The Illinois legislature has amended the Day and Temporary Labor Services Act that makes significant changes in the law’s equal pay provisions and other rules. The amendment passed May 24 and will become effective upon signing by Gov. JB Pritzker. The act, which generally covers industrial labor—excluding clerical and professional—was amended in 2023 to require, among other things, that staffing agencies pay their temporary employees who work 90 calendar days wages and benefits (or cash equivalent) equal to those received by their client counterparts with similar seniority who perform similar work. The law requires clients to provide staffing agencies with the information they need to comply with the mandates.
Equal Pay Changes
The May 24 amendment changes the waiting period for equal pay and benefits from 90 calendar days to 720 hours. Beginning on or after April 1, 2024, temporary workers performing 720 hours of work in a 12-month period for the same client are covered. ASA had urged use of an hours test as more compatible with industry recordkeeping systems.
The amendment adds a new option for complying with the equal pay mandate. Currently, eligible temporary employees must be paid an hourly wage based on the lowest-paid client employee with similar seniority performing similar work. Under the new option, instead of client data, wages are based on U.S. Bureau of Labor Statistics data for client workers in similar job classifications. This relieves clients of having to provide staffing agencies with their employees’ wage information. The amendment states that the Illinois Department of Labor website will provide a link to BLS publications and guidance for determining the applicable job classifications. Note that use of the BLS option is at the client’s sole discretion.
The amendment also provides an exception to the equal pay and benefits mandate for temporary employees assigned to clients whose employees are covered by collective bargaining agreements (CBAs). For the period covered by CBAs in effect on April 1, 2024, the exception applies to both the equal pay and benefits mandate. For CBAs entered into or renewed after that date, the exception will apply only to the benefits mandate—which currently is the subject of a court injunction and was not affected by the May 24 amendment.
Applicant Receipts
The amendment provides a new “applicant receipt” provision requiring staffing agencies to confirm that persons who seek work with a staffing agency in person, online, or through an app-based system and who are not placed sought work. The provision replaces a prior similar confirmation requirement.
Applicant receipts must be signed by a staffing agency employee on a form approved by the Illinois Department of Labor that includes the name and location of the staffing agency and branch office; the name and address of the applicant; the date and time the applicant sought the work assignment; the manner in which the applicant sought the work assignment; and the specific work sites or type of jobs sought by the applicant, if applicable.
Although the applicant receipt provision does not specify, it appears that the requirement that a staffing agency employee sign the receipt can be satisfied by electronic means. Illinois has adopted the Uniform Electronic Transactions Act which recognizes the validity of electronic records and signatures. Section 7(d) of the UETA provides that “If a law requires a signature, an electronic signature satisfies the law.” Electronic signature means “an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.”
The foregoing is a summary of the major provisions of the May 24 amendment and is intended as information and not legal advice. Some of the provisions—especially the equal pay provisions—are complex and staffing agencies are urged to consult with their own counsel to determine how the new rules apply to their business.
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