SB3650 103RD GENERAL ASSEMBLY

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3650

 

Introduced 2/9/2024, by Sen. Robert Peters

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 175/5
820 ILCS 175/10
820 ILCS 175/11
820 ILCS 175/42
820 ILCS 175/85

    Amends the Day and Temporary Labor Services Act. Provides that, if an applicant seeks a work assignment as a day or temporary laborer with a day and temporary labor service agency, including in-person, online or through an app-based system, and is not placed with a third party client or otherwise contracted to work for that day by the day and temporary labor service agency, the day and temporary labor service agency shall provide the applicant with a confirmation that the applicant sought work that satisfies specified criteria. Sets forth compensation requirements for day or temporary laborers based on directly hired comparative employees of a third party. Provides that it shall be the responsibility and duty of a day and temporary labor service agency to calculate and determine the hourly rate of pay and the benefits it shall offer to a day or temporary laborer, including any cash equivalents. Makes changes in provisions concerning the right to refuse assignments due to a labor dispute and the duties of third party clients. Defines terms.


LRB103 38728 SPS 68865 b

 

 

A BILL FOR

 

SB3650LRB103 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, and 85 as follows:
 
6    (820 ILCS 175/5)
7    Sec. 5. Definitions. As used in this Act:
8    "Day or temporary laborer" means a natural person who
9contracts for employment with a day and temporary labor
10service agency.
11    "Day and temporary labor" means work performed by a day or
12temporary laborer at a third party client, the duration of
13which may be specific or undefined, pursuant to a contract or
14understanding between the day and temporary labor service
15agency and the third party client. "Day and temporary labor"
16does not include labor or employment of a professional or
17clerical nature.
18    "Day and temporary labor service agency" means any person
19or entity engaged in the business of employing day or
20temporary laborers to provide services, for a fee, to or for
21any third party client pursuant to a contract with the day and
22temporary labor service agency and the third party client.
23    "Department" means the Department of Labor.

 

 

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

 

 

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1    that are required for the task;
2        (3) the wages offered;
3        (4) the name and address of the destination of each
4    day or temporary laborer;
5        (5) terms of transportation; and
6        (6) whether a meal or equipment, or both, are
7    provided, either by the day and temporary labor service
8    agency or the third party client, and the cost of the meal
9    and equipment, if any.
10    If a day or temporary laborer is assigned to the same
11assignment for more than one day, the day and temporary labor
12service agency is required to provide the employment notice
13only on the first day of the assignment and on any day that any
14of the terms listed on the employment notice are changed.
15    If the day or temporary laborer is not placed with a third
16party client or otherwise contracted to work for that day, the
17day and temporary labor service agency shall, upon request,
18provide the day and temporary laborer with a confirmation that
19the day or temporary laborer sought work, signed by an
20employee of the day and temporary labor service agency, which
21shall include the name of the agency, the name and address of
22the day or temporary laborer, and the date and the time that
23the day or temporary laborer receives the confirmation.
24     (b) (Blank). No day and temporary labor service agency
25may send any day or temporary laborer to any place where a
26strike, a lockout, or other labor trouble exists.

 

 

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1    (b-5) Application receipt. If an applicant seeks a work
2assignment as a day or temporary laborer with a day and
3temporary labor service agency, including in-person, online,
4or through an app-based system, and is not placed with a third
5party client or otherwise contracted to work for that day by
6the day and temporary labor service agency, the day and
7temporary labor service agency shall provide the applicant
8with a confirmation that the applicant sought work, signed by
9an employee of the day and temporary labor service agency, on a
10form approved by the Department, that shall include:
11        (1) the name and location of the day and temporary
12    labor service agency and branch office;
13        (2) the name and address of the applicant;
14        (3) the date and the time that the applicant sought
15    the work assignment;
16        (4) the manner in which the applicant sought the work
17    assignment; and
18        (5) the specific work sites or type of jobs sought by
19    the applicant, if applicable.
20     (c) The Department shall recommend to day and temporary
21labor service agencies that those agencies employ personnel
22who can effectively communicate information required in
23subsections (a) and (b-5) (b) to day or temporary laborers in
24Spanish, Polish, or any other language that is generally
25understood in the locale of the day and temporary labor
26service agency.

 

 

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1(Source: P.A. 99-78, eff. 7-20-15; 100-517, eff. 6-1-18.)
 
2    (820 ILCS 175/11)
3    Sec. 11. Right to refuse assignment to a labor dispute.
4    (a) No day and temporary labor service agency may send a
5day or temporary laborer to a place where a strike, a lockout,
6or work stoppage other labor trouble exists because of a labor
7dispute or where a picket, bannering, handbilling, or other
8job action exists because of a labor dispute without
9providing, at or before the time of dispatch, a statement, in
10writing and in a language that the day and temporary laborer
11understands, informing the day or temporary laborer of the
12labor dispute and the day or temporary laborer's right to
13refuse the assignment without prejudice to receiving another
14assignment. This Section shall not apply to any strike,
15lockout, or other work stoppage or any picket, bannering,
16handbilling, or other job action, that has been ruled unlawful
17by any court or government agency authorized to make that
18determination.
19    (b) The failure by a day and temporary labor service
20agency to provide any of the information required by this
21Section shall constitute a notice violation under Section 95.
22The failure of a day and temporary labor service agency to
23provide each piece of information required by this Section at
24each time it is required by this Section shall constitute a
25separate and distinct notice violation. If a day and temporary

 

 

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1labor service agency claims that it has provided a notice as
2required under this Section electronically, the day and
3temporary labor service agency shall bear the burden of
4showing that the notice was provided if there is a dispute.
5(Source: P.A. 103-437, eff. 8-4-23.)
 
6    (820 ILCS 175/42)
7    Sec. 42. Equal pay for equal work.
8    (a) A day or temporary laborer who is assigned to work and
9performs work at a third party client for more than 90 calendar
10days during a 12-month period shall be paid as follows:
11        (1) if there is a directly hired comparative employee:
12            (A) not less than the regular rate of pay, as
13        described in Section 4a of the Minimum Wage Law, and
14        equivalent benefits as the lowest paid directly hired
15        comparative employee; and of the third party client
16        with the same level of seniority at the company and
17        performing the same or substantially similar work on
18        jobs the performance of which requires substantially
19        similar skill, effort, and responsibility, and that
20        are performed under similar working conditions
21            (B) substantially similar benefits to the job
22        classification of the directly hired comparative
23        employee or the hourly average cash equivalent of the
24        actual cost of the benefits the third party client
25        provides to the directly hired comparative employee.

 

 

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1        (2) if If there is not a directly hired comparative
2    employee: of the third party client, the day or temporary
3    laborer shall be paid
4            (A) not less than the regular rate of pay and
5        equivalent benefits of the lowest paid direct hired
6        employee of the company with the closest level of
7        seniority at the company; and .
8            (B) substantially similar benefits to the
9        classification of employees performing the same or
10        substantially similar work on jobs or A day and
11        temporary labor service agency may pay the hourly
12        average cash equivalent of the actual cost of the
13        benefits in lieu of benefits required under this
14        Section.
15    (b) Upon request, a third party client to which a day or
16temporary laborer has been assigned for more than 90 calendar
17days shall be obligated to timely provide the day and
18temporary labor service agency with all necessary information
19related to job duties, working conditions, pay, and benefits
20it provides to the applicable classification of directly hired
21comparative employees necessary for the day and temporary
22labor service agency to comply with this Section. Upon receipt
23of the accurate and complete information described in this
24subsection from the third-party client, it shall be the
25responsibility and duty of the day and temporary labor service
26agency to calculate and determine the hourly rate of pay and

 

 

SB3650- 8 -LRB103 38728 SPS 68865 b

1the benefits it shall offer to the day or temporary laborer,
2including any cash equivalents. The failure by a third party
3client to provide any of the information required under this
4Section shall constitute a notice violation by the third party
5client under Section 95. For purposes of this Section, the day
6and temporary labor service agency shall be considered a
7person aggrieved as described in Section 95. For the purposes
8of this Section, the calculation of the 90 calendar days may
9not begin until April 1, 2024.
10    (c) As used in this Section, "directly hired comparative
11employee" means an employee of a third party client who has the
12same or substantially similar level of seniority at the
13company as a day or temporary laborer and who performs the same
14or substantially similar work on jobs as a day or temporary
15laborer, the performance of which requires substantially
16similar skill, effort, and responsibility and are performed
17under similar working conditions.
18(Source: P.A. 103-437, eff. 8-4-23; 103-564, eff. 11-17-23.)
 
19    (820 ILCS 175/85)
20    Sec. 85. Third party clients.
21    (a) It is a violation of this Act for a third party client
22to enter into a contract for the employment of day or temporary
23laborers with any day and temporary labor service agency not
24registered under Section 45 of this Act. A third party client
25has a duty to verify a day and temporary labor service agency's

 

 

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

 

 

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

 

 

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

 

 

SB3650- 12 -LRB103 38728 SPS 68865 b

1responsibility as an employer to provide a place of employment
2free from recognized hazards or to otherwise comply with other
3health and safety or employment laws. The client company and
4the day and temporary labor service agency are responsible for
5compliance with this Section and the rules adopted under this
6Section.
7    (d) Before the day or temporary laborer engages in work
8for a client company, the client company must:
9        (1) document and inform the day and temporary labor
10    service agency about anticipated job hazards likely
11    encountered by the day or temporary laborer;
12        (2) review the safety and health awareness training
13    provided by the day and temporary labor service agency to
14    determine if it addresses recognized hazards for the
15    client company's industry;
16        (3) provide specific training tailored to the
17    particular hazards at the client company's worksite
18    compliant with the relevant federal Occupational Safety
19    and Health Administration's regulations and guidances; 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 compliant with the relevant federal Occupational
9    Safety and Health Administration's regulations and
10    guidances, if necessary.
11    (f) A day and temporary labor service agency or day or
12temporary laborer may refuse a new job task at the worksite
13when the task has not been reviewed or if the day or temporary
14laborer has not had appropriate training to do the new task.
15    (g) A client company that supervises a day or temporary
16laborer must provide worksite specific training compliant with
17the relevant federal Occupational Safety and Health
18Administration's regulations and guidances to the day or
19temporary laborer and must allow a day and temporary labor
20service agency to visit any worksite where the day or
21temporary laborer works or will be working to observe and
22confirm the client company's training and information related
23to the worksite's job tasks, safety and health practices, and
24hazards.
25(Source: P.A. 103-437, eff. 8-4-23.)