Last month, Illinois Gov. Bruce Rauner signed into law House Bill 690, which amended the state’s Day and Temporary Labor Services Act to impose additional requirements on staffing agencies.
First introduced in January 2017, it faced intense opposition in its original form based on the operational burdens it would have imposed on staffing agencies. For instance, as originally drafted, the bill required that temporary workers receive the same average rate of pay as full-time employees performing substantially similar work. The original draft also required that staffing firms disclose their operating expenses and client fees. While these two requirements, and others, were removed from the final version of the legislation, House Bill 690 still imposes a number of new requirements on staffing agencies that should not be ignored.
Key Provisions
As signed into law, House Bill 690 requires staffing agencies to:
- Provide information regarding the types of equipment, protective clothing, and training required to perform the assigned work. This information must be included in the statement provided to workers at the time of dispatch.
- Provide return transportation for temporary workers. However, two exceptions exist to this new mandate. First, this requirement is only imposed on those staffing firms that already provide transportation for workers to their worksites. Second, temporary workers can agree to waive the provision of return transportation, but this waiver must be provided prior to leaving for the worksite.
- Not charge temporary workers for the expense of conducting any consumer reports, criminal background checks, or drug tests. This prohibition applies to staffing agencies, as well as client companies.
- Attempt to place current temporary workers into permanent positions when they are aware of a client company’s plan to hire a traditional employee for a similar position at the same worksite that the staffing firm currently provides temporary workers.
- Provide the Illinois Department of Labor a yearly report detailing the race and gender of each temporary worker assigned within Illinois.
Staffing firms have until June 1, 2018, to implement measures to meet these new requirements.
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Recommendation for Employers
The passage of House Bill 690 presents an excellent opportunity for staffing agencies, as well as other employers that contract with staffing agencies, to conduct a self-audit to ensure compliance with the Illinois’ Day and Temporary Labor Services Act. As a whole, the Act:
- Requires registration and the payment of various fees;
- Mandates specific postings and notices to employees;
- Imposes extensive recordkeeping requirements on staffing agencies;
- Prohibits excessive deductions for meal and equipment charges;
- Regulates the transportation of workers;
- Creates various other duties and responsibilities on staffing agencies and their third-party clients; and
- Prohibits retaliation.
The Illinois’ Day and Temporary Labor Services Act also imposes various levels of penalties for violations of its provisions, including fines of up to $6,000, possible punitive damages, or revocation of the staffing agency’s registration with the Illinois Department of Labor. In addition, the Illinois’ Day and Temporary Labor Services Act permits private lawsuits based on alleged violations of the Act.
To ensure they are in compliance with Illinois’ Day and Temporary Labor Services Act, including its recent amendment by House Bill 690, staffing firms and companies that use their services should consult counsel.
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