Day and Temporary Labor Services Act Amendments

Day and Temporary Labor Services Act Amendments Effective August 4, 2023:

• Annual registration fees increase to $3,000 per agency and $750 per additional branch
• Violations of the Act and/or rules may result in a penalty of not less than $100 and not more than $18,000. Additional violations within three years may incur penalties of not less than $250 and not more than $7,500 per violation, per laborer, per day.
• Day and Temporary Labor Agencies must notify laborers of any existing disputes at the work site and cannot retaliate against laborers for refusing an assignment due to an existing labor dispute at the site.
• Day and Temporary Labor Agencies must provide appropriate safety and hazard training to laborers at no cost to the laborers. Time spent in training must be paid.
• Day and Temporary Labor Agencies must include an up-to-date placement fee and the number of days until no placement fee can be charged with each laborer’s payment notice.
• Interested Parties may file a complaint with IDOL regarding missing wages or other violations of the Day and Temporary Labor Services Act.

Requires day and temporary labor agencies located in or transacting business in Illinois to register with the IDOL, to provide proof of required unemployment insurance contributions and valid workers’ compensation insurance, and to report any lapse in workers' compensation coverage to the Department.

Annual registration fees for day and temporary labor services agencies will increase to $3,000 per agency, with an additional fee of $750 for each branch office beginning August 4, 2023. IDOL may impose penalties of up to $500 per day for each day that a day or temporary labor services agency operates without registering with the Department.

Day and temporary labor agencies that violate any provisions of this Act or rules adopted by the Department shall be subject to civil penalties of not less than $100.00 and not more $18,000.00 for first-time violations found in the first audit. Civil penalties for any subsequent violations that occur within three years of earlier violations increase to a minimum of $250 and a maximum of $7,500 per violation, per laborer for each day the violation continues. Any violations determined by the Department to be willful that occur within three years of earlier violations, may result in the revocation of the agency's registration.

Every agency must post in the public access area of each work location or branch office a notice provided by the Department of Labor summarizing the provisions of this Act, along with the toll-free number for reporting violations and complaints. This notice shall be in English, or any other language generally understood in the locale of the agency. Agencies must also post in public access areas any other state or federally mandated postings.

Day and temporary labor service agencies must provide laborers with an employment notice at the time of dispatch, describing the terms and conditions of their employment, including the nature of work to be performed, the wages to be paid, the name, address and location of where the work will be performed, terms of transportation and whether meals or equipment will be provided, and any costs associated with such meals and equipment. 

At or before the time of dispatch, Agencies must also provide laborers with a written statement in a language the laborer understands notifying the laborer of any existing strikes, lockouts, or other labor disputes at the intended work site. The statement must also explain the laborer’s right to refuse the assignment without prejudice to receiving other assignments.

Day and temporary labor service agencies must also provide each laborer with a wage notice at the time of payment that includes the name address and telephone number of each third-party client for whom work was performed; the number of hours worked by the laborer at each third-party client each day during the pay period; the rate of pay for all hours worked, including any premium or bonus pay; total earnings during the pay period; and all deductions made for meals, equipment, tax and social security withholdings and any other deductions. The total amount deducted for meals and equipment may not cause a laborer's hourly wage to fall below the state or federal minimum wage. If applicable, the notice must also include the placement fee that could be charged for a third-party client to hire the laborer, as well as the number of days remaining before no placement fee can be charged.

For laborers contracted to work a single day, third-party clients must provide laborers with a work verification form at the end of the workday that contains the laborers' name, work location, date and hours worked that day.

A laborer who is sent by the agency to a third-party client but is then not utilized by that client must be paid a minimum of four hours of pay at the agreed upon rate by the day and temporary labor agency. However, if that laborer is given work during the same shift at another location, he or she shall be paid for two hours of pay at the agreed upon rate of pay in addition to the pay for hours worked.

On or before a laborer’s first day working at a client company each year, the day and temporary labor service agency shall provide general safety training to each day or temporary laborer for each client company that the laborer is dispatched to. The training will encompass all known, existing hazards, including hazards reported to the client or agency by a laborer. Training will be provided at no cost to the laborer, and the laborer must be paid for time spent in training.

Day and temporary labor agencies and third-party clients are prohibited from retaliating against laborers for exercising their rights under this Act, including making a complaint, causing to be instituted any proceeding or testifying in an investigation or proceeding under this Act. Additionally, day and temporary labor agency may not retaliate against a laborer for refusing an assignment due to a labor dispute at the work site. Any retaliation taken against a laborer in violation of this Act shall be subject to civil penalties or a private cause of action.

Interested parties can file a complaint with IDOL regarding missing wages or other violations of the Day and Temporary Labor Services Act. An interested party is an organization concerned with public or worker safety laws, wage and hour requirements, and/or other related legal requirements.