Bill Text: IL HB1604 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the Day and Temporary Labor Services Act. Provides that a day and temporary labor service agency must provide an application receipt to applicants who seek a work assignment. Provides that a day or temporary laborer has the right to refuse an assignment to a place where a strike, a lockout, or other labor trouble exists. Provides that 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. Provides for a right of action by interested parties for civil penalties against a day and temporary labor service agency. Provides for protections against abusive contracts. Makes changes in provisions concerning recordkeeping; wage payment and notices; work restrictions; registration; violations; enforcement; penalties; third party clients; retaliation; and private rights of action. Defines terms. Effective July 1, 2023.

Spectrum: Partisan Bill (Democrat 45-0)

Status: (Introduced) 2023-03-27 - House Floor Amendment No. 2 Rule 19(c) / Re-referred to Rules Committee [HB1604 Detail]

Download: Illinois-2023-HB1604-Introduced.html


103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1604

Introduced , by Rep. Edgar Gonzalez, Jr.

SYNOPSIS AS INTRODUCED:
820 ILCS 175/2
820 ILCS 175/5
820 ILCS 175/10
820 ILCS 175/11 new
820 ILCS 175/12
820 ILCS 175/30
820 ILCS 175/40
820 ILCS 175/42 new
820 ILCS 175/45
820 ILCS 175/50
820 ILCS 175/55
820 ILCS 175/67 new
820 ILCS 175/70
820 ILCS 175/85
820 ILCS 175/87 new
820 ILCS 175/90
820 ILCS 175/95

Amends the Day and Temporary Labor Services Act. Provides that a day and temporary labor service agency must provide an application receipt to applicants who seek a work assignment. Provides that a day or temporary laborer has the right to refuse an assignment to a place where a strike, a lockout, or other labor trouble exists. Provides that 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. Provides for a right of action by interested parties for civil penalties against day and temporary labor service agency. Provides for protections against abusive contracts. Makes changes in provisions concerning recordkeeping; wage payment and notices; work restrictions; registration; violations; enforcement; penalties; third party clients; retaliation; and private rights of action. Defines terms. Effective July 1, 2023.
LRB103 26056 SPS 52411 b

A BILL FOR

HB1604LRB103 26056 SPS 52411 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 2, 5, 10, 12, 30, 40, 45, 50, 55,
670, 85, 90, and 95 and by adding Sections 11, 42, 67, and 87 as
7follows:
8 (820 ILCS 175/2)
9 Sec. 2. Legislative Findings. The General Assembly finds
10as follows:
11 Since the passage of this Act, the number of Over 300,000
12workers who work as day or temporary laborers in Illinois has
13risen from approximately 300,000 to more than 650,000
14according to data collected by the Department of Labor.
15 Since the passage of this Act, the number of Approximately
16150 day labor and temporary labor service agencies registered
17in Illinois has risen from approximately 150 with 600 branch
18offices to over 300 with over 800 branch offices with nearly
19600 branch offices are licensed throughout Illinois. In
20addition, there still exists is a significant large, though
21unknown, number of unregistered unlicensed day labor and
22temporary labor service agencies that operate outside the
23radar of law enforcement.

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1 Recent studies and a survey of low-wage day or temporary
2laborers themselves have consistently found finds that as a
3group, they are particularly vulnerable to abuse of their
4labor rights, including unpaid wages, failure to pay for all
5hours worked, minimum wage and overtime violations, and
6unlawful deduction from pay for meals, transportation,
7equipment and other items. Recent studies and surveys of the
8day and temporary staffing industry have also found that day
9or temporary laborers are more than twice as likely to live in
10poverty, that more than one in 3 depend on public assistance to
11survive, that such workers are commonly part of a 2-tier pay
12structure, and that such workers have an occupational injury
13rate 2 to 3 times higher than directly hired employees.
14 As a result of the imbalance of negotiating power between
15a day or temporary laborer and a day and temporary service
16agency and its client companies due to laborers' precarious
17and contingent employment relationship, many day or temporary
18laborers are subjected to abusive contracts that they are
19required to sign under duress and from which they need to be
20protected.
21 It is in the interest of the State of Illinois to ensure
22compliance with this Act, and it is in the interest of Illinois
23taxpayers to mitigate the cost of enforcement of this Act by
24assessing civil penalties against day and temporary service
25agencies and their client companies that have been found to
26have violated this Act. Illinois employers who comply with

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1this and other Illinois wage and hour laws are also at a
2competitive disadvantage with employers who do not comply with
3such laws, and it is in the interest of the State of Illinois,
4law-abiding Illinois employers, and Illinois taxpayers to
5disgorge law-breaking employers of any ill-gotten gains as a
6result of unlawful practices and to ensure payroll taxes are
7paid on any such unpaid wages. Therefore, the public good
8justifies the establishment of the mechanism set forth in this
9Act for the Department, the Attorney General, aggrieved
10employees, or interested parties to disgorge from an Illinois
11employer who does not comply with this or other Illinois laws
12referenced herein the amount of such unpaid wages and other
13remedies, as well as unpaid payroll taxes.
14 Current law is inadequate to protect the labor and
15employment rights of these workers.
16 At the same time, in Illinois and in other states,
17democratically run nonprofit day labor centers, which charge
18no fee for their services, have been established to provide an
19alternative for day or temporary laborers to solicit work on
20street corners. These centers are not subject to this Act.
21(Source: P.A. 94-511, eff. 1-1-06.)
22 (820 ILCS 175/5)
23 Sec. 5. Definitions. As used in this Act:
24 "Applicant" means a natural person who seeks a work
25assignment at a day and temporary labor service agency.

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1 "Day or temporary laborer" means a natural person who
2contracts for employment with a day and temporary labor
3service agency.
4 "Day and temporary labor" means work performed by a day or
5temporary laborer at a third party client, the duration of
6which may be specific or undefined, pursuant to a contract or
7understanding between the day and temporary labor service
8agency and the third party client. "Day and temporary labor"
9does not include labor or employment of a professional or
10clerical nature.
11 "Day and temporary labor service agency" means any person
12or entity engaged in the business of employing day or
13temporary laborers to provide services, for a fee, to or for
14any third party client pursuant to a contract with the day and
15temporary labor service agency and the third party client.
16 "Department" means the Department of Labor.
17 "Family member" means an employee's child, spouse, or
18party to a civil union or legal guardianship, parent,
19grandparent, grandchild, sibling, or any other individual
20related by blood, marriage, or civil union, or whose close
21relationship with the employee is the equivalent of a family
22association as determined by the employee.
23 "Interested party" means a person, organization, or entity
24with an interest in compliance with this Act. An interested
25party includes, without limitation, a labor organization, a
26nonprofit organization whose mission or past practice includes

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1advocating for the workplace rights of day or temporary
2laborers, a current or former day or temporary laborer
3employed by the entity subject to allegations of the
4violations, whether or not still aggrieved by a violation of
5this Act at the time of taking any action under this Act, a
6family member of such a day or temporary laborer, or a
7competitor of a day and temporary labor service agency or an
8employee of a competitor of day and temporary labor service
9agency.
10 "Third party client" means any person that contracts with
11a day and temporary labor service agency for obtaining day or
12temporary laborers.
13 "Person" means every natural person, firm, partnership,
14co-partnership, limited liability company, corporation,
15association, business trust, or other legal entity, or its
16legal representatives, agents, or assigns.
17(Source: P.A. 94-511, eff. 1-1-06; 95-499, eff. 8-28-07.)
18 (820 ILCS 175/10)
19 Sec. 10. Employment Notice and Application Receipt.
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 The failure of a day and temporary labor service agency to
14provide a day or temporary laborer with the equipment,
15protective clothing, and training identified in an employment
16notice required by this Section shall be a health and safety
17violation under Section 95.
18 If a day or temporary laborer is assigned to the same
19assignment for more than one day, the day and temporary labor
20service agency is required to provide the employment notice
21only on the first day of the assignment and on any day that any
22of the terms listed on the employment notice are changed.
23 (b) Application receipt. If the applicant seeks a work
24assignment and day or temporary laborer is not placed with a
25third party client or otherwise contracted to work for that
26day by a day and temporary labor service agency, the day and

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1temporary labor service agency shall, upon request, provide
2the applicant day and temporary laborer with a confirmation
3that the applicant day or temporary laborer sought work,
4signed by an employee of the day and temporary labor service
5agency, on a form approved by the Department, which shall
6include:
7 (1) the name and location of the agency and branch
8 office; ,
9 (2) the name and address of the applicant; day or
10 temporary laborer, and
11 (3) the date and the time that the the applicant
12 sought the work assignments; day or temporary laborer
13 receives the confirmation.
14 (4) the manner in which the applicant sought the work
15 assignments; and
16 (5) the specific work sites or type of jobs sought by
17 the applicant, if applicable.
18 (b) (Blank). No day and temporary labor service agency may
19send any day or temporary laborer to any place where a strike,
20a lockout, or other labor trouble exists.
21 (c) The Department shall recommend to day and temporary
22labor service agencies that those agencies employ personnel
23who can effectively communicate information required in
24subsection subsections (a) and (b) to day or temporary
25laborers in Spanish, Polish, or any other language that is
26generally understood in the locale of the day and temporary

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1labor service agency. Employment notices and application
2receipts shall be provided to the day or temporary laborer or
3applicant in a language that the day or temporary laborer or
4applicant understands.
5 (d) The failure of a day and temporary labor service
6agency to provide any of the information required by this
7Section shall constitute a notice violation under Section 95.
8The failure to provide each piece of information required by
9this Section at each time it is required by this Section shall
10constitute a separate and distinct violation. If a day and
11temporary labor service agency claims that it has
12electronically provided an employment notice or application
13receipt as required by this Section, the day and temporary
14labor service agency shall bear the burden of showing the
15employment notice or application receipt was provided if there
16is a dispute.
17(Source: P.A. 99-78, eff. 7-20-15; 100-517, eff. 6-1-18.)
18 (820 ILCS 175/11 new)
19 Sec. 11. Right to refuse assignment to a labor dispute.
20 (a) No day and temporary labor service agency may send a
21day or temporary laborer to a place where a strike, a lockout,
22or other labor trouble exists without providing, at or before
23the time of dispatch, a statement, in writing and in a language
24that the day or temporary laborer understands, informing the
25day or temporary laborer of the labor dispute and the day or

HB1604- 9 -LRB103 26056 SPS 52411 b
1temporary laborer's right to refuse the assignment without
2prejudice to receiving another assignment.
3 (b) The failure by a day and temporary labor service
4agency to provide any of the information required by this
5Section shall constitute a notice violation under Section 95.
6The failure of a day and temporary labor service agency to
7provide each piece of information required by this Section at
8each time it is required by this Section shall constitute a
9separate and distinct notice violation. If a day and temporary
10labor service agency claims that it has provided notice as
11required by this Section electronically, the day and temporary
12labor service agency shall bear the burden of showing that the
13notice was provided if there is a dispute.
14 (820 ILCS 175/12)
15 Sec. 12. Recordkeeping.
16 (a) Whenever a day and temporary labor service agency
17sends one or more persons to work as day or temporary laborers,
18the day and temporary labor service agency shall keep the
19following records relating to that transaction:
20 (1) the name, address and telephone number of each
21 third party client, including each worksite, to which day
22 or temporary laborers were sent by the agency and the date
23 of the transaction;
24 (2) for each day or temporary laborer: the name and
25 address, the specific location sent to work, the type of

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1 work performed, the number of hours worked, the hourly
2 rate of pay and the date sent. The term "hours worked" has
3 the meaning ascribed to that term in 56 Ill. Adm. Code
4 210.110 and in accordance with all applicable rules or
5 court interpretations under 56 Ill. Adm. Code 210.110. The
6 third party client shall be required to remit all
7 information required under this subsection to the day and
8 temporary labor service agency no later than 7 days
9 following the last day of the work week worked by the day
10 or temporary laborer. Failure of a third party client to
11 remit such information to a day and temporary labor
12 service agency shall not be a defense to the recordkeeping
13 requirement of this Section;
14 (3) the name and title of the individual or
15 individuals at each third party client's place of business
16 responsible for the transaction;
17 (4) any specific qualifications or attributes of a day
18 or temporary laborer, requested by each third party
19 client;
20 (5) copies of all contracts, if any, with the third
21 party client and copies of all invoices for the third
22 party client;
23 (6) copies of all employment notices provided in
24 accordance with subsection (a) of Section 10;
25 (7) deductions to be made from each day or temporary
26 laborer's compensation made by either the third party

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1 client or by the day and temporary labor service agency
2 for the day or temporary laborer's transportation, food,
3 equipment, withheld income tax, withheld social security
4 payments and every other deduction;
5 (8) verification of the actual cost of any equipment
6 or meal charged to a day or temporary laborer;
7 (9) the race and gender of each day or temporary
8 laborer or applicant who seeks work at or is assigned sent
9 by the day and temporary labor service agency, as such
10 information is provided by the day or temporary laborer or
11 applicant; and
12 (9.5) whether a day or temporary laborer has been
13 placed in a permanent position with a third party client
14 and the date of such placement; and
15 (10) any additional information required by rules
16 issued by the Department.
17 (b) The day and temporary labor service agency shall
18maintain all records under this Section for a period of 3 years
19from their creation. The records shall be open to inspection
20by the Department during normal business hours. Records
21described in paragraphs (1), (2), (3), (6), (7), and (8) of
22subsection (a) shall be available for review or copying by
23that day or temporary laborer during normal business hours
24within 5 days following a written request. In addition, a day
25and temporary labor service agency shall make records related
26to the number of hours billed to a third party client for that

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1individual day or temporary laborer's hours of work available
2for review or copying during normal business hours within 5
3days following a written request. The day and temporary labor
4service agency shall make forms, in duplicate, for such
5requests available to day or temporary laborers at the
6dispatch office. The day or temporary laborer shall be given a
7copy of the request form. It is a violation of this Section to
8make any false, inaccurate or incomplete entry into any record
9required by this Section, or to delete required information
10from any such record. Failure by the third party client to
11remit time records to the day and temporary labor service
12agency as provided in paragraph (a)(2) shall constitute a
13notice violation by a third party client under Section 95 of
14this Act unless the third party client has been precluded from
15submitting such time records for reasons beyond its control. A
16failure by the third party client to provide time records in
17accordance with this subsection (b) shall not be a notice
18violation and shall not be the basis for a suit or other action
19under Section 95 of this Act against the day and temporary
20labor service agency.
21(Source: P.A. 94-511, eff. 1-1-06; 95-499, eff. 8-28-07.)
22 (820 ILCS 175/30)
23 Sec. 30. Wage Payment and Notice.
24 (a) At the time of payment of wages, a day and temporary
25labor service agency shall provide each day or temporary

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1laborer with a detailed itemized statement, on the day or
2temporary laborer's paycheck stub or on a form approved by the
3Department, listing the following:
4 (1) the name, address, and telephone number of each
5 third party client at which the day or temporary laborer
6 worked. If this information is provided on the day or
7 temporary laborer's paycheck stub, a code for each third
8 party client may be used so long as the required
9 information for each coded third party client is made
10 available to the day or temporary laborer;
11 (2) the number of hours worked by the day or temporary
12 laborer at each third party client each day during the pay
13 period. If the day or temporary laborer is assigned to
14 work at the same work site of the same third party client
15 for multiple days in the same work week, the day and
16 temporary labor service agency may record a summary of
17 hours worked at that third party client's worksite so long
18 as the first and last day of that work week are identified
19 as well. The term "hours worked" has the meaning ascribed
20 to that term in 56 Ill. Adm. Code 210.110 and in accordance
21 with all applicable rules or court interpretations under
22 56 Ill. Adm. Code 210.110;
23 (3) the rate of payment for each hour worked,
24 including any premium rate or bonus;
25 (3.5) the rate billed to the client company for each
26 hour worked, including any premium rate or bonus;

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1 (4) the total pay period earnings;
2 (5) all deductions made from the day or temporary
3 laborer's compensation made either by the third party
4 client or by the day and temporary labor service agency,
5 and the purpose for which deductions were made, including
6 for the day or temporary laborer's transportation, food,
7 equipment, withheld income tax, withheld social security
8 payments, and every other deduction; and
9 (5.5) the then-current maximum placement fee as
10 defined and calculated in Section 40; and
11 (6) any additional information required by rules
12 issued by the Department.
13 (a-1) For each day or temporary laborer who is contracted
14to work a single day, the third party client shall, at the end
15of the work day, provide such day or temporary laborer with a
16Work Verification Form, approved by the Department, which
17shall contain the date, the day or temporary laborer's name,
18the work location, and the hours worked on that day. Any third
19party client who violates this subsection (a-1) may be subject
20to a civil penalty of not less than $100 and not more than to
21exceed $500 for each violation found by the Department. Such
22civil penalty shall may increase to not less than $500 and not
23more than $2,500 for a second or subsequent violation. For
24purposes of this subsection (a-1), each violation of this
25subsection (a-1) for each day or temporary laborer and for
26each day the violation continues shall constitute a separate

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1and distinct violation.
2 (b) A day and temporary labor service agency shall provide
3each worker an annual earnings summary within a reasonable
4time after the preceding calendar year, but in no case later
5than February 1. A day and temporary labor service agency
6shall, at the time of each wage payment, give notice to day or
7temporary laborers of the availability of the annual earnings
8summary or post such a notice in a conspicuous place in the
9public reception area.
10 (c) At the request of a day or temporary laborer, a day and
11temporary labor service agency shall hold the daily wages of
12the day or temporary laborer and make either weekly,
13bi-weekly, or semi-monthly payments. The wages shall be paid
14in a single check, or, at the day or temporary laborer's sole
15option, by direct deposit or other manner approved by the
16Department, representing the wages earned during the period,
17either weekly, bi-weekly, or semi-monthly, designated by the
18day or temporary laborer in accordance with the Illinois Wage
19Payment and Collection Act. Vouchers or any other method of
20payment which is not generally negotiable shall be prohibited
21as a method of payment of wages. Day and temporary labor
22service agencies that make daily wage payments shall provide
23written notification to all day or temporary laborers of the
24right to request weekly, bi-weekly, or semi-monthly checks.
25The day and temporary labor service agency may provide this
26notice by conspicuously posting the notice at the location

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1where the wages are received by the day or temporary laborers.
2 (d) No day and temporary labor service agency shall charge
3any day or temporary laborer for cashing a check issued by the
4agency for wages earned by a day or temporary laborer who
5performed work through that agency. No day and temporary labor
6service agency or third party client shall charge any day or
7temporary laborer for the expense of conducting any consumer
8report, as that term is defined in the Fair Credit Reporting
9Act, 15 U.S.C. 1681a(d), any criminal background check of any
10kind, or any drug test of any kind.
11 (e) Day or temporary laborers shall be paid no less than
12the wage rate stated in the notice as provided in Section 10 of
13this Act for all the work performed on behalf of the third
14party client in addition to the work listed in the written
15description.
16 (f) The total amount deducted for meals, equipment, and
17transportation may not cause a day or temporary laborer's
18hourly wage to fall below the State or federal minimum wage.
19However, a day and temporary labor service agency may deduct
20the actual market value of reusable equipment provided to the
21day or temporary laborer by the day and temporary labor
22service agency which the day or temporary laborer fails to
23return, if the day or temporary laborer provides a written
24authorization for such deduction at the time the deduction is
25made.
26 (g) A day or temporary laborer who is contracted by a day

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1and temporary labor service agency to work at a third party
2client's worksite but is not utilized by the third party
3client shall be paid by the day and temporary labor service
4agency for a minimum of 4 hours of pay at the agreed upon rate
5of pay. However, in the event the day and temporary labor
6service agency contracts the day or temporary laborer to work
7at another location during the same shift, the day or
8temporary laborer shall be paid by the day and temporary labor
9service agency for a minimum of 2 hours of pay at the agreed
10upon rate of pay.
11 (h) A third party client is required to pay wages and
12related payroll taxes to a licensed day and temporary labor
13service agency for services performed by the day or temporary
14laborer for the third party client according to payment terms
15outlined on invoices, service agreements, or stated terms
16provided by the day and temporary labor service agency. A
17third party client who fails to comply with this subsection
18(h) is subject to the penalties provided in Section 70 of this
19Act. The Department shall review a complaint filed by a
20licensed day and temporary labor agency. The Department shall
21review the payroll and accounting records of the day and
22temporary labor service agency and the third party client for
23the period in which the violation of this Act is alleged to
24have occurred to determine if wages and payroll taxes have
25been paid to the agency and that the day or temporary laborer
26has been paid the wages owed him or her.

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1 (i) The failure of a day and temporary labor service
2agency or client company to provide any of the information
3required by this Section shall constitute a notice violation
4under Section 95. The failure to provide each piece of
5information required by this Section at each time it is
6required by this Section shall constitute a separate and
7distinct notice violation.
8(Source: P.A. 100-517, eff. 6-1-18.)
9 (820 ILCS 175/40)
10 Sec. 40. Work Restriction. No day and temporary labor
11service agency shall restrict the right of a day or temporary
12laborer to accept a permanent position with a third party
13client to whom the day or temporary laborer has been referred
14for work or restrict the right of such third party client to
15offer such employment to a day or temporary laborer. A day and
16temporary labor service agency may charge a placement fee to a
17third party client for employing a day or temporary laborer
18for whom a contract for work was effected by the day and
19temporary labor service agency not to exceed the equivalent of
20the total daily commission rate the day and temporary labor
21service agency would have received over a 60-day period,
22reduced by the equivalent of the daily commission rate the day
23and temporary labor service agency would have received for
24each day the day or temporary laborer has performed work for
25the day and temporary labor service agency in the preceding 12

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1months. Days worked at a day and temporary labor service
2agency in the 12 months preceding the effective date of this
3amendatory Act of the 94th General Assembly shall be included
4for purposes of calculating the maximum placement fee
5described in this Section. However, placement of a day or
6temporary laborer who is contracted by a day and temporary
7labor service agency to provide skilled labor shall not be
8subject to any placement fee cap. For purposes of this
9Section, a day or temporary laborer who performs "skilled
10labor" shall apply only where the day and temporary labor
11service agency performs an advanced application process, a
12screening process, which may include processes such as
13advanced testing, and a job interview. No fee provided for
14under this Section may be assessed or collected by the day and
15temporary labor service agency when the day or temporary
16laborer is offered permanent work following the suspension or
17revocation of the day and temporary labor service agency's
18registration by the Department.
19(Source: P.A. 94-511, eff. 1-1-06.)
20 (820 ILCS 175/42 new)
21 Sec. 42. Equal pay for equal work. A day or temporary
22laborer who is assigned to work at a third party client for
23more than one week shall be paid not less than the average rate
24of pay and equivalent benefits as directly hired employees of
25the third party client performing the same or substantially

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1similar work on jobs the performance of which requires
2substantially similar skill, effort, and responsibility, and
3that are performed under similar working conditions. A day and
4temporary labor service agency may pay the hourly cash
5equivalent of benefits in lieu of providing the benefits
6required by this Section. Upon request, a third party client
7to which a day or temporary laborer has been assigned for more
8than one week shall be obligated to timely provide the day and
9temporary labor service agency with all necessary information
10related to job duties, pay, and benefits of directly hired
11employees necessary for the day and temporary labor service
12agency to comply with this Section. The failure by a third
13party client to provide any of the information required by
14this Section shall constitute a notice violation by the third
15party client under Section 95.
16 (820 ILCS 175/45)
17 Sec. 45. Registration; Department of Labor.
18 (a) A day and temporary labor service agency which is
19located, operates or transacts business within this State
20shall register with the Department of Labor in accordance with
21rules adopted by the Department for day and temporary labor
22service agencies and shall be subject to this Act and any rules
23adopted under this Act. Each day and temporary labor service
24agency shall provide proof of an employer account number
25issued by the Department of Employment Security for the

HB1604- 21 -LRB103 26056 SPS 52411 b
1payment of unemployment insurance contributions as required
2under the Unemployment Insurance Act, and proof of valid
3workers' compensation insurance in effect at the time of
4registration covering all of its employees. If, at any time, a
5day and temporary labor service agency's workers' compensation
6insurance coverage lapses, the agency shall have an
7affirmative duty to report the lapse of such coverage to the
8Department and the agency's registration shall be suspended
9until the agency's workers' compensation insurance is
10reinstated. The Department may assess each day and temporary
11labor service agency a non-refundable registration fee not
12exceeding $5,000 $1,000 per year per agency and a
13non-refundable fee not to exceed $1,000 $250 for each branch
14office or other location where the agency regularly contracts
15with day or temporary laborers for services. The fee may be
16paid by check, money order, or the State Treasurer's E-Pay
17program or any successor program, and the Department may not
18refuse to accept a check on the basis that it is not a
19certified check or a cashier's check. The Department may
20charge an additional fee to be paid by a day and temporary
21labor service agency if the agency, or any person on the
22agency's behalf, issues or delivers a check to the Department
23that is not honored by the financial institution upon which it
24is drawn. The Department shall also adopt rules for violation
25hearings and penalties for violations of this Act or the
26Department's rules in conjunction with the penalties set forth

HB1604- 22 -LRB103 26056 SPS 52411 b
1in this Act.
2 (a-1) At the time of registration with the Department of
3Labor each year, the day and temporary labor service agency
4shall submit to the Department of Labor a report containing
5the information identified in paragraphs paragraph (9) and
6(9.5) of subsection (a) of Section 12, broken down by branch
7office, in the aggregate for all day or temporary laborers
8assigned within Illinois and subject to this Act during the
9preceding year. This information shall be submitted on a form
10created by the Department of Labor. The Department of Labor
11shall aggregate the information submitted by all registering
12day and temporary labor service agencies by removing
13identifying data and shall have the information available to
14the public only on a municipal and county basis. As used in
15this subsection and subsection (a-2) this paragraph,
16"identifying data" means any and all information that: (i)
17provides specific information on individual worker identity;
18(ii) identifies the service agency in any manner; and (iii)
19identifies clients utilizing the day and temporary labor
20service agency or any other information that can be traced
21back to any specific registering day and temporary labor
22service agency or its client. The information and reports
23submitted to the Department of Labor under this subsection by
24the registering day and temporary labor service agencies are
25exempt from inspection and copying under Section 7.5 of the
26Freedom of Information Act. Any summary reports created by the

HB1604- 23 -LRB103 26056 SPS 52411 b
1Department shall be made available for public inspection on
2the Department's website and shall not be exempt from
3inspection and copying under the Freedom of Information Act.
4 (a-2) When a day and temporary labor service agency
5registers with the Department, it shall submit to the
6Department a report containing (i) the total number of W-2
7forms issued to day or temporary laborers in Illinois during
8the prior year broken down by branch office and (ii) the total
9number of hours billed by the day and temporary labor service
10agency from a branch office in Illinois broken down by branch
11office. This information shall be submitted on a form created
12by the Department. The Department shall aggregate the
13information submitted by all registering day and temporary
14labor service agencies by removing identifying data and shall
15make the information available to the public on a municipal
16and county basis. The information and reports submitted to the
17Department under this subsection by the registering day and
18temporary labor service agencies are exempt from inspection
19and copying under the Freedom of Information Act. Any summary
20reports created by the Department shall be made available for
21public inspection on the Department's website and shall not be
22exempt from inspection and copying under the Freedom of
23Information Act.
24 (a-3) The Department shall deny a day and temporary labor
25service agency's registration until all of the information
26required in subsections (a-1) and (a-2) has been provided.

HB1604- 24 -LRB103 26056 SPS 52411 b
1 (b) It is a violation of this Act to operate a day and
2temporary labor service agency without first registering with
3the Department in accordance with subsection (a) of this
4Section. The Department shall create and maintain at regular
5intervals on its website, accessible to the public: (1) a list
6of all registered day and temporary labor service agencies in
7the State whose registration is in good standing; (2) a list of
8day and temporary labor service agencies in the State whose
9registration has been suspended, including the reason for the
10suspension, the date the suspension was initiated, and the
11date, if known, the suspension is to be lifted; and (3) a list
12of day and temporary labor service agencies in the State whose
13registration has been revoked, including the reason for the
14revocation and the date the registration was revoked. The
15Department has the authority to assess a penalty against any
16day and temporary labor service agency that fails to register
17with the Department of Labor in accordance with this Act or any
18rules adopted under this Act of $500 for each violation. Each
19day during which a day and temporary labor service agency
20operates without registering with the Department shall be a
21separate and distinct violation of this Act.
22 (c) An applicant is not eligible to register to operate a
23day and temporary labor service agency under this Act if the
24applicant or any of its officers, directors, partners, or
25managers or any owner of 25% or greater beneficial interest:
26 (1) has been involved, as owner, officer, director,

HB1604- 25 -LRB103 26056 SPS 52411 b
1 partner, or manager, of any day and temporary labor
2 service agency whose registration has been revoked or has
3 been suspended without being reinstated within the 5 years
4 immediately preceding the filing of the application; or
5 (2) is under the age of 18.
6 (d) Every agency shall post and keep posted at each
7location, in a position easily accessible to all employees,
8notices as supplied and required by the Department containing
9a copy or summary of the provisions of the Act and a notice
10which informs the public of a toll-free telephone number for
11day or temporary laborers and the public to file wage dispute
12complaints and other alleged violations by day and temporary
13labor service agencies. Such notices shall be in English or
14any other language generally understood in the locale of the
15day and temporary labor service agency.
16(Source: P.A. 100-517, eff. 6-1-18.)
17 (820 ILCS 175/50)
18 Sec. 50. Violations. The Department shall have the
19authority to deny, suspend, or revoke the registration of a
20day and temporary labor service agency if warranted by public
21health and safety concerns or violations of this Act. The
22Attorney General, pursuant to its authority under Section 6.3
23of the Attorney General Act, may request that a circuit court
24suspend or revoke the registration of a day and temporary
25labor service agency when warranted by public health concern

HB1604- 26 -LRB103 26056 SPS 52411 b
1or violations of this Act.
2(Source: P.A. 94-511, eff. 1-1-06.)
3 (820 ILCS 175/55)
4Sec. 55. Enforcement by the Department.
5 (a) It shall be the duty of the Department to enforce the
6provisions of this Act. The Department shall have the power to
7conduct investigations in connection with the administration
8and enforcement of this Act and any investigator with the
9Department shall be authorized to visit and inspect, at all
10reasonable times, any places covered by this Act and shall be
11authorized to inspect, at all reasonable times, contracts for
12the employment of all day or temporary laborers entered into
13by a third party client if the Department has received a
14complaint indicating that the third party client may have
15contracted with a day and temporary labor service agency that
16is not registered under this Act. The Department shall conduct
17hearings in accordance with the Illinois Administrative
18Procedure Act upon written complaint by an investigator of the
19Department or any interested person of a violation of the Act.
20After the hearing, if supported by the evidence, the
21Department may (i) issue and cause to be served on any party an
22order to cease and desist from further violation of the Act,
23(ii) take affirmative or other action as deemed reasonable to
24eliminate the effect of the violation, (iii) deny, suspend, or
25revoke any registration under this Act, and (iv) determine the

HB1604- 27 -LRB103 26056 SPS 52411 b
1amount of any civil penalty allowed by the Act. The Director of
2Labor or his or her representative may compel, by subpoena,
3the attendance and testimony of witnesses and the production
4of books, payrolls, records, papers, and other evidence in any
5investigation or hearing and may administer oaths to
6witnesses. Nothing in this Act applies to labor or employment
7of a clerical or professional nature.
8 (b) If action has been initiated by an interested party as
9to any violations pursuant to this Section prior to an
10investigation by the Department, the Department shall not
11launch an investigation of such violations until the
12conclusion of the civil matter. The Department may intervene
13in the civil matter as a party in interest. Intervention by the
14Department shall not alter the rights of the interested party
15under Section 67.
16 (c) Nothing in this Section shall in any way preclude a day
17or temporary laborer or their representatives from bringing an
18action to enforce rights pursuant to Section 95.
19(Source: P.A. 93-441, eff. 1-1-04; 94-511, eff. 1-1-06.)
20 (820 ILCS 175/67 new)
21 Sec. 67. Action for civil penalties brought by an
22interested party.
23 (a) Upon a reasonable belief that a day and temporary
24labor service agency or a third party client covered by this
25Act is in violation of any part of this Act, an interested

HB1604- 28 -LRB103 26056 SPS 52411 b
1party may file suit against the covered entity in a circuit
2court, in any county where some or all the alleged offenses
3occurred, without regard to exhaustion of any alternative
4administrative remedies provided in this Act.
5 (b) In an action brought under this Section, an interested
6party may recover against the covered entity any statutory
7penalties set forth in Section 70 and injunctive relief. An
8interested party who prevails shall receive 10% of any
9statutory penalties assessed, plus any attorney's fees and
10expenses in bringing the action. The remaining 90% of any
11statutory penalties assessed shall be deposited into the Child
12Labor and Day and Temporary Labor Services Enforcement Fund
13and shall be used exclusively for enforcement of this Act by
14the Department.
15 (c) If the Department has initiated an investigation of
16any alleged violation of the Act at the time a civil action is
17filed, the civil action shall be stayed as to those violations
18until the Department has completed its investigation. Recovery
19by the Department of civil penalties under Section 70 for any
20violation of the Act shall be an absolute defense to the civil
21action by an interested party as to those violations only.
22 (d) The right of an interested party to bring an action
23under this Section terminates upon the passing of 3 years from
24the latest date of the violation. This period is tolled for the
25period a civil action under this Section is stayed pending the
26outcome of an investigation by the Department.

HB1604- 29 -LRB103 26056 SPS 52411 b
1 (e) Nothing in this Section shall in any way prevent a day
2or temporary laborer or his or her representatives from
3bringing an action to enforce rights pursuant to Section 95.
4 (820 ILCS 175/70)
5 Sec. 70. Penalties.
6 (a) A day and temporary labor service agency or third
7party client that violates any of the provisions of this Act or
8any rule adopted under this Act shall be subject to a civil
9penalty of not less than $100 and not more than to exceed
10$1,000 $6,000 for each violation violations found in the first
11audit by the Department or determined by a court in a civil
12action brought by an interested party, or determined by a
13court in a civil action brought by the Attorney General
14pursuant to its authority under Section 6.3 of the Attorney
15General Act. Following a first audit or civil action, a day and
16temporary labor service agency or third party client shall be
17subject to a civil penalty of not less than $500 and not more
18than to exceed $2,500 for each repeat violation found by the
19Department or circuit court within 3 years. For purposes of
20this subsection, each violation of this Act for each day or
21temporary laborer and for each day the violation continues
22shall constitute a separate and distinct violation. In
23determining the amount of a penalty, the Director or circuit
24court shall consider the appropriateness of the penalty to the
25day and temporary labor service agency or third party client

HB1604- 30 -LRB103 26056 SPS 52411 b
1charged, upon the determination of the gravity of the
2violations. For any violation determined by the Department or
3circuit court to be willful which is within 3 years of an
4earlier violation, the Department may revoke the registration
5of the violator, if the violator is a day and temporary labor
6service agency. The amount of the penalty, when finally
7determined, may be:
8 (1) Recovered in a civil action brought by the
9 Director of Labor in any circuit court. In this
10 litigation, the Director of Labor shall be represented by
11 the Attorney General.
12 (2) Ordered by the court, in an action brought by any
13 party, including the Attorney General pursuant to its
14 authority under Section 6.3 of the Attorney General Act,
15 for a violation under this Act, to be paid to the Director
16 of Labor.
17 (b) The Department shall adopt rules for violation
18hearings and penalties for violations of this Act or the
19Department's rules in conjunction with the penalties set forth
20in this Act.
21 Any administrative determination by the Department as to
22the amount of each penalty shall be final unless reviewed as
23provided in Section 60 of this Act.
24(Source: P.A. 96-1185, eff. 7-22-10.)
25 (820 ILCS 175/85)

HB1604- 31 -LRB103 26056 SPS 52411 b
1 Sec. 85. Third party clients.
2 (a) It is a violation of this Act for a third party client
3to enter into a contract for the employment of day or temporary
4laborers with any day and temporary labor service agency not
5registered under Section 45 of this Act. A third party client
6has a duty to verify a day and temporary labor service agency's
7status with the Department before entering into a contract
8with such an agency, and on March 1 and September 1 of each
9year. A day and temporary labor service agency shall be
10required to provide each of its third party clients with proof
11of valid registration issued by the Department at the time of
12entering into a contract. A day and temporary labor service
13agency shall be required to notify, both by telephone and in
14writing, each day or temporary laborer it employs and each
15third party client with whom it has a contract within 24 hours
16of any denial, suspension, or revocation of its registration
17by the Department. All contracts between any day and temporary
18labor service agency and any third party client shall be
19considered null and void from the date any such denial,
20suspension, or revocation of registration becomes effective
21and until such time as the day and temporary labor service
22agency becomes registered and considered in good standing by
23the Department as provided in Section 50 and Section 55. Upon
24request, the Department shall provide to a third party client
25a list of entities registered as day and temporary labor
26service agencies. The Department shall provide on the Internet

HB1604- 32 -LRB103 26056 SPS 52411 b
1a list of entities registered as day and temporary labor
2service agencies. A third party client may rely on information
3provided by the Department or maintained on the Department's
4website pursuant to Section 45 of this Act and shall be held
5harmless if such information maintained or provided by the
6Department was inaccurate. Any third party client that
7violates this provision of the Act is subject to a civil
8penalty of not less than $100 and not to exceed $1,000 $500.
9Each day during which a third party client contracts with a day
10and temporary labor service agency not registered under
11Section 45 of this Act shall constitute a separate and
12distinct offense.
13 (b) If a third party client leases or contracts with a day
14and temporary service agency for the services of a day or
15temporary laborer, the third party client shall share all
16legal responsibility and liability for the payment of wages
17under the Illinois Wage Payment and Collection Act and the
18Minimum Wage Law.
19 (c) Whenever a day or temporary laborer is assigned to
20work at a third party client, the day or temporary laborer
21shall receive training on all machinery that the day or
22temporary laborer is required to operate or work on in the
23vicinity of where reasonable precautions would be expected to
24be taken equivalent to any training provided to directly hired
25employees of the third party client who operate the same or
26substantially similar machinery in advance of the day or

HB1604- 33 -LRB103 26056 SPS 52411 b
1temporary laborer operating or working in the vicinity of such
2machinery. The third party client and day and temporary labor
3service agency shall jointly have a duty to ensure that such
4training is provided in advance of any work performed by a day
5or temporary laborer. Failure to provide the training
6prescribed in this Section constitutes a health and safety
7violation by the third party client and the day and temporary
8labor service agency under Section 95 in addition to any other
9relief available to the day or temporary laborer under law.
10(Source: P.A. 93-441, eff. 1-1-04; 94-511, eff. 1-1-06.)
11 (820 ILCS 175/87 new)
12 Sec. 87. Prohibition against abusive contracts.
13 (a) Any contract entered into between a day or temporary
14laborer and a day and temporary labor service agency or third
15party client that in any way limits or affects the day or
16temporary laborer's ability to enforce rights under this Act,
17including the venue for enforcement, or other workplace-based
18rights under Illinois law must meet the following criteria to
19be valid and enforceable:
20 (1) the contract must be in writing and executed by
21 original, ink signatures with a hard copy given to the day
22 or temporary laborer;
23 (2) the contract must be signed by any party that
24 seeks to bind the day or temporary laborer to the
25 agreement;

HB1604- 34 -LRB103 26056 SPS 52411 b
1 (3) the contract must be valid only for the term of the
2 day or temporary laborer's current assignment to a client
3 company and expires after the assignment concludes;
4 (4) the original contract must be maintained and
5 produced in any proceeding to enforce the terms of the
6 contract; and
7 (5) if any provision of such a contract is deemed
8 unenforceable under Illinois law, the entire agreement
9 must be unenforceable.
10 (b) Any contract entered into between a temporary labor
11service agency and any third party client that may impact a day
12or temporary laborer's wages, ability to work at another day
13and temporary labor service agency or third party client
14company must be disclosed and a copy provided to each day or
15temporary laborer in a language that the day or temporary
16laborer understands within 7 days after the contract goes into
17effect or impacts the day or temporary laborer.
18 (c) The failure by a day and temporary labor service
19agency or client company to provide any of the information
20required by this Section shall constitute a notice violation
21under Section 95. The failure to provide each piece of
22information required by this Section at each time it is
23required by this Section shall constitute a separate and
24distinct notice violation.
25 (820 ILCS 175/90)

HB1604- 35 -LRB103 26056 SPS 52411 b
1 Sec. 90. Retaliation.
2 (a) Prohibition. It is a violation of this Act for a day
3and temporary labor service agency or third party client, or
4any agent of a day and temporary labor service agency or third
5party client, to retaliate through removal from an assignment,
6a failure to assign, discharge, or in any other manner of
7negative job actions against any day or temporary laborer for
8exercising any rights granted under this Act. Such retaliation
9shall subject a day and temporary labor service agency or
10third party client, or both, to civil penalties pursuant to
11this Act or a private cause of action.
12 (b) Protected Acts from Retaliation. It is a violation of
13this Act for a day and temporary labor service agency or third
14party client to retaliate against a day or temporary laborer
15for:
16 (1) making a complaint to a day and temporary labor
17 service agency, to a third party client, to a co-worker,
18 to a community organization, before a public hearing, or
19 to a State or federal agency that rights guaranteed under
20 this Act have been violated;
21 (2) causing to be instituted any proceeding under or
22 related to this Act; or
23 (3) testifying or preparing to testify in an
24 investigation or proceeding under this Act; or .
25 (4) refusing an assignment to any place where a
26 strike, a lockout, or other labor trouble exists.

HB1604- 36 -LRB103 26056 SPS 52411 b
1(Source: P.A. 94-511, eff. 1-1-06.)
2 (820 ILCS 175/95)
3 Sec. 95. Private Right of Action.
4 (a) A person aggrieved by a violation of this Act or any
5rule adopted under this Act by a day and temporary labor
6service agency or a third party client may file suit in circuit
7court of Illinois, in the county where the alleged offense
8occurred or where any day or temporary laborer who is party to
9the action resides, without regard to exhaustion of any
10alternative administrative remedies provided in this Act. A
11day and temporary labor service agency aggrieved by a
12violation of this Act or any rule adopted under this Act by a
13third party client may file suit in circuit court of Illinois,
14in the county where the alleged offense occurred or where the
15day and temporary labor service agency which is party to the
16action is located. Actions may be brought by one or more day or
17temporary laborers for and on behalf of themselves and other
18day or temporary laborers similarly situated. A day or
19temporary laborer whose rights have been violated under this
20Act by a day and temporary labor service agency or a third
21party client or a day and temporary labor service agency whose
22rights have been violated under this Act by a third party
23client is entitled to collect:
24 (1) in the case of a wage and hour violation, the
25 amount of any wages, salary, employment benefits, or other

HB1604- 37 -LRB103 26056 SPS 52411 b
1 compensation denied or lost to the day or temporary
2 laborer or day and temporary labor service agency by
3 reason of the violation, plus an equal amount in
4 liquidated damages;
5 (2) in the case of a health and safety or notice
6 violation, compensatory damages and an amount of not less
7 than $100 but not more than $1,000 for each up to $500 for
8 the violation of each subpart of each Section;
9 (3) in the case of unlawful retaliation, the greater
10 of all legal or equitable relief as may be appropriate or
11 liquidated damages equal to $25,000 per incident of
12 retaliation, at the selection of the aggrieved person, and
13 reinstatement, if appropriate; and
14 (4) attorney's fees and costs.
15 (a-5) Upon a reasonable belief that a day and temporary
16labor service agency has violated any provision of this Act,
17an interested party shall have the right to bring an action for
18any such violation on the same basis as an aggrieved day or
19temporary laborer provided in subsection (a), except that the
20interested party need not be aggrieved in order to:
21 (1) disgorge, in the case of a wage and hour
22 violation, any financial benefit to the employer from
23 unpaid wages in the amount of all unpaid wages, plus
24 statutory interest and statutory damages and attorneys'
25 fees and costs as provided herein and in the Minimum Wage
26 Law and Wage Payment and Collection Act; and

HB1604- 38 -LRB103 26056 SPS 52411 b
1 (2) pursue, in the case of a health and safety or
2 notice violation, an amount of not less than $100 but not
3 more than $1,000 for each violation of each subpart of
4 each Section.
5 An interested party may bring an action to disgorge the
6amounts provided in paragraphs (1) and (2) for similarly
7situated employees of the day and temporary labor service
8agency who do not request to exclude themselves from the
9proceeding. In adjudicating an action involving a class of
10similarly situated employees brought under this subsection,
11the circuit court shall apply the procedures set forth in Part
128 of Article II of the Code of Civil Procedure, except that
13there shall be no requirement that the interested party have a
14claim or claims that are common to or are typical of the
15members of the class. Any funds for unpaid wages, statutory
16interest or statutory damages disgorged from an employer and
17awarded in an action brought under this subsection shall be
18distributed to all employees, other than those who exclude
19themselves from the action pursuant to the procedure set forth
20in subsection (b) of Section 2-804 of the Code of Civil
21Procedure, in proportion to the amount of each employee's
22unpaid wages.
23 (b) The right of an aggrieved person to bring an action
24under this Section terminates upon the passing of 3 years from
25the final date of employment by the day and temporary labor
26agency or the third party client or upon the passing of 3 years

HB1604- 39 -LRB103 26056 SPS 52411 b
1from the date of termination of the contract between the day
2and temporary labor service agency and the third party client.
3This limitations period is tolled if a day labor employer has
4deterred a day and temporary labor service agency or day or
5temporary laborer's exercise of rights under this Act by
6contacting or threatening to contact law enforcement agencies.
7The right of an interested party to bring an action under this
8Section on behalf of a day or temporary laborer, a group of day
9or temporary laborers, or a class of day or temporary laborers
10terminates 3 years after the date of termination of the
11contract between the day and temporary labor service agency
12and the third party client.
13(Source: P.A. 96-1185, eff. 7-22-10.)
14 Section 99. Effective date. This Act takes effect July 1,
152023.
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