The recent amendments to the Illinois Day and Temporary Labor Services Act (the “Act”) have significant implications for staffing agencies. These amendments expand the scope of who can file complaints against staffing agencies under the Act. Previously, only the Illinois Department of Labor could file complaints against staffing agencies. However, with the recent amendments, complaints can now also be filed by the state attorney general’s office and workers’ rights groups. As a result, workers’ rights groups have already filed complaints against 15 staffing firms on Tuesday, October 3, for failing to register with the state as required by the law.
Staffing firms must take immediate action to ensure they have registered with the state to protect themselves from potential legal consequences. Staffing agencies that haven’t registered with the state could face fines up to $45,000, with additional civil penalties.
In addition to registering with the state, staffing firms also need to be aware of a looming deadline for equal pay. For temporary employees that have been employed at the same place since the law was passed, the deadline is November 2. It is essential for staffing agencies to ensure that they are in compliance with the equal pay provisions of the law by this deadline.
Equal Pay for Equal Work
The Act states that if a temporary worker is assigned to work at a client for more than 90 calendar days within any 12-month period, either consecutively or intermittently, the worker must receive at least the same pay rate and equivalent benefits of the lowest paid directly hired employee of the client, who has the same level of seniority and who performs similar work.
Important definitions:
- “Similar work” includes work that requires substantially similar skill, effort, and responsibility, and performed under similar working conditions. In cases where the client is unable to identify a “comparative employee,” the temporary worker must receive at least the pay rate and equivalent benefits of the lowest paid client employee with the closest level of seniority.
- “Benefits” is defined as health care, vision, dental, life insurance, retirement, leave (paid and unpaid), other similar employee benefits, and other employee benefits as required by State and federal law. As an alternative to providing equivalent benefits to the temporary worker, Agencies may instead pay the cash equivalent of the client’s cost of benefits. Upon request, the client must provide Agencies all necessary information relating to job duties, pay, and benefits of directly hired employees in order for Agencies to comply with the Act.
The recent amendments to the Illinois Day and Temporary Labor Services Act have significant implications for staffing agencies. It is crucial for these agencies to register with the state, adhere to the equal pay provisions, seek legal counsel to ensure that they are compliant with the law, and take all necessary steps to protect themselves from potential lawsuits and penalties. If you have any questions, please contact a Marsh McLennan Agency advisor.
