Public Act 099-0422
 
SB1859 EnrolledLRB099 06627 HAF 26700 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Private Employment Agency Act is amended by
changing Sections 1, 3, 11, and 12 and by adding Sections 1.5,
12.2, 12.3, 12.4, 12.5, and 12.6 as follows:
 
    (225 ILCS 515/1)  (from Ch. 111, par. 901)
    Sec. 1. Department of Labor; authority to license
employment agencies; unlicensed operation; website listing of
agencies; rulemaking authority.
    (a) It shall be the duty of the Department of Labor and it
shall have power, jurisdiction and authority to issue licenses
to employment agencies or agents, and to refuse to issue
licenses whenever, after due investigation, the Department of
Labor finds that the character of the applicant makes him unfit
to be an employment agent, or when the premises proposed to be
used for conducting the business of an employment agency, is
found, upon investigation, to be unfit for such use.
    (b) Any such license granted by the Department of Labor may
also be revoked or suspended by it upon due notice to the
holder of said license and upon due cause shown and hearing
thereon. Failure to comply with the duties, terms, rules,
conditions or provisions required by any law of this State
governing employment agencies, or with any lawful order of the
Department of Labor, shall be deemed cause to revoke or suspend
such license.
    (c) It is a violation of this Act to operate a private
employment agency without first registering with the
Department of Labor and obtaining a license in accordance with
Section 1.5 of this Act. The Department has the authority to
assess a penalty against any agency that fails to obtain a
license from the Department in accordance with this Act or any
rules adopted under this Act of $500 for each violation. Each
day during which an employment agency operates without a
license shall be a separate and distinct violation of the Act.
    (d) The Department shall create and maintain at regular
intervals on its website, accessible to the public:
        (1) a list of all licensed employment agencies in the
    State;
        (2) a list of all employment agencies in the State
    whose license has been suspended, including the reason for
    the suspension, the date that the suspension was initiated,
    and the date, if known, the suspension is to be lifted; and
        (3) a list of employment agencies in the State whose
    registration has been revoked, including the reason for the
    revocation and the date the registration was revoked.
    (e) The Department of Labor shall have power, jurisdiction
and authority to fix and order such reasonable rules and
regulations for the conduct of the business of employment
agencies, as may be necessary to carry out the laws relating to
employment agencies.
    The applicant shall furnish to the Department an affidavit
stating that he has never been a party to any fraud, has no
jail or prison record, belongs to no subversive societies, is
of good moral character, has business integrity and is
financially responsible.
    In determining moral character and qualification for
licensing, the Department may take into consideration any
criminal conviction of the applicant, but such a conviction
shall not operate as a bar to licensing.
    No person shall open, keep or carry on any employment
agency in the State of Illinois, unless such person shall
procure a license therefor from the Department of Labor. Any
person who shall open up, or conduct any such agency without
first procuring such license or without paying any fees
required by this Act, shall be guilty of a Class B misdemeanor.
    The application fee for such license shall be $250 annually
for persons operating an agency with less than 3 employment
counsellors; $350 annually for persons operating an agency with
from 3 to 5 employment counsellors; $400 annually for persons
operating an agency employing from 6 to 10 employment
counsellors and $500 annually for persons operating an agency
employing in excess of 10 employment counsellors. The
application fee is nonrefundable.
    Every license shall contain the name of the person
licensed, or if a corporation, the name of the chief officer, a
designation of the city, street number of the building in which
the licensee is authorized to carry on the employment agency,
and the style or trade name under which such licensee is to
conduct the employment agency. Such license shall not be valid
to protect any person who operates any employment agency under
any other name than is mentioned in the license. No license
shall be valid to protect any place other than that designated
in the license, unless notice in writing was given by a
licensee to the Department of Labor that the licensee intends
to commence conduct of an employment agency at another or at an
additional location, which notice is accompanied by the
requisite fee and bond, or unless any employment agency
interviews on the premises of an employer client for employees
for the employer client and notifies the Department thereof at
least 48 hours prior thereto and the Department fails to raise
an objection to the interviewing. No such agency shall be
located in connection with any place where intoxicating liquors
are sold.
    The application for such license shall be filed with the
Department of Labor and the Department of Labor shall act upon
such application before 60 days from the time of filing such
application. The license shall run for one year from date of
issue, and no longer, unless sooner revoked by the Department
of Labor. Such application shall be posted in the office of the
Department of Labor from date of filing thereof and until such
time as such application is acted upon. Such application shall
contain the name, address and telephone number of the person
who desires to secure a license, and shall be signed by him. If
the application is filed on behalf of a partnership, the
application shall contain the date when the partnership was
formed, and the names and addresses of all partners, and shall
be signed by one of the partners. If the application is filed
on behalf of a corporation, the application shall contain the
date when the corporation was formed, the state of
incorporation, and the names and addresses of all officers of
the corporation, and shall be signed by the president and
secretary of the corporation. The application shall state
whether or not any person mentioned in the application was ever
engaged in the business of conducting an employment agency, or
was employed by an employment agency in this State or elsewhere
and shall set forth the facts if any concerning such previous
connection with the employment agency business. The
application shall contain the name and address of the person
who is to have the general management of the agency.
    Such application shall state whether or not any person
mentioned in the application is pecuniarily interested in any
other business and if so, the nature of such business and where
it is carried on. Such applicant shall also state whether the
person or persons mentioned in the application are the only
persons pecuniarily interested in the business to be carried on
under the license. Such application shall also contain such
other information as the Department shall by regulation
require. Such application shall be accompanied by such evidence
of the applicant's business reputation for integrity and such
evidence of the applicant's financial responsibility as the
Department may by regulation require. Such application shall be
accompanied by the affidavits of two persons of business or
professional integrity, residing within the city or town
wherein such applicant resides or intends to conduct his
business, and such affiants shall state that they have known
the applicant for a period of two years, that the applicant is
a person of good moral character.
    Upon the filing of such application, the Department shall
cause an investigation to be made as to the character and the
business integrity and financial responsibility of the
applicant and those mentioned in the application, and as to the
fitness of the premises to be used. The application shall be
rejected if the Department shall find that any of the persons
named in the application is not of good moral character,
business integrity and financial responsibility, if the
premises are unfit or if there is any good and sufficient
reason within the meaning and purpose of this Act for rejecting
such application. Unless the application shall be rejected for
one or more of the causes specified above, it shall be granted.
A detailed report of such investigation and the action taken
thereon shall be made in writing, signed by the investigator
and become a part of the official records of the Department's
office.
    When at the time of filing the application, the applicant
or any person mentioned in the application is employed as an
employment counsellor by a licensed employment agency in this
State, the department shall notify the agency of this fact.
    Such license shall be renewed upon licensee furnishing the
Department accompanied by the required application fee, a
letter from a surety stating that a sufficient bond is in force
and other documents necessary to complete the renewal. Failure
to renew a license at its expiration date shall cause the
license to lapse and may only be reinstated by a new
application.
    No license shall be transferrable, but a licensee may at
any time with the approval of the Department, make changes in
the structure of the business entity operating the agency, but
no licensee shall permit any person not mentioned in the
original application for a license to become a partner if such
agency is a partnership, or an officer of the corporation if
such agency is a corporation, unless the written consent of the
Department of Labor shall first be obtained. Such consent may
be withheld for any reason for which an original application
might have been rejected, if the person in question had been
mentioned therein. No such change shall be permitted until the
written consent of the surety or sureties on the bond required
to be filed by Section 2 of this Act, to such change, be filed
with the original bond. The Department shall be notified
immediately of any change in the management of the agency so
that at all times the identity of the person charged with the
general management of the agency shall be known by the
Department. Licensee may promote persons within its agency or
change the titles and duties of existing agency personnel other
than the General Manager without notice to the Department.
        Each applicant for a license shall file with the
    application a schedule of fees, charges and commissions,
    which he intends to charge and collect for his services,
    together with a copy of all forms and contracts to be used
    in the operation of the agency. Such schedule of fees,
    charges and commissions may thereafter be changed by filing
    with the Department of Labor an amended or supplemental
    schedule, showing such changes, at least 15 days before
    such change is to become effective. Any change in forms or
    contracts must be filed with the Department of Labor at
    least 15 days before such change is to become effective.
    Such schedule of fees to be charged shall be posted in a
    conspicuous place in each room of such agency where
    applicants are interviewed and such schedule of fees shall
    be printed in not less than 30 point bold faced-type.
    Agencies which deal exclusively with employer paid fees
    shall not be required to post said schedule of fees. The
    Department may by regulation require contracts to contain
    definitions of terms used in such contracts to eliminate
    ambiguity.
    It shall be unlawful for any employment agency to charge,
collect or receive a greater compensation for any service
performed by it than is specified in such schedule filed with
the Department of Labor. It shall be unlawful for any
employment agency to collect or attempt to collect any
compensation for any service not specified in the schedule of
fees filed with the department.
(Source: P.A. 85-1408; 86-1043.)
 
    (225 ILCS 515/1.5 new)
    Sec. 1.5. Application for license; application fees;
disclosure of fees, charges, and commissions; investigation of
applicants; renewal of license; changes in structure and
management of licensees.
    (a) The applicant for a license shall furnish to the
Department the following:
        (1) An affidavit stating that he has never been a party
    to any fraud, has no jail or prison record, belongs to no
    subversive societies, is of good moral character, has
    business integrity and is financially responsible. In
    determining moral character and qualification for
    licensing, the Department may take into consideration any
    criminal conviction of the applicant, but such a conviction
    shall not operate as a bar to licensing.
        (2) A completed application, on a form provided by the
    Department, that includes the name of the person,
    corporation, or other entity applying for the license; the
    location at which the person intends to conduct business;
    the type of employment services provided; and a disclosure
    of any other pecuniary interests held by the entity
    applying for the license.
        (3) An application fee. The Director shall adopt rules
    to establish a schedule of fees for application for a
    license. The application fee is nonrefundable.
        (4) A schedule of fees, charges, and commissions, which
    the employment agency intends to charge and collect for its
    services, together with a copy of all forms and contracts
    that the agency intends to be used in the operation of the
    agency. Such schedule of fees, charges, and commissions may
    thereafter be changed by filing with the Department an
    amended or supplemental schedule showing such changes at
    least 15 days before such change is to become effective.
    Any change in forms or contracts must be filed with the
    Department of Labor at least 15 days before such change is
    going to become effective. Such schedule of fees to be
    charged shall be posted in a conspicuous place in each room
    of such an agency where applicants are interviewed, in not
    less than 30 point bold-faced type. Agencies which deal
    exclusively with employer paid fees shall not be required
    to post said schedule of fees. The Department may by rule
    require contracts to contain definitions of terms used in
    such contracts to eliminate ambiguity.
    It shall be unlawful for any employment agency to charge,
collect, or receive a greater compensation for any service
performed by it than is specified in the schedule filed with
the Department. It shall be unlawful for any employment agency
to collect or attempt to collect any compensation for any
service not specified in the schedule of fees filed with the
Department.
    (b) Upon the filing of such application and supporting
documentation, the Department shall cause an investigation to
be made as to the character and the business integrity and
financial responsibility of the applicant and those mentioned
in the application, and as to the fitness of the premises to be
used. The application shall be rejected if the Department finds
that any of the persons named in the application fail to
demonstrate good moral character, business integrity and
financial responsibility, if the premises are unfit, or if
there is any good and sufficient reason within the meaning and
purpose of this Act for rejecting such application. Unless the
application shall be rejected for one or more of the causes
specified above, it shall be granted. A detailed report of such
investigation and the action taken thereon shall be made in
writing, signed by the investigator, and become a part of the
official records of the Department. When, at the time of filing
the application, the applicant or any person mentioned in the
application is employed as an employment counsellor by a
licensed employment agency in this State, the Department shall
notify the agency of this fact.
    (c) Once issued, a license may be renewed annually by
furnishing the Department the required application fee, a
letter from a surety stating that a sufficient bond is in
force, and other documents necessary to complete the renewal.
Failure to renew a license at its expiration date shall cause
the license to lapse and it may only be reinstated by a new
application.
    (d) No license shall be transferrable, but a licensee may,
with the approval of the Department, make changes in the
structure of the business entity operating the agency, but no
licensee shall permit any person not mentioned in the original
application for a license to become a partner if such agency is
a partnership, or an officer of the corporation if such agency
is a corporation, unless the written consent of the Department
of Labor shall first be obtained. Such consent may be withheld
for any reason for which an original application might have
been rejected, if the person in question had been mentioned
therein. No such change shall be permitted until the written
consent of the surety or sureties on the bond required to be
filed by Section 2 of this Act, to such change, is filed with
the original bond. The Department shall be notified immediately
of any change in the management of the agency so that at all
times the identity of the person charged with the general
management of the agency shall be known by the Department. A
licensee may promote persons within its agency or change the
titles and duties of existing agency personnel, other than the
general manager, without notice to the Department.
 
    (225 ILCS 515/3)  (from Ch. 111, par. 903)
    Sec. 3. Records. It shall be the duty of every such
licensed person to keep a complete record in the English
language of all orders for employees which are received from
prospective employers. Upon request of the Department, a
licensee shall verify the date when the order was received, the
name of the person recording the job order, the name and
address of the employer seeking the services of an employee,
the name of the person placing the order, the kind of employee
requested, the qualifications required in the employee, the
salary or wages to be paid if known, and the possible duration
of the job. Prior to the placement of any job advertisement, an
employment agency must have a current, bona fide job order, and
must maintain a copy of both the advertisement and the job
order in a register established specially for that purpose. The
term "current, bona fide job order" shall be defined as a job
order obtained by the employment agency within 30 days prior to
the placement of the advertisement. A job order must be renewed
after 45 days and must be annotated with the name of the
representative of the prospective employer who authorized the
renewal and the date on which the renewal was authorized.
    Such employment agency shall also keep a complete record in
the English language of each applicant to whom employment is
offered or promised and who is sent out by the agency to secure
a job or interview. This record, which shall be called the
Applicant's Record, shall contain the date when the applicant
was sent out for the job or interview, the name of the
applicant, the name and address of the person or firm to whom
sent, the type of job offered and the wages or salary proposed
to be paid if known.
    The agency shall also keep a record of all payments to it
of any and all placement fees received and refunded. This
record shall be called a Fee Transaction record. It shall
contain the date of each transaction, the name of the person
making the remittance, the amount paid, a designation
indicating whether the amount paid is in full or on account,
the receipt number and the date and the amount of any refund.
    Notwithstanding the provisions of this Act concerning the
records required to be kept by employment agencies, the
Director of Labor may by regulation permit teachers' agencies,
medical agencies, nurses' registries, theatrical agencies,
contract labor agencies, baby sitter agencies and such other
agencies of a like nature who serve the needs of a specialized
class of workers, to keep such records concerning job orders,
listing of placed applicants, listing of available applicants
and payments of fees by either the employer or the employee as
the Department by regulation may approve.
    The aforesaid records shall be kept in the agency for 3
years one year and shall be open during office hours to
inspection by the Department and its duly qualified agents, or
produced in response to a subpoena issued by the Attorney
General in accordance with Section 10-104 of the Illinois Human
Rights Act. No such licensee, or his employee, shall knowingly
make any false entry in such records. It is a violation of this
Act to falsify or fail to keep any of the aforesaid records.
(Source: P.A. 91-357, eff. 7-29-99.)
 
    (225 ILCS 515/11)  (from Ch. 111, par. 914)
    Sec. 11. Definitions. When used in this Act, unless the
context indicates otherwise:
    The term "employment agency" means any person engaged for
gain or profit in the business of placing, referring, securing,
or attempting to secure employment for persons seeking
employment, or in finding employees for employers. However, the
term "employment agency" shall not include any person engaged
in the business of consulting or recruiting, and who in the
course of such business is compensated solely by any employer
to identify, appraise, or recommend an individual or
individuals who are at least 18 years of age or who hold a high
school diploma for consideration for a position, provided that
in no instance is the individual who is identified, appraised,
or recommended for consideration for such position charged a
fee directly or indirectly in connection with such
identification, appraisal, or recommendation, or for
preparation of any resume, or on account of any other personal
service performed by the person engaged in the business of
consulting or recruiting; but this exclusion is not applicable
to theatrical employment agencies or domestic service
employment agencies.
    The term "employer" means any person employing or seeking
to employ any person for hire.
    The term "employee" means any person performing or seeking
to perform work or services of any kind or character whatsoever
for hire.
    The term "person" means any person, firm, association,
partnership, limited liability company, association, or
corporation, or other legal entity or its legal
representatives, agents, or assigns.
    The term "employment counsellor" means employees of any
employment agency who interview, counsel, or advise applicants
or employers or both on employment or allied problems, or who
make or arrange contracts or contacts between employers and
employees. The term "employment counsellor" includes employees
who solicit orders for employees from prospective employers.
    The term "acceptance" means a mutual agreement, verbal or
written, between employee and employer as to starting salary,
position, time and place of employment.
    The term "applicant" means any person who uses the services
of an employment agency to secure employment for himself.
    The term "department" means the Department of Labor.
    The term "Director" means the Director of the Department of
Labor.
    The term "fee" means money or a promise to pay money. The
term "fee" also means and includes the excess of money received
by any such licensee over what he has paid for transportation,
transfer of baggage, or lodging, for any applicant for
employment. The term "fee" also means and includes the
difference between the amount of money received by any person,
who furnishes employees or performers for any entertainment,
exhibition or performance, and the amount paid by the person
receiving the amount of money to the employees or performers
whom he hires to give such entertainment, exhibition or
performance.
    The term "privilege" means and includes the furnishing of
food, supplies, tools or shelter to contract laborers, commonly
known as commissary privileges.
    The term "theatrical employment agency" means and includes
the business of conducting an agency, bureau, office or any
other place for the purpose of procuring or offering, promising
or attempting to provide engagements for persons who want
employment in the following occupations: circus, vaudeville,
theatrical and other entertainment, or exhibitions, or
performances, or of giving information as to where such
engagements may be procured or provided, whether such business
is conducted in a building, on the street, or elsewhere.
    The term "theatrical engagement" means and includes any
engagement or employment of a person as an actor, performer, or
entertainer, in a circus, vaudeville, theatrical or any other
entertainment, exhibition or performance.
    The term "emergency engagement" means and includes any
engagement that is to be performed within 24 hours of the time
such application was made by an employer.
    The term "domestic service" means household work in the
home of the employer and includes, but is not limited to, work
as a maid, cook, butler, gardener, chauffeur, housekeeper or
babysitter.
(Source: P.A. 89-295, eff. 8-11-95.)
 
    (225 ILCS 515/12)  (from Ch. 111, par. 915)
    Sec. 12. Enforcement of Act; hearing procedure;
disciplinary actions; certification of records and costs;
action to force compliance with a valid order.
    (a) The enforcement of this Act shall be entrusted to the
Department of Labor, which shall appoint such inspectors and
officers as it may deem necessary to carry out the provisions
of this Act. The Director of Labor or his authorized
representative shall have the power to conduct investigations
in connection with the administration and enforcement of this
Act, and any investigator with the Department shall be
authorized to visit and inspect such places and records as the
Director of Labor may deem necessary or appropriate to
determine if there has been a violation of this Act.
    (b) The Director of Labor or his designated representative
shall have the power and authority to conduct hearings in
accordance with "The Illinois Administrative Procedure Act",
as now or hereafter amended, subject to appropriation and upon
complaint by an authorized officer of the Department of Labor
or any interested person of a violation of the Act or the rules
and regulations of the Department of Labor. The Director of
Labor or his duly qualified assistants shall have the power to
issue subpoenas requiring the attendance of witnesses and the
production of books and papers pertinent to such hearing, and
to administer oaths to such witnesses. If any witness refuses
to obey a subpoena issued hereunder, the Director of Labor may
petition the circuit court of the county in which the hearing
is held for an order requiring the witness to attend and
testify or produce documentary evidence. The circuit court
shall hear the petition and if it appears that the witness
should testify or should produce documentary evidence, it may
enter an order requiring the witness to obey the subpoena. The
court may compel obedience by attachment proceedings as for
contempt of court. A calendar of all such hearings shall be
kept by the Department of Labor, and shall be posted in a
conspicuous place in its public office for at least one day
before the date of such hearing. The result of such hearing
shall be rendered within 30 days from the time the matter is
finally submitted.
    (c) After the hearing, if supported by the evidence, the
The Director of Labor may:
        (1) issue and cause to be served on any party to a
    formal hearing if supported by the evidence an order to
    cease and desist from violation of the Act; ,
        (2) take such further affirmative or other action as
    deemed reasonable to eliminate the effect of the
    violation; ,
        (3) refuse to issue and may revoke or suspend any
    license; and for any good cause shown within the meaning
    and purpose of this Act.
        (4) determine the amount of any civil penalty permitted
    by this Act. When it is shown to the satisfaction of the
    Director of Labor that any person is guilty of any immoral,
    fraudulent or illegal conduct in connection with the
    conduct of the business, it shall be the duty of the
    Director of Labor to revoke or suspend the license of such
    person, but notice of such charges shall be presented and
    reasonable opportunity shall be given the licensee to
    defend himself in the manner and form heretofore provided
    in this Section of the Act.
    Whenever the Director of Labor shall issue an order after
hearing as provided in this Section, refuse to issue, or revoke
the license of any such employment agency or employment
counsellor, the determination shall be reviewable under and in
accordance with the provisions of the Administrative Review
Law.
    (d) The Department shall certify the record of its
proceedings if the party commencing the proceedings shall pay
to it the cost of preparing and certifying such records,
including the recording and transcribing of all testimony
introduced in the proceedings. If payment for such costs is not
made by the party commencing the proceedings for review within
10 days after notice from the Department of the cost of
preparing and certifying the record, the court in which the
proceeding is pending, on motion of the Director, shall dismiss
the complaint. Whenever, for any cause such license is revoked,
the revocation shall not take effect until 7 days after such
revocation is officially announced; and such revocation shall
be considered good cause for refusing to issue another license
to the person or his representative, or to any person with whom
he is to be associated in the business of furnishing employment
or employees.
    (e) Whenever it appears that any employment agency has
violated a valid order of the Director of Labor issued under
this Act, the Director may commence an action and obtain from
the court an order upon the employment agency commanding the
employment agency to obey the order of the Director or be
adjudged guilty of contempt of court and punished accordingly.
Any person who violates any provisions of this Act, except as
provided in Sections 1, 4 and 10, commits a business offense,
and shall be fined up to $1000. The Department of Labor or its
duly authorized agents may institute criminal proceedings for
its enforcement in the circuit court.
(Source: P.A. 82-783.)
 
    (225 ILCS 515/12.2 new)
    Sec. 12.2. Civil penalties for violations of the Act;
hearing procedure.
    (a) An employment agency that violates any of the
provisions of this Act or any rule adopted under this Act shall
be subject to a civil penalty not to exceed $6,000 for
violations found in the first audit by the Department.
Following a first audit, an employment agency shall be subject
to a civil penalty not to exceed $2,500 for each repeat
violation found by the Department within 3 years. For purposes
of this subsection (a), each violation of this Act, for each
day the violation continues, shall constitute a separate and
distinct violation. In determining the amount of a penalty, the
Director of Labor shall consider the appropriateness of the
penalty to the employment agency or employer charged, upon the
determination of the gravity of the violations. For any
violation determined by the Department to be willful which is
within 3 years of an earlier violation, the Department may
revoke the license of the violator, if the violator is an
employment agency.
    (b) An employment agency that willfully violates any of the
provisions of this Act or any rule adopted under this Act, or
obstructs the Department, its inspectors or deputies, or any
other person authorized to inspect places of employment under
this Act shall be liable for penalties up to double the
statutory amount.
    (c) The Director of Labor may adopt rules in accordance
with Section 12 of this Act for the conduct of hearings and
collection of penalties assessed under this Section. Penalties
assessed under this Section, when determined, may be recovered
in a civil action brought by the Director of Labor in any
circuit court. In any such action, the Director of Labor shall
be represented by the Attorney General.
 
    (225 ILCS 515/12.3 new)
    Sec. 12.3. Violations of the Illinois Minimum Wage Law and
the Wage Payment and Collection Act.
    (a) It is a violation of this Act for an employment agency
to refer an individual for employment at a wage rate less than
that established by Section 4 of the Illinois Minimum Wage Law,
or to facilitate underpayment of wages by an employer in any
manner. An employment agency that knowingly refers an
individual for employment at less than the minimum wage that
results in underpayment to an employee is jointly liable for
statutory damages as provided for in Section 12 of the Illinois
Minimum Wage Law.
    (b) It is a violation of this Act for an employment agency
to facilitate illegal deductions from wages or nonpayment of
wages by an employer in violation of the Wage Payment and
Collection Act. An employment agency that facilitates illegal
deduction of wages or nonpayment of wages is jointly liable for
statutory damages as provided for in Section 14 of the Wage
Payment and Collection Act.
 
    (225 ILCS 515/12.4 new)
    Sec. 12.4. Employer violations of Act; civil penalties;
hearing procedure.
    (a) An employment agency shall be required to provide each
of its employer clients with proof of a valid license issued by
the Department at the time of entering into a contract. An
employment agency shall be required to notify, both by
telephone and in writing, each employer with whom it contracts
within 24 hours of any denial, suspension, or revocation of its
license by the Department. All contracts between any employment
agency and any employer shall be considered null and void from
the date any denial, suspension, or revocation of license
becomes effective and until such time as the employment agency
becomes licensed and considered in good standing by the
Department.
    (b) The Department shall provide on the Internet a list of
entities licensed as employment agencies, as provided for in
Section 1 of this Act. An employer may rely on information
provided by the Department or maintained on the Department's
website pursuant to Section 1 of this Act and shall be held
harmless if the information maintained or provided by the
Department was inaccurate. It is a violation of this Act for an
employer to accept a referral of an individual for employment
from an employment agency not licensed under Section 1.5 of
this Act.
    If, upon investigation, the Department finds that a
violation of this subsection (b) has occurred, for a first
violation by an employer, the Department shall provide notice
to any employer that it finds is doing business with an
unlicensed employment agency. The notice shall identify the
unlicensed entity, indicate that any contract between the
unlicensed employment agency and the employer client is null
and void, provide information regarding the Department's
website that lists licensed employment agencies, and inform the
employer of penalties for subsequent violations.
    For a second violation by an employer, or if the first
violation is not remedied within 10 days of notice by the
Department, the Director may impose a civil penalty of up to
$500 for each referral of an individual for employment accepted
from an employment agency not licensed under Section 1.5.
    For any violation by an employer after the second
violation, the Director may impose a civil penalty of up to
$1,500 for each referral of an individual for employment
accepted from an employment agency not licensed under Section
1.5. If the first violation is not remedied within 30 days of
notice by the Department, the Director may impose an additional
civil penalty of up to $1,500 for every 30 days that passes
thereafter.
    (c) The Director of Labor may adopt rules for the conduct
of hearings and collection of these penalties assessed under
this Section in accordance with Section 12 of this Act. The
amount of these penalties, when finally determined, may be
recovered in a civil action brought by the Director of Labor in
any circuit court. In any such action, the Director of Labor
shall be represented by the Attorney General.
 
    (225 ILCS 515/12.5 new)
    Sec. 12.5. Employment agency retaliation against
employees; civil penalties; right of private suit.
    (a) It is a violation of this Act for a private employment
agency, or any agent of a private employment agency, to
retaliate in any manner against any employee for exercising any
rights granted under this Act or any rights granted by the wage
laws of this State. Specifically, it is a violation of this Act
for a private employment agency or employer to retaliate
against an employee for:
        (1) making a complaint to an employment agency, to an
    employer, to a co-worker, to a community organization,
    before a public hearing, or to a State or federal agency
    that rights guaranteed under this Act or any wage law of
    this State have been violated;
        (2) causing to be instituted any proceeding under or
    related to this Act or any wage law of this State; or
        (3) testifying or preparing to testify in an
    investigation or proceeding under this Act or any wage law
    of this State.
    (b) Such retaliation shall subject an employment agency to
civil penalties pursuant to Section 12.1 of this Act. The
Director may adopt rules for the conduct of hearings and
collection of these penalties assessed under this Section in
accordance with Section 12 of this Act.
    (c) An individual who is retaliated against in violation of
this Section may, alternately, bring a private suit to recover
all legal or equitable relief as may be appropriate and
attorney's fees and costs. Such a suit must be brought in the
circuit court of Illinois in the county where the alleged
offense occurred or where the employment agency is located. The
right of an aggrieved individual to bring an action under this
Section terminates upon the passing of 3 years from the date of
referral by the employment agency. This limitations period is
tolled if the employment agency has deterred the employee's
exercise of rights under this Act.
 
    (225 ILCS 515/12.6 new)
    Sec. 12.6. Child Labor and Day and Temporary Labor Services
Enforcement Fund. All moneys received as fees and penalties
under this Act shall be deposited into the Child Labor and Day
and Temporary Labor Services Enforcement Fund and may be used
for the purposes set forth in Section 17.3 of the Child Labor
Law.
 
    Section 10. The Child Labor Law is amended by changing
Section 17.3 as follows:
 
    (820 ILCS 205/17.3)  (from Ch. 48, par. 31.17-3)
    Sec. 17.3. Any employer who violates any of the provisions
of this Act or any rule or regulation issued under the Act
shall be subject to a civil penalty of not to exceed $5,000 for
each such violation. In determining the amount of such penalty,
the appropriateness of such penalty to the size of the business
of the employer charged and the gravity of the violation shall
be considered. The amount of such penalty, when finally
determined, may be
        (1) recovered in a civil action brought by the Director
    of Labor in any circuit court, in which litigation the
    Director of Labor shall be represented by the Attorney
    General;
        (2) ordered by the court, in an action brought for
    violation under Section 19, to be paid to the Director of
    Labor.
    Any administrative determination by the Department of
Labor of the amount of each penalty shall be final unless
reviewed as provided in Section 17.1 of this Act.
    Civil penalties recovered under this Section shall be paid
into the Child Labor and Day and Temporary Labor Services
Enforcement Fund, a special fund which is hereby created in the
State treasury. Moneys in the Fund may be used, subject to
appropriation, for exemplary programs, demonstration projects,
and other activities or purposes related to the enforcement of
this Act or for the activities or purposes related to the
enforcement of the Day and Temporary Labor Services Act, or for
the activities or purposes related to the enforcement of the
Private Employment Agency Act.
(Source: P.A. 98-463, eff. 8-16-13.)

Effective Date: 1/1/2016