SB3650eng 103RD GENERAL ASSEMBLY

 


 
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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, and 85 as
6follows:
 
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 and
3    the types of equipment, protective clothing, and training
4    that are required for the task;
5        (3) the wages offered;
6        (4) the name and address of the destination of each
7    day or temporary laborer;
8        (5) terms of transportation; and
9        (6) whether a meal or equipment, or both, are
10    provided, either by the day and temporary labor service
11    agency or the third party client, and the cost of the meal
12    and equipment, if any.
13    If a day or temporary laborer is assigned to the same
14assignment for more than one day, the day and temporary labor
15service agency is required to provide the employment notice
16only on the first day of the assignment and on any day that any
17of the terms listed on the employment notice are changed.
18    If the day or temporary laborer is not placed with a third
19party client or otherwise contracted to work for that day, the
20day and temporary labor service agency shall, upon request,
21provide the day and temporary laborer with a confirmation that
22the day or temporary laborer sought work, signed by an
23employee of the day and temporary labor service agency, which
24shall include the name of the agency, the name and address of
25the day or temporary laborer, and the date and the time that
26the day or temporary laborer receives the confirmation.

 

 

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1     (b) (Blank). No day and temporary labor service agency
2may send any day or temporary laborer to any place where a
3strike, a lockout, or other labor trouble exists.
4    (b-5) Application receipt. If an applicant seeks a work
5assignment as a day or temporary laborer with a day and
6temporary labor service agency, including in-person, online,
7or through an app-based system, and is not placed with a third
8party client or otherwise contracted to work for that day by
9the day and temporary labor service agency, the day and
10temporary labor service agency shall provide the applicant
11with a confirmation that the applicant sought work, signed by
12an employee of the day and temporary labor service agency, on a
13form approved by the Department, that shall include:
14        (1) the name and location of the day and temporary
15    labor service agency and branch office;
16        (2) the name and address of the applicant;
17        (3) the date and the time that the applicant sought
18    the work assignment;
19        (4) the manner in which the applicant sought the work
20    assignment; and
21        (5) the specific work sites or type of jobs sought by
22    the applicant, if applicable.
23     (c) The Department shall recommend to day and temporary
24labor service agencies that those agencies employ personnel
25who can effectively communicate information required in
26subsections (a) and (b-5) (b) to day or temporary laborers in

 

 

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

 

 

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1provide each piece of information required by this Section at
2each time it is required by this Section shall constitute a
3separate and distinct notice violation. If a day and temporary
4labor service agency claims that it has provided a notice as
5required under this Section electronically, the day and
6temporary labor service agency shall bear the burden of
7showing that the notice was provided if there is a dispute.
8(Source: P.A. 103-437, eff. 8-4-23.)
 
9    (820 ILCS 175/42)
10    Sec. 42. Equal pay for equal work.
11    (a) Beginning on and after April 1, 2024, a A day or
12temporary laborer who is assigned to work and performs work at
13a third party client for more than 90 calendar days within a
1412-month period shall be paid as follows: not less than the
15rate of pay and equivalent benefits as the lowest paid
16        (1) if there is a directly hired comparator employee
17    of the third party client with the same or substantially
18    similar level of seniority at the company and performing
19    the same or substantially similar work on jobs the
20    performance of which requires substantially similar skill,
21    effort, and responsibility, and that are performed under
22    similar working conditions:
23            (A) not less than the straight-time hourly rate of
24        pay or hourly equivalent of the lowest paid directly
25        hired comparator employee of the third party client

 

 

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1        who is entitled to overtime under the Fair Labor
2        Standards Act, of 1938, as amended, 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; and
9            (B) substantially similar benefits to the job
10        classification of employees performing the same or
11        substantially similar work on jobs and performed under
12        similar working conditions. A day and temporary labor
13        service agency may pay the hourly average cash
14        equivalent of the actual cost of the benefits the
15        third party client provides the applicable directly
16        hired employees in lieu of benefits required under
17        this paragraph; or .
18        (2) if If there is not a directly hired comparator
19    comparative employee of the third party client, the day or
20    temporary laborer shall be paid:
21            (A) not less than the straight-time hourly rate of
22        pay or hourly and equivalent benefits of the lowest
23        paid directly direct hired employee of the third party
24        client who is entitled to overtime under the Fair
25        Labor Standards Act of 1938, as amended, company with
26        the closest level of seniority at the third party

 

 

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1        client; and company.
2            (B) substantially similar benefits of the
3        classification of employees performing the same or
4        substantially similar work on jobs. A day and
5        temporary labor service agency may pay the hourly cash
6        equivalent of the actual cost of the benefits the
7        third party client provides the applicable directly
8        hired employees in lieu of benefits required under
9        this paragraph Section.
10    (b) The payment of equivalent pay and substantially
11similar benefits as required by subsections (a) shall not be
12required if the applicable direct hire comparator employees
13are covered by a valid collective bargaining agreement in
14effect on April 1, 2024 during the period covered by that
15current collective bargaining agreement. Thereafter, payment
16of substantially similar benefits to a day or temporary
17laborer as required by subparagraph (B) of paragraph (1) of
18subsection (a) and subparagraph (B) of paragraph (2) of
19subsection (a) shall not be required if the applicable direct
20hire comparator employees are covered by a valid collective
21bargaining agreement during any period covered by the
22collective bargaining agreement.
23    (c) Upon request, a third party client to which a day or
24temporary laborer has been assigned for more than 90 calendar
25days shall be obligated to timely provide the day and
26temporary labor service agency with all necessary information

 

 

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1related to job duties, working conditions, pay, and benefits
2it provides to the applicable classification of directly hired
3employees necessary for the day and temporary labor service
4agency to comply with this Section. Upon receipt of the
5accurate and complete information described in this subsection
6from the third party client, it shall be the responsibility
7and duty of the day and temporary labor service agency to
8calculate and determine the straight-time hourly rate of pay
9and the benefits it shall offer to the day or temporary
10laborer, including any cash equivalent. The failure by a third
11party client to provide any of the information required under
12this Section shall constitute a notice violation by the third
13party client under Section 95. For purposes of this Section,
14the day and temporary labor service agency shall be considered
15a person aggrieved as described in Section 95. For the
16purposes of this Section, the calculation of the 90 calendar
17days may not begin until April 1, 2024.
18    (d) For the purposes of this Section, "seniority" means
19the number of months a day or temporary laborer has been
20assigned to the third party client compared to the number of
21months a directly hired comparator employee has been employed
22by the third party client.
23(Source: P.A. 103-437, eff. 8-4-23; 103-564, eff. 11-17-23.)
 
24    (820 ILCS 175/45)
25    Sec. 45. Registration; Department of Labor.

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1or on a website, regularly used by the employer to communicate
2work-related information, that all day or temporary laborers
3are able to regularly access, freely and without interference.
4Such notices shall be in English and any other language
5generally understood in the locale of the day and temporary
6labor service agency.
7(Source: P.A. 103-201, eff. 1-1-24; 103-437, eff. 8-4-23;
8revised 12-15-23.)
 
9    (820 ILCS 175/85)
10    Sec. 85. Third party clients.
11    (a) It is a violation of this Act for a third party client
12to enter into a contract for the employment of day or temporary
13laborers with any day and temporary labor service agency not
14registered under Section 45 of this Act. A third party client
15has a duty to verify a day and temporary labor service agency's
16status with the Department before entering into a contract
17with such an agency, and on March 1 and September 1 of each
18year. A day and temporary labor service agency shall be
19required to provide each of its third party clients with proof
20of valid registration issued by the Department at the time of
21entering into a contract. A day and temporary labor service
22agency shall be required to notify, both by telephone and in
23writing, each day or temporary laborer it employs and each
24third party client with whom it has a contract within 24 hours
25of any denial, suspension, or revocation of its registration

 

 

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1by the Department. All contracts between any day and temporary
2labor service agency and any third party client shall be
3considered null and void from the date any such denial,
4suspension, or revocation of registration becomes effective
5and until such time as the day and temporary labor service
6agency becomes registered and considered in good standing by
7the Department as provided in Section 50 and Section 55. Upon
8request, the Department shall provide to a third party client
9a list of entities registered as day and temporary labor
10service agencies. The Department shall provide on the Internet
11a list of entities registered as day and temporary labor
12service agencies. A third party client may rely on information
13provided by the Department or maintained on the Department's
14website pursuant to Section 45 of this Act and shall be held
15harmless if such information maintained or provided by the
16Department was inaccurate. Any third party client that
17violates this provision of the Act is subject to a civil
18penalty of not less than $100 and not to exceed $1,500. Each
19day during which a third party client contracts with a day and
20temporary labor service agency not registered under Section 45
21of this Act shall constitute a separate and distinct offense.
22    (b) If a third party client leases or contracts with a day
23and temporary service agency for the services of a day or
24temporary laborer, the third party client shall share all
25legal responsibility and liability for the payment of wages
26under the Illinois Wage Payment and Collection Act and the

 

 

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1Minimum Wage Law.
2    (c) Before the assignment of an employee to a worksite
3employer, a day and temporary labor service agency must:
4        (1) inquire about the client company's safety and
5    health practices and hazards at the actual workplace where
6    the day or temporary laborer will be working to assess the
7    safety conditions, workers tasks, and the client company's
8    safety program; these activities are required at the start
9    of any contract to place day or temporary laborers and may
10    include visiting the client company's actual worksite. If,
11    during the inquiry or anytime during the period of the
12    contract, the day and temporary labor service agency
13    becomes aware of existing job hazards that are not
14    mitigated by the client company, the day and temporary
15    labor service agency must make the client company aware,
16    urge the client company to correct it, and document these
17    efforts, otherwise the day and temporary labor service
18    agency must remove the day or temporary laborers from the
19    client company's worksite;
20        (2) provide training to the day or temporary laborer
21    for general awareness safety training for recognized
22    industry hazards the day or temporary laborer may
23    encounter at the client company's worksite. Industry
24    hazard training must be completed, in the preferred
25    language of the day or temporary laborer, and must be
26    provided at no expense to the day or temporary laborer.

 

 

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1    The training date and training content must be maintained
2    by the day and temporary staffing agency and provided to
3    the day or temporary laborer;
4        (3) transmit a general description of the training
5    program including topics covered to the client company,
6    whether electronically or on paper, at the start of the
7    contract with the client company;
8        (4) provide the Department's hotline number for the
9    employee to call to report safety hazards and concerns as
10    part of the employment materials provided to the day or
11    temporary laborer; and
12        (5) inform the day or temporary laborer who the day or
13    temporary laborer should report safety concerns to at the
14    workplace.
15    Nothing in this Section shall diminish any existing client
16company or a day and temporary labor service agency's
17responsibility as an employer to provide a place of employment
18free from recognized hazards or to otherwise comply with other
19health and safety or employment laws. The client company and
20the day and temporary labor service agency are responsible for
21compliance with this Section and the rules adopted under this
22Section.
23    (d) Before the day or temporary laborer engages in work
24for a client company, the client company must:
25        (1) document and inform the day and temporary labor
26    service agency about anticipated job hazards likely

 

 

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1    encountered by the day or temporary laborer;
2        (2) review the safety and health awareness training
3    provided by the day and temporary labor service agency to
4    determine if it addresses recognized hazards for the
5    client company's industry;
6        (3) provide specific training tailored to the
7    particular hazards at the client company's worksite
8    consistent with training requirements provided for in
9    standards, guidances, or best practices issued by the
10    federal Occupational Safety and Health Administration; and
11        (4) document and maintain records of site-specific
12    training and provide confirmation that the training
13    occurred to the day and temporary labor service agency
14    within 3 business days of providing the training.
15    (e) If the client company changes the job tasks or work
16location and new hazards may be encountered, the client
17company must:
18        (1) inform both the day and temporary labor service
19    agency and the day or temporary laborer; and
20        (2) inform both the day and temporary labor service
21    agency staffing agency and the day or temporary laborer of
22    job hazards not previously covered before the day or
23    temporary laborer undertakes the new tasks and update
24    personal protective equipment and training for the new job
25    tasks consistent with training requirements provided for
26    in standards, guidances, or best practices issued by the

 

 

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1    federal Occupational Safety and Health Administration, if
2    necessary.
3    (f) A day and temporary labor service agency or day or
4temporary laborer may refuse a new job task at the worksite
5when the task has not been reviewed or if the day or temporary
6laborer has not had appropriate training to do the new task.
7    (g) A client company that supervises a day or temporary
8laborer must provide worksite specific training to the day or
9temporary laborer and must allow a day and temporary labor
10service agency to visit any worksite where the day or
11temporary laborer works or will be working to observe and
12confirm the client company's training and information related
13to the worksite's job tasks, safety and health practices, and
14hazards.
15(Source: P.A. 103-437, eff. 8-4-23.)
 
16    Section 99. Effective date. This Act takes effect April 1,
172024.