Illinois: Responsible Job Creation Act Imposes New Requirements for Staffing Agencies

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All Employers of IL Employees

EFFECTIVE

June 1, 2018

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The Responsible Job Creation Act (the “Act”) creates new obligations for staff agencies, including the requirement to place temporary workers into permanent positions, new notice requirements regarding work placements, changes to itemized wage statements, and more.  The Act amends the Day and Temporary Labor Services Act and includes the following provisions:

  • New notice requirements.
    • Dispatch notices. Temporary workers must be given a notice regarding scheduling and assignment length at time of dispatch.  The notice must include: the worker’s name, the name and nature of the work to be performed, types of equipment, protective clothing, and training required for the work, wages offered, name and addresses of the work site, terms of transportation, and whether meals or equipment will be provided.
    • Work verification form. At the end of the workday, third party clients must provide workers with a work verification form approved by the Illinois Department of Labor (“DOL”) that contains specified information about the worksite and hours worked.
  • Payroll and expense practices.
    • Itemized wage statement. Workers must be provided a detailed statement of wages that contains specified information, including: name, address, telephone number of each third-party client the worker performed labor for, hours worked and rate of pay, all deductions made by either the client or the agency and the purpose of the deduction, such as for food, equipment, income tax, etc., and any other information required by the state DOL.
    • On-call pay. A staffing agency must pay a worker who reports to an assigned worksite, but is not utilized by the client and does not work the shift.  The agency must pay a minimum of four hours at the agreed upon rate of pay.  If the agency is able to relocate the worker to a different worksite during the same shift, then the agency need only pay a minimum of two hours at the agreed upon rate.
    • Prohibition on certain fees. The agency may not charge workers from cashing checks issued by the agency, or for the costs of conducting a background check, drug test, or consumer report.
    • Transportation fees. Workers cannot be charged fees for transportation to/from an assigned worksite.  If a staffing agency provides transportation to the worksite, it must also provide transportation back at the end of the day, unless the worker makes other arrangements.
  • Permanent placement. If a client informs a staffing agency of its intention to hire a permanent employee for a position the agency currently provides temporary workers for, the agency is required to attempt to place a current temporary laborer into that position.
  • Registration with the DOL. Staffing agencies will now be required to register with the Illinois DOL.  An agency that fails to register may be penalized up to $500 per day of operation without registration.

Action Items

  1. Review the full text of the Act here.
  2. Have management and payroll personnel trained on the new notice and pay-related requirements.
  3. Once made available by the Illinois DOL, provide the work verification form to clients and ensure completion at the end of each workday.
  4. Update notice, pay, and hiring practices to be consistent with the new requirements.
  5. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2017 ManagEase, Incorporated.

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