and temporary labor service agency
7may provide the required confirmation in an electronic format
8and electronically signed by an employee of the day and
9temporary labor service agency, in a form approved by the
10Department.
11    (c) The Department shall recommend to day and temporary
12labor service agencies that those agencies employ personnel
13who can effectively communicate information required in
14subsection subsections (a) and (b) to day or temporary
15laborers in Spanish, Polish, or any other language that is
16generally understood in the locale of the day and temporary
17labor service agency. Employment notices and application
18receipts shall be provided to the day or temporary laborer or
19applicant in a language that the day or temporary laborer or
20applicant understands.
21    (d) The failure of a day and temporary labor service
22agency to provide any of the information required by this
23Section shall constitute a notice violation under Section 95.
24The failure to provide each piece of information required by
25this Section at each time it is required by this Section shall
26constitute a separate and distinct violation. If a day and

 

 

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1temporary labor service agency claims that it has
2electronically provided an employment notice or application
3receipt as required by this Section, the day and temporary
4labor service agency shall bear the burden of showing the
5employment notice or application receipt was provided if there
6is a dispute.
7(Source: P.A. 99-78, eff. 7-20-15; 100-517, eff. 6-1-18.)
 
8    (820 ILCS 175/11 new)
9    Sec. 11. Right to refuse assignment to a labor dispute.
10    (a) No day and temporary labor service agency may send a
11day or temporary laborer to a place where a strike, a lockout,
12or other labor trouble exists without providing, at or before
13the time of dispatch, a statement, in writing and in a language
14that the day or temporary laborer understands, informing the
15day or temporary laborer of the labor dispute and the day or
16temporary laborer's right to refuse the assignment without
17prejudice to receiving another assignment.
18    (b) The failure by a day and temporary labor service
19agency to provide any of the information required by this
20Section shall constitute a notice violation under Section 95.
21The failure of a day and temporary labor service agency to
22provide each piece of information required by this Section at
23each time it is required by this Section shall constitute a
24separate and distinct notice violation. If a day and temporary
25labor service agency claims that it has provided notice as

 

 

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1required by this Section electronically, the day and temporary
2labor service agency shall bear the burden of showing that the
3notice was provided if there is a dispute.
 
4    (820 ILCS 175/12)
5    Sec. 12. Recordkeeping.
6    (a) Whenever a day and temporary labor service agency
7sends one or more persons to work as day or temporary laborers,
8the day and temporary labor service agency shall keep the
9following records relating to that transaction:
10        (1) the name, address and telephone number of each
11    third party client, including each worksite, to which day
12    or temporary laborers were sent by the agency and the date
13    of the transaction;
14        (2) for each day or temporary laborer: the name and
15    address, the specific location sent to work, the type of
16    work performed, the number of hours worked, the hourly
17    rate of pay and the date sent. The term "hours worked" has
18    the meaning ascribed to that term in 56 Ill. Adm. Code
19    210.110 and in accordance with all applicable rules or
20    court interpretations under 56 Ill. Adm. Code 210.110. The
21    third party client shall be required to remit all
22    information required under this subsection to the day and
23    temporary labor service agency no later than 7 days
24    following the last day of the work week worked by the day
25    or temporary laborer. Failure of a third party client to

 

 

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1    remit such information to a day and temporary labor
2    service agency shall not be a defense to the recordkeeping
3    requirement of this Section;
4        (3) the name and title of the individual or
5    individuals at each third party client's place of business
6    responsible for the transaction;
7        (4) any specific qualifications or attributes of a day
8    or temporary laborer, requested by each third party
9    client;
10        (5) copies of all contracts, if any, with the third
11    party client and copies of all invoices for the third
12    party client;
13        (6) copies of all employment notices provided in
14    accordance with subsection (a) of Section 10;
15        (7) deductions to be made from each day or temporary
16    laborer's compensation made by either the third party
17    client or by the day and temporary labor service agency
18    for the day or temporary laborer's transportation, food,
19    equipment, withheld income tax, withheld social security
20    payments and every other deduction;
21        (8) verification of the actual cost of any equipment
22    or meal charged to a day or temporary laborer;
23        (9) the race and gender of each day or temporary
24    laborer or applicant who seeks work at, whether in person,
25    online, or through an application-based system, or is
26    assigned sent by the day and temporary labor service

 

 

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1    agency, as such information is provided by the day or
2    temporary laborer or applicant; and
3        (9.5) whether a day or temporary laborer has been
4    placed in a permanent position with a third party client
5    and the date of such placement; and
6        (10) any additional information required by rules
7    issued by the Department.
8    (b) The day and temporary labor service agency shall
9maintain all records under this Section for a period of 3 years
10from their creation. The records shall be open to inspection
11by the Department during normal business hours. Records
12described in paragraphs (1), (2), (3), (6), (7), and (8) of
13subsection (a) shall be available for review or copying by
14that day or temporary laborer during normal business hours
15within 5 days following a written request. In addition, a day
16and temporary labor service agency shall make records related
17to the number of hours billed to a third party client for that
18individual day or temporary laborer's hours of work available
19for review or copying during normal business hours within 5
20days following a written request. The day and temporary labor
21service agency shall make forms, in duplicate, for such
22requests available to day or temporary laborers at the
23dispatch office. The day or temporary laborer shall be given a
24copy of the request form. It is a violation of this Section to
25make any false, inaccurate or incomplete entry into any record
26required by this Section, or to delete required information

 

 

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1from any such record. Failure by the third party client to
2remit time records to the day and temporary labor service
3agency as provided in paragraph (a)(2) shall constitute a
4notice violation by a third party client under Section 95 of
5this Act unless the third party client has been precluded from
6submitting such time records for reasons beyond its control. A
7failure by the third party client to provide time records in
8accordance with this subsection (b) shall not be a notice
9violation and shall not be the basis for a suit or other action
10under Section 95 of this Act against the day and temporary
11labor service agency.
12(Source: P.A. 94-511, eff. 1-1-06; 95-499, eff. 8-28-07.)
 
13    (820 ILCS 175/30)
14    Sec. 30. Wage Payment and Notice.
15    (a) At the time of payment of wages, a day and temporary
16labor service agency shall provide each day or temporary
17laborer with a detailed itemized statement, on the day or
18temporary laborer's paycheck stub or on a form approved by the
19Department, listing the following:
20        (1) the name, address, and telephone number of each
21    third party client at which the day or temporary laborer
22    worked. If this information is provided on the day or
23    temporary laborer's paycheck stub, a code for each third
24    party client may be used so long as the required
25    information for each coded third party client is made

 

 

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1    available to the day or temporary laborer;
2        (2) the number of hours worked by the day or temporary
3    laborer at each third party client each day during the pay
4    period. If the day or temporary laborer is assigned to
5    work at the same work site of the same third party client
6    for multiple days in the same work week, the day and
7    temporary labor service agency may record a summary of
8    hours worked at that third party client's worksite so long
9    as the first and last day of that work week are identified
10    as well. The term "hours worked" has the meaning ascribed
11    to that term in 56 Ill. Adm. Code 210.110 and in accordance
12    with all applicable rules or court interpretations under
13    56 Ill. Adm. Code 210.110;
14        (3) the rate of payment for each hour worked,
15    including any premium rate or bonus;
16        (3.5) the rate billed to the client company for each
17    hour worked, including any premium rate or bonus;
18        (4) the total pay period earnings;
19        (5) all deductions made from the day or temporary
20    laborer's compensation made either by the third party
21    client or by the day and temporary labor service agency,
22    and the purpose for which deductions were made, including
23    for the day or temporary laborer's transportation, food,
24    equipment, withheld income tax, withheld social security
25    payments, and every other deduction; and
26        (5.5) the then-current maximum placement fee as

 

 

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1    defined and calculated in Section 40; and
2        (6) any additional information required by rules
3    issued by the Department.
4    (a-1) For each day or temporary laborer who is contracted
5to work a single day, the third party client shall, at the end
6of the work day, provide such day or temporary laborer with a
7Work Verification Form, approved by the Department, which
8shall contain the date, the day or temporary laborer's name,
9the work location, and the hours worked on that day. Any third
10party client who violates this subsection (a-1) may be subject
11to a civil penalty of not less than $100 and not more than to
12exceed $500 for each violation found by the Department. Such
13civil penalty shall may increase to not less than $500 and not
14more than $2,500 for a second or subsequent violation. For
15purposes of this subsection (a-1), each violation of this
16subsection (a-1) for each day or temporary laborer and for
17each day the violation continues shall constitute a separate
18and distinct violation.
19    (b) A day and temporary labor service agency shall provide
20each worker an annual earnings summary within a reasonable
21time after the preceding calendar year, but in no case later
22than February 1. A day and temporary labor service agency
23shall, at the time of each wage payment, give notice to day or
24temporary laborers of the availability of the annual earnings
25summary or post such a notice in a conspicuous place in the
26public reception area.

 

 

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1    (c) At the request of a day or temporary laborer, a day and
2temporary labor service agency shall hold the daily wages of
3the day or temporary laborer and make either weekly,
4bi-weekly, or semi-monthly payments. The wages shall be paid
5in a single check, or, at the day or temporary laborer's sole
6option, by direct deposit or other manner approved by the
7Department, representing the wages earned during the period,
8either weekly, bi-weekly, or semi-monthly, designated by the
9day or temporary laborer in accordance with the Illinois Wage
10Payment and Collection Act. Vouchers or any other method of
11payment which is not generally negotiable shall be prohibited
12as a method of payment of wages. Day and temporary labor
13service agencies that make daily wage payments shall provide
14written notification to all day or temporary laborers of the
15right to request weekly, bi-weekly, or semi-monthly checks.
16The day and temporary labor service agency may provide this
17notice by conspicuously posting the notice at the location
18where the wages are received by the day or temporary laborers.
19    (d) No day and temporary labor service agency shall charge
20any day or temporary laborer for cashing a check issued by the
21agency for wages earned by a day or temporary laborer who
22performed work through that agency. No day and temporary labor
23service agency or third party client shall charge any day or
24temporary laborer for the expense of conducting any consumer
25report, as that term is defined in the Fair Credit Reporting
26Act, 15 U.S.C. 1681a(d), any criminal background check of any

 

 

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1kind, or any drug test of any kind.
2    (e) Day or temporary laborers shall be paid no less than
3the wage rate stated in the notice as provided in Section 10 of
4this Act for all the work performed on behalf of the third
5party client in addition to the work listed in the written
6description.
7    (f) The total amount deducted for meals, equipment, and
8transportation may not cause a day or temporary laborer's
9hourly wage to fall below the State or federal minimum wage.
10However, a day and temporary labor service agency may deduct
11the actual market value of reusable equipment provided to the
12day or temporary laborer by the day and temporary labor
13service agency which the day or temporary laborer fails to
14return, if the day or temporary laborer provides a written
15authorization for such deduction at the time the deduction is
16made.
17    (g) A day or temporary laborer who is contracted by a day
18and temporary labor service agency to work at a third party
19client's worksite but is not utilized by the third party
20client shall be paid by the day and temporary labor service
21agency for a minimum of 4 hours of pay at the agreed upon rate
22of pay. However, in the event the day and temporary labor
23service agency contracts the day or temporary laborer to work
24at another location during the same shift, the day or
25temporary laborer shall be paid by the day and temporary labor
26service agency for a minimum of 2 hours of pay at the agreed

 

 

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1upon rate of pay.
2    (h) A third party client is required to pay wages and
3related payroll taxes to a licensed day and temporary labor
4service agency for services performed by the day or temporary
5laborer for the third party client according to payment terms
6outlined on invoices, service agreements, or stated terms
7provided by the day and temporary labor service agency. A
8third party client who fails to comply with this subsection
9(h) is subject to the penalties provided in Section 70 of this
10Act. The Department shall review a complaint filed by a
11licensed day and temporary labor agency. The Department shall
12review the payroll and accounting records of the day and
13temporary labor service agency and the third party client for
14the period in which the violation of this Act is alleged to
15have occurred to determine if wages and payroll taxes have
16been paid to the agency and that the day or temporary laborer
17has been paid the wages owed him or her.
18    (i) The failure of a day and temporary labor service
19agency or client company to provide any of the information
20required by this Section shall constitute a notice violation
21under Section 95. The failure to provide each piece of
22information required by this Section at each time it is
23required by this Section shall constitute a separate and
24distinct notice violation.
25(Source: P.A. 100-517, eff. 6-1-18.)
 

 

 

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1    (820 ILCS 175/40)
2    Sec. 40. Work Restriction. No day and temporary labor
3service agency shall restrict the right of a day or temporary
4laborer to accept a permanent position with a third party
5client to whom the day or temporary laborer has been referred
6for work or restrict the right of such third party client to
7offer such employment to a day or temporary laborer. A day and
8temporary labor service agency may charge a placement fee to a
9third party client for employing a day or temporary laborer
10for whom a contract for work was effected by the day and
11temporary labor service agency not to exceed the equivalent of
12the total daily commission rate the day and temporary labor
13service agency would have received over a 60-day period,
14reduced by the equivalent of the daily commission rate the day
15and temporary labor service agency would have received for
16each day the day or temporary laborer has performed work for
17the day and temporary labor service agency in the preceding 12
18months. Days worked at a day and temporary labor service
19agency in the 12 months preceding the effective date of this
20amendatory Act of the 94th General Assembly shall be included
21for purposes of calculating the maximum placement fee
22described in this Section. However, placement of a day or
23temporary laborer who is contracted by a day and temporary
24labor service agency to provide skilled labor shall not be
25subject to any placement fee cap. For purposes of this
26Section, a day or temporary laborer who performs "skilled

 

 

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1labor" shall apply only where the day and temporary labor
2service agency performs an advanced application process, a
3screening process, which may include processes such as
4advanced testing, and a job interview. No fee provided for
5under this Section may be assessed or collected by the day and
6temporary labor service agency when the day or temporary
7laborer is offered permanent work following the suspension or
8revocation of the day and temporary labor service agency's
9registration by the Department.
10(Source: P.A. 94-511, eff. 1-1-06.)
 
11    (820 ILCS 175/42 new)
12    Sec. 42. Equal pay for equal work. A day or temporary
13laborer who is assigned to work at a third party client for
14more than one week shall be paid not less than the average rate
15of pay and equivalent benefits as directly hired employees of
16the third party client performing the same or substantially
17similar work on jobs the performance of which requires
18substantially similar skill, effort, and responsibility, and
19that are performed under similar working conditions. A day and
20temporary labor service agency may pay the hourly cash
21equivalent of benefits in lieu of providing the benefits
22required by this Section. Upon request, a third party client
23to which a day or temporary laborer has been assigned for more
24than one week shall be obligated to timely provide the day and
25temporary labor service agency with all necessary information

 

 

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1related to job duties, pay, and benefits of directly hired
2employees necessary for the day and temporary labor service
3agency to comply with this Section. The failure by a third
4party client to provide any of the information required by
5this Section shall constitute a notice violation by the third
6party client under Section 95.
 
7    (820 ILCS 175/45)
8    Sec. 45. Registration; Department of Labor.
9    (a) A day and temporary labor service agency which is
10located, operates or transacts business within this State
11shall register with the Department of Labor in accordance with
12rules adopted by the Department for day and temporary labor
13service agencies and shall be subject to this Act and any rules
14adopted under this Act. Each day and temporary labor service
15agency shall provide proof of an employer account number
16issued by the Department of Employment Security for the
17payment of unemployment insurance contributions as required
18under the Unemployment Insurance Act, and proof of valid
19workers' compensation insurance in effect at the time of
20registration covering all of its employees. If, at any time, a
21day and temporary labor service agency's workers' compensation
22insurance coverage lapses, the agency shall have an
23affirmative duty to report the lapse of such coverage to the
24Department and the agency's registration shall be suspended
25until the agency's workers' compensation insurance is

 

 

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1reinstated. The Department may assess each day and temporary
2labor service agency a non-refundable registration fee not
3exceeding $5,000 $1,000 per year per agency and a
4non-refundable fee not to exceed $1,000 $250 for each branch
5office or other location where the agency regularly contracts
6with day or temporary laborers for services. The fee may be
7paid by check, money order, or the State Treasurer's E-Pay
8program or any successor program, and the Department may not
9refuse to accept a check on the basis that it is not a
10certified check or a cashier's check. The Department may
11charge an additional fee to be paid by a day and temporary
12labor service agency if the agency, or any person on the
13agency's behalf, issues or delivers a check to the Department
14that is not honored by the financial institution upon which it
15is drawn. The Department shall also adopt rules for violation
16hearings and penalties for violations of this Act or the
17Department's rules in conjunction with the penalties set forth
18in this Act.
19    (a-1) At the time of registration with the Department of
20Labor each year, the day and temporary labor service agency
21shall submit to the Department of Labor a report containing
22the information identified in paragraphs paragraph (9) and
23(9.5) of subsection (a) of Section 12, broken down by branch
24office, in the aggregate for all day or temporary laborers
25assigned within Illinois and subject to this Act during the
26preceding year. This information shall be submitted on a form

 

 

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1created by the Department of Labor. The Department of Labor
2shall aggregate the information submitted by all registering
3day and temporary labor service agencies by removing
4identifying data and shall have the information available to
5the public only on a municipal and county basis. As used in
6this subsection and subsection (a-2) this paragraph,
7"identifying data" means any and all information that: (i)
8provides specific information on individual worker identity;
9(ii) identifies the service agency in any manner; and (iii)
10identifies clients utilizing the day and temporary labor
11service agency or any other information that can be traced
12back to any specific registering day and temporary labor
13service agency or its client. The information and reports
14submitted to the Department of Labor under this subsection by
15the registering day and temporary labor service agencies are
16exempt from inspection and copying under Section 7.5 of the
17Freedom of Information Act. Any summary reports created by the
18Department shall be made available for public inspection on
19the Department's website and shall not be exempt from
20inspection and copying under the Freedom of Information Act.
21    (a-2) When a day and temporary labor service agency
22registers with the Department, it shall submit to the
23Department a report containing (i) the total number of W-2
24forms issued to day or temporary laborers in Illinois during
25the prior year broken down by branch office and (ii) the total
26number of hours billed by the day and temporary labor service

 

 

10300HB1604ham001- 24 -LRB103 26056 SPS 58985 a

1agency from a branch office in Illinois broken down by branch
2office. This information shall be submitted on a form created
3by the Department. The Department shall aggregate the
4information submitted by all registering day and temporary
5labor service agencies by removing identifying data and shall
6make the information available to the public on a municipal
7and county basis. The information and reports submitted to the
8Department under this subsection by the registering day and
9temporary labor service agencies are exempt from inspection
10and copying under the Freedom of Information Act. Any summary
11reports created by the Department shall be made available for
12public inspection on the Department's website and shall not be
13exempt from inspection and copying under the Freedom of
14Information Act.
15    (a-3) The Department shall deny a day and temporary labor
16service agency's registration until all of the information
17required in subsections (a-1) and (a-2) has been provided.
18    (b) It is a violation of this Act to operate a day and
19temporary labor service agency without first registering with
20the Department in accordance with subsection (a) of this
21Section. The Department shall create and maintain at regular
22intervals on its website, accessible to the public: (1) a list
23of all registered day and temporary labor service agencies in
24the State whose registration is in good standing; (2) a list of
25day and temporary labor service agencies in the State whose
26registration has been suspended, including the reason for the

 

 

10300HB1604ham001- 25 -LRB103 26056 SPS 58985 a

1suspension, the date the suspension was initiated, and the
2date, if known, the suspension is to be lifted; and (3) a list
3of day and temporary labor service agencies in the State whose
4registration has been revoked, including the reason for the
5revocation and the date the registration was revoked. The
6Department has the authority to assess a penalty against any
7day and temporary labor service agency that fails to register
8with the Department of Labor in accordance with this Act or any
9rules adopted under this Act of $500 for each violation. Each
10day during which a day and temporary labor service agency
11operates without registering with the Department shall be a
12separate and distinct violation of this Act.
13    (c) An applicant is not eligible to register to operate a
14day and temporary labor service agency under this Act if the
15applicant or any of its officers, directors, partners, or
16managers or any owner of 25% or greater beneficial interest:
17        (1) has been involved, as owner, officer, director,
18    partner, or manager, of any day and temporary labor
19    service agency whose registration has been revoked or has
20    been suspended without being reinstated within the 5 years
21    immediately preceding the filing of the application; or
22        (2) is under the age of 18.
23    (d) Every agency shall post and keep posted at each
24location, in a position easily accessible to all employees,
25notices as supplied and required by the Department containing
26a copy or summary of the provisions of the Act and a notice

 

 

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1which informs the public of a toll-free telephone number for
2day or temporary laborers and the public to file wage dispute
3complaints and other alleged violations by day and temporary
4labor service agencies. Such notices shall be in English or
5any other language generally understood in the locale of the
6day and temporary labor service agency.
7(Source: P.A. 100-517, eff. 6-1-18.)
 
8    (820 ILCS 175/50)
9    Sec. 50. Violations. The Department shall have the
10authority to deny, suspend, or revoke the registration of a
11day and temporary labor service agency if warranted by public
12health and safety concerns or violations of this Act. The
13Attorney General, pursuant to its authority under Section 6.3
14of the Attorney General Act, may request that a circuit court
15suspend or revoke the registration of a day and temporary
16labor service agency when warranted by public health concern
17or violations of this Act. The Attorney General shall provide
18notice to the Director prior to requesting the suspension or
19revocation of the registration of a day and temporary labor
20service agency.
21(Source: P.A. 94-511, eff. 1-1-06.)
 
22    (820 ILCS 175/55)
23Sec. 55. Enforcement by the Department.
24    (a) It shall be the duty of the Department to enforce the

 

 

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1provisions of this Act. The Department shall have the power to
2conduct investigations in connection with the administration
3and enforcement of this Act and any investigator with the
4Department shall be authorized to visit and inspect, at all
5reasonable times, any places covered by this Act and shall be
6authorized to inspect, at all reasonable times, contracts for
7the employment of all day or temporary laborers entered into
8by a third party client if the Department has received a
9complaint indicating that the third party client may have
10contracted with a day and temporary labor service agency that
11is not registered under this Act. The Department shall conduct
12hearings in accordance with the Illinois Administrative
13Procedure Act upon written complaint by an investigator of the
14Department or any interested person of a violation of the Act.
15After the hearing, if supported by the evidence, the
16Department may (i) issue and cause to be served on any party an
17order to cease and desist from further violation of the Act,
18(ii) take affirmative or other action as deemed reasonable to
19eliminate the effect of the violation, (iii) deny, suspend, or
20revoke any registration under this Act, and (iv) determine the
21amount of any civil penalty allowed by the Act. The Director of
22Labor or his or her representative may compel, by subpoena,
23the attendance and testimony of witnesses and the production
24of books, payrolls, records, papers, and other evidence in any
25investigation or hearing and may administer oaths to
26witnesses. Nothing in this Act applies to labor or employment

 

 

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1of a clerical or professional nature.
2    (b) If action has been initiated by an interested party as
3to any violations pursuant to this Section, the Department
4shall defer launching any investigation of the same such
5violations until the conclusion of the civil matter. The
6Department may intervene in the civil matter as a party in
7interest at any time. Intervention by the Department shall not
8alter the rights of the interested party under Section 67.
9    (c) Nothing in this Section shall in any way prevent or
10delay a day or temporary laborer or his or her representatives
11or an interested party from bringing an action to enforce
12rights pursuant to Section 95.
13(Source: P.A. 93-441, eff. 1-1-04; 94-511, eff. 1-1-06.)
 
14    (820 ILCS 175/67 new)
15    Sec. 67. Action for civil penalties brought by an
16interested party.
17    (a) Upon a reasonable belief that a day and temporary
18labor service agency or a third party client covered by this
19Act is in violation of any part of this Act, an interested
20party may file suit against the covered entity in a circuit
21court, in any county where some or all the alleged offenses
22occurred, without regard to exhaustion of any alternative
23administrative remedies provided in this Act. The interested
24party shall provide notice to the Director at the time of the
25filing of an action.

 

 

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1    (b) In an action brought pursuant to this Section, an
2interested party may recover against the covered entity any
3statutory penalties set forth in Section 70 and injunctive
4relief. An interested party who prevails shall receive 10% of
5any statutory penalties assessed, plus any attorney's fees and
6expenses in bringing the action. The remaining 90% of any
7statutory penalties assessed shall be deposited into the Child
8Labor and Day and Temporary Labor Services Enforcement Fund
9and shall be used exclusively for enforcement of this Act by
10the Department.
11    (c) If the Department has already initiated an
12investigation of any alleged violation of the Act and that
13investigation is ongoing at the time a civil action is filed,
14the civil action shall be stayed as to those violations until
15the Department has completed its investigation and any related
16enforcement or has granted a waiver in writing to the
17interested party to proceed with a civil action. Recovery by
18the Department of civil penalties under Section 70 for any
19violation of the Act shall be an absolute defense to the civil
20action by an interested party as to those violations only.
21    (d) The right of an interested party to bring an action
22under this Section terminates upon the passing of 3 years from
23the latest date of the violation. This period is tolled for the
24period a civil action under this Section is stayed pending the
25outcome of an investigation by the Department.
26    (e) Nothing in this Section shall in any way prevent or

 

 

10300HB1604ham001- 30 -LRB103 26056 SPS 58985 a

1delay a day or temporary laborer or his or her representatives
2or an interested party from bringing an action to enforce
3rights pursuant to Section 95.
 
4    (820 ILCS 175/70)
5    Sec. 70. Penalties.
6    (a) A day and temporary labor service agency or third
7party client that violates any of the provisions of this Act or
8any rule adopted under this Act shall be subject to a civil
9penalty of not less than $100 and not more than to exceed
10$1,000 $6,000 for each violation violations found in the first
11audit by the Department or determined by a court in a civil
12action brought by an interested party, or determined by a
13court in a civil action brought by the Attorney General
14pursuant to its authority under Section 6.3 of the Attorney
15General Act. Following a first audit or civil action, a day and
16temporary labor service agency or third party client shall be
17subject to a civil penalty of not less than $500 and not more
18than to exceed $2,500 for each repeat violation found by the
19Department or circuit court within 3 years. For purposes of
20this subsection, each violation of this Act for each day or
21temporary laborer and for each day the violation continues
22shall constitute a separate and distinct violation. In
23determining the amount of a penalty, the Director or circuit
24court shall consider the appropriateness of the penalty to the
25day and temporary labor service agency or third party client

 

 

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1charged, upon the determination of the gravity of the
2violations. For any violation determined by the Department or
3circuit court to be willful which is within 3 years of an
4earlier violation, the Department may revoke the registration
5of the violator, if the violator is a day and temporary labor
6service agency. The amount of the penalty, when finally
7determined, may be:
8        (1) Recovered in a civil action brought by the
9    Director of Labor in any circuit court. In this
10    litigation, the Director of Labor shall be represented by
11    the Attorney General.
12        (2) Ordered by the court, in an action brought by any
13    party, including the Attorney General pursuant to its
14    authority under Section 6.3 of the Attorney General Act,
15    for a violation under this Act, to be paid to the Director
16    of Labor.
17    (b) The Department shall adopt rules for violation
18hearings and penalties for violations of this Act or the
19Department's rules in conjunction with the penalties set forth
20in this Act.
21    Any administrative determination by the Department as to
22the amount of each penalty shall be final unless reviewed as
23provided in Section 60 of this Act.
24(Source: P.A. 96-1185, eff. 7-22-10.)
 
25    (820 ILCS 175/85)

 

 

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1    Sec. 85. Third party clients.
2    (a) It is a violation of this Act for a third party client
3to enter into a contract for the employment of day or temporary
4laborers with any day and temporary labor service agency not
5registered under Section 45 of this Act. A third party client
6has a duty to verify a day and temporary labor service agency's
7status with the Department before entering into a contract
8with such an agency, and on March 1 and September 1 of each
9year. A day and temporary labor service agency shall be
10required to provide each of its third party clients with proof
11of valid registration issued by the Department at the time of
12entering into a contract. A day and temporary labor service
13agency shall be required to notify, both by telephone and in
14writing, each day or temporary laborer it employs and each
15third party client with whom it has a contract within 24 hours
16of any denial, suspension, or revocation of its registration
17by the Department. All contracts between any day and temporary
18labor service agency and any third party client shall be
19considered null and void from the date any such denial,
20suspension, or revocation of registration becomes effective
21and until such time as the day and temporary labor service
22agency becomes registered and considered in good standing by
23the Department as provided in Section 50 and Section 55. Upon
24request, the Department shall provide to a third party client
25a list of entities registered as day and temporary labor
26service agencies. The Department shall provide on the Internet

 

 

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1a list of entities registered as day and temporary labor
2service agencies. A third party client may rely on information
3provided by the Department or maintained on the Department's
4website pursuant to Section 45 of this Act and shall be held
5harmless if such information maintained or provided by the
6Department was inaccurate. Any third party client that
7violates this provision of the Act is subject to a civil
8penalty of not less than $100 and not to exceed $1,000 $500.
9Each day during which a third party client contracts with a day
10and temporary labor service agency not registered under
11Section 45 of this Act shall constitute a separate and
12distinct offense.
13    (b) If a third party client leases or contracts with a day
14and temporary service agency for the services of a day or
15temporary laborer, the third party client shall share all
16legal responsibility and liability for the payment of wages
17under the Illinois Wage Payment and Collection Act and the
18Minimum Wage Law.
19    (c) Whenever a day or temporary laborer is assigned to
20work at a third party client, the day or temporary laborer
21shall receive training on all machinery that the day or
22temporary laborer is required to operate or work on in the
23vicinity of where reasonable precautions would be expected to
24be taken equivalent to any training provided to directly hired
25employees of the third party client who operate the same or
26substantially similar machinery in advance of the day or

 

 

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1temporary laborer operating or working in the vicinity of such
2machinery. The third party client and day and temporary labor
3service agency shall jointly have a duty to ensure that such
4training is provided in advance of any work performed by a day
5or temporary laborer. Failure to provide the training
6prescribed in this Section constitutes a health and safety
7violation by the third party client and the day and temporary
8labor service agency under Section 95 in addition to any other
9relief available to the day or temporary laborer under law.
10(Source: P.A. 93-441, eff. 1-1-04; 94-511, eff. 1-1-06.)
 
11    (820 ILCS 175/87 new)
12    Sec. 87. Prohibition against abusive contracts.
13    (a) Any contract entered into between a day or temporary
14laborer and a day and temporary labor service agency or third
15party client that in any way limits or affects the day or
16temporary laborer's ability to enforce rights under this Act,
17including the venue for enforcement, or other workplace-based
18rights under Illinois law must meet the following criteria to
19be valid and enforceable:
20        (1) the contract must be in writing and executed by
21    original, ink signatures with a hard copy given to the day
22    or temporary laborer;
23        (2) the contract must be signed by any party that
24    seeks to bind the day or temporary laborer to the
25    agreement;

 

 

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1        (3) the contract must be valid only for the term of the
2    day or temporary laborer's current assignment to a client
3    company and expires after the assignment concludes;
4        (4) the original contract must be maintained and
5    produced in any proceeding to enforce the terms of the
6    contract; and
7        (5) if any provision of such a contract is deemed
8    unenforceable under Illinois law, the entire agreement
9    must be unenforceable.
10    (b) Any contract entered into between a temporary labor
11service agency and any third party client that may impact a day
12or temporary laborer's wages, ability to work at another day
13and temporary labor service agency or third party client
14company must be disclosed and a copy provided to each day or
15temporary laborer in a language that the day or temporary
16laborer understands within 7 days after the contract goes into
17effect or impacts the day or temporary laborer.
18    (c) The failure by a day and temporary labor service
19agency or client company to provide any of the information
20required by this Section shall constitute a notice violation
21under Section 95. The failure to provide each piece of
22information required by this Section at each time it is
23required by this Section shall constitute a separate and
24distinct notice violation.
 
25    (820 ILCS 175/90)

 

 

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1    Sec. 90. Retaliation.
2    (a) Prohibition. It is a violation of this Act for a day
3and temporary labor service agency or third party client, or
4any agent of a day and temporary labor service agency or third
5party client, to retaliate through removal from an assignment,
6a failure to assign, discharge, or in any other manner of
7negative job actions against any day or temporary laborer for
8exercising any rights granted under this Act. Such retaliation
9shall subject a day and temporary labor service agency or
10third party client, or both, to civil penalties pursuant to
11this Act or a private cause of action.
12    (b) Protected Acts from Retaliation. It is a violation of
13this Act for a day and temporary labor service agency or third
14party client to retaliate against a day or temporary laborer
15for:
16        (1) making a complaint to a day and temporary labor
17    service agency, to a third party client, to a co-worker,
18    to a community organization, before a public hearing, or
19    to a State or federal agency that rights guaranteed under
20    this Act have been violated;
21        (2) causing to be instituted any proceeding under or
22    related to this Act; or
23        (3) testifying or preparing to testify in an
24    investigation or proceeding under this Act; or .
25        (4) refusing an assignment to any place where a
26    strike, a lockout, or other labor trouble exists.

 

 

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1(Source: P.A. 94-511, eff. 1-1-06.)
 
2    (820 ILCS 175/95)
3    Sec. 95. Private Right of Action.
4    (a) A person aggrieved by a violation of this Act or any
5rule adopted under this Act by a day and temporary labor
6service agency or a third party client may file suit in circuit
7court of Illinois, in the county where the alleged offense
8occurred or where any day or temporary laborer who is party to
9the action resides, without regard to exhaustion of any
10alternative administrative remedies provided in this Act. A
11day and temporary labor service agency aggrieved by a
12violation of this Act or any rule adopted under this Act by a
13third party client may file suit in circuit court of Illinois,
14in the county where the alleged offense occurred or where the
15day and temporary labor service agency which is party to the
16action is located. Actions may be brought by one or more day or
17temporary laborers for and on behalf of themselves and other
18day or temporary laborers similarly situated. A day or
19temporary laborer whose rights have been violated under this
20Act by a day and temporary labor service agency or a third
21party client or a day and temporary labor service agency whose
22rights have been violated under this Act by a third party
23client is entitled to collect:
24        (1) in the case of a wage and hour violation, the
25    amount of any wages, salary, employment benefits, or other

 

 

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1    compensation denied or lost to the day or temporary
2    laborer or day and temporary labor service agency by
3    reason of the violation, plus an equal amount in
4    liquidated damages;
5        (2) in the case of a health and safety or notice
6    violation, compensatory damages and an amount of not less
7    than $100 but not more than $1,000 for each up to $500 for
8    the violation of each subpart of each Section;
9        (3) in the case of unlawful retaliation, the greater
10    of all legal or equitable relief as may be appropriate or
11    liquidated damages equal to $25,000 per incident of
12    retaliation, at the selection of the aggrieved person, and
13    reinstatement, if appropriate; and
14        (4) attorney's fees and costs.
15    (a-5) Upon a reasonable belief that a day and temporary
16labor service agency has violated any provision of this Act,
17an interested party shall have the right to bring an action for
18any such violation on the same basis as an aggrieved day or
19temporary laborer provided in subsection (a), except that the
20interested party need not be aggrieved in order to:
21        (1) disgorge, in the case of a wage and hour
22    violation, any financial benefit to the employer from
23    unpaid wages in the amount of all unpaid wages, plus
24    statutory interest and statutory damages and attorneys'
25    fees and costs as provided herein and in the Minimum Wage
26    Law and Wage Payment and Collection Act; and

 

 

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1        (2) pursue, in the case of a health and safety or
2    notice violation, an amount of not less than $100 but not
3    more than $1,000 for each violation of each subpart of
4    each Section.
5    An interested party may bring an action to disgorge the
6amounts provided in paragraphs (1) and (2) for similarly
7situated employees of the day and temporary labor service
8agency who do not request to exclude themselves from the
9proceeding. In adjudicating an action involving a class of
10similarly situated employees brought under this subsection,
11the circuit court shall apply the procedures set forth in Part
128 of Article II of the Code of Civil Procedure, except that
13there shall be no requirement that the interested party have a
14claim or claims that are common to or are typical of the
15members of the class. Any funds for unpaid wages, statutory
16interest or statutory damages disgorged from an employer and
17awarded in an action brought under this subsection shall be
18distributed to all employees, other than those who exclude
19themselves from the action pursuant to the procedure set forth
20in subsection (b) of Section 2-804 of the Code of Civil
21Procedure, in proportion to the amount of each employee's
22unpaid wages.
23    (b) The right of an aggrieved person to bring an action
24under this Section terminates upon the passing of 3 years from
25the final date of employment by the day and temporary labor
26agency or the third party client or upon the passing of 3 years

 

 

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1from the date of termination of the contract between the day
2and temporary labor service agency and the third party client.
3This limitations period is tolled if a day labor employer has
4deterred a day and temporary labor service agency or day or
5temporary laborer's exercise of rights under this Act by
6contacting or threatening to contact law enforcement agencies.
7The right of an interested party to bring an action under this
8Section on behalf of a day or temporary laborer, a group of day
9or temporary laborers, or a class of day or temporary laborers
10terminates 3 years after the date of termination of the
11contract between the day and temporary labor service agency
12and the third party client.
13(Source: P.A. 96-1185, eff. 7-22-10.)
 
14    Section 99. Effective date. This Act takes effect July 1,
152023.".