In August 2023, Illinois signed into law legislation amending the Day and Temporary Labor Services Act (DTLSA). The act generally covers industrial temporary labor services, excluding clerical and professional services.
New requirements for staffing agencies and their clients
The legislation placed new requirements on both staffing agencies and their clients, in areas such as safety, pay, and benefits. You can read a summary of the DTLSA here.
Perhaps the most disputed piece of the amendment is Section 42, which states that, after 90 days on the job, a staffing agency employee must be offered pay and benefits that are equivalent to those offered by the client, or otherwise be paid the cash value of the benefits.
“Equivalent benefits” court ruling and what it means
In November 2023, a group of trade associations staffing agencies sued the Illinois Department of Labor, arguing that the equal benefits mandate was preempted by the Employment Retirement Income Security Act (ERISA), a federal statute that established a uniform body of benefits law through the U.S. While many other amendments had already taken effect, the equal pay and benefits provisions were postponed until April 1.
Then on March 11, 2024, a federal judge ruled that the equal benefits provision cannot be enforced while this court case is still in litigation, effectively halting the equivalent benefits requirement.
It’s important to note that this ruling did not affect the equal pay provisions of the amendment. As of now, the equal pay requirement will still take effect on April 1, but the equal benefits provision is postponed, pending the results of the court case. All other areas of the amendment are still in effect.
Conclusion
The Illinois staffing landscape is evolving, but staying compliant and ensuring workforce continuity doesn't have to be a challenge. Partnering with PeopleShare gives you access to a team of experts dedicated to navigating these changes. We offer a comprehensive suite of solutions designed to simplify your operations and ensure a win-win situation for both your business and your temporary workforce.
For more information, contact your PeopleShare representative today.
PeopleShare is not a law firm, and this blog post is not intended to be legal advice. The information provided here is for informational purposes only and should not be a substitute for seeking advice from qualified legal counsel.