Illinois General Assembly - Full Text of SB3650
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Full Text of SB3650  103rd General Assembly

SB3650enr 103RD GENERAL ASSEMBLY

 


 
SB3650 EnrolledLRB103 38728 SPS 68865 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Day and Temporary Labor Services Act is
5amended by changing Sections 5, 10, 11, 42, 45, 55, and 85 and
6by adding Section 43 as follows:
 
7    (820 ILCS 175/5)
8    Sec. 5. Definitions. As used in this Act:
9    "Applicant" means a natural person who seeks a work
10assignment at a day and temporary labor service agency.
11    "Day or temporary laborer" means a natural person who
12contracts for employment with a day and temporary labor
13service agency.
14    "Day and temporary labor" means work performed by a day or
15temporary laborer at a third party client, the duration of
16which may be specific or undefined, pursuant to a contract or
17understanding between the day and temporary labor service
18agency and the third party client. "Day and temporary labor"
19does not include labor or employment of a professional or
20clerical nature.
21    "Day and temporary labor service agency" means any person
22or entity engaged in the business of employing day or
23temporary laborers to provide services, for a fee, to or for

 

 

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1any third party client pursuant to a contract with the day and
2temporary labor service agency and the third party client.
3    "Department" means the Department of Labor.
4    "Interested party" means an organization that monitors or
5is attentive to compliance with public or worker safety laws,
6wage and hour requirements, or other statutory requirements.
7    "Labor dispute" means any controversy concerning wages,
8hours, terms, or conditions of employment.
9    "Third party client" means any person that contracts with
10a day and temporary labor service agency for obtaining day or
11temporary laborers.
12    "Person" means every natural person, firm, partnership,
13co-partnership, limited liability company, corporation,
14association, business trust, or other legal entity, or its
15legal representatives, agents, or assigns.
16(Source: P.A. 103-437, eff. 8-4-23.)
 
17    (820 ILCS 175/10)
18    Sec. 10. Employment notice and application receipt.
19Notice.
20    (a) Employment notice. Whenever a day and temporary labor
21service agency agrees to send one or more persons to work as
22day or temporary laborers, the day and temporary labor service
23agency shall provide to each day or temporary laborer, at the
24time of dispatch, a statement containing the following items
25on a form approved by the Department:

 

 

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1        (1) the name of the day or temporary laborer;
2        (2) the name and nature of the work to be performed,
3    including a list of basic job duties, and the types of
4    equipment, protective clothing, and training that are
5    required for the task;
6        (3) the wages offered;
7        (4) the name and address, including county, of the
8    destination of each day or temporary laborer;
9        (5) terms of transportation; and
10        (6) whether a meal or equipment, or both, are
11    provided, either by the day and temporary labor service
12    agency or the third party client, and the cost of the meal
13    and equipment, if any; and .
14        (7) for a day or temporary laborer entitled to the pay
15    requirements described in Section 42, either:
16            (A) the seniority and hourly wage of the
17        comparator being used to determine the wage if the
18        wage is determined under paragraph (1) of subsection
19        (a) of Section 42; or
20            (B) the standard occupational classification used
21        if the wage is determined under paragraph (2) of
22        subsection (a) of Section 42.
23    If a day or temporary laborer is assigned to the same
24assignment for more than one day, the day and temporary labor
25service agency is required to provide the employment notice
26only on the first day of the assignment and on any day that any

 

 

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1of the terms listed on the employment notice are changed.
2    If the day or temporary laborer is not placed with a third
3party client or otherwise contracted to work for that day, the
4day and temporary labor service agency shall, upon request,
5provide the day and temporary laborer with a confirmation that
6the day or temporary laborer sought work, signed by an
7employee of the day and temporary labor service agency, which
8shall include the name of the agency, the name and address of
9the day or temporary laborer, and the date and the time that
10the day or temporary laborer receives the confirmation.
11     (b) (Blank). No day and temporary labor service agency
12may send any day or temporary laborer to any place where a
13strike, a lockout, or other labor trouble exists.
14    (b-5) Application receipt. If an applicant seeks a work
15assignment as a day or temporary laborer with a day and
16temporary labor service agency, including in-person, online,
17or through an app-based system, and is not placed with a third
18party client or otherwise contracted to work for that day by
19the day and temporary labor service agency, the day and
20temporary labor service agency shall provide the applicant
21with a confirmation that the applicant sought work, signed by
22an employee of the day and temporary labor service agency, on a
23form approved by the Department, that shall include:
24        (1) the name and location of the day and temporary
25    labor service agency and branch office;
26        (2) the name and address of the applicant;

 

 

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1        (3) the date and the time that the applicant sought
2    the work assignment;
3        (4) the manner in which the applicant sought the work
4    assignment; and
5        (5) the specific work sites or type of jobs sought by
6    the applicant, if applicable.
7     (c) The Department shall recommend to day and temporary
8labor service agencies that those agencies employ personnel
9who can effectively communicate information required in
10subsections (a) and (b-5) (b) to day or temporary laborers in
11Spanish, Polish, or any other language that is generally
12understood in the locale of the day and temporary labor
13service agency.
14(Source: P.A. 99-78, eff. 7-20-15; 100-517, eff. 6-1-18.)
 
15    (820 ILCS 175/11)
16    Sec. 11. Right to refuse assignment to a labor dispute.
17    (a) No day and temporary labor service agency may send a
18day or temporary laborer to a place where a strike, a lockout,
19or work stoppage other labor trouble exists because of a labor
20dispute or where a picket, bannering, or handbilling exists
21because of a labor dispute without providing, at or before the
22time of dispatch, a statement, in writing and in a language
23that the day and temporary laborer understands, informing the
24day or temporary laborer of the labor dispute and the day or
25temporary laborer's right to refuse the assignment without

 

 

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1prejudice to receiving another assignment.
2    (b) The failure by a day and temporary labor service
3agency to provide any of the information required by this
4Section shall constitute a notice violation under Section 95.
5The failure of a day and temporary labor service agency to
6provide each piece of information required by this Section at
7each time it is required by this Section shall constitute a
8separate and distinct notice violation. If a day and temporary
9labor service agency claims that it has provided a notice as
10required under this Section electronically, the day and
11temporary labor service agency shall bear the burden of
12showing that the notice was provided if there is a dispute.
13(Source: P.A. 103-437, eff. 8-4-23.)
 
14    (820 ILCS 175/42)
15    Sec. 42. Equal pay for equal work.
16    (a) A day and temporary labor service agency shall pay a A
17day or temporary laborer who is assigned to work and performs
18work at the same a third party client for more than 720 hours
19within a 12-month period, beginning on or after April 1, 2024,
20in accordance with one of the following methods: 90 calendar
21days shall be paid not less than the rate of pay and equivalent
22benefits as the lowest paid
23        (1) Third party client employee compensation as a
24    basis for compensation. The day or temporary laborer shall
25    be paid as follows:

 

 

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1            (A) if there is a directly hired comparator
2        employee of the third party client with the same or
3        substantially similar level of seniority at the
4        company and performing the same or substantially
5        similar work on jobs the performance of which requires
6        substantially similar skill, effort, and
7        responsibility, and that are performed under similar
8        working conditions, not less than the straight-time
9        hourly rate of pay or hourly equivalent of the lowest
10        paid directly hired comparator employee of the third
11        party client who is entitled to overtime under the
12        Fair Labor Standards Act of 1938, as amended, with the
13        same or substantially similar level of seniority at
14        the company and performing the same or substantially
15        similar work on jobs the performance of which requires
16        substantially similar skill, effort, and
17        responsibility, and that are performed under similar
18        working conditions; or .
19            (B) if If there is not a directly hired comparator
20        comparative employee of the third party client, the
21        day or temporary laborer shall be paid not less than
22        the straight-time hourly rate of pay or hourly and
23        equivalent benefits of the lowest paid directly direct
24        hired employee of the third party client who is
25        entitled to overtime under the Fair Labor Standards
26        Act of 1938, as amended, company with the closest

 

 

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1        level of seniority at the third party client company.
2        A day and temporary labor service agency may pay the
3        hourly cash equivalent of the actual cost benefits in
4        lieu of benefits required under this Section.
5        (2) Bureau of Labor Statistics data as a basis for
6    compensation. At the sole discretion of the third party
7    client, the day or temporary laborer shall be paid as
8    follows:
9            (A) if a day or temporary laborer has been
10        assigned to work and performs work at the same third
11        party client for more than 720 hours within a 12-month
12        period, not less than the median base hourly rate, or
13        hourly equivalent if paid on a salary basis, of
14        workers working in the same or a substantially similar
15        job classification, as reflected in the detail level
16        of the most recent Standard Occupational
17        Classification System published by the United States
18        Department of Labor's Bureau of Labor Statistics, in
19        the same metropolitan area or non-metropolitan area of
20        Illinois where the work is performed, as reflected in
21        the most recent Occupational Employment and Wage
22        Statistics Survey, or any successor publication,
23        published by the United States Department of Labor's
24        Bureau of Labor Statistics; or
25            (B) if a day or temporary laborer has been
26        assigned to work and performs work at the same third

 

 

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1        party client for more than 4,160 hours within a
2        48-month period, not less than the 75th percentile
3        base hourly rate, or hourly equivalent if paid on a
4        salary basis, of workers working in the same or
5        substantially similar job classification, as reflected
6        in the detail level of the most recent Standard
7        Occupational Classification System published by the
8        United States Department of Labor's Bureau of Labor
9        Statistics, in the same metropolitan area or
10        non-metropolitan area of Illinois where the work is
11        performed, as reflected in the most recent
12        Occupational Employment and Wage Statistics Survey, or
13        any successor publication, published by the United
14        States Department of Labor's Bureau of Labor
15        Statistics.
16        The Department shall provide on its website a link to
17    the publications specified in this paragraph and a link to
18    the United States Department of Labor's guidance on
19    determining standard occupational classifications.
20    (b) A day and temporary labor agency shall provide a day or
21temporary laborer who is assigned to work and performs work at
22the same third party client for more than 720 hours within a
2312-month period, beginning on or after April 1, 2024,
24substantially similar benefits to the job classification of
25employees performing the same or substantially similar work on
26jobs and performed under similar working conditions. A day and

 

 

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1temporary labor service agency may pay the hourly average cash
2equivalent of the actual cost of the benefits the third party
3client provides the applicable directly hired employees in
4lieu of benefits required under this subsection.
5    (c) Upon request, a third party client to which a day or
6temporary laborer has been assigned to work and performed work
7for more than 720 hours within a 12-month period or 4,160 hours
8within a 48-month period 90 calendar days shall be obligated
9to timely provide the day and temporary labor service agency
10with all necessary information related to job duties, working
11conditions, pay, seniority, and benefits it provides to the
12applicable classification of directly hired employees
13necessary for the day and temporary labor service agency to
14comply with this Section. Upon receipt of the accurate and
15complete information described in this subsection from the
16third party client, it shall be the responsibility and duty of
17the day and temporary labor service agency to calculate and
18determine the straight-time hourly rate of pay and the
19benefits it shall offer to the day or temporary laborer,
20including any cash equivalent. The failure by a third party
21client to provide any of the information required under this
22Section shall constitute a notice violation by the third party
23client under Section 95. For purposes of this Section, the day
24and temporary labor service agency shall be considered a
25person aggrieved as described in Section 95. For the purposes
26of this Section, the calculation of the 90 calendar days may

 

 

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1not begin until April 1, 2024.
2    (d) For purposes of this Section, "seniority" means the
3number of calendar months a day or temporary laborer has been
4assigned to and worked at the third party client compared to
5the number of calendar months a directly hired comparator
6employee has been employed by the third party client.
7(Source: P.A. 103-437, eff. 8-4-23; 103-564, eff. 11-17-23.)
 
8    (820 ILCS 175/43 new)
9    Sec. 43. Exception to equal pay requirements. The
10requirements set forth in Section 42 shall not apply to any
11company where the direct hire employees of the third party
12client performing the same or substantially similar work as
13the day or temporary laborers assigned to work at the third
14party client are covered by a valid collective bargaining
15agreement in effect on April 1, 2024 for the period covered by
16that current collective bargaining agreement. Thereafter, the
17hourly cash payment specified in subsection (b) of Section 42
18shall not be required if the direct hire employees of the third
19party client performing the same or substantially similar work
20as the day or temporary laborers assigned to work at the third
21party client are covered by a valid collective bargaining
22agreement for any period covered by that collective bargaining
23agreement.
 
24    (820 ILCS 175/45)

 

 

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1    Sec. 45. Registration; Department of Labor.
2    (a) A day and temporary labor service agency which is
3located, operates or transacts business within this State
4shall register with the Department of Labor in accordance with
5rules adopted by the Department for day and temporary labor
6service agencies and shall be subject to this Act and any rules
7adopted under this Act. Each day and temporary labor service
8agency shall provide proof of an employer account number
9issued by the Department of Employment Security for the
10payment of unemployment insurance contributions as required
11under the Unemployment Insurance Act, and proof of valid
12workers' compensation insurance in effect at the time of
13registration covering all of its employees. If, at any time, a
14day and temporary labor service agency's workers' compensation
15insurance coverage lapses, the agency shall have an
16affirmative duty to report the lapse of such coverage to the
17Department and the agency's registration shall be suspended
18until the agency's workers' compensation insurance is
19reinstated. The Department may assess each day and temporary
20labor service agency a non-refundable registration fee not
21exceeding $3,000 per year per agency and a non-refundable fee
22not to exceed $750 for each branch office or other location
23where the agency regularly contracts with day or temporary
24laborers for services. The fee may be paid by check, money
25order, or the State Treasurer's E-Pay program or any successor
26program, and the Department may not refuse to accept a check on

 

 

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1the basis that it is not a certified check or a cashier's
2check. The Department may charge an additional fee to be paid
3by a day and temporary labor service agency if the agency, or
4any person on the agency's behalf, issues or delivers a check
5to the Department that is not honored by the financial
6institution upon which it is drawn. The Department shall also
7adopt rules for violation hearings and penalties for
8violations of this Act or the Department's rules in
9conjunction with the penalties set forth in this Act.
10    (a-1) At the time of registration with the Department of
11Labor each year, the day and temporary labor service agency
12shall submit to the Department of Labor a report containing
13the information identified in paragraph (9) of subsection (a)
14of Section 12, broken down by branch office, in the aggregate
15for all day or temporary laborers assigned within Illinois and
16subject to this Act during the preceding year. This
17information shall be submitted on a form created by the
18Department of Labor. The Department of Labor shall aggregate
19the information submitted by all registering day and temporary
20labor service agencies by removing identifying data and shall
21have the information available to the public only on a
22municipal and county basis. As used in this paragraph,
23"identifying data" means any and all information that: (i)
24provides specific information on individual worker identity;
25(ii) identifies the service agency in any manner; and (iii)
26identifies clients utilizing the day and temporary labor

 

 

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1service agency or any other information that can be traced
2back to any specific registering day and temporary labor
3service agency or its client. The information and reports
4submitted to the Department of Labor under this subsection by
5the registering day and temporary labor service agencies are
6exempt from inspection and copying under Section 7.5 of the
7Freedom of Information Act.
8    (b) It is a violation of this Act to operate a day and
9temporary labor service agency without first registering with
10the Department in accordance with subsection (a) of this
11Section. The Department shall create and maintain at regular
12intervals on its website, accessible to the public: (1) a list
13of all registered day and temporary labor service agencies in
14the State whose registration is in good standing; (2) a list of
15day and temporary labor service agencies in the State whose
16registration has been suspended, including the reason for the
17suspension, the date the suspension was initiated, and the
18date, if known, the suspension is to be lifted; and (3) a list
19of day and temporary labor service agencies in the State whose
20registration has been revoked, including the reason for the
21revocation and the date the registration was revoked. The
22Department has the authority to assess a penalty against any
23day and temporary labor service agency that fails to register
24with the Department of Labor in accordance with this Act or any
25rules adopted under this Act of $500 for each violation. Each
26day during which a day and temporary labor service agency

 

 

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1operates without registering with the Department shall be a
2separate and distinct violation of this Act.
3    (c) A day and temporary labor service agency applying for
4registration with the Department An applicant is not eligible
5to register to operate a day and temporary labor service
6agency under this Act if the day and temporary labor service
7agency applying for registration with the Department applicant
8or any of its officers, directors, partners, or managers or
9any owner of 25% or greater beneficial interest:
10        (1) has been involved, as owner, officer, director,
11    partner, or manager, of any day and temporary labor
12    service agency whose registration has been revoked or has
13    been suspended without being reinstated within the 5 years
14    immediately preceding the filing of the application; or
15        (2) is under the age of 18.
16    (d) Every agency shall post and keep posted at each
17location, in a position easily accessible to all day or
18temporary laborers s, notices as supplied and required by the
19Department containing a copy or summary of the provisions of
20the Act and a notice which informs the public of a toll-free
21telephone number for day or temporary laborers and the public
22to file wage dispute complaints and other alleged violations
23by day and temporary labor service agencies. Every day and
24temporary labor service agency employing day or temporary
25laborers who communicate with the day and temporary labor
26service agency by electronic communication shall also provide

 

 

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1all required notices by email to its day or temporary laborers
2or on a website, regularly used by the employer to communicate
3work-related information, that all day or temporary laborers
4are able to regularly access, freely and without interference.
5Such notices shall be in English and any other language
6generally understood in the locale of the day and temporary
7labor service agency.
8(Source: P.A. 103-201, eff. 1-1-24; 103-437, eff. 8-4-23;
9revised 12-15-23.)
 
10    (820 ILCS 175/55)
11    Sec. 55. Enforcement by the Department. It shall be the
12duty of the Department to enforce the provisions of this Act
13when, in the Department's judgment, there is cause and
14sufficient resources for investigation. The Department shall
15have the power to conduct investigations in connection with
16the administration and enforcement of this Act and any
17investigator with the Department shall be authorized to visit
18and inspect, at all reasonable times, any places covered by
19this Act and shall be authorized to inspect, at all reasonable
20times, contracts for the employment of all day or temporary
21laborers entered into by a third party client if the
22Department has received a complaint indicating that the third
23party client may have contracted with a day and temporary
24labor service agency that is not registered under this Act.
25The Department shall conduct hearings in accordance with the

 

 

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1Illinois Administrative Procedure Act upon written complaint
2by an investigator of the Department or any interested person
3of a violation of the Act. After the hearing, if supported by
4the evidence, the Department may (i) issue and cause to be
5served on any party an order to cease and desist from further
6violation of the Act, (ii) take affirmative or other action as
7deemed reasonable to eliminate the effect of the violation,
8(iii) deny, suspend, or revoke any registration under this
9Act, and (iv) determine the amount of any civil penalty
10allowed by the Act. The Director of Labor or his or her
11representative may compel, by subpoena, the attendance and
12testimony of witnesses and the production of books, payrolls,
13records, papers, and other evidence in any investigation or
14hearing and may administer oaths to witnesses. Nothing in this
15Act applies to labor or employment of a clerical or
16professional nature.
17(Source: P.A. 103-437, eff. 8-4-23.)
 
18    (820 ILCS 175/85)
19    Sec. 85. Third party clients.
20    (a) It is a violation of this Act for a third party client
21to enter into a contract for the employment of day or temporary
22laborers with any day and temporary labor service agency not
23registered under Section 45 of this Act. A third party client
24has a duty to verify a day and temporary labor service agency's
25status with the Department before entering into a contract

 

 

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1with such an agency, and on March 1 and September 1 of each
2year. A day and temporary labor service agency shall be
3required to provide each of its third party clients with proof
4of valid registration issued by the Department at the time of
5entering into a contract. A day and temporary labor service
6agency shall be required to notify, both by telephone and in
7writing, each day or temporary laborer it employs and each
8third party client with whom it has a contract within 24 hours
9of any denial, suspension, or revocation of its registration
10by the Department. All contracts between any day and temporary
11labor service agency and any third party client shall be
12considered null and void from the date any such denial,
13suspension, or revocation of registration becomes effective
14and until such time as the day and temporary labor service
15agency becomes registered and considered in good standing by
16the Department as provided in Section 50 and Section 55. Upon
17request, the Department shall provide to a third party client
18a list of entities registered as day and temporary labor
19service agencies. The Department shall provide on the Internet
20a list of entities registered as day and temporary labor
21service agencies. A third party client may rely on information
22provided by the Department or maintained on the Department's
23website pursuant to Section 45 of this Act and shall be held
24harmless if such information maintained or provided by the
25Department was inaccurate. Any third party client that
26violates this provision of the Act is subject to a civil

 

 

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1penalty of not less than $100 and not to exceed $1,500. Each
2day during which a third party client contracts with a day and
3temporary labor service agency not registered under Section 45
4of this Act shall constitute a separate and distinct offense.
5    (b) If a third party client leases or contracts with a day
6and temporary service agency for the services of a day or
7temporary laborer, the third party client shall share all
8legal responsibility and liability for the payment of wages
9under the Illinois Wage Payment and Collection Act and the
10Minimum Wage Law.
11    (c) Before the assignment of an employee to a worksite
12employer, a day and temporary labor service agency must:
13        (1) inquire about the client company's safety and
14    health practices and hazards at the actual workplace where
15    the day or temporary laborer will be working to assess the
16    safety conditions, workers tasks, and the client company's
17    safety program; these activities are required at the start
18    of any contract to place day or temporary laborers and may
19    include visiting the client company's actual worksite. If,
20    during the inquiry or anytime during the period of the
21    contract, the day and temporary labor service agency
22    becomes aware of existing job hazards that are not
23    mitigated by the client company, the day and temporary
24    labor service agency must make the client company aware,
25    urge the client company to correct it, and document these
26    efforts, otherwise the day and temporary labor service

 

 

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1    agency must remove the day or temporary laborers from the
2    client company's worksite;
3        (2) provide training to the day or temporary laborer
4    for general awareness safety training for recognized
5    industry hazards the day or temporary laborer may
6    encounter at the client company's worksite. Industry
7    hazard training must be completed, in the preferred
8    language of the day or temporary laborer, and must be
9    provided at no expense to the day or temporary laborer.
10    The training date and training content must be maintained
11    by the day and temporary staffing agency and provided to
12    the day or temporary laborer;
13        (3) transmit a general description of the training
14    program including topics covered to the client company,
15    whether electronically or on paper, at the start of the
16    contract with the client company;
17        (4) provide the Department's hotline number for the
18    employee to call to report safety hazards and concerns as
19    part of the employment materials provided to the day or
20    temporary laborer; and
21        (5) inform the day or temporary laborer who the day or
22    temporary laborer should report safety concerns to at the
23    workplace.
24    Nothing in this Section shall diminish any existing client
25company or a day and temporary labor service agency's
26responsibility as an employer to provide a place of employment

 

 

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1free from recognized hazards or to otherwise comply with other
2health and safety or employment laws. The client company and
3the day and temporary labor service agency are responsible for
4compliance with this Section and the rules adopted under this
5Section.
6    (d) Before the day or temporary laborer engages in work
7for a client company, the client company must:
8        (1) document and inform the day and temporary labor
9    service agency about anticipated job hazards likely
10    encountered by the day or temporary laborer;
11        (2) review the safety and health awareness training
12    provided by the day and temporary labor service agency to
13    determine if it addresses recognized hazards for the
14    client company's industry;
15        (3) provide specific training tailored to the
16    particular hazards at the client company's worksite
17    consistent with training requirements provided for in
18    standards, guidances, or best practices issued by the
19    federal Occupational Safety and Health Administration; and
20        (4) document and maintain records of site-specific
21    training and provide confirmation that the training
22    occurred to the day and temporary labor service agency
23    within 3 business days of providing the training.
24    (e) If the client company changes the job tasks or work
25location and new hazards may be encountered, the client
26company must:

 

 

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1        (1) inform both the day and temporary labor service
2    agency and the day or temporary laborer; and
3        (2) inform both the day and temporary labor service
4    agency staffing agency and the day or temporary laborer of
5    job hazards not previously covered before the day or
6    temporary laborer undertakes the new tasks and update
7    personal protective equipment and training for the new job
8    tasks consistent with training requirements provided for
9    in standards, guidances, or best practices issued by the
10    federal Occupational Safety and Health Administration, if
11    necessary.
12    (f) A day and temporary labor service agency or day or
13temporary laborer may refuse a new job task at the worksite
14when the task has not been reviewed or if the day or temporary
15laborer has not had appropriate training to do the new task.
16    (g) A client company that supervises a day or temporary
17laborer must provide worksite specific training to the day or
18temporary laborer and must allow a day and temporary labor
19service agency to visit any worksite where the day or
20temporary laborer works or will be working to observe and
21confirm the client company's training and information related
22to the worksite's job tasks, safety and health practices, and
23hazards.
24(Source: P.A. 103-437, eff. 8-4-23.)
 
25    Section 99. Effective date. This Act takes effect upon
26becoming law.