The Day and Temporary Labor Services Act:
- Creates duties and responsibilities of day and temporary labor agencies and third party clients,
- Creates registration fees for agencies,
- Prohibits excessive deductions for meal and equipment charges,
- Regulates the transportation of workers,
- Creates penalties for violations of the law and
- Requires third party clients that contract with day or temporary labor agencies to verify that they are registered with the Illinois Department of Labor (IDOL) or face monetary penalties.
Registration Requirements/Fees (Section 45)
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 $1,000 per agency, with an additional fee of $250 for each branch office beginning January 1, 2006. 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.
Penalties (Section 70)
Day and temporary labor agencies that violate any provisions of this Act or rules adopted by the Department shall be subject to civil penalties up to a maximum of $6,000 for violations found in the first audit. Civil penalties for any subsequent violations that occur within three years of earlier violations increase to $2,500 per violation, per worker 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.
Notice and Payment Requirements (Sections 10, 30 and 45)
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 workers 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.
Day and temporary labor service agencies must also provide each worker 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 worker's hourly wage to fall below the state or federal minimum wage.
For workers contracted to work a single day, third party clients must provide workers with a work verification form at the end of the work day that contains the workers' name, work location, date and hours worked that day.
A worker 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 worker 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.
Recordkeeping Requirements (Section 12)
Day and temporary labor service agencies must keep and maintain for a period of three years detailed records relating to every day laborer's work, including the name address and specific work location to which the day laborer was sent, the date sent, the type of work performed, the number of hours worked, the hourly rate of pay, the name and title of the individuals responsible for the transaction, copies of all contracts and invoices with third party clients, copies of all employment notices required to be provided to workers, all deductions made by third party clients or agencies for food, equipment, tax or social security withholdings, verification of the actual costs of equipment and meals provided to day laborers and any additional information required by the Department of Labor. All of these records must be open to inspection by the Department of Labor during normal business hours. In addition, records relating to an individual worker and any hours billed to third party clients for his or her labor must be available for review or copying by the worker within 5 days following a written request.
Transportation Regulations (Section 20)
Day and temporary labor agencies, third party clients (and their contractors or agents) are prohibited from charging workers for transportation from the agency to the worksite. Agencies, third party clients (and their contractors or agents) are responsible for the conduct and performance of persons providing transportation and drivers must have a valid and appropriate motor vehicle license, proof of financial responsibility as well as seats and safety belts for every passenger. Any violations of these requirements discovered by the Department shall be forwarded to appropriate law enforcement or regulatory agencies.
Placement Fee Restrictions (Section 40)
Limits placement fees that may be charged to third party clients who offer full-time work to day laborers to the equivalent of the total daily commission rate the agency would have received over a 60-day period, reduced by the equivalent of the daily commission rate the agency would have received for each day the laborer has performed work for the agency in the preceding 12 months. These fee restrictions do not apply to the placement of skilled labor, where the agency performs an advanced application process, a screening process and a job interview.
Third Party Client Responsibilities (Sections 30 and 85)
Third party clients who contract for the services of day and temporary labor must verify that the day and temporary labor agency is registered with the IDOL before entering into a contract with them and again on March 1 and September 1 of each year. The third party client may request a list of registered agencies from the Department or rely on the list of registered agencies maintained on the Department's website. A third party client that contracts with a day and temporary labor agency that is not registered is subject to a penalty of $500 for each day they contract with an unregistered agency. For workers contracted to work a single day, third party clients must provide workers with a work verification form at the end of the work day that contains the workers' name, work location, date and hours worked that day. A third party client that fails to provide workers with a work verification form may be subject to a $500 per day penalty for each violation of this requirement, which may increase to $2,500 for subsequent violations.
Third party clients that contract with day and temporary service agencies for the services of day laborers share all legal responsibility and liability for the payment of wages under the Illinois Wage Payment and Collection Act and the Minimum Wage Law.
Willful Violations (Section 75)
Any person or entity that willfully violates any provision of the Act or the Department's rules is liable for penalties up to double the statutory amounts. If willful violations result in underpayments to workers, the person or entity is liable to the Department for 20% of the underpaid amounts and liable to the worker for 2% of the underpaid amounts for each month these amounts remain unpaid.
Retaliation (Section 90)
Day and temporary labor agencies and third party clients are prohibited from retaliating against workers 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. Any retaliation taken against a worker in violation of this Act shall be subject to civil penalties or a private cause of action.
Private Right of Action (Section 95)
Any person aggrieved by a violation of this Act or the Department's rules may file suit in the circuit court of the county where the alleged offense occurred or where the worker resides, without regard to exhaustion of any administrative remedies provided by the Act. A worker must file suit within three years of the final date of employment by the day and temporary labor service agency or third party client. A worker whose rights have been violated is entitled to lost wages, compensation and benefits, plus an equal amount in liquidated damages for wage and hour violations; compensatory damages and up to $500 for health and safety or notice violations; all appropriate legal and equitable relief for unlawful retaliation; and attorney's fees and costs for all violations.