Section 260.470  Placement Fees

a)         A day and temporary labor service agency may charge a placement fee to a third party client who employs a day or temporary laborer for whom a contract for work was effected by the agency.  The fee shall not exceed the total daily commission rate the agency would have received over a 60 day period reduced by the total amount of the daily commission rate the agency has received each day the day or temporary laborer has performed work for the agency in the preceding 12 months (i.e., (daily commission rate times 60) minus (daily commission rate times number of days worked for the agency in the prior 12 months)).

b)         Days worked at the agency in the 12 months prior to January 1, 2006 shall be included for purposes of calculating the maximum placement fee.

c)         A day or temporary laborer, third party client, or interested party may file a complaint with the Department if they have knowledge that a day and temporary labor service agency has charged a placement fee or threatened to charge a placement fee in violation of this Section or Section 40 of the Act. However, nothing in this Section or Section 40 of the Act requires a third party client to directly hire a day or temporary laborer who has performed work beyond the time period in which a placement fee may be charged.

d)         Example:  Worker A has been employed by Temp Agency A since February 1, 2024. Temp Agency A dispatches Worker A to Client B or Client C as needed on different days, and charges each Client a $50 commission per day on top of the worker's compensation. Between February 1 and April 1, 2024, Worker A works 25 days for Client B and 15 days for Client C. Client B wishes to hire Worker A directly as an employee. Temp Agency A may charge Client B no more than $1,000 as a placement fee according to the following calculation:

$50 daily commission rate multiplied by 60 = $3,000.

$50 daily commission rate multiplied by 40 days of work = $2,000.

$3,000 minus $2,000 = $1,000 allowable placement fee.

e)         At the time a day or temporary laborer is dispatched to any third party client, a day and temporary labor service agency must provide the day or temporary laborer with a written notice stating whether the client is subject to paying the day and temporary labor service agency a placement fee if the client directly hires the day or temporary laborer, that any fee will be reduced based on the days worked by the day or temporary laborer for such client prior to being hired by the client, and that no fee will be charged to the client if the employee has performed work for the day and temporary labor service agency on more than 60 calendar days in a 12-month period.

(Source:  Amended at 50 Ill. Reg. 7177, effective April 28, 2026)