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Illinois Responsible Job Creation Act

Effective as of June 1, 2018, the Illinois Responsible Job Creation Act, which amends the Day and Temporary Labor Services Act (820 ILCS 175/1 et seq.), is intended to strengthen and stiffen the Temporary Staffing Industry Regulation. It is alleged that there are over five hundred thousand (500,000) Temporary Workers in the State of Illinois and that more stringent regulations, both of Day and Temporary Labor Service Agencies and Third Party Users, is necessary. Whether this is true or not may be subject to debate, but our brilliant and esteemed legislators believe that it is a necessary course of action.

Some of the key provisions and/or modifications of the original Day and Temporary Labor Services Act are as follows:

  • 820 ILCS 175/5 - a new definition with regard to defining who is a Day or Temporary Labor Applicant/Laborer - "Day or Temporary Laborer" means an individual who contracts for employment with a Day and Temporary Labor Service Agency; "Day or Temporary Labor Applicant" means an individual who requests a job assignment through a Day and Temporary Labor Service Agency, whether in person, verbally or in writing, or through an online application process.
  • 820 ILCS 175/10 - Employment Notice - when agreeing to send one (1) or more persons to work as a Day or Temporary Laborer the following is required of the Day or Temporary Labor Service: The Agency must notify the Day or Temporary Laborer in writing at the time of dispatch of his/her schedule and length of the assignment. The notice must include the name of the Laborer; the name and nature of the work to be performed, and the types of equipment, protective clothing and training that are required for the task. The notice must also include the wages that are offered; the name and address of the destination of the work; the means of transportation, and whether a meal or equipment of both are provided either by the Day and Temporary Labor Service Agency or the Third Party Client and the cost of the meal and equipment, if any. For multi-day assignments, the Day and Temporary Labor Service Agency must give notice of the actual schedule of work and the length of the assignment. In the event that there is a change in the scheduled shift or location of the multi-day assignment, it is the responsibility of the Day and Temporary Labor Service Agency to provide written notice of such change no less than forty-eight (48) hours in advance. It is the responsibility and obligation of the Day and Temporary Labor Service Agency to establish that if it is not possible to provide the notice regarding any job change in less than forty-eight (48) hours.
  • 820 ILCS 175/20 - Transportation - Day and Temporary Labor Service Agencies may not charge a fee to transport a Laborer to or from his/her designated worksite and if the Day and Temporary Labor Service Agency provides transportation to the jobsite, the Agency must also provide transportation back at the end of the day unless the designated Laborer advises that he/she has made other arrangements.
  • 820 ILCS 175/30 - Wage Payment and Notice -Day and Temporary Labor Service Agencies must provide the Laborer with a detailed, itemized statement of wages which must include the name, address and telephone number of each Third Party Client for which the Laborer worked; the number of hours he/she worked and the rate of pay; any and all deductions made from the Laborer's compensation, either by the Third Party Client or by the Day and Temporary Labor Service Agency and the purpose of those deductions including the Laborer's transportation, food, equipment, withheld income tax, withheld social security payment and every other deduction. The total amount deducted from meals, equipment and transportation may not cause the Day or Temporary Laborer's hourly wage to fall below the established State or Federal Minimum Wage and the current maximum amount of the placement fee which the Day and Temporary Labor Service Agency may charge to the Third Party Client.

In addition to the above specifically identified statutory provisions, the new amendments prohibit the Day and Temporary Labor Service Agency from charging any Laborer for the cashing of a check issued by that Day and Temporary Labor Service Agency for wages earned by the individual and prohibits the Day and Temporary Labor Service Agency or Third Party Client from charging a Day Laborer for the expense of conducting a consumer report, a criminal background check or a drug test. The Act also makes the Day and Temporary Service Agency responsible for the Laborer's wages if the Laborer is not used by the Third Party Client and does not work the shift. The Agency is responsible for paying the Laborer a minimum of four (4) hours pay at the agreed upon rate if the individual is not used. The Agency can reduce that payment of four (4) hours to two (2) hours if the Laborer is contracted to work at a different Third Party Client on the same shift.

There are some very stringent fines, both for the Day and Temporary Labor Service Agency and/or to the Third Party Client, for violations of the Act. These fines and/or penalties may range from $500 to $2,500 for failure to provide work verification forms or payments related to the Laborer's assignment to a Third Party Client.

Needless to say, the amendments, which are again effective as of June 1, 2018, will cause both the Day and Temporary Labor Service Agency and any Third Party Client to make certain well before that date that they are cognizant of the new rules and regulations and are able to comply with them.

Questions? Contact attorney Walter Liszka in our Chicago office at (312) 629-9300 or by email at waliszka@wesselssherman.com.

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