Illinois signed HB 2862 into law on August 4, 2023, amending the Illinois Day and Temporary Labor Services Act. These amendments bolster equal pay rights, transparency, and safety within the temporary labor industry. This post will summarize the key changes.
Equal Pay for Equal Work
The amendment reinforces Illinois' commitment to wage transparency and the classification of temporary laborers as employees.
Temporary laborers working over 90 calendar days at a third-party client must be paid similarly to their lowest-paid comparative employee. The 90-day clock starts on or after April 1, 2024.
If no comparative employee exists, they should receive the lowest directly hired employee's pay and benefits. Staffing agencies have the option to provide the cash equivalent of benefits.
Also included in this provision is the responsibility of third-party clients to share job-related data with their staffing agencies.
Workplace Safety and Training
The amendment also introduced new safety and training requirements that became effective August 4, 2023. These changes are designed to encourage collaboration between temp agencies and client companies for a safer work environment. Specifically staffing agencies must train temporary workers on their clients’ safety practices and how to report safety concerns.
Labor Disputes
Also effective the date the amendment was signed, staffing agencies are required to inform temporary laborers about labor disputes and their right to refuse related assignments.
Record Keeping
Records on safety training, workplace hazards, compensation, and employee notices must be maintained for three years.
Increased Penalties
The amendments increased penalties for violating these rules. Penalty amounts will depend on several factors, such as the amount of harm to the temporary worker and the seriousness of the violation.
The amendments to the Illinois Day and Temporary Labor Services Act represent a significant shift in the treatment of temporary laborers in the state. With several important questions still unanswered, both temp agencies and client companies will need to await further guidance from the Illinois Department of Labor. As this legislation takes effect, it is likely to become a topic of discussion and potential revision in the future, making it crucial for businesses in Illinois to stay informed and adapt to these new regulations.