Illinois General Assembly - Full Text of SB2060
Illinois General Assembly

Previous General Assemblies

Full Text of SB2060  100th General Assembly




SB2060 EngrossedLRB100 09649 SMS 19818 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Private Employment Agency Act is amended by
5changing Sections 1.5, 4, and 5 and by renumbering and changing
6Section 11 as follows:
7    (225 ILCS 515/1.1)  (was 225 ILCS 515/11)
8    Sec. 1.1 11. Definitions. As When used in this Act, unless
9the context indicates otherwise:
10    "Employment The term "employment agency" means any person
11engaged for gain or profit in the business of placing,
12referring, securing, or attempting to secure employment for
13persons seeking employment, or in finding employees for
14employers. However, "employment the term "employment agency"
15does shall not include any person engaged in the business of
16consulting or recruiting, and who in the course of such
17business is compensated solely by any employer to identify,
18appraise, or recommend an individual or individuals who are at
19least 18 years of age or who hold a high school diploma for
20consideration for a position, provided that in no instance is
21the individual who is identified, appraised, or recommended for
22consideration for such position charged a fee directly or
23indirectly in connection with such identification, appraisal,



SB2060 Engrossed- 2 -LRB100 09649 SMS 19818 b

1or recommendation, or for preparation of any resume, or on
2account of any other personal service performed by the person
3engaged in the business of consulting or recruiting; but this
4exclusion is not applicable to theatrical employment agencies
5or domestic service employment agencies.
6    "Employer" The term "employer" means any person employing
7or seeking to employ any person for hire.
8    "Employee" The term "employee" means any person performing
9or seeking to perform work or services of any kind or character
10whatsoever for hire.
11    "Person" The term "person" means any person, firm,
12association, partnership, limited liability company,
13association, corporation, or other legal entity or its legal
14representatives, agents, or assigns.
15    "Employment counselor" means an employee of an employment
16agency who interviews, counsels, or advises applicants or
17employers or both on employment or allied problems, or who
18makes or arranges contracts or contacts between employers and
19employees. "Employment counselor" includes an employee who
20solicits orders for employees from prospective employers. The
21term "employment counsellor" means employees of any employment
22agency who interview, counsel, or advise applicants or
23employers or both on employment or allied problems, or who make
24or arrange contracts or contacts between employers and
25employees. The term "employment counsellor" includes employees
26who solicit orders for employees from prospective employers.



SB2060 Engrossed- 3 -LRB100 09649 SMS 19818 b

1    "Acceptance" The term "acceptance" means a mutual
2agreement, verbal or written, between employee and employer as
3to starting salary, position, and time and place of employment.
4    "Applicant" The term "applicant" means any person who uses
5the services of an employment agency to secure employment for
7    "Department" The term "department" means the Department of
9    "Director" The term "Director" means the Director of the
10Department of Labor.
11    "Fee" The term "fee" means money or a promise to pay money.
12"Fee" The term "fee" also means and includes the excess of
13money received by any such licensee over what he or she has
14paid for transportation, transfer of baggage, or lodging, for
15any applicant for employment. "Fee" The term "fee" also means
16and includes the difference between the amount of money
17received by any person, who furnishes employees or performers
18for any entertainment, exhibition or performance, and the
19amount paid by the person receiving the amount of money to the
20employees or performers whom he or she hires to give such
21entertainment, exhibition or performance.
22    "Privilege" The term "privilege" means and includes the
23furnishing of food, supplies, tools, or shelter to contract
24laborers, commonly known as commissary privileges.
25    "Theatrical The term "theatrical employment agency" means
26and includes the business of conducting an agency, bureau,



SB2060 Engrossed- 4 -LRB100 09649 SMS 19818 b

1office or any other place for the purpose of procuring or
2offering, promising or attempting to provide engagements for
3persons who want employment in the following occupations:
4circus, vaudeville, theatrical and other entertainment, or
5exhibitions, or performances, or of giving information as to
6where such engagements may be procured or provided, whether
7such business is conducted in a building, on the street, or
9    "Theatrical The term "theatrical engagement" means and
10includes any engagement or employment of a person as an actor,
11performer, or entertainer, in a circus, vaudeville, theatrical
12or any other entertainment, exhibition, or performance.
13    "Emergency The term "emergency engagement" means and
14includes any engagement that is to be performed within 24 hours
15of the time such application was made by an employer.
16    "Domestic The term "domestic service" means household work
17in the home of the employer and includes, but is not limited
18to, work as a maid, cook, butler, gardener, chauffeur,
19housekeeper, or babysitter.
20(Source: P.A. 99-422, eff. 1-1-16.)
21    (225 ILCS 515/1.5)
22    Sec. 1.5. Application for license; application fees;
23disclosure of fees, charges, and commissions; investigation of
24applicants; renewal of license; changes in structure and
25management of licensees.



SB2060 Engrossed- 5 -LRB100 09649 SMS 19818 b

1    (a) The applicant for a license shall furnish to the
2Department the following:
3        (1) An affidavit stating that he has never been a party
4    to any fraud, has no jail or prison record, belongs to no
5    subversive societies, is of good moral character, has
6    business integrity and is financially responsible. In
7    determining moral character and qualification for
8    licensing, the Department may take into consideration any
9    criminal conviction of the applicant, but such a conviction
10    shall not operate as a bar to licensing.
11        (2) A completed application, on a form provided by the
12    Department, that includes the name of the person,
13    corporation, or other entity applying for the license; the
14    location at which the person intends to conduct business;
15    the type of employment services provided; and a disclosure
16    of any other pecuniary interests held by the entity
17    applying for the license.
18        (3) An application fee. The Director shall adopt rules
19    to establish a schedule of fees for application for a
20    license. The application fee is nonrefundable.
21        (4) A schedule of fees, charges, and commissions, which
22    the employment agency intends to charge and collect for its
23    services, together with a copy of all forms and contracts
24    that the agency intends to be used in the operation of the
25    agency. Such schedule of fees, charges, and commissions may
26    thereafter be changed by filing with the Department an



SB2060 Engrossed- 6 -LRB100 09649 SMS 19818 b

1    amended or supplemental schedule showing such changes at
2    least 15 days before such change is to become effective.
3    Any change in forms or contracts must be filed with the
4    Department of Labor at least 15 days before such change is
5    going to become effective. Such schedule of fees to be
6    charged shall be posted in a conspicuous place in each room
7    of such an agency where applicants are interviewed, in not
8    less than 30 point bold-faced type. Agencies which deal
9    exclusively with employer paid fees shall not be required
10    to post said schedule of fees. The Department may by rule
11    require contracts to contain definitions of terms used in
12    such contracts to eliminate ambiguity.
13    It shall be unlawful for any employment agency to charge,
14collect, or receive a greater compensation for any service
15performed by it than is specified in the schedule filed with
16the Department. It shall be unlawful for any employment agency
17to collect or attempt to collect any compensation for any
18service not specified in the schedule of fees filed with the
20    (b) Upon the filing of such application and supporting
21documentation, the Department shall cause an investigation to
22be made as to the character and the business integrity and
23financial responsibility of the applicant and those mentioned
24in the application, and as to the fitness of the premises to be
25used. The application shall be rejected if the Department finds
26that any of the persons named in the application fail to



SB2060 Engrossed- 7 -LRB100 09649 SMS 19818 b

1demonstrate good moral character, business integrity and
2financial responsibility, if the premises are unfit, or if
3there is any good and sufficient reason within the meaning and
4purpose of this Act for rejecting such application. Unless the
5application shall be rejected for one or more of the causes
6specified above, it shall be granted. A detailed report of such
7investigation and the action taken thereon shall be made in
8writing, signed by the investigator, and become a part of the
9official records of the Department. When, at the time of filing
10the application, the applicant or any person mentioned in the
11application is employed as an employment counselor counsellor
12by a licensed employment agency in this State, the Department
13shall notify the agency of this fact.
14    (c) Once issued, a license may be renewed annually by
15furnishing the Department the required application fee, a
16letter from a surety stating that a sufficient bond is in
17force, and other documents necessary to complete the renewal.
18Failure to renew a license at its expiration date shall cause
19the license to lapse and it may only be reinstated by a new
21    (d) No license shall be transferrable, but a licensee may,
22with the approval of the Department, make changes in the
23structure of the business entity operating the agency, but no
24licensee shall permit any person not mentioned in the original
25application for a license to become a partner if such agency is
26a partnership, or an officer of the corporation if such agency



SB2060 Engrossed- 8 -LRB100 09649 SMS 19818 b

1is a corporation, unless the written consent of the Department
2of Labor shall first be obtained. Such consent may be withheld
3for any reason for which an original application might have
4been rejected, if the person in question had been mentioned
5therein. No such change shall be permitted until the written
6consent of the surety or sureties on the bond required to be
7filed by Section 2 of this Act, to such change, is filed with
8the original bond. The Department shall be notified immediately
9of any change in the management of the agency so that at all
10times the identity of the person charged with the general
11management of the agency shall be known by the Department. A
12licensee may promote persons within its agency or change the
13titles and duties of existing agency personnel, other than the
14general manager, without notice to the Department.
15(Source: P.A. 99-422, eff. 1-1-16.)
16    (225 ILCS 515/4)  (from Ch. 111, par. 904)
17    Sec. 4. It shall be unlawful for any person to act as an
18employment counselor counsellor, or to advertise, or assume to
19act as an employment counselor counsellor, without first
20obtaining a license as such employment counselor counsellor,
21from the Department of Labor. It shall be unlawful for any
22person to engage in, operate or carry on the business of an
23employment agency unless each employee of such agency, who
24furnishes information to any person as to where employees or
25employment may be obtained or found, is a licensed employment



SB2060 Engrossed- 9 -LRB100 09649 SMS 19818 b

1counselor counsellor. Where the license to conduct an
2employment agency is issued to a corporation and any officer of
3the corporation performs any function defined as those to be
4performed by an employment counselor counsellor, he shall be
5considered an employee of the corporation and shall be required
6to secure a license as an employment counselor counsellor.
7    Every person who desires to obtain a license, as employment
8counselor counsellor, shall apply therefor to the Department of
9Labor, in writing, upon application blanks prepared and
10furnished by the Department of Labor. Each applicant shall set
11out in said application blanks such information as the
12Department may require, and said applications shall be
13accompanied by a permit fee of $50 and the affidavits of two
14persons of business or professional integrity. Such affiants
15shall state that they have known the applicant for a period of
16two years and that the applicant is a person of good moral
18    The Department shall issue to such person a temporary
19permit to act as an employment counselor counsellor which
20permit shall be valid for 90 days pending examination of such
21person when:
22    (a) the applicant is employed by an employment agency, and
23the application states the name and address of such employment
24agency; and
25    (b) the applicant declares under oath his intention that he
26will complete the examination for the employment agency



SB2060 Engrossed- 10 -LRB100 09649 SMS 19818 b

1counselor's counsellor's license on a date scheduled for such
2examination by the Department of Labor within 60 days of the
3date of application.
4    Commencing January 1, 1974 the Department shall not issue a
5license to act as an employment counselor counsellor to any
6person not previously licensed as such employment counselor
7counsellor on such date unless he has taken and successfully
8completed a written examination based upon this Act. The
9Department of Labor shall conduct such examination at such
10times and places as it shall determine, but not less than once
11each month. The examination shall test the applicant's
12knowledge of the employment agency law, pertinent labor laws
13and laws against discrimination in employment. Upon successful
14completion of the written examination and providing the
15requirements of this Section are met, the Department shall
16issue a license to act as an employment counselor counsellor
17and no additional licensing fee shall be required.
18    In the event of failure to appear for the examination as
19scheduled or if the applicant appears and fails to pass, such
20person shall pay a fee of $10 for rescheduling at a later date.
21No person may be rescheduled for examination more than twice in
22any calendar year except in the event that he has failed to
23appear for examination and such failure to appear was not
24willful but was the result of illness of the applicant or a
25member of his immediate family or of some other emergency.
26    The Department of Labor may require such other proof as to



SB2060 Engrossed- 11 -LRB100 09649 SMS 19818 b

1the honesty, truthfulness and integrity of the applicant, as
2may be deemed necessary and desirable. If the applicant is
3shown to be honest, truthful and of known integrity, and has
4successfully completed the written examination required under
5this Section, the Department of Labor shall issue a license,
6which license shall set out the true name and address of the
7applicant, the name of the Employment agency by whom he is
8employed, and such additional information as the Department may
9prescribe. The license issued shall authorize the person named
10therein to act as an employment counselor counsellor. Such
11license may be renewed at the end of each year by the payment
12of a renewal fee of $25.
13    The applicant must furnish satisfactory proof to the
14Department that he has never been a party to any fraud, has no
15jail record, belongs to no subversive societies and is of good
16moral character and business integrity.
17    In determining honesty, truthfulness, integrity, moral
18character and business integrity under this Section, the
19Department may take into consideration any felony conviction of
20the applicant, but such a conviction shall not operate as a bar
21to licensing.
22    The license of the employment counselor counsellor shall be
23mailed to the employment agency by which he is employed, and
24shall be kept in the office of such agency and produced for
25inspection by any agent of the Department of Labor, at any time
26during business hours.



SB2060 Engrossed- 12 -LRB100 09649 SMS 19818 b

1    The Department of Labor, upon its own motion, or upon the
2filing of a verified complaint with the department, by any
3person, accompanied by such evidence, documentary or
4otherwise, as makes out a prima facie case that the licensee is
5unworthy to hold a license, shall notify the employment
6counselor counsellor in writing that the question of his
7honesty, truthfulness, integrity, moral character, business
8integrity or felony conviction is to be reopened and
9determined, de novo. This notice shall be served by delivering
10a copy to the licensed person, or by mailing a copy to him, by
11registered mail, at his last known business address. Thereupon,
12the Department of Labor shall require further proof of the
13licensee's honesty, truthfulness, integrity, moral character
14and business integrity, and if the proof is not satisfactory to
15the Department of Labor, it shall revoke his license.
16    If any employment counselor counsellor is discharged or
17terminates his employment with the agency by which he is
18employed, such agency shall immediately deliver, or forward by
19mail, the employment counselor's counsellor's license, to the
20Department of Labor, together with the reasons for his
21discharge, if he was discharged. Failure to state that the
22employment counselor counsellor was discharged will be
23conclusively presumed to indicate that he terminated his
24services voluntarily. Thereafter, it shall be unlawful for the
25employment counselor counsellor to exercise any rights or
26privileges under such license, unless the Department of Labor



SB2060 Engrossed- 13 -LRB100 09649 SMS 19818 b

1transfers his license to another employment agency.
2    Each employment counselor counsellor shall notify the
3Department of Labor of any change in his residence address.
4Failure to give such notice shall automatically work a
5revocation of his license.
6    The Department may refuse to issue or may suspend the
7license of any person who fails to file a return, or to pay the
8tax, penalty or interest shown in a filed return, or to pay any
9final assessment of tax, penalty or interest, as required by
10any tax Act administered by the Illinois Department of Revenue,
11until such time as the requirements of any such tax Act are
13    Any person who violates any provisions of this section or
14who testifies falsely as to any matter required by the
15provisions of this section or of this Act, is guilty of a Class
16B misdemeanor.
17(Source: P.A. 97-813, eff. 7-13-12.)
18    (225 ILCS 515/5)  (from Ch. 111, par. 905)
19    Sec. 5. No such licensee shall charge a registration fee
20without having first obtained a permit to charge such
21registration fee from the Department of Labor. Any such
22licensee desiring to charge a registration fee shall make
23application in writing to the Department of Labor, and shall
24set out in the application the type of applicants from whom
25they intend to accept a registration fee, the amount of the fee



SB2060 Engrossed- 14 -LRB100 09649 SMS 19818 b

1to be charged, and shall furnish any other information on the
2subject that the Department of Labor may deem necessary to
3enable it to determine whether the agency's business methods
4and past record entitle the agency to a permit.
5    It is the duty of the Department of Labor to make an
6investigation, upon receipt of the application, as to the
7truthfulness of the application and the necessity of the charge
8of a registration fee; and if it is shown that the agency's
9method of doing business is of such a nature that a permit to
10charge a registration fee is necessary, and that the agency's
11record has been reasonable and fair, then the Department of
12Labor shall grant a permit to such agency. Such permit shall
13remain in force until revoked for cause. No permit shall be
14granted until after 10 days from the date of filing of the
16    When a permit is granted, such licensed person may charge a
17registration fee not to exceed $4. In all such cases a complete
18record of all such registration fees and references of
19applicants shall be kept on file, which record shall, during
20all business hours, be open for the inspection of the
21Department of Labor. It is the duty of such licensee to
22communicate in writing with at least 2 of the persons mentioned
23as reference by every applicant from whom a registration fee is
24accepted. Failure on the part of a licensee to make such
25investigation shall be deemed cause to revoke the permit to
26charge a registration fee. For such registration fee a receipt



SB2060 Engrossed- 15 -LRB100 09649 SMS 19818 b

1shall be given to the applicant for employees or employment,
2and shall state therein the name of such applicant, date and
3amount of payment, the character of position or employee
4applied for, and the name and address of such agency. If no
5position has been furnished by the licensed agency to the
6applicant, then the registration fee shall be returned to the
7applicant on demand after 30 days and within 6 months from the
8date of receipt thereof, less the amount that has been actually
9expended by the licensee in checking the references of the
10applicant, and an itemized account of such expenditures shall
11be presented to the applicant on request at the time of
12returning the unused portion of such registration fee.
13    Any such permit granted by the Department of Labor may be
14revoked by it upon due notice to the holder of said permit and
15due cause shown and hearing thereon.
16    No such licensee shall, as a condition to registering or
17obtaining employment for such applicant, require such
18applicant to subscribe to any publication or to any postal card
19service, or advertisement, or exact any other fees,
20compensation or reward, (except that in the case of applicants
21for positions paying salaries of $5,000 or more per annum,
22where the agency has secured from the Department of Labor a
23permit to furnish a letter service in accordance with
24regulations of the department governing the furnishing of such
25service, a special fee not to exceed $250, to be credited on
26the fee charged for any placement resulting from such letter



SB2060 Engrossed- 16 -LRB100 09649 SMS 19818 b

1service, may be charged for furnishing such letter service)
2other than the aforesaid registration fee and a further fee,
3called a placement fee, the amount of which shall be agreed
4upon between such applicant and such licensee to be payable at
5such time as may be agreed upon in writing. The employment
6agency shall furnish to each applicant a copy of any contract
7or any form he signs with the agency regarding the method of
8payment of the placement or employment service fee. Such
9contract or form shall contain the name and address of such
10agency, and such other information as the Department of Labor
11may deem proper. The contract or form or copy thereof furnished
12the applicant must state immediately above, below or close to
13the place provided for the signature of the applicant that he
14has received a copy of the contract or form and his signature
15shall acknowledge receipt thereof. The placement or employment
16service fee shall not be received by such licensee before the
17applicant has accepted a position tendered by the employer. A
18copy of each contract or other form to which the applicant
19becomes a party with the licensee shall be given to the
20applicant by the licensee at the time of executing such
21contract or document and on any such form on which the word
22acceptance appears, and such contract or other form shall have
23the definition of acceptance as defined by this Act printed in
24not less than 10 point type immediately following the word
25acceptance. In the event the position so tendered is not
26accepted by or given to such applicant, the licensee shall



SB2060 Engrossed- 17 -LRB100 09649 SMS 19818 b

1refund all fees paid other than the registration fee and
2special fee aforesaid, within 3 days of demand therefor. The
3fee charged for placing an applicant in domestic service shall
4be a single fee for each placement and shall be based upon the
5applicant's compensation or salary for a period not to exceed
6one year.
7    No such licensee shall send out any applicant for
8employment unless the licensee has a bona fide job order for
9such employment and the job order is valid in accordance with
10the renewal requirements of Section 3 of this Act. If no
11position of the kind applied for was open at the place where
12the applicant was directed, then the licensee shall refund to
13such applicant on demand any sum paid or expended by the
14applicant for transportation in going to and returning from the
15place, and all fees paid by the applicant. However, in the
16event a substitute position is taken, the fee to be charged
17shall be computed on the salary agreed upon for such position.
18    In addition to the receipt herein provided to be given for
19a registration fee, it shall be the duty of such licensee to
20give to every applicant for employment or employees from whom
21other fee, or fees shall be received, an additional receipt in
22which shall be stated the name of the applicant, the amount
23paid and the date of payment. All such receipts shall be in
24duplicate, numbered consecutively, shall contain the name and
25address of such agency, and such other information as the
26Department of Labor may deem proper. The duplicate receipt



SB2060 Engrossed- 18 -LRB100 09649 SMS 19818 b

1shall be kept on file in the agency for at least one year.
2    Every such licensee shall give to every applicant, who is
3sent out for a job or for an interview with a prospective
4employer, a card or printed paper or letter of introduction
5which shall be called a "referral slip" containing the name of
6the applicant, the name and address of the employer to whom the
7applicant is sent for employment, the name and address of the
8agency, the name of the person referring the applicant, and the
9probable duration of the work, whether temporary or permanent.
10The referral slip shall contain a blank space in which the
11employment counselor counsellor shall insert and specify in a
12prominent and legible manner whether the employment service fee
13is to be paid by the applicant or by the employer, or in the
14case of a split-fee, the percentage of the fee to be paid by
15the applicant and the percentage of the fee to be paid by the
16employer, or shall state whether the fee is to be negotiable
17between the employer and the employee. A duplicate of all such
18referral slips shall be kept on file in the agency for a period
19of one year. In the event that the applicant is referred to a
20job or to a prospective employer by telephone or telegraph, the
21referral slip shall be mailed to the applicant and to the
22prospective employer before the close of the business day on
23which the telephoned or telegraphed referral was given. No
24person shall be sent out for a job or to interview a
25prospective employer unless he has been personally interviewed
26by the agency or has corresponded with the agency with the



SB2060 Engrossed- 19 -LRB100 09649 SMS 19818 b

1purpose of securing employment.
2    If the employer pays the fee, and the employee fails to
3remain in the position for a period of 30 days, such licensee
4shall refund to the employer all fees, less an amount equal to
525% of the total salary or wages paid such employee during the
6period of such employment, within 3 days after the licensed
7person has been notified of the employee's failure to remain in
8the employment, provided such 25% does not exceed the amount
9charged for a permanent position of like nature.
10    If the employee pays the fee and is discharged at any time
11within 30 days for any reason other than intoxication,
12dishonesty, unexcused tardiness, unexcused absenteeism or
13insubordination, or otherwise fails to remain in the position
14for a period of 30 days, through thru no fault of his own, such
15licensee shall refund to the employee all fees less an amount
16equal to 25% of the total salary or wages paid such employee
17during the period of such employment within 3 days of the time
18such licensee has been notified of the employee's failure to
19remain in the employment, provided the 25% does not exceed the
20charge for a permanent position of like nature. All refunds
21shall be in cash or negotiable check.
22    If the employee has promised his prospective employer to
23report to work at a definite time and place and then fails to
24report to work, such circumstances shall be considered prima
25facie evidence that the employee has accepted the employment



SB2060 Engrossed- 20 -LRB100 09649 SMS 19818 b

1    Where a dispute concerning a fee exists, the department may
2conduct a hearing to determine all facts concerning the dispute
3and shall after such hearing make such recommendations
4concerning such dispute as shall be reasonable.
5    Every such licensee shall post in a conspicuous place in
6the main room of the agency sections of this Act as required by
7the Department of Labor, to be supplied by the Department of
8Labor, and shall also post his license in the main room of the
10    Every such licensee shall furnish the Department of Labor,
11under rules to be prescribed by such Department, annual
12statements showing the number and character of placements made.
13(Source: P.A. 97-813, eff. 7-13-12.)
14    (225 ILCS 515/13 rep.)
15    Section 10. The Private Employment Agency Act is amended by
16repealing Section 13.
17    Section 99. Effective date. This Act takes effect upon
18becoming law.