Illinois Amends the Day and Temporary Labor Services Act

On August 4th 2023, Illinois passed HB 2862 amending the Day and Temp Labor Services Act.  Emergency rules were issued by the Department of Labor a few days later on August 7th.  There is a lot of discussion between industry and association leaders with the Department of Labor on how to interpret and implement HB 2862.  Associated Labor Corporation is working to be compliant under the new legislation to the best of our ability and knowledge of HB 2862.

The following summarizes the most significant elements of the law as it impacts us.

Pay Equality
Any temporary associate who has worked 90 days (actual days worked, not calendar days) after August 4th in an industrial assignment must be compensated at a rate of pay not less than that of the lowest paid full-time employee at your organization doing the same work, with an equal level of seniority.

This includes equality of offered benefits, which may require temporary industrial associates to be given additional hourly compensation reflecting the value of the benefits package provided to your full-time employees.  Confidential sharing of wage and benefits information between Associated Labor Corporation and your company will need to be discussed to comply with HB 2862.

Going forward, before we can assign an individual temporary associate to your company, we are legally obligated to inquire about and review health and safety practices within your business.  We must note any workplace hazards, and work with you and your business to minimize workplace injuries going forward.  Both of our businesses have the burden of adequately documenting these procedures.

Your business will have the following responsibilities

  • You will need to document and inform Associated Labor Corporation about the anticipated hazards that any workers may mostly encounter.
  • Review safety and health awareness training provided by Associated Labor Corporation to determine if the training addresses recognized hazards for your industry.
  • Provide workers with specific training to address hazards at the worksite and allow Associated Labor Corporation to visit the worksite to observe and confirm training and information related to the associate job tasks and safety, health practices and hazards
  • Document and maintain records of worksite specific training and provide confirmation of the completed training within 3 business days after training is complete.
  • If any associates’ job tasks or location changes, be cognizant to any new hazards that may be encountered.  It is your business’s responsibility to inform both the associates and Associated Labor Corporation before the associate can perform their new tasks.  Associates personal protective equipment and training may need to be updated if necessary.

Job Disputes
Associates now have the right to refuse an assignment at a client location where there is a labor dispute.  Associated Labor Corporation must provide a written statement to associates if the client location is engaged in a strike, lockout, or other labor related stoppages.  This requires businesses to notify Associated Labor Corporation if this situation exists.  HB 2862 allows for a penalty to be issued if this notification is not provided to associates.

Increased Penalties
Associated Labor Corporation or their clients can be penalized for the first violation of HB 2862 not less than $100 and not more than $18,000.  Previously, the maximum fine was $6,000 for the first violation.  Repeat violations will be no less than $250 and not more than $7,500.  Previously repeat violations had a maximum fine of up to $2,500.  Penalties to businesses who contract with an agency that is not registered with the state has increased to up to a $1,500 per day maximum.

Interested Party Litigation
HB 2862 allows for an interested party or organization that monitors or is attentive to compliance with public or safety laws, to initiate a civil action against Associated Labor Corporation or its client upon reasonable belief that a violation of HB 2862 has occurred.  The interested party must file a complaint with the Department of Labor describing the violation.  The Department of Labor will send a notice of the complaint to the named parties, who have the right to contest or cure the alleged violations within 30 days of receipt of the complaint.  The Department of Labor may issue a right to sue to the interested party, of which the interested party may initiate a civil action for penalties within 180 days.

Next Steps
Associated Labor Corporation will be contacting your business to review and share information related to wages, benefits, work conditions and training practices.  This will allow both of us to meet the new requirements of HB 2862.

What we do

ALC provides Staffing, Placement, and Labor Solutions for Chicago area businesses from our office located in Wood Dale, Illinois.


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