Rep. Edgar Gonzalez, Jr.

Filed: 3/22/2023

 

 


 

 


 
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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    (a-5) 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 30 calendar days shall be paid not less than the rate
15of pay and equivalent benefits as directly hired employees of
16the third party client with commensurate seniority and
17training performing the same or substantially similar work on
18jobs the performance of which requires substantially similar
19skill, effort, and responsibility, and that are performed
20under similar working conditions. If there is not a directly
21hired comparative employee of the third party client, the day
22or temporary laborer shall be paid not less than the rate of
23pay and equivalent benefits as the directly hired employee
24with the closest seniority as the day or temporary laborer. A
25day and temporary labor service agency may pay the hourly cash

 

 

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1equivalent of benefits in lieu of providing the benefits
2required by this Section. Upon request, a third party client
3to which a day or temporary laborer has been assigned for more
4than 30 calendar days shall be obligated to timely provide the
5day and temporary labor service agency with all necessary
6information related to job duties, pay, and benefits of
7directly hired employees necessary for the day and temporary
8labor service agency to comply with this Section. The failure
9by a third party client to provide any of the information
10required by this Section shall constitute a notice violation
11by the third party client under Section 95.
 
12    (820 ILCS 175/45)
13    Sec. 45. Registration; Department of Labor.
14    (a) A day and temporary labor service agency which is
15located, operates or transacts business within this State
16shall register with the Department of Labor in accordance with
17rules adopted by the Department for day and temporary labor
18service agencies and shall be subject to this Act and any rules
19adopted under this Act. Each day and temporary labor service
20agency shall provide proof of an employer account number
21issued by the Department of Employment Security for the
22payment of unemployment insurance contributions as required
23under the Unemployment Insurance Act, and proof of valid
24workers' compensation insurance in effect at the time of
25registration covering all of its employees. If, at any time, a

 

 

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

 

 

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1the information identified in paragraphs paragraph (9) and
2(9.5) of subsection (a) of Section 12, broken down by branch
3office, in the aggregate for all day or temporary laborers
4assigned within Illinois and subject to this Act during the
5preceding year. This information shall be submitted on a form
6created by the Department of Labor. The Department of Labor
7shall aggregate the information submitted by all registering
8day and temporary labor service agencies by removing
9identifying data and shall have the information available to
10the public only on a municipal and county basis. As used in
11this subsection and subsection (a-2) this paragraph,
12"identifying data" means any and all information that: (i)
13provides specific information on individual worker identity;
14(ii) identifies the service agency in any manner; and (iii)
15identifies clients utilizing the day and temporary labor
16service agency or any other information that can be traced
17back to any specific registering day and temporary labor
18service agency or its client. The information and reports
19submitted to the Department of Labor under this subsection by
20the registering day and temporary labor service agencies are
21exempt from inspection and copying under Section 7.5 of the
22Freedom of Information Act. Any summary reports created by the
23Department shall be made available for public inspection on
24the Department's website and shall not be exempt from
25inspection and copying under the Freedom of Information Act.
26    (a-2) When a day and temporary labor service agency

 

 

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1registers with the Department, it shall submit to the
2Department a report containing (i) the total number of W-2
3forms issued to day or temporary laborers in Illinois during
4the prior year broken down by branch office and (ii) the total
5number of hours billed by the day and temporary labor service
6agency from a branch office in Illinois broken down by branch
7office. This information shall be submitted on a form created
8by the Department. The Department shall aggregate the
9information submitted by all registering day and temporary
10labor service agencies by removing identifying data and shall
11make the information available to the public on a municipal
12and county basis. The information and reports submitted to the
13Department under this subsection by the registering day and
14temporary labor service agencies are exempt from inspection
15and copying under the Freedom of Information Act. Any summary
16reports created by the Department shall be made available for
17public inspection on the Department's website and shall not be
18exempt from inspection and copying under the Freedom of
19Information Act.
20    (a-3) The Department shall deny a day and temporary labor
21service agency's registration until all of the information
22required in subsections (a-1) and (a-2) has been provided.
23    (b) It is a violation of this Act to operate a day and
24temporary labor service agency without first registering with
25the Department in accordance with subsection (a) of this
26Section. The Department shall create and maintain at regular

 

 

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

 

 

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1        (2) is under the age of 18.
2    (d) Every agency shall post and keep posted at each
3location, in a position easily accessible to all employees,
4notices as supplied and required by the Department containing
5a copy or summary of the provisions of the Act and a notice
6which informs the public of a toll-free telephone number for
7day or temporary laborers and the public to file wage dispute
8complaints and other alleged violations by day and temporary
9labor service agencies. Such notices shall be in English or
10any other language generally understood in the locale of the
11day and temporary labor service agency.
12(Source: P.A. 100-517, eff. 6-1-18.)
 
13    (820 ILCS 175/50)
14    Sec. 50. Violations. The Department shall have the
15authority to deny, suspend, or revoke the registration of a
16day and temporary labor service agency if warranted by public
17health and safety concerns or violations of this Act. The
18Attorney General, pursuant to its authority under Section 6.3
19of the Attorney General Act, may request that a circuit court
20suspend or revoke the registration of a day and temporary
21labor service agency when warranted by public health concern
22or violations of this Act. The Attorney General shall provide
23notice to the Director prior to requesting the suspension or
24revocation of the registration of a day and temporary labor
25service agency.

 

 

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1(Source: P.A. 94-511, eff. 1-1-06.)
 
2    (820 ILCS 175/55)
3Sec. 55. Enforcement by the Department.
4    (a) It shall be the duty of the Department to enforce the
5provisions of this Act. The Department shall have the power to
6conduct investigations in connection with the administration
7and enforcement of this Act and any investigator with the
8Department shall be authorized to visit and inspect, at all
9reasonable times, any places covered by this Act and shall be
10authorized to inspect, at all reasonable times, contracts for
11the employment of all day or temporary laborers entered into
12by a third party client if the Department has received a
13complaint indicating that the third party client may have
14contracted with a day and temporary labor service agency that
15is not registered under this Act. The Department shall conduct
16hearings in accordance with the Illinois Administrative
17Procedure Act upon written complaint by an investigator of the
18Department or any interested person of a violation of the Act.
19After the hearing, if supported by the evidence, the
20Department may (i) issue and cause to be served on any party an
21order to cease and desist from further violation of the Act,
22(ii) take affirmative or other action as deemed reasonable to
23eliminate the effect of the violation, (iii) deny, suspend, or
24revoke any registration under this Act, and (iv) determine the
25amount of any civil penalty allowed by the Act. The Director of

 

 

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1Labor or his or her representative may compel, by subpoena,
2the attendance and testimony of witnesses and the production
3of books, payrolls, records, papers, and other evidence in any
4investigation or hearing and may administer oaths to
5witnesses. Nothing in this Act applies to labor or employment
6of a clerical or professional nature.
7    (b) If action has been initiated by an interested party as
8to any violations pursuant to this Section, the Department
9shall defer launching any investigation of the same such
10violations until the conclusion of the civil matter. The
11Department may intervene in the civil matter as a party in
12interest at any time. Intervention by the Department shall not
13alter the rights of the interested party under Section 67.
14    (c) Nothing in this Section shall in any way prevent or
15delay a day or temporary laborer or his or her representatives
16or an interested party from bringing an action to enforce
17rights pursuant to Section 95.
18(Source: P.A. 93-441, eff. 1-1-04; 94-511, eff. 1-1-06.)
 
19    (820 ILCS 175/67 new)
20    Sec. 67. Action for civil penalties brought by an
21interested party.
22    (a) Upon a reasonable belief that a day and temporary
23labor service agency or a third party client covered by this
24Act is in violation of any part of this Act, an interested
25party may file suit against the covered entity in a circuit

 

 

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1court, in any county where some or all the alleged offenses
2occurred, without regard to exhaustion of any alternative
3administrative remedies provided in this Act. The interested
4party shall provide notice to the Director at the time of the
5filing of an action.
6    (b) In an action brought pursuant to this Section, an
7interested party may recover against the covered entity any
8statutory penalties set forth in Section 70 and injunctive
9relief. An interested party who prevails shall receive 10% of
10any statutory penalties assessed, plus any attorney's fees and
11expenses in bringing the action. The remaining 90% of any
12statutory penalties assessed shall be deposited into the Child
13Labor and Day and Temporary Labor Services Enforcement Fund
14and shall be used exclusively for enforcement of this Act by
15the Department.
16    (c) If the Department has already initiated an
17investigation of any alleged violation of the Act and that
18investigation is ongoing at the time a civil action is filed,
19the civil action shall be stayed as to those violations until
20the Department has completed its investigation and any related
21enforcement or has granted a waiver in writing to the
22interested party to proceed with a civil action. Recovery by
23the Department of civil penalties under Section 70 for any
24violation of the Act shall be an absolute defense to the civil
25action by an interested party as to those violations only.
26    (d) The right of an interested party to bring an action

 

 

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1under this Section terminates upon the passing of 3 years from
2the latest date of the violation. This period is tolled for the
3period a civil action under this Section is stayed pending the
4outcome of an investigation by the Department.
5    (e) Nothing in this Section shall in any way prevent or
6delay a day or temporary laborer or his or her representatives
7or an interested party from bringing an action to enforce
8rights pursuant to Section 95.
 
9    (820 ILCS 175/70)
10    Sec. 70. Penalties.
11    (a) A day and temporary labor service agency or third
12party client that violates any of the provisions of this Act or
13any rule adopted under this Act shall be subject to a civil
14penalty of not less than $100 and not more than to exceed
15$1,000 $6,000 for each violation violations found in the first
16audit by the Department or determined by a court in a civil
17action brought by an interested party, or determined by a
18court in a civil action brought by the Attorney General
19pursuant to its authority under Section 6.3 of the Attorney
20General Act. Following a first audit or civil action, a day and
21temporary labor service agency or third party client shall be
22subject to a civil penalty of not less than $500 and not more
23than to exceed $2,500 for each repeat violation found by the
24Department or circuit court within 3 years. For purposes of
25this subsection, each violation of this Act for each day or

 

 

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

 

 

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1the amount of each penalty shall be final unless reviewed as
2provided in Section 60 of this Act.
3(Source: P.A. 96-1185, eff. 7-22-10.)
 
4    (820 ILCS 175/85)
5    Sec. 85. Third party clients.
6    (a) It is a violation of this Act for a third party client
7to enter into a contract for the employment of day or temporary
8laborers with any day and temporary labor service agency not
9registered under Section 45 of this Act. A third party client
10has a duty to verify a day and temporary labor service agency's
11status with the Department before entering into a contract
12with such an agency, and on March 1 and September 1 of each
13year. A day and temporary labor service agency shall be
14required to provide each of its third party clients with proof
15of valid registration issued by the Department at the time of
16entering into a contract. A day and temporary labor service
17agency shall be required to notify, both by telephone and in
18writing, each day or temporary laborer it employs and each
19third party client with whom it has a contract within 24 hours
20of any denial, suspension, or revocation of its registration
21by the Department. All contracts between any day and temporary
22labor service agency and any third party client shall be
23considered null and void from the date any such denial,
24suspension, or revocation of registration becomes effective
25and until such time as the day and temporary labor service

 

 

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1agency becomes registered and considered in good standing by
2the Department as provided in Section 50 and Section 55. Upon
3request, the Department shall provide to a third party client
4a list of entities registered as day and temporary labor
5service agencies. The Department shall provide on the Internet
6a list of entities registered as day and temporary labor
7service agencies. A third party client may rely on information
8provided by the Department or maintained on the Department's
9website pursuant to Section 45 of this Act and shall be held
10harmless if such information maintained or provided by the
11Department was inaccurate. Any third party client that
12violates this provision of the Act is subject to a civil
13penalty of not less than $100 and not to exceed $1,000 $500.
14Each day during which a third party client contracts with a day
15and temporary labor service agency not registered under
16Section 45 of this Act shall constitute a separate and
17distinct offense.
18    (b) If a third party client leases or contracts with a day
19and temporary service agency for the services of a day or
20temporary laborer, the third party client shall share all
21legal responsibility and liability for the payment of wages
22under the Illinois Wage Payment and Collection Act and the
23Minimum Wage Law.
24    (c) Whenever a day or temporary laborer is assigned to
25work at a third party client, the day or temporary laborer
26shall receive training on all machinery that the day or

 

 

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

 

 

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1    original, ink signatures with a hard copy given to the day
2    or temporary laborer;
3        (2) the contract must be signed by any party that
4    seeks to bind the day or temporary laborer to the
5    agreement;
6        (3) the contract must be valid only for the term of the
7    day or temporary laborer's current assignment to a client
8    company and expires after the assignment concludes;
9        (4) the original contract must be maintained and
10    produced in any proceeding to enforce the terms of the
11    contract; and
12        (5) if any provision of such a contract is deemed
13    unenforceable under Illinois law, the entire agreement
14    must be unenforceable.
15    (b) Any contract entered into between a temporary labor
16service agency and any third party client that may impact a day
17or temporary laborer's wages, ability to work at another day
18and temporary labor service agency or third party client
19company must be disclosed and a copy provided to each day or
20temporary laborer in a language that the day or temporary
21laborer understands within 7 days after the contract goes into
22effect or impacts the day or temporary laborer.
23    (c) The failure by a day and temporary labor service
24agency or client company to provide any of the information
25required by this Section shall constitute a notice violation
26under Section 95. The failure to provide each piece of

 

 

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1information required by this Section at each time it is
2required by this Section shall constitute a separate and
3distinct notice violation.
 
4    (820 ILCS 175/90)
5    Sec. 90. Retaliation.
6    (a) Prohibition. It is a violation of this Act for a day
7and temporary labor service agency or third party client, or
8any agent of a day and temporary labor service agency or third
9party client, to retaliate through removal from an assignment,
10a failure to assign, discharge, or in any other manner of
11negative job actions against any day or temporary laborer for
12exercising any rights granted under this Act. Such retaliation
13shall subject a day and temporary labor service agency or
14third party client, or both, to civil penalties pursuant to
15this Act or a private cause of action.
16    (b) Protected Acts from Retaliation. It is a violation of
17this Act for a day and temporary labor service agency or third
18party client to retaliate against a day or temporary laborer
19for:
20        (1) making a complaint to a day and temporary labor
21    service agency, to a third party client, to a co-worker,
22    to a community organization, before a public hearing, or
23    to a State or federal agency that rights guaranteed under
24    this Act have been violated;
25        (2) causing to be instituted any proceeding under or

 

 

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

 

 

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

 

 

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1    violation, any financial benefit to the employer from
2    unpaid wages in the amount of all unpaid wages, plus
3    statutory interest and statutory damages and attorneys'
4    fees and costs as provided herein and in the Minimum Wage
5    Law and Wage Payment and Collection Act; and
6        (2) pursue, in the case of a health and safety or
7    notice violation, an amount of not less than $100 but not
8    more than $1,000 for each violation of each subpart of
9    each Section.
10    An interested party may bring an action to disgorge the
11amounts provided in paragraphs (1) and (2) for similarly
12situated employees of the day and temporary labor service
13agency who do not request to exclude themselves from the
14proceeding. In adjudicating an action involving a class of
15similarly situated employees brought under this subsection,
16the circuit court shall apply the procedures set forth in Part
178 of Article II of the Code of Civil Procedure, except that
18there shall be no requirement that the interested party have a
19claim or claims that are common to or are typical of the
20members of the class. Any funds for unpaid wages, statutory
21interest or statutory damages disgorged from an employer and
22awarded in an action brought under this subsection shall be
23distributed to all employees, other than those who exclude
24themselves from the action pursuant to the procedure set forth
25in subsection (b) of Section 2-804 of the Code of Civil
26Procedure, in proportion to the amount of each employee's

 

 

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1unpaid wages.
2    (b) The right of an aggrieved person to bring an action
3under this Section terminates upon the passing of 3 years from
4the final date of employment by the day and temporary labor
5agency or the third party client or upon the passing of 3 years
6from the date of termination of the contract between the day
7and temporary labor service agency and the third party client.
8This limitations period is tolled if a day labor employer has
9deterred a day and temporary labor service agency or day or
10temporary laborer's exercise of rights under this Act by
11contacting or threatening to contact law enforcement agencies.
12The right of an interested party to bring an action under this
13Section on behalf of a day or temporary laborer, a group of day
14or temporary laborers, or a class of day or temporary laborers
15terminates 3 years after the date of termination of the
16contract between the day and temporary labor service agency
17and the third party client.
18(Source: P.A. 96-1185, eff. 7-22-10.)
 
19    Section 99. Effective date. This Act takes effect July 1,
202023.".