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Public Act 103-1030 Public Act 1030 103RD GENERAL ASSEMBLY | Public Act 103-1030 | SB3650 Enrolled | LRB103 38728 SPS 68865 b |
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| AN ACT concerning employment. | Be it enacted by the People of the State of Illinois, | represented in the General Assembly: | Section 5. The Day and Temporary Labor Services Act is | amended by changing Sections 5, 10, 11, 42, 45, 55, and 85 and | by adding Section 43 as follows: | (820 ILCS 175/5) | Sec. 5. Definitions. As used in this Act: | "Applicant" means a natural person who seeks a work | assignment at a day and temporary labor service agency. | "Day or temporary laborer" means a natural person who | contracts for employment with a day and temporary labor | service agency. | "Day and temporary labor" means work performed by a day or | temporary laborer at a third party client, the duration of | which may be specific or undefined, pursuant to a contract or | understanding between the day and temporary labor service | agency and the third party client. "Day and temporary labor" | does not include labor or employment of a professional or | clerical nature. | "Day and temporary labor service agency" means any person | or entity engaged in the business of employing day or | temporary laborers to provide services, for a fee, to or for |
| any third party client pursuant to a contract with the day and | temporary labor service agency and the third party client. | "Department" means the Department of Labor. | "Interested party" means an organization that monitors or | is attentive to compliance with public or worker safety laws, | wage and hour requirements, or other statutory requirements. | "Labor dispute" means any controversy concerning wages, | hours, terms, or conditions of employment. | "Third party client" means any person that contracts with | a day and temporary labor service agency for obtaining day or | temporary laborers. | "Person" means every natural person, firm, partnership, | co-partnership, limited liability company, corporation, | association, business trust, or other legal entity, or its | legal representatives, agents, or assigns. | (Source: P.A. 103-437, eff. 8-4-23.) | (820 ILCS 175/10) | Sec. 10. Employment notice and application receipt. | Notice. | (a) Employment notice. Whenever a day and temporary labor | service agency agrees to send one or more persons to work as | day or temporary laborers, the day and temporary labor service | agency shall provide to each day or temporary laborer, at the | time of dispatch, a statement containing the following items | on a form approved by the Department: |
| (1) the name of the day or temporary laborer; | (2) the name and nature of the work to be performed , | including a list of basic job duties, and the types of | equipment, protective clothing, and training that are | required for the task; | (3) the wages offered; | (4) the name and address , including county, of the | destination of each day or temporary laborer; | (5) terms of transportation; and | (6) whether a meal or equipment, or both, are | provided, either by the day and temporary labor service | agency or the third party client, and the cost of the meal | and equipment, if any ; and . | (7) for a day or temporary laborer entitled to the pay | requirements described in Section 42, either: | (A) the seniority and hourly wage of the | comparator being used to determine the wage if the | wage is determined under paragraph (1) of subsection | (a) of Section 42; or | (B) the standard occupational classification used | if the wage is determined under paragraph (2) of | subsection (a) of Section 42. | If a day or temporary laborer is assigned to the same | assignment for more than one day, the day and temporary labor | service agency is required to provide the employment notice | only on the first day of the assignment and on any day that any |
| of the terms listed on the employment notice are changed. | If the day or temporary laborer is not placed with a third | party client or otherwise contracted to work for that day, the | day and temporary labor service agency shall, upon request, | provide the day and temporary laborer with a confirmation that | the day or temporary laborer sought work, signed by an | employee of the day and temporary labor service agency, which | shall include the name of the agency, the name and address of | the day or temporary laborer, and the date and the time that | the day or temporary laborer receives the confirmation. | (b) (Blank). No day and temporary labor service agency | may send any day or temporary laborer to any place where a | strike, a lockout, or other labor trouble exists. | (b-5) Application receipt. If an applicant seeks a work | assignment as a day or temporary laborer with a day and | temporary labor service agency, including in-person, online, | or through an app-based system, and is not placed with a third | party client or otherwise contracted to work for that day by | the day and temporary labor service agency, the day and | temporary labor service agency shall provide the applicant | with a confirmation that the applicant sought work, signed by | an employee of the day and temporary labor service agency, on a | form approved by the Department, that shall include: | (1) the name and location of the day and temporary | labor service agency and branch office; | (2) the name and address of the applicant; |
| (3) the date and the time that the applicant sought | the work assignment; | (4) the manner in which the applicant sought the work | assignment; and | (5) the specific work sites or type of jobs sought by | the applicant, if applicable. | (c) The Department shall recommend to day and temporary | labor service agencies that those agencies employ personnel | who can effectively communicate information required in | subsections (a) and (b-5) (b) to day or temporary laborers in | Spanish, Polish, or any other language that is generally | understood in the locale of the day and temporary labor | service agency. | (Source: P.A. 99-78, eff. 7-20-15; 100-517, eff. 6-1-18 .) | (820 ILCS 175/11) | Sec. 11. Right to refuse assignment to a labor dispute. | (a) No day and temporary labor service agency may send a | day or temporary laborer to a place where a strike, a lockout, | or work stoppage other labor trouble exists because of a labor | dispute or where a picket, bannering, or handbilling exists | because of a labor dispute without providing, at or before the | time of dispatch, a statement, in writing and in a language | that the day and temporary laborer understands, informing the | day or temporary laborer of the labor dispute and the day or | temporary laborer's right to refuse the assignment without |
| prejudice to receiving another assignment. | (b) The failure by a day and temporary labor service | agency to provide any of the information required by this | Section shall constitute a notice violation under Section 95. | The failure of a day and temporary labor service agency to | provide each piece of information required by this Section at | each time it is required by this Section shall constitute a | separate and distinct notice violation. If a day and temporary | labor service agency claims that it has provided a notice as | required under this Section electronically, the day and | temporary labor service agency shall bear the burden of | showing that the notice was provided if there is a dispute. | (Source: P.A. 103-437, eff. 8-4-23.) | (820 ILCS 175/42) | Sec. 42. Equal pay for equal work. | (a) A day and temporary labor service agency shall pay a A | day or temporary laborer who is assigned to work and performs | work at the same a third party client for more than 720 hours | within a 12-month period, beginning on or after April 1, 2024, | in accordance with one of the following methods: 90 calendar | days shall be paid not less than the rate of pay and equivalent | benefits as the lowest paid | (1) Third party client employee compensation as a | basis for compensation. The day or temporary laborer shall | be paid as follows: |
| (A) if there is a directly hired comparator | employee of the third party client with the same or | substantially similar level of seniority at the | company and performing the same or substantially | similar work on jobs the performance of which requires | substantially similar skill, effort, and | responsibility, and that are performed under similar | working conditions , not less than the straight-time | hourly rate of pay or hourly equivalent of the lowest | paid directly hired comparator employee of the third | party client who is entitled to overtime under the | Fair Labor Standards Act of 1938, as amended, with the | same or substantially similar level of seniority at | the company and performing the same or substantially | similar work on jobs the performance of which requires | substantially similar skill, effort, and | responsibility, and that are performed under similar | working conditions; or . | (B) if If there is not a directly hired comparator | comparative employee of the third party client, the | day or temporary laborer shall be paid not less than | the straight-time hourly rate of pay or hourly and | equivalent benefits of the lowest paid directly direct | hired employee of the third party client who is | entitled to overtime under the Fair Labor Standards | Act of 1938, as amended, company with the closest |
| level of seniority at the third party client company. | A day and temporary labor service agency may pay the | hourly cash equivalent of the actual cost benefits in | lieu of benefits required under this Section . | (2) Bureau of Labor Statistics data as a basis for | compensation. At the sole discretion of the third party | client, the day or temporary laborer shall be paid as | follows: | (A) if a day or temporary laborer has been | assigned to work and performs work at the same third | party client for more than 720 hours within a 12-month | period, not less than the median base hourly rate, or | hourly equivalent if paid on a salary basis, of | workers working in the same or a substantially similar | job classification, as reflected in the detail level | of the most recent Standard Occupational | Classification System published by the United States | Department of Labor's Bureau of Labor Statistics, in | the same metropolitan area or non-metropolitan area of | Illinois where the work is performed, as reflected in | the most recent Occupational Employment and Wage | Statistics Survey, or any successor publication, | published by the United States Department of Labor's | Bureau of Labor Statistics; or | (B) if a day or temporary laborer has been | assigned to work and performs work at the same third |
| party client for more than 4,160 hours within a | 48-month period, not less than the 75th percentile | base hourly rate, or hourly equivalent if paid on a | salary basis, of workers working in the same or | substantially similar job classification, as reflected | in the detail level of the most recent Standard | Occupational Classification System published by the | United States Department of Labor's Bureau of Labor | Statistics, in the same metropolitan area or | non-metropolitan area of Illinois where the work is | performed, as reflected in the most recent | Occupational Employment and Wage Statistics Survey, or | any successor publication, published by the United | States Department of Labor's Bureau of Labor | Statistics. | The Department shall provide on its website a link to | the publications specified in this paragraph and a link to | the United States Department of Labor's guidance on | determining standard occupational classifications. | (b) A day and temporary labor agency shall provide a day or | temporary laborer who is assigned to work and performs work at | the same third party client for more than 720 hours within a | 12-month period, beginning on or after April 1, 2024, | substantially similar benefits to the job classification of | employees performing the same or substantially similar work on | jobs and performed under similar working conditions. A day and |
| temporary labor service agency may pay the hourly average cash | equivalent of the actual cost of the benefits the third party | client provides the applicable directly hired employees in | lieu of benefits required under this subsection. | (c) Upon request, a third party client to which a day or | temporary laborer has been assigned to work and performed work | for more than 720 hours within a 12-month period or 4,160 hours | within a 48-month period 90 calendar days shall be obligated | to timely provide the day and temporary labor service agency | with all necessary information related to job duties, working | conditions, pay, seniority, and benefits it provides to the | applicable classification of directly hired employees | necessary for the day and temporary labor service agency to | comply with this Section. Upon receipt of the accurate and | complete information described in this subsection from the | third party client, it shall be the responsibility and duty of | the day and temporary labor service agency to calculate and | determine the straight-time hourly rate of pay and the | benefits it shall offer to the day or temporary laborer, | including any cash equivalent. The failure by a third party | client to provide any of the information required under this | Section shall constitute a notice violation by the third party | client under Section 95. For purposes of this Section, the day | and temporary labor service agency shall be considered a | person aggrieved as described in Section 95. For the purposes | of this Section, the calculation of the 90 calendar days may |
| not begin until April 1, 2024. | (d) For purposes of this Section, "seniority" means the | number of calendar months a day or temporary laborer has been | assigned to and worked at the third party client compared to | the number of calendar months a directly hired comparator | employee has been employed by the third party client. | (Source: P.A. 103-437, eff. 8-4-23; 103-564, eff. 11-17-23.) | (820 ILCS 175/43 new) | Sec. 43. Exception to equal pay requirements. The | requirements set forth in Section 42 shall not apply to any | company where the direct hire employees of the third party | client performing the same or substantially similar work as | the day or temporary laborers assigned to work at the third | party client are covered by a valid collective bargaining | agreement in effect on April 1, 2024 for the period covered by | that current collective bargaining agreement. Thereafter, the | hourly cash payment specified in subsection (b) of Section 42 | shall not be required if the direct hire employees of the third | party client performing the same or substantially similar work | as the day or temporary laborers assigned to work at the third | party client are covered by a valid collective bargaining | agreement for any period covered by that collective bargaining | agreement. | (820 ILCS 175/45) |
| Sec. 45. Registration; Department of Labor. | (a) A day and temporary labor service agency which is | located, operates or transacts business within this State | shall register with the Department of Labor in accordance with | rules adopted by the Department for day and temporary labor | service agencies and shall be subject to this Act and any rules | adopted under this Act. Each day and temporary labor service | agency shall provide proof of an employer account number | issued by the Department of Employment Security for the | payment of unemployment insurance contributions as required | under the Unemployment Insurance Act, and proof of valid | workers' compensation insurance in effect at the time of | registration covering all of its employees. If, at any time, a | day and temporary labor service agency's workers' compensation | insurance coverage lapses, the agency shall have an | affirmative duty to report the lapse of such coverage to the | Department and the agency's registration shall be suspended | until the agency's workers' compensation insurance is | reinstated. The Department may assess each day and temporary | labor service agency a non-refundable registration fee not | exceeding $3,000 per year per agency and a non-refundable fee | not to exceed $750 for each branch office or other location | where the agency regularly contracts with day or temporary | laborers for services. The fee may be paid by check, money | order, or the State Treasurer's E-Pay program or any successor | program, and the Department may not refuse to accept a check on |
| the basis that it is not a certified check or a cashier's | check. The Department may charge an additional fee to be paid | by a day and temporary labor service agency if the agency, or | any person on the agency's behalf, issues or delivers a check | to the Department that is not honored by the financial | institution upon which it is drawn. The Department shall also | adopt rules for violation hearings and penalties for | violations of this Act or the Department's rules in | conjunction with the penalties set forth in this Act. | (a-1) At the time of registration with the Department of | Labor each year, the day and temporary labor service agency | shall submit to the Department of Labor a report containing | the information identified in paragraph (9) of subsection (a) | of Section 12, broken down by branch office, in the aggregate | for all day or temporary laborers assigned within Illinois and | subject to this Act during the preceding year. This | information shall be submitted on a form created by the | Department of Labor. The Department of Labor shall aggregate | the information submitted by all registering day and temporary | labor service agencies by removing identifying data and shall | have the information available to the public only on a | municipal and county basis. As used in this paragraph, | "identifying data" means any and all information that: (i) | provides specific information on individual worker identity; | (ii) identifies the service agency in any manner; and (iii) | identifies clients utilizing the day and temporary labor |
| service agency or any other information that can be traced | back to any specific registering day and temporary labor | service agency or its client. The information and reports | submitted to the Department of Labor under this subsection by | the registering day and temporary labor service agencies are | exempt from inspection and copying under Section 7.5 of the | Freedom of Information Act. | (b) It is a violation of this Act to operate a day and | temporary labor service agency without first registering with | the Department in accordance with subsection (a) of this | Section. The Department shall create and maintain at regular | intervals on its website, accessible to the public: (1) a list | of all registered day and temporary labor service agencies in | the State whose registration is in good standing; (2) a list of | day and temporary labor service agencies in the State whose | registration has been suspended, including the reason for the | suspension, the date the suspension was initiated, and the | date, if known, the suspension is to be lifted; and (3) a list | of day and temporary labor service agencies in the State whose | registration has been revoked, including the reason for the | revocation and the date the registration was revoked. The | Department has the authority to assess a penalty against any | day and temporary labor service agency that fails to register | with the Department of Labor in accordance with this Act or any | rules adopted under this Act of $500 for each violation. Each | day during which a day and temporary labor service agency |
| operates without registering with the Department shall be a | separate and distinct violation of this Act. | (c) A day and temporary labor service agency applying for | registration with the Department An applicant is not eligible | to register to operate a day and temporary labor service | agency under this Act if the day and temporary labor service | agency applying for registration with the Department applicant | or any of its officers, directors, partners, or managers or | any owner of 25% or greater beneficial interest: | (1) has been involved, as owner, officer, director, | partner, or manager, of any day and temporary labor | service agency whose registration has been revoked or has | been suspended without being reinstated within the 5 years | immediately preceding the filing of the application; or | (2) is under the age of 18. | (d) Every agency shall post and keep posted at each | location, in a position easily accessible to all day or | temporary laborers s , notices as supplied and required by the | Department containing a copy or summary of the provisions of | the Act and a notice which informs the public of a toll-free | telephone number for day or temporary laborers and the public | to file wage dispute complaints and other alleged violations | by day and temporary labor service agencies. Every day and | temporary labor service agency employing day or temporary | laborers who communicate with the day and temporary labor | service agency by electronic communication shall also provide |
| all required notices by email to its day or temporary laborers | or on a website, regularly used by the employer to communicate | work-related information, that all day or temporary laborers | are able to regularly access, freely and without interference. | Such notices shall be in English and any other language | generally understood in the locale of the day and temporary | labor service agency. | (Source: P.A. 103-201, eff. 1-1-24; 103-437, eff. 8-4-23; | revised 12-15-23.) | (820 ILCS 175/55) | Sec. 55. Enforcement by the Department. It shall be the | duty of the Department to enforce the provisions of this Act | when, in the Department's judgment, there is cause and | sufficient resources for investigation . The Department 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, at all reasonable times, any places covered by | this Act and shall be authorized to inspect, at all reasonable | times, contracts for the employment of all day or temporary | laborers entered into by a third party client if the | Department has received a complaint indicating that the third | party client may have contracted with a day and temporary | labor service agency that is not registered under this Act. | The Department shall conduct hearings in accordance with the |
| Illinois Administrative Procedure Act upon written complaint | by an investigator of the Department or any interested person | of a violation of the Act. After the hearing, if supported by | the evidence, the Department may (i) issue and cause to be | served on any party an order to cease and desist from further | violation of the Act, (ii) take affirmative or other action as | deemed reasonable to eliminate the effect of the violation, | (iii) deny, suspend, or revoke any registration under this | Act, and (iv) determine the amount of any civil penalty | allowed by the Act. The Director of Labor or his or her | representative may compel, by subpoena, the attendance and | testimony of witnesses and the production of books, payrolls, | records, papers, and other evidence in any investigation or | hearing and may administer oaths to witnesses. Nothing in this | Act applies to labor or employment of a clerical or | professional nature. | (Source: P.A. 103-437, eff. 8-4-23.) | (820 ILCS 175/85) | Sec. 85. Third party clients. | (a) It is a violation of this Act for a third party client | to enter into a contract for the employment of day or temporary | laborers with any day and temporary labor service agency not | registered under Section 45 of this Act. A third party client | has a duty to verify a day and temporary labor service agency's | status with the Department before entering into a contract |
| with such an agency, and on March 1 and September 1 of each | year. A day and temporary labor service agency shall be | required to provide each of its third party clients with proof | of valid registration issued by the Department at the time of | entering into a contract. A day and temporary labor service | agency shall be required to notify, both by telephone and in | writing, each day or temporary laborer it employs and each | third party client with whom it has a contract within 24 hours | of any denial, suspension, or revocation of its registration | by the Department. All contracts between any day and temporary | labor service agency and any third party client shall be | considered null and void from the date any such denial, | suspension, or revocation of registration becomes effective | and until such time as the day and temporary labor service | agency becomes registered and considered in good standing by | the Department as provided in Section 50 and Section 55. Upon | request, the Department shall provide to a third party client | a list of entities registered as day and temporary labor | service agencies. The Department shall provide on the Internet | a list of entities registered as day and temporary labor | service agencies. A third party client may rely on information | provided by the Department or maintained on the Department's | website pursuant to Section 45 of this Act and shall be held | harmless if such information maintained or provided by the | Department was inaccurate. Any third party client that | violates this provision of the Act is subject to a civil |
| penalty of not less than $100 and not to exceed $1,500. Each | day during which a third party client contracts with a day and | temporary labor service agency not registered under Section 45 | of this Act shall constitute a separate and distinct offense. | (b) If a third party client leases or contracts with a day | and temporary service agency for the services of a day or | temporary laborer, the third party client shall share all | legal responsibility and liability for the payment of wages | under the Illinois Wage Payment and Collection Act and the | Minimum Wage Law. | (c) Before the assignment of an employee to a worksite | employer, a day and temporary labor service agency must: | (1) inquire about the client company's safety and | health practices and hazards at the actual workplace where | the day or temporary laborer will be working to assess the | safety conditions, workers tasks, and the client company's | safety program; these activities are required at the start | of any contract to place day or temporary laborers and may | include visiting the client company's actual worksite. If, | during the inquiry or anytime during the period of the | contract, the day and temporary labor service agency | becomes aware of existing job hazards that are not | mitigated by the client company, the day and temporary | labor service agency must make the client company aware, | urge the client company to correct it, and document these | efforts, otherwise the day and temporary labor service |
| agency must remove the day or temporary laborers from the | client company's worksite; | (2) provide training to the day or temporary laborer | for general awareness safety training for recognized | industry hazards the day or temporary laborer may | encounter at the client company's worksite. Industry | hazard training must be completed, in the preferred | language of the day or temporary laborer, and must be | provided at no expense to the day or temporary laborer. | The training date and training content must be maintained | by the day and temporary staffing agency and provided to | the day or temporary laborer; | (3) transmit a general description of the training | program including topics covered to the client company, | whether electronically or on paper, at the start of the | contract with the client company; | (4) provide the Department's hotline number for the | employee to call to report safety hazards and concerns as | part of the employment materials provided to the day or | temporary laborer; and | (5) inform the day or temporary laborer who the day or | temporary laborer should report safety concerns to at the | workplace. | Nothing in this Section shall diminish any existing client | company or a day and temporary labor service agency's | responsibility as an employer to provide a place of employment |
| free from recognized hazards or to otherwise comply with other | health and safety or employment laws. The client company and | the day and temporary labor service agency are responsible for | compliance with this Section and the rules adopted under this | Section. | (d) Before the day or temporary laborer engages in work | for a client company, the client company must: | (1) document and inform the day and temporary labor | service agency about anticipated job hazards likely | encountered by the day or temporary laborer; | (2) review the safety and health awareness training | provided by the day and temporary labor service agency to | determine if it addresses recognized hazards for the | client company's industry; | (3) provide specific training tailored to the | particular hazards at the client company's worksite | consistent with training requirements provided for in | standards, guidances, or best practices issued by the | federal Occupational Safety and Health Administration ; and | (4) document and maintain records of site-specific | training and provide confirmation that the training | occurred to the day and temporary labor service agency | within 3 business days of providing the training. | (e) If the client company changes the job tasks or work | location and new hazards may be encountered, the client | company must: |
| (1) inform both the day and temporary labor service | agency and the day or temporary laborer; and | (2) inform both the day and temporary labor service | agency staffing agency and the day or temporary laborer of | job hazards not previously covered before the day or | temporary laborer undertakes the new tasks and update | personal protective equipment and training for the new job | tasks consistent with training requirements provided for | in standards, guidances, or best practices issued by the | federal Occupational Safety and Health Administration , if | necessary. | (f) A day and temporary labor service agency or day or | temporary laborer may refuse a new job task at the worksite | when the task has not been reviewed or if the day or temporary | laborer has not had appropriate training to do the new task. | (g) A client company that supervises a day or temporary | laborer must provide worksite specific training to the day or | temporary laborer and must allow a day and temporary labor | service agency to visit any worksite where the day or | temporary laborer works or will be working to observe and | confirm the client company's training and information related | to the worksite's job tasks, safety and health practices, and | hazards. | (Source: P.A. 103-437, eff. 8-4-23.) | Section 99. Effective date. This Act takes effect upon | becoming law. |
Effective Date: 8/9/2024
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