Protecting Employers Since 1985
Attention Illinois Employers: New Law Affects Businesses Using Temporary Workers in Illinois
Background: On August 4, 2023, House Bill 2862 was signed by Governor Pritzker. This legislation amends the Illinois Day and Temporary Labor Services Act to expand the pay and benefit rights of the temporary workers as well as increased safety oversight by both the agencies and the third-party business that use such workers.
Effective: July 1, 2023
- Workers can refuse to be assigned to third-party business locations where labor disputes exist. The law requires that before a temporary worker can be sent to a job site where there is a labor dispute, the worker must be given written notice. The notice must inform of the dispute and the right of the worker to refuse the assignment.
Safety: health and safety training required from both staffing agencies and client businesses.
- Temporary Staffing Agency. It is required under the law to provide general awareness training for industry hazards, the Illinois Department of Labor hotline phone number for reporting hazards, and information on how to report safety hazards at the job site.
- Client Business: It is required under the law before the temporary worker begins work to document and inform about job hazards, review safety training , along with specific training provided and documented.
Equal pay for equal work for temporary workers after 90 days and equal benefits for the temporary workers equivalent to existing comparative worker of the third party businesses.
- Temporary Staffing Agency: The law requires equal pay for equal work by the temporary agency along with equal benefits of temporary workers assigned to third party businesses for more than 90 calendar days at a rate equivalent to that lowest paid directly hired comparator employee of the business. The hourly cash equivalent of the benefit can be paid rather than the benefits.
- Client Business: The law requires all necessary information on the job be provided to the temporary staffing agency.
- New notice, reporting, and recordkeeping requirements
- Legal actions created: Illinois Attorney General and interested parties right to seek civil penalties.
- How is the 90 day period measured as to the start date, inclusive of non-working days, and must they be consecutive?
How to Prepare for New Law:
- Watch for any new regulations to implement it.
- Review your use of temporary workers as to your existing comparative employees.
- Review your contracts with staffing agencies as to the responsibilities of the parties and negotiate with the staffing agency to be in compliance with the new law.
If you have any questions on this topic or any other, please fee to contact Anthony J. Caruso, Jr., in our St. Charles office by email or at 630-377-1554.
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