The Illinois Day and Temporary Labor Services Act (IDTLSA) took effect on April 1, 2024. The Act contained a provision that would have required temporary workers of staffing agencies to be offered the actual benefits package or the hourly cash equivalent of the cost of benefits of those directly hired employees at the third-party client. However, a federal court decision enjoined this specific requirement.
Other provisions of the law remain in effect as of April 1 including, but not limited to:
- Equal Pay: Temporary workers assigned to a work site for more than 90 days will receive at least the same rate of pay as the lowest paid directly hired employee doing similar work at the client company.
- Disclosure Requirements: Staffing agencies are required to disclose any placement fees to temporary workers.
- Labor Dispute Protections: Temporary workers must be informed of any labor disputes at a worksite before being assigned and can refuse the assignment without retaliation.
- Wage Notice and Pay Stub Updates: The Act mandated clearer information on wage notices and pay stubs for temporary workers.
- General Awareness Safety Training: Staffing agencies are required to provide temporary workers with general awareness and safety training relevant to any worksite hazards they might encounter.
Next Steps
Illinois employers who contract with staffing agencies should ensure that the agencies have stopped including the benefits equivalency costs in the rates charged to the company and if so, request a refund for any cost paid after March 11, 2024. However, employers should ensure that any staffing agencies that they contract with are aware of and are complying with the Act’s other provisions.
