HB1604ham001 103RD GENERAL ASSEMBLY

Rep. Edgar Gonzalez, Jr.

Filed: 3/17/2023

10300HB1604ham001 LRB103 26056 SPS 58985 a

AMENDMENT TO HOUSE BILL 1604

AMENDMENT NO. ______. Amend House Bill 1604 by replacing everything after the enacting clause with the following:

"Section 5. The Day and Temporary Labor Services Act is amended by changing Sections 2, 5, 10, 12, 30, 40, 45, 50, 55, 70, 85, 90, and 95 and by adding Sections 11, 42, 67, and 87 as follows:

(820 ILCS 175/2)

Sec. 2. Legislative Findings. The General Assembly finds as follows:

Since the passage of this Act, the number of Over 300,000 workers who work as day or temporary laborers in Illinois has risen from approximately 300,000 to more than 650,000 according to data collected by the Department of Labor.

Since the passage of this Act, the number of Approximately 150 day labor and temporary labor service agencies registered in Illinois has risen from approximately 150 with 600 branch offices to over 300 with over 800 branch offices with nearly 600 branch offices are licensed throughout Illinois. In addition, there still exists is a significant large, though unknown, number of unregistered unlicensed day labor and temporary labor service agencies that operate outside the radar of law enforcement.

Recent studies and a survey of low-wage day or temporary laborers themselves have consistently found finds that as a group, they are particularly vulnerable to abuse of their labor rights, including unpaid wages, failure to pay for all hours worked, minimum wage and overtime violations, and unlawful deduction from pay for meals, transportation, equipment and other items. Recent studies and surveys of the day and temporary staffing industry have also found that day or temporary laborers are more than twice as likely to live in poverty, that more than one in 3 depend on public assistance to survive, that such workers are commonly part of a 2-tier pay structure, and that such workers have an occupational injury rate 2 to 3 times higher than directly hired employees.

As a result of the imbalance of negotiating power between a day or temporary laborer and a day and temporary service agency and its client companies due to laborers' precarious and contingent employment relationship, many day or temporary laborers are subjected to abusive contracts that they are required to sign under duress and from which they need to be protected.

It is in the interest of the State of Illinois to ensure compliance with this Act, and it is in the interest of Illinois taxpayers to mitigate the cost of enforcement of this Act by assessing civil penalties against day and temporary service agencies and their client companies that have been found to have violated this Act. Illinois employers who comply with this and other Illinois wage and hour laws are also at a competitive disadvantage with employers who do not comply with such laws, and it is in the interest of the State of Illinois, law-abiding Illinois employers, and Illinois taxpayers to disgorge law-breaking employers of any ill-gotten gains as a result of unlawful practices and to ensure payroll taxes are paid on any such unpaid wages. Therefore, the public good justifies the establishment of the mechanism set forth in this Act for the Department, the Attorney General, aggrieved employees, or interested parties to disgorge from an Illinois employer who does not comply with this or other Illinois laws referenced herein the amount of such unpaid wages and other remedies, as well as unpaid payroll taxes.

Current law is inadequate to protect the labor and employment rights of these workers.

At the same time, in Illinois and in other states, democratically run nonprofit day labor centers, which charge no fee for their services, have been established to provide an alternative for day or temporary laborers to solicit work on street corners. These centers are not subject to this Act.

(Source: P.A. 94-511, eff. 1-1-06.)

(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.

"Family member" means an employee's child, spouse, or party to a civil union or legal guardianship, parent, grandparent, grandchild, sibling, or any other individual related by blood, marriage, or civil union, or whose close relationship with the employee is the equivalent of a family association as determined by the employee.

"Interested party" means a person, organization, or entity with an interest in compliance with this Act. An interested party includes, without limitation, a labor organization, a nonprofit organization whose mission or past practice includes advocating for the workplace rights of day or temporary laborers, a current or former day or temporary laborer employed by the entity subject to allegations of the violations, whether or not still aggrieved by a violation of this Act at the time of taking any action under this Act, a family member of such a day or temporary laborer, or a competitor of a day and temporary labor service agency or an employee of a competitor of day and temporary labor service agency.

"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. 94-511, eff. 1-1-06; 95-499, eff. 8-28-07.)

(820 ILCS 175/10)

Sec. 10. Employment Notice and Application Receipt.

(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 and the types of equipment, protective clothing, and training that are required for the task;

(3) the wages offered;

(4) the name and address 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.

The failure of a day and temporary labor service agency to provide a day or temporary laborer with the equipment, protective clothing, and training identified in an employment notice required by this Section shall be a health and safety violation under Section 95.

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.

(b) Application receipt. If the applicant seeks a work assignment, including in-person, online, or through an application-based system, and day or temporary laborer is not placed with a third party client or otherwise contracted to work for that day by a day and temporary labor service agency, the day and temporary labor service agency shall, upon request, provide the applicant day and temporary laborer with a confirmation that the applicant day or temporary laborer sought work, signed by an employee of the day and temporary labor service agency, on a form approved by the Department, which shall include:

(1) the name and location of the agency and branch office; ,

(2) the name and address of the applicant; day or temporary laborer, and

(3) the date and the time that the the applicant sought the work assignments; day or temporary laborer receives the confirmation.

(4) the manner in which the applicant sought the work assignments; and

(5) the specific work sites or type of jobs sought by the applicant, if applicable.

(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.

If the day or temporary laborer seeks a work assignment online or through an application-based system only, and is not placed with a third party client or otherwise contracted to work for that day, the day and temporary labor service agency may provide the required confirmation in an electronic format and electronically signed by an employee of the day and temporary labor service agency, in a form approved by the Department.

(c) The Department shall recommend to day and temporary labor service agencies that those agencies employ personnel who can effectively communicate information required in subsection subsections (a) and (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. Employment notices and application receipts shall be provided to the day or temporary laborer or applicant in a language that the day or temporary laborer or applicant understands.

(d) The failure of 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 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 violation. If a day and temporary labor service agency claims that it has electronically provided an employment notice or application receipt as required by this Section, the day and temporary labor service agency shall bear the burden of showing the employment notice or application receipt was provided if there is a dispute.

(Source: P.A. 99-78, eff. 7-20-15; 100-517, eff. 6-1-18.)

(820 ILCS 175/11 new)

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 other labor trouble exists without providing, at or before the time of dispatch, a statement, in writing and in a language that the day or 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 notice as required by 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.

(820 ILCS 175/12)

Sec. 12. Recordkeeping.

(a) Whenever a day and temporary labor service agency sends one or more persons to work as day or temporary laborers, the day and temporary labor service agency shall keep the following records relating to that transaction:

(1) the name, address and telephone number of each third party client, including each worksite, to which day or temporary laborers were sent by the agency and the date of the transaction;

(2) for each day or temporary laborer: the name and address, the specific location sent to work, the type of work performed, the number of hours worked, the hourly rate of pay and the date sent. The term "hours worked" has the meaning ascribed to that term in 56 Ill. Adm. Code 210.110 and in accordance with all applicable rules or court interpretations under 56 Ill. Adm. Code 210.110. The third party client shall be required to remit all information required under this subsection to the day and temporary labor service agency no later than 7 days following the last day of the work week worked by the day or temporary laborer. Failure of a third party client to remit such information to a day and temporary labor service agency shall not be a defense to the recordkeeping requirement of this Section;

(3) the name and title of the individual or individuals at each third party client's place of business responsible for the transaction;

(4) any specific qualifications or attributes of a day or temporary laborer, requested by each third party client;

(5) copies of all contracts, if any, with the third party client and copies of all invoices for the third party client;

(6) copies of all employment notices provided in accordance with subsection (a) of Section 10;

(7) deductions to be made from each day or temporary laborer's compensation made by either the third party client or by the day and temporary labor service agency for the day or temporary laborer's transportation, food, equipment, withheld income tax, withheld social security payments and every other deduction;

(8) verification of the actual cost of any equipment or meal charged to a day or temporary laborer;

(9) the race and gender of each day or temporary laborer or applicant who seeks work at, whether in person, online, or through an application-based system, or is assigned sent by the day and temporary labor service agency, as such information is provided by the day or temporary laborer or applicant; and

(9.5) whether a day or temporary laborer has been placed in a permanent position with a third party client and the date of such placement; and

(10) any additional information required by rules issued by the Department.

(b) The day and temporary labor service agency shall maintain all records under this Section for a period of 3 years from their creation. The records shall be open to inspection by the Department during normal business hours. Records described in paragraphs (1), (2), (3), (6), (7), and (8) of subsection (a) shall be available for review or copying by that day or temporary laborer during normal business hours within 5 days following a written request. In addition, a day and temporary labor service agency shall make records related to the number of hours billed to a third party client for that individual day or temporary laborer's hours of work available for review or copying during normal business hours within 5 days following a written request. The day and temporary labor service agency shall make forms, in duplicate, for such requests available to day or temporary laborers at the dispatch office. The day or temporary laborer shall be given a copy of the request form. It is a violation of this Section to make any false, inaccurate or incomplete entry into any record required by this Section, or to delete required information from any such record. Failure by the third party client to remit time records to the day and temporary labor service agency as provided in paragraph (a)(2) shall constitute a notice violation by a third party client under Section 95 of this Act unless the third party client has been precluded from submitting such time records for reasons beyond its control. A failure by the third party client to provide time records in accordance with this subsection (b) shall not be a notice violation and shall not be the basis for a suit or other action under Section 95 of this Act against the day and temporary labor service agency.

(Source: P.A. 94-511, eff. 1-1-06; 95-499, eff. 8-28-07.)

(820 ILCS 175/30)

Sec. 30. Wage Payment and Notice.

(a) At the time of payment of wages, a day and temporary labor service agency shall provide each day or temporary laborer with a detailed itemized statement, on the day or temporary laborer's paycheck stub or on a form approved by the Department, listing the following:

(1) the name, address, and telephone number of each third party client at which the day or temporary laborer worked. If this information is provided on the day or temporary laborer's paycheck stub, a code for each third party client may be used so long as the required information for each coded third party client is made available to the day or temporary laborer;

(2) the number of hours worked by the day or temporary laborer at each third party client each day during the pay period. If the day or temporary laborer is assigned to work at the same work site of the same third party client for multiple days in the same work week, the day and temporary labor service agency may record a summary of hours worked at that third party client's worksite so long as the first and last day of that work week are identified as well. The term "hours worked" has the meaning ascribed to that term in 56 Ill. Adm. Code 210.110 and in accordance with all applicable rules or court interpretations under 56 Ill. Adm. Code 210.110;

(3) the rate of payment for each hour worked, including any premium rate or bonus;

(3.5) the rate billed to the client company for each hour worked, including any premium rate or bonus;

(4) the total pay period earnings;

(5) all deductions made from the day or temporary laborer's compensation made either by the third party client or by the day and temporary labor service agency, and the purpose for which deductions were made, including for the day or temporary laborer's transportation, food, equipment, withheld income tax, withheld social security payments, and every other deduction; and

(5.5) the then-current maximum placement fee as defined and calculated in Section 40; and

(6) any additional information required by rules issued by the Department.

(a-1) For each day or temporary laborer who is contracted to work a single day, the third party client shall, at the end of the work day, provide such day or temporary laborer with a Work Verification Form, approved by the Department, which shall contain the date, the day or temporary laborer's name, the work location, and the hours worked on that day. Any third party client who violates this subsection (a-1) may be subject to a civil penalty of not less than $100 and not more than to exceed $500 for each violation found by the Department. Such civil penalty shall may increase to not less than $500 and not more than $2,500 for a second or subsequent violation. For purposes of this subsection (a-1), each violation of this subsection (a-1) for each day or temporary laborer and for each day the violation continues shall constitute a separate and distinct violation.

(b) A day and temporary labor service agency shall provide each worker an annual earnings summary within a reasonable time after the preceding calendar year, but in no case later than February 1. A day and temporary labor service agency shall, at the time of each wage payment, give notice to day or temporary laborers of the availability of the annual earnings summary or post such a notice in a conspicuous place in the public reception area.

(c) At the request of a day or temporary laborer, a day and temporary labor service agency shall hold the daily wages of the day or temporary laborer and make either weekly, bi-weekly, or semi-monthly payments. The wages shall be paid in a single check, or, at the day or temporary laborer's sole option, by direct deposit or other manner approved by the Department, representing the wages earned during the period, either weekly, bi-weekly, or semi-monthly, designated by the day or temporary laborer in accordance with the Illinois Wage Payment and Collection Act. Vouchers or any other method of payment which is not generally negotiable shall be prohibited as a method of payment of wages. Day and temporary labor service agencies that make daily wage payments shall provide written notification to all day or temporary laborers of the right to request weekly, bi-weekly, or semi-monthly checks. The day and temporary labor service agency may provide this notice by conspicuously posting the notice at the location where the wages are received by the day or temporary laborers.

(d) No day and temporary labor service agency shall charge any day or temporary laborer for cashing a check issued by the agency for wages earned by a day or temporary laborer who performed work through that agency. No day and temporary labor service agency or third party client shall charge any day or temporary laborer for the expense of conducting any consumer report, as that term is defined in the Fair Credit Reporting Act, 15 U.S.C. 1681a(d), any criminal background check of any kind, or any drug test of any kind.

(e) Day or temporary laborers shall be paid no less than the wage rate stated in the notice as provided in Section 10 of this Act for all the work performed on behalf of the third party client in addition to the work listed in the written description.

(f) The total amount deducted for meals, equipment, and transportation may not cause a day or temporary laborer's hourly wage to fall below the State or federal minimum wage. However, a day and temporary labor service agency may deduct the actual market value of reusable equipment provided to the day or temporary laborer by the day and temporary labor service agency which the day or temporary laborer fails to return, if the day or temporary laborer provides a written authorization for such deduction at the time the deduction is made.

(g) A day or temporary laborer who is contracted by a day and temporary labor service agency to work at a third party client's worksite but is not utilized by the third party client shall be paid by the day and temporary labor service agency for a minimum of 4 hours of pay at the agreed upon rate of pay. However, in the event the day and temporary labor service agency contracts the day or temporary laborer to work at another location during the same shift, the day or temporary laborer shall be paid by the day and temporary labor service agency for a minimum of 2 hours of pay at the agreed upon rate of pay.

(h) A third party client is required to pay wages and related payroll taxes to a licensed day and temporary labor service agency for services performed by the day or temporary laborer for the third party client according to payment terms outlined on invoices, service agreements, or stated terms provided by the day and temporary labor service agency. A third party client who fails to comply with this subsection (h) is subject to the penalties provided in Section 70 of this Act. The Department shall review a complaint filed by a licensed day and temporary labor agency. The Department shall review the payroll and accounting records of the day and temporary labor service agency and the third party client for the period in which the violation of this Act is alleged to have occurred to determine if wages and payroll taxes have been paid to the agency and that the day or temporary laborer has been paid the wages owed him or her.

(i) The failure of a day and temporary labor service agency or client company to provide any of the information required by this Section shall constitute a notice violation under Section 95. The failure 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.

(Source: P.A. 100-517, eff. 6-1-18.)

(820 ILCS 175/40)

Sec. 40. Work Restriction. No day and temporary labor service agency shall restrict the right of a day or temporary laborer to accept a permanent position with a third party client to whom the day or temporary laborer has been referred for work or restrict the right of such third party client to offer such employment to a day or temporary laborer. A day and temporary labor service agency may charge a placement fee to a third party client for employing a day or temporary laborer for whom a contract for work was effected by the day and temporary labor service agency not to exceed the equivalent of the total daily commission rate the day and temporary labor service agency would have received over a 60-day period, reduced by the equivalent of the daily commission rate the day and temporary labor service agency would have received for each day the day or temporary laborer has performed work for the day and temporary labor service agency in the preceding 12 months. Days worked at a day and temporary labor service agency in the 12 months preceding the effective date of this amendatory Act of the 94th General Assembly shall be included for purposes of calculating the maximum placement fee described in this Section. However, placement of a day or temporary laborer who is contracted by a day and temporary labor service agency to provide skilled labor shall not be subject to any placement fee cap. For purposes of this Section, a day or temporary laborer who performs "skilled labor" shall apply only where the day and temporary labor service agency performs an advanced application process, a screening process, which may include processes such as advanced testing, and a job interview. No fee provided for under this Section may be assessed or collected by the day and temporary labor service agency when the day or temporary laborer is offered permanent work following the suspension or revocation of the day and temporary labor service agency's registration by the Department.

(Source: P.A. 94-511, eff. 1-1-06.)

(820 ILCS 175/42 new)

Sec. 42. Equal pay for equal work. A day or temporary laborer who is assigned to work at a third party client for more than one week shall be paid not less than the average rate of pay and equivalent benefits as directly hired employees of the third party client 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. A day and temporary labor service agency may pay the hourly cash equivalent of benefits in lieu of providing the benefits required by this Section. Upon request, a third party client to which a day or temporary laborer has been assigned for more than one week shall be obligated to timely provide the day and temporary labor service agency with all necessary information related to job duties, pay, and benefits of directly hired employees necessary for the day and temporary labor service agency to comply with this Section. The failure by a third party client to provide any of the information required by this Section shall constitute a notice violation by the third party client under Section 95.

(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 $5,000 $1,000 per year per agency and a non-refundable fee not to exceed $1,000 $250 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 paragraphs paragraph (9) and (9.5) 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 subsection and subsection (a-2) 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. Any summary reports created by the Department shall be made available for public inspection on the Department's website and shall not be exempt from inspection and copying under the Freedom of Information Act.

(a-2) When a day and temporary labor service agency registers with the Department, it shall submit to the Department a report containing (i) the total number of W-2 forms issued to day or temporary laborers in Illinois during the prior year broken down by branch office and (ii) the total number of hours billed by the day and temporary labor service agency from a branch office in Illinois broken down by branch office. This information shall be submitted on a form created by the Department. The Department shall aggregate the information submitted by all registering day and temporary labor service agencies by removing identifying data and shall make the information available to the public on a municipal and county basis. The information and reports submitted to the Department under this subsection by the registering day and temporary labor service agencies are exempt from inspection and copying under the Freedom of Information Act. Any summary reports created by the Department shall be made available for public inspection on the Department's website and shall not be exempt from inspection and copying under the Freedom of Information Act.

(a-3) The Department shall deny a day and temporary labor service agency's registration until all of the information required in subsections (a-1) and (a-2) has been provided.

(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) An applicant is not eligible to register to operate a day and temporary labor service agency under this Act if the 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 employees, 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. Such notices shall be in English or any other language generally understood in the locale of the day and temporary labor service agency.

(Source: P.A. 100-517, eff. 6-1-18.)

(820 ILCS 175/50)

Sec. 50. Violations. The Department shall have the authority to deny, suspend, or revoke the registration of a day and temporary labor service agency if warranted by public health and safety concerns or violations of this Act. The Attorney General, pursuant to its authority under Section 6.3 of the Attorney General Act, may request that a circuit court suspend or revoke the registration of a day and temporary labor service agency when warranted by public health concern or violations of this Act. The Attorney General shall provide notice to the Director prior to requesting the suspension or revocation of the registration of a day and temporary labor service agency.

(Source: P.A. 94-511, eff. 1-1-06.)

(820 ILCS 175/55)

Sec. 55. Enforcement by the Department.

(a) It shall be the duty of the Department to enforce the provisions of this Act. 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.

(b) If action has been initiated by an interested party as to any violations pursuant to this Section, the Department shall defer launching any investigation of the same such violations until the conclusion of the civil matter. The Department may intervene in the civil matter as a party in interest at any time. Intervention by the Department shall not alter the rights of the interested party under Section 67.

(c) Nothing in this Section shall in any way prevent or delay a day or temporary laborer or his or her representatives or an interested party from bringing an action to enforce rights pursuant to Section 95.

(Source: P.A. 93-441, eff. 1-1-04; 94-511, eff. 1-1-06.)

(820 ILCS 175/67 new)

Sec. 67. Action for civil penalties brought by an interested party.

(a) Upon a reasonable belief that a day and temporary labor service agency or a third party client covered by this Act is in violation of any part of this Act, an interested party may file suit against the covered entity in a circuit court, in any county where some or all the alleged offenses occurred, without regard to exhaustion of any alternative administrative remedies provided in this Act. The interested party shall provide notice to the Director at the time of the filing of an action.

(b) In an action brought pursuant to this Section, an interested party may recover against the covered entity any statutory penalties set forth in Section 70 and injunctive relief. An interested party who prevails shall receive 10% of any statutory penalties assessed, plus any attorney's fees and expenses in bringing the action. The remaining 90% of any statutory penalties assessed shall be deposited into the Child Labor and Day and Temporary Labor Services Enforcement Fund and shall be used exclusively for enforcement of this Act by the Department.

(c) If the Department has already initiated an investigation of any alleged violation of the Act and that investigation is ongoing at the time a civil action is filed, the civil action shall be stayed as to those violations until the Department has completed its investigation and any related enforcement or has granted a waiver in writing to the interested party to proceed with a civil action. Recovery by the Department of civil penalties under Section 70 for any violation of the Act shall be an absolute defense to the civil action by an interested party as to those violations only.

(d) The right of an interested party to bring an action under this Section terminates upon the passing of 3 years from the latest date of the violation. This period is tolled for the period a civil action under this Section is stayed pending the outcome of an investigation by the Department.

(e) Nothing in this Section shall in any way prevent or delay a day or temporary laborer or his or her representatives or an interested party from bringing an action to enforce rights pursuant to Section 95.

(820 ILCS 175/70)

Sec. 70. Penalties.

(a) A day and temporary labor service agency or third party client that violates any of the provisions of this Act or any rule adopted under this Act shall be subject to a civil penalty of not less than $100 and not more than to exceed $1,000 $6,000 for each violation violations found in the first audit by the Department or determined by a court in a civil action brought by an interested party, or determined by a court in a civil action brought by the Attorney General pursuant to its authority under Section 6.3 of the Attorney General Act. Following a first audit or civil action, a day and temporary labor service agency or third party client shall be subject to a civil penalty of not less than $500 and not more than to exceed $2,500 for each repeat violation found by the Department or circuit court within 3 years. For purposes of this subsection, each violation of this Act for each day or temporary laborer and for each day the violation continues shall constitute a separate and distinct violation. In determining the amount of a penalty, the Director or circuit court shall consider the appropriateness of the penalty to the day and temporary labor service agency or third party client charged, upon the determination of the gravity of the violations. For any violation determined by the Department or circuit court to be willful which is within 3 years of an earlier violation, the Department may revoke the registration of the violator, if the violator is a day and temporary labor service agency. The amount of the penalty, when finally determined, may be:

(1) Recovered in a civil action brought by the Director of Labor in any circuit court. In this litigation, the Director of Labor shall be represented by the Attorney General.

(2) Ordered by the court, in an action brought by any party, including the Attorney General pursuant to its authority under Section 6.3 of the Attorney General Act, for a violation under this Act, to be paid to the Director of Labor.

(b) The Department shall 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.

Any administrative determination by the Department as to the amount of each penalty shall be final unless reviewed as provided in Section 60 of this Act.

(Source: P.A. 96-1185, eff. 7-22-10.)

(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 $1,000 $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) Whenever a day or temporary laborer is assigned to work at a third party client, the day or temporary laborer shall receive training on all machinery that the day or temporary laborer is required to operate or work on in the vicinity of where reasonable precautions would be expected to be taken equivalent to any training provided to directly hired employees of the third party client who operate the same or substantially similar machinery in advance of the day or temporary laborer operating or working in the vicinity of such machinery. The third party client and day and temporary labor service agency shall jointly have a duty to ensure that such training is provided in advance of any work performed by a day or temporary laborer. Failure to provide the training prescribed in this Section constitutes a health and safety violation by the third party client and the day and temporary labor service agency under Section 95 in addition to any other relief available to the day or temporary laborer under law.

(Source: P.A. 93-441, eff. 1-1-04; 94-511, eff. 1-1-06.)

(820 ILCS 175/87 new)

Sec. 87. Prohibition against abusive contracts.

(a) Any contract entered into between a day or temporary laborer and a day and temporary labor service agency or third party client that in any way limits or affects the day or temporary laborer's ability to enforce rights under this Act, including the venue for enforcement, or other workplace-based rights under Illinois law must meet the following criteria to be valid and enforceable:

(1) the contract must be in writing and executed by original, ink signatures with a hard copy given to the day or temporary laborer;

(2) the contract must be signed by any party that seeks to bind the day or temporary laborer to the agreement;

(3) the contract must be valid only for the term of the day or temporary laborer's current assignment to a client company and expires after the assignment concludes;

(4) the original contract must be maintained and produced in any proceeding to enforce the terms of the contract; and

(5) if any provision of such a contract is deemed unenforceable under Illinois law, the entire agreement must be unenforceable.

(b) Any contract entered into between a temporary labor service agency and any third party client that may impact a day or temporary laborer's wages, ability to work at another day and temporary labor service agency or third party client company must be disclosed and a copy provided to each day or temporary laborer in a language that the day or temporary laborer understands within 7 days after the contract goes into effect or impacts the day or temporary laborer.

(c) The failure by a day and temporary labor service agency or client company to provide any of the information required by this Section shall constitute a notice violation under Section 95. The failure 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.

(820 ILCS 175/90)

Sec. 90. Retaliation.

(a) Prohibition. It is a violation of this Act for a day and temporary labor service agency or third party client, or any agent of a day and temporary labor service agency or third party client, to retaliate through removal from an assignment, a failure to assign, discharge, or in any other manner of negative job actions against any day or temporary laborer for exercising any rights granted under this Act. Such retaliation shall subject a day and temporary labor service agency or third party client, or both, to civil penalties pursuant to this Act or a private cause of action.

(b) Protected Acts from Retaliation. It is a violation of this Act for a day and temporary labor service agency or third party client to retaliate against a day or temporary laborer for:

(1) making a complaint to a day and temporary labor service agency, to a third party client, 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 have been violated;

(2) causing to be instituted any proceeding under or related to this Act; or

(3) testifying or preparing to testify in an investigation or proceeding under this Act; or .

(4) refusing an assignment to any place where a strike, a lockout, or other labor trouble exists.

(Source: P.A. 94-511, eff. 1-1-06.)

(820 ILCS 175/95)

Sec. 95. Private Right of Action.

(a) A person aggrieved by a violation of this Act or any rule adopted under this Act by a day and temporary labor service agency or a third party client may file suit in circuit court of Illinois, in the county where the alleged offense occurred or where any day or temporary laborer who is party to the action resides, without regard to exhaustion of any alternative administrative remedies provided in this Act. A day and temporary labor service agency aggrieved by a violation of this Act or any rule adopted under this Act by a third party client may file suit in circuit court of Illinois, in the county where the alleged offense occurred or where the day and temporary labor service agency which is party to the action is located. Actions may be brought by one or more day or temporary laborers for and on behalf of themselves and other day or temporary laborers similarly situated. A day or temporary laborer whose rights have been violated under this Act by a day and temporary labor service agency or a third party client or a day and temporary labor service agency whose rights have been violated under this Act by a third party client is entitled to collect:

(1) in the case of a wage and hour violation, the amount of any wages, salary, employment benefits, or other compensation denied or lost to the day or temporary laborer or day and temporary labor service agency by reason of the violation, plus an equal amount in liquidated damages;

(2) in the case of a health and safety or notice violation, compensatory damages and an amount of not less than $100 but not more than $1,000 for each up to $500 for the violation of each subpart of each Section;

(3) in the case of unlawful retaliation, the greater of all legal or equitable relief as may be appropriate or liquidated damages equal to $25,000 per incident of retaliation, at the selection of the aggrieved person, and reinstatement, if appropriate; and

(4) attorney's fees and costs.

(a-5) Upon a reasonable belief that a day and temporary labor service agency has violated any provision of this Act, an interested party shall have the right to bring an action for any such violation on the same basis as an aggrieved day or temporary laborer provided in subsection (a), except that the interested party need not be aggrieved in order to:

(1) disgorge, in the case of a wage and hour violation, any financial benefit to the employer from unpaid wages in the amount of all unpaid wages, plus statutory interest and statutory damages and attorneys' fees and costs as provided herein and in the Minimum Wage Law and Wage Payment and Collection Act; and

(2) pursue, in the case of a health and safety or notice violation, an amount of not less than $100 but not more than $1,000 for each violation of each subpart of each Section.

An interested party may bring an action to disgorge the amounts provided in paragraphs (1) and (2) for similarly situated employees of the day and temporary labor service agency who do not request to exclude themselves from the proceeding. In adjudicating an action involving a class of similarly situated employees brought under this subsection, the circuit court shall apply the procedures set forth in Part 8 of Article II of the Code of Civil Procedure, except that there shall be no requirement that the interested party have a claim or claims that are common to or are typical of the members of the class. Any funds for unpaid wages, statutory interest or statutory damages disgorged from an employer and awarded in an action brought under this subsection shall be distributed to all employees, other than those who exclude themselves from the action pursuant to the procedure set forth in subsection (b) of Section 2-804 of the Code of Civil Procedure, in proportion to the amount of each employee's unpaid wages.

(b) The right of an aggrieved person to bring an action under this Section terminates upon the passing of 3 years from the final date of employment by the day and temporary labor agency or the third party client or upon the passing of 3 years from the date of termination of the contract between the day and temporary labor service agency and the third party client. This limitations period is tolled if a day labor employer has deterred a day and temporary labor service agency or day or temporary laborer's exercise of rights under this Act by contacting or threatening to contact law enforcement agencies. The right of an interested party to bring an action under this Section on behalf of a day or temporary laborer, a group of day or temporary laborers, or a class of day or temporary laborers terminates 3 years after the date of termination of the contract between the day and temporary labor service agency and the third party client.

(Source: P.A. 96-1185, eff. 7-22-10.)

Section 99. Effective date. This Act takes effect July 1, 2023.".