Bill Text: IL HB1604 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Day and Temporary Labor Services Act. Provides that a day and temporary labor service agency must provide an application receipt to applicants who seek a work assignment. Provides that a day or temporary laborer has the right to refuse an assignment to a place where a strike, a lockout, or other labor trouble exists. Provides that a day or temporary laborer who is assigned to work at a third party client for more than one week shall be paid not less than the average rate of pay and equivalent benefits as directly hired employees of the third party client performing the same or substantially similar work. Provides for a right of action by interested parties for civil penalties against a day and temporary labor service agency. Provides for protections against abusive contracts. Makes changes in provisions concerning recordkeeping; wage payment and notices; work restrictions; registration; violations; enforcement; penalties; third party clients; retaliation; and private rights of action. Defines terms. Effective July 1, 2023.

Spectrum: Partisan Bill (Democrat 45-0)

Status: (Introduced) 2023-03-27 - House Floor Amendment No. 2 Rule 19(c) / Re-referred to Rules Committee [HB1604 Detail]

Download: Illinois-2023-HB1604-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1604 Introduced , by Rep. Edgar Gonzalez, Jr. SYNOPSIS AS INTRODUCED:
820 ILCS 175/2
820 ILCS 175/5
820 ILCS 175/10
820 ILCS 175/11 new
820 ILCS 175/12
820 ILCS 175/30
820 ILCS 175/40
820 ILCS 175/42 new
820 ILCS 175/45
820 ILCS 175/50
820 ILCS 175/55
820 ILCS 175/67 new
820 ILCS 175/70
820 ILCS 175/85
820 ILCS 175/87 new
820 ILCS 175/90
820 ILCS 175/95
Amends the Day and Temporary Labor Services Act. Provides that a day and temporary labor service agency must provide an application receipt to applicants who seek a work assignment. Provides that a day or temporary laborer has the right to refuse an assignment to a place where a strike, a lockout, or other labor trouble exists. Provides that a day or temporary laborer who is assigned to work at a third party client for more than one week shall be paid not less than the average rate of pay and equivalent benefits as directly hired employees of the third party client performing the same or substantially similar work. Provides for a right of action by interested parties for civil penalties against day and temporary labor service agency. Provides for protections against abusive contracts. Makes changes in provisions concerning recordkeeping; wage payment and notices; work restrictions; registration; violations; enforcement; penalties; third party clients; retaliation; and private rights of action. Defines terms. Effective July 1, 2023.
LRB103 26056 SPS 52411 b
A BILL FOR
HB1604 LRB103 26056 SPS 52411 b
AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Day and Temporary Labor Services Act is
amended by changing Sections 2, 5, 10, 12, 30, 40, 45, 50, 55,
70, 85, 90, and 95 and by adding Sections 11, 42, 67, and 87 as
follows:
(820 ILCS 175/2)
Sec. 2. Legislative Findings. The General Assembly finds
as follows:
Since the passage of this Act, the number of Over 300,000
workers who work as day or temporary laborers in Illinois has
risen from approximately 300,000 to more than 650,000
according to data collected by the Department of Labor.
Since the passage of this Act, the number of Approximately
150 day labor and temporary labor service agencies registered
in Illinois has risen from approximately 150 with 600 branch
offices to over 300 with over 800 branch offices with nearly
600 branch offices are licensed throughout Illinois. In
addition, there still exists is a significant large, though
unknown, number of unregistered unlicensed day labor and
temporary labor service agencies that operate outside the
radar of law enforcement.

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Recent studies and a survey of low-wage day or temporary
laborers themselves have consistently found finds that as a
group, they are particularly vulnerable to abuse of their
labor rights, including unpaid wages, failure to pay for all
hours worked, minimum wage and overtime violations, and
unlawful deduction from pay for meals, transportation,
equipment and other items. Recent studies and surveys of the
day and temporary staffing industry have also found that day
or temporary laborers are more than twice as likely to live in
poverty, that more than one in 3 depend on public assistance to
survive, that such workers are commonly part of a 2-tier pay
structure, and that such workers have an occupational injury
rate 2 to 3 times higher than directly hired employees.
As a result of the imbalance of negotiating power between
a day or temporary laborer and a day and temporary service
agency and its client companies due to laborers' precarious
and contingent employment relationship, many day or temporary
laborers are subjected to abusive contracts that they are
required to sign under duress and from which they need to be
protected.
It is in the interest of the State of Illinois to ensure
compliance with this Act, and it is in the interest of Illinois
taxpayers to mitigate the cost of enforcement of this Act by
assessing civil penalties against day and temporary service
agencies and their client companies that have been found to
have violated this Act. Illinois employers who comply with

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this and other Illinois wage and hour laws are also at a
competitive disadvantage with employers who do not comply with
such laws, and it is in the interest of the State of Illinois,
law-abiding Illinois employers, and Illinois taxpayers to
disgorge law-breaking employers of any ill-gotten gains as a
result of unlawful practices and to ensure payroll taxes are
paid on any such unpaid wages. Therefore, the public good
justifies the establishment of the mechanism set forth in this
Act for the Department, the Attorney General, aggrieved
employees, or interested parties to disgorge from an Illinois
employer who does not comply with this or other Illinois laws
referenced herein the amount of such unpaid wages and other
remedies, as well as unpaid payroll taxes.
Current law is inadequate to protect the labor and
employment rights of these workers.
At the same time, in Illinois and in other states,
democratically run nonprofit day labor centers, which charge
no fee for their services, have been established to provide an
alternative for day or temporary laborers to solicit work on
street corners. These centers are not subject to this Act.
(Source: P.A. 94-511, eff. 1-1-06.)
(820 ILCS 175/5)
Sec. 5. Definitions. As used in this Act:
"Applicant" means a natural person who seeks a work
assignment at a day and temporary labor service agency.

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"Day or temporary laborer" means a natural person who
contracts for employment with a day and temporary labor
service agency.
"Day and temporary labor" means work performed by a day or
temporary laborer at a third party client, the duration of
which may be specific or undefined, pursuant to a contract or
understanding between the day and temporary labor service
agency and the third party client. "Day and temporary labor"
does not include labor or employment of a professional or
clerical nature.
"Day and temporary labor service agency" means any person
or entity engaged in the business of employing day or
temporary laborers to provide services, for a fee, to or for
any third party client pursuant to a contract with the day and
temporary labor service agency and the third party client.
"Department" means the Department of Labor.
"Family member" means an employee's child, spouse, or
party to a civil union or legal guardianship, parent,
grandparent, grandchild, sibling, or any other individual
related by blood, marriage, or civil union, or whose close
relationship with the employee is the equivalent of a family
association as determined by the employee.
"Interested party" means a person, organization, or entity
with an interest in compliance with this Act. An interested
party includes, without limitation, a labor organization, a
nonprofit organization whose mission or past practice includes

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advocating for the workplace rights of day or temporary
laborers, a current or former day or temporary laborer
employed by the entity subject to allegations of the
violations, whether or not still aggrieved by a violation of
this Act at the time of taking any action under this Act, a
family member of such a day or temporary laborer, or a
competitor of a day and temporary labor service agency or an
employee of a competitor of day and temporary labor service
agency.
"Third party client" means any person that contracts with
a day and temporary labor service agency for obtaining day or
temporary laborers.
"Person" means every natural person, firm, partnership,
co-partnership, limited liability company, corporation,
association, business trust, or other legal entity, or its
legal representatives, agents, or assigns.
(Source: P.A. 94-511, eff. 1-1-06; 95-499, eff. 8-28-07.)
(820 ILCS 175/10)
Sec. 10. Employment Notice and Application Receipt.
(a) Employment notice. Whenever a day and temporary labor
service agency agrees to send one or more persons to work as
day or temporary laborers, the day and temporary labor service
agency shall provide to each day or temporary laborer, at the
time of dispatch, a statement containing the following items
on a form approved by the Department:

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(1) the name of the day or temporary laborer;
(2) 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;
(3) the wages offered;
(4) the name and address of the destination of each
day or temporary laborer;
(5) terms of transportation; and
(6) whether a meal or equipment, or 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.
The failure of a day and temporary labor service agency to
provide a day or temporary laborer with the equipment,
protective clothing, and training identified in an employment
notice required by this Section shall be a health and safety
violation under Section 95.
If a day or temporary laborer is assigned to the same
assignment for more than one day, the day and temporary labor
service agency is required to provide the employment notice
only on the first day of the assignment and on any day that any
of the terms listed on the employment notice are changed.
(b) Application receipt. If the applicant seeks a work
assignment and day or temporary laborer is not placed with a
third party client or otherwise contracted to work for that
day by a day and temporary labor service agency, the day and

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temporary labor service agency shall, upon request, provide
the applicant day and temporary laborer with a confirmation
that the applicant day or temporary laborer sought work,
signed by an employee of the day and temporary labor service
agency, on a form approved by the Department, which shall
include:
(1) the name and location of the agency and branch
office; ,
(2) the name and address of the applicant; day or
temporary laborer, and
(3) the date and the time that the the applicant
sought the work assignments; day or temporary laborer
receives the confirmation.
(4) the manner in which the applicant sought the work
assignments; and
(5) the specific work sites or type of jobs sought by
the applicant, if applicable.
(b) (Blank). No day and temporary labor service agency may
send any day or temporary laborer to any place where a strike,
a lockout, or other labor trouble exists.
(c) The Department shall recommend to day and temporary
labor service agencies that those agencies employ personnel
who can effectively communicate information required in
subsection subsections (a) and (b) to day or temporary
laborers in Spanish, Polish, or any other language that is
generally understood in the locale of the day and temporary

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labor service agency. Employment notices and application
receipts shall be provided to the day or temporary laborer or
applicant in a language that the day or temporary laborer or
applicant understands.
(d) The failure of a day and temporary labor service
agency to provide any of the information required by this
Section shall constitute a notice violation under Section 95.
The failure to provide each piece of information required by
this Section at each time it is required by this Section shall
constitute a separate and distinct violation. If a day and
temporary labor service agency claims that it has
electronically provided an employment notice or application
receipt as required by this Section, the day and temporary
labor service agency shall bear the burden of showing the
employment notice or application receipt was provided if there
is a dispute.
(Source: P.A. 99-78, eff. 7-20-15; 100-517, eff. 6-1-18.)
(820 ILCS 175/11 new)
Sec. 11. Right to refuse assignment to a labor dispute.
(a) No day and temporary labor service agency may send a
day or temporary laborer to a place where a strike, a lockout,
or other labor trouble exists without providing, at or before
the time of dispatch, a statement, in writing and in a language
that the day or temporary laborer understands, informing the
day or temporary laborer of the labor dispute and the day or

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temporary laborer's right to refuse the assignment without
prejudice to receiving another assignment.
(b) The failure by a day and temporary labor service
agency to provide any of the information required by this
Section shall constitute a notice violation under Section 95.
The failure of a day and temporary labor service agency to
provide each piece of information required by this Section at
each time it is required by this Section shall constitute a
separate and distinct notice violation. If a day and temporary
labor service agency claims that it has provided notice as
required by this Section electronically, the day and temporary
labor service agency shall bear the burden of showing that the
notice was provided if there is a dispute.
(820 ILCS 175/12)
Sec. 12. Recordkeeping.
(a) Whenever a day and temporary labor service agency
sends one or more persons to work as day or temporary laborers,
the day and temporary labor service agency shall keep the
following records relating to that transaction:
(1) the name, address and telephone number of each
third party client, including each worksite, to which day
or temporary laborers were sent by the agency and the date
of the transaction;
(2) for each day or temporary laborer: the name and
address, the specific location sent to work, the type of

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work performed, the number of hours worked, the hourly
rate of pay and the date sent. The term "hours worked" has
the meaning ascribed to that term in 56 Ill. Adm. Code
210.110 and in accordance with all applicable rules or
court interpretations under 56 Ill. Adm. Code 210.110. The
third party client shall be required to remit all
information required under this subsection to the day and
temporary labor service agency no later than 7 days
following the last day of the work week worked by the day
or temporary laborer. Failure of a third party client to
remit such information to a day and temporary labor
service agency shall not be a defense to the recordkeeping
requirement of this Section;
(3) the name and title of the individual or
individuals at each third party client's place of business
responsible for the transaction;
(4) any specific qualifications or attributes of a day
or temporary laborer, requested by each third party
client;
(5) copies of all contracts, if any, with the third
party client and copies of all invoices for the third
party client;
(6) copies of all employment notices provided in
accordance with subsection (a) of Section 10;
(7) deductions to be made from each day or temporary
laborer's compensation made by either the third party

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client or by the day and temporary labor service agency
for the day or temporary laborer's transportation, food,
equipment, withheld income tax, withheld social security
payments and every other deduction;
(8) verification of the actual cost of any equipment
or meal charged to a day or temporary laborer;
(9) the race and gender of each day or temporary
laborer or applicant who seeks work at or is assigned sent
by the day and temporary labor service agency, as such
information is provided by the day or temporary laborer or
applicant; and
(9.5) whether a day or temporary laborer has been
placed in a permanent position with a third party client
and the date of such placement; and
(10) any additional information required by rules
issued by the Department.
(b) The day and temporary labor service agency shall
maintain all records under this Section for a period of 3 years
from their creation. The records shall be open to inspection
by the Department during normal business hours. Records
described in paragraphs (1), (2), (3), (6), (7), and (8) of
subsection (a) shall be available for review or copying by
that day or temporary laborer during normal business hours
within 5 days following a written request. In addition, a day
and temporary labor service agency shall make records related
to the number of hours billed to a third party client for that

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individual day or temporary laborer's hours of work available
for review or copying during normal business hours within 5
days following a written request. The day and temporary labor
service agency shall make forms, in duplicate, for such
requests available to day or temporary laborers at the
dispatch office. The day or temporary laborer shall be given a
copy of the request form. It is a violation of this Section to
make any false, inaccurate or incomplete entry into any record
required by this Section, or to delete required information
from any such record. Failure by the third party client to
remit time records to the day and temporary labor service
agency as provided in paragraph (a)(2) shall constitute a
notice violation by a third party client under Section 95 of
this Act unless the third party client has been precluded from
submitting such time records for reasons beyond its control. A
failure by the third party client to provide time records in
accordance with this subsection (b) shall not be a notice
violation and shall not be the basis for a suit or other action
under Section 95 of this Act against the day and temporary
labor service agency.
(Source: P.A. 94-511, eff. 1-1-06; 95-499, eff. 8-28-07.)
(820 ILCS 175/30)
Sec. 30. Wage Payment and Notice.
(a) At the time of payment of wages, a day and temporary
labor service agency shall provide each day or temporary

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laborer with a detailed itemized statement, on the day or
temporary laborer's paycheck stub or on a form approved by the
Department, listing the following:
(1) the name, address, and telephone number of each
third party client at which the day or temporary laborer
worked. If this information is provided on the day or
temporary laborer's paycheck stub, a code for each third
party client may be used so long as the required
information for each coded third party client is made
available to the day or temporary laborer;
(2) the number of hours worked by the day or temporary
laborer at each third party client each day during the pay
period. If the day or temporary laborer is assigned to
work at the same work site of the same third party client
for multiple days in the same work week, the day and
temporary labor service agency may record a summary of
hours worked at that third party client's worksite so long
as the first and last day of that work week are identified
as well. The term "hours worked" has the meaning ascribed
to that term in 56 Ill. Adm. Code 210.110 and in accordance
with all applicable rules or court interpretations under
56 Ill. Adm. Code 210.110;
(3) the rate of payment for each hour worked,
including any premium rate or bonus;
(3.5) the rate billed to the client company for each
hour worked, including any premium rate or bonus;

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(4) the total pay period earnings;
(5) all deductions made from the day or temporary
laborer's compensation made either by the third party
client or by the day and temporary labor service agency,
and the purpose for which deductions were made, including
for the day or temporary laborer's transportation, food,
equipment, withheld income tax, withheld social security
payments, and every other deduction; and
(5.5) the then-current maximum placement fee as
defined and calculated in Section 40; and
(6) any additional information required by rules
issued by the Department.
(a-1) For each day or temporary laborer who is contracted
to work a single day, the third party client shall, at the end
of the work day, provide such day or temporary laborer with a
Work Verification Form, approved by the Department, which
shall contain the date, the day or temporary laborer's name,
the work location, and the hours worked on that day. Any third
party client who violates this subsection (a-1) may be subject
to a civil penalty of not less than $100 and not more than to
exceed $500 for each violation found by the Department. Such
civil penalty shall may increase to not less than $500 and not
more than $2,500 for a second or subsequent violation. For
purposes of this subsection (a-1), each violation of this
subsection (a-1) for each day or temporary laborer and for
each day the violation continues shall constitute a separate

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and distinct violation.
(b) A day and temporary labor service agency shall provide
each worker an annual earnings summary within a reasonable
time after the preceding calendar year, but in no case later
than February 1. A day and temporary labor service agency
shall, at the time of each wage payment, give notice to day or
temporary laborers of the availability of the annual earnings
summary or post such a notice in a conspicuous place in the
public reception area.
(c) At the request of a day or temporary laborer, a day and
temporary labor service agency shall hold the daily wages of
the day or temporary laborer and make either weekly,
bi-weekly, or semi-monthly payments. The wages shall be paid
in a single check, or, at the day or temporary laborer's sole
option, by direct deposit or other manner approved by the
Department, representing the wages earned during the period,
either weekly, bi-weekly, or semi-monthly, designated by the
day or temporary laborer in accordance with the Illinois Wage
Payment and Collection Act. Vouchers or any other method of
payment which is not generally negotiable shall be prohibited
as a method of payment of wages. Day and temporary labor
service agencies that make daily wage payments shall provide
written notification to all day or temporary laborers of the
right to request weekly, bi-weekly, or semi-monthly checks.
The day and temporary labor service agency may provide this
notice by conspicuously posting the notice at the location

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where the wages are received by the day or temporary laborers.
(d) No day and temporary labor service agency shall charge
any day or temporary laborer for cashing a check issued by the
agency for wages earned by a day or temporary laborer who
performed work through that agency. No day and temporary labor
service agency or third party client shall charge any day or
temporary laborer for the expense of conducting any consumer
report, as that term is defined in the Fair Credit Reporting
Act, 15 U.S.C. 1681a(d), any criminal background check of any
kind, or any drug test of any kind.
(e) Day or temporary laborers shall be paid no less than
the wage rate stated in the notice as provided in Section 10 of
this Act for all the work performed on behalf of the third
party client in addition to the work listed in the written
description.
(f) The total amount deducted for meals, equipment, and
transportation may not cause a day or temporary laborer's
hourly wage to fall below the State or federal minimum wage.
However, a day and temporary labor service agency may deduct
the actual market value of reusable equipment provided to the
day or temporary laborer by the day and temporary labor
service agency which the day or temporary laborer fails to
return, if the day or temporary laborer provides a written
authorization for such deduction at the time the deduction is
made.
(g) A day or temporary laborer who is contracted by a day

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and temporary labor service agency to work at a third party
client's worksite but is not utilized by the third party
client shall be paid by the day and temporary labor service
agency for a minimum of 4 hours of pay at the agreed upon rate
of pay. However, in the event the day and temporary labor
service agency contracts the day or temporary laborer to work
at another location during the same shift, the day or
temporary laborer shall be paid by the day and temporary labor
service agency for a minimum of 2 hours of pay at the agreed
upon rate of pay.
(h) A third party client is required to pay wages and
related payroll taxes to a licensed day and temporary labor
service agency for services performed by the day or temporary
laborer for the third party client according to payment terms
outlined on invoices, service agreements, or stated terms
provided by the day and temporary labor service agency. A
third party client who fails to comply with this subsection
(h) is subject to the penalties provided in Section 70 of this
Act. The Department shall review a complaint filed by a
licensed day and temporary labor agency. The Department shall
review the payroll and accounting records of the day and
temporary labor service agency and the third party client for
the period in which the violation of this Act is alleged to
have occurred to determine if wages and payroll taxes have
been paid to the agency and that the day or temporary laborer
has been paid the wages owed him or her.

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(i) The failure of a day and temporary labor service
agency or client company to provide any of the information
required by this Section shall constitute a notice violation
under Section 95. The failure to provide each piece of
information required by this Section at each time it is
required by this Section shall constitute a separate and
distinct notice violation.
(Source: P.A. 100-517, eff. 6-1-18.)
(820 ILCS 175/40)
Sec. 40. Work Restriction. No day and temporary labor
service agency shall restrict the right of a day or temporary
laborer to accept a permanent position with a third party
client to whom the day or temporary laborer has been referred
for work or restrict the right of such third party client to
offer such employment to a day or temporary laborer. A day and
temporary labor service agency may charge a placement fee to a
third party client for employing a day or temporary laborer
for whom a contract for work was effected by the day and
temporary labor service agency not to exceed the equivalent of
the total daily commission rate the day and temporary labor
service agency would have received over a 60-day period,
reduced by the equivalent of the daily commission rate the day
and temporary labor service agency would have received for
each day the day or temporary laborer has performed work for
the day and temporary labor service agency in the preceding 12

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months. Days worked at a day and temporary labor service
agency in the 12 months preceding the effective date of this
amendatory Act of the 94th General Assembly shall be included
for purposes of calculating the maximum placement fee
described in this Section. However, placement of a day or
temporary laborer who is contracted by a day and temporary
labor service agency to provide skilled labor shall not be
subject to any placement fee cap. For purposes of this
Section, a day or temporary laborer who performs "skilled
labor" shall apply only where the day and temporary labor
service agency performs an advanced application process, a
screening process, which may include processes such as
advanced testing, and a job interview. No fee provided for
under this Section may be assessed or collected by the day and
temporary labor service agency when the day or temporary
laborer is offered permanent work following the suspension or
revocation of the day and temporary labor service agency's
registration by the Department.
(Source: P.A. 94-511, eff. 1-1-06.)
(820 ILCS 175/42 new)
Sec. 42. Equal pay for equal work. A day or temporary
laborer who is assigned to work at a third party client for
more than one week shall be paid not less than the average rate
of pay and equivalent benefits as directly hired employees of
the third party client performing the same or substantially

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similar work on jobs the performance of which requires
substantially similar skill, effort, and responsibility, and
that are performed under similar working conditions. A day and
temporary labor service agency may pay the hourly cash
equivalent of benefits in lieu of providing the benefits
required by this Section. Upon request, a third party client
to which a day or temporary laborer has been assigned for more
than one week shall be obligated to timely provide the day and
temporary labor service agency with all necessary information
related to job duties, pay, and benefits of directly hired
employees necessary for the day and temporary labor service
agency to comply with this Section. The failure by a third
party client to provide any of the information required by
this Section shall constitute a notice violation by the third
party client under Section 95.
(820 ILCS 175/45)
Sec. 45. Registration; Department of Labor.
(a) A day and temporary labor service agency which is
located, operates or transacts business within this State
shall register with the Department of Labor in accordance with
rules adopted by the Department for day and temporary labor
service agencies and shall be subject to this Act and any rules
adopted under this Act. Each day and temporary labor service
agency shall provide proof of an employer account number
issued by the Department of Employment Security for the

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payment of unemployment insurance contributions as required
under the Unemployment Insurance Act, and proof of valid
workers' compensation insurance in effect at the time of
registration covering all of its employees. If, at any time, a
day and temporary labor service agency's workers' compensation
insurance coverage lapses, the agency shall have an
affirmative duty to report the lapse of such coverage to the
Department and the agency's registration shall be suspended
until the agency's workers' compensation insurance is
reinstated. The Department may assess each day and temporary
labor service agency a non-refundable registration fee not
exceeding $5,000 $1,000 per year per agency and a
non-refundable fee not to exceed $1,000 $250 for each branch
office or other location where the agency regularly contracts
with day or temporary laborers for services. The fee may be
paid by check, money order, or the State Treasurer's E-Pay
program or any successor program, and the Department may not
refuse to accept a check on the basis that it is not a
certified check or a cashier's check. The Department may
charge an additional fee to be paid by a day and temporary
labor service agency if the agency, or any person on the
agency's behalf, issues or delivers a check to the Department
that is not honored by the financial institution upon which it
is drawn. The Department shall also adopt rules for violation
hearings and penalties for violations of this Act or the
Department's rules in conjunction with the penalties set forth

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in this Act.
(a-1) At the time of registration with the Department of
Labor each year, the day and temporary labor service agency
shall submit to the Department of Labor a report containing
the information identified in paragraphs paragraph (9) and
(9.5) of subsection (a) of Section 12, broken down by branch
office, in the aggregate for all day or temporary laborers
assigned within Illinois and subject to this Act during the
preceding year. This information shall be submitted on a form
created by the Department of Labor. The Department of Labor
shall aggregate the information submitted by all registering
day and temporary labor service agencies by removing
identifying data and shall have the information available to
the public only on a municipal and county basis. As used in
this subsection and subsection (a-2) this paragraph,
"identifying data" means any and all information that: (i)
provides specific information on individual worker identity;
(ii) identifies the service agency in any manner; and (iii)
identifies clients utilizing the day and temporary labor
service agency or any other information that can be traced
back to any specific registering day and temporary labor
service agency or its client. The information and reports
submitted to the Department of Labor under this subsection by
the registering day and temporary labor service agencies are
exempt from inspection and copying under Section 7.5 of the
Freedom of Information Act. Any summary reports created by the

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Department shall be made available for public inspection on
the Department's website and shall not be exempt from
inspection and copying under the Freedom of Information Act.
(a-2) When a day and temporary labor service agency
registers with the Department, it shall submit to the
Department a report containing (i) the total number of W-2
forms issued to day or temporary laborers in Illinois during
the prior year broken down by branch office and (ii) the total
number of hours billed by the day and temporary labor service
agency from a branch office in Illinois broken down by branch
office. This information shall be submitted on a form created
by the Department. The Department shall aggregate the
information submitted by all registering day and temporary
labor service agencies by removing identifying data and shall
make the information available to the public on a municipal
and county basis. The information and reports submitted to the
Department under this subsection by the registering day and
temporary labor service agencies are exempt from inspection
and copying under the Freedom of Information Act. Any summary
reports created by the Department shall be made available for
public inspection on the Department's website and shall not be
exempt from inspection and copying under the Freedom of
Information Act.
(a-3) The Department shall deny a day and temporary labor
service agency's registration until all of the information
required in subsections (a-1) and (a-2) has been provided.

HB1604 - 24 - LRB103 26056 SPS 52411 b
(b) It is a violation of this Act to operate a day and
temporary labor service agency without first registering with
the Department in accordance with subsection (a) of this
Section. The Department shall create and maintain at regular
intervals on its website, accessible to the public: (1) a list
of all registered day and temporary labor service agencies in
the State whose registration is in good standing; (2) a list of
day and temporary labor service agencies in the State whose
registration has been suspended, including the reason for the
suspension, the date the suspension was initiated, and the
date, if known, the suspension is to be lifted; and (3) a list
of day and temporary labor service agencies in the State whose
registration has been revoked, including the reason for the
revocation and the date the registration was revoked. The
Department has the authority to assess a penalty against any
day and temporary labor service agency that fails to register
with the Department of Labor in accordance with this Act or any
rules adopted under this Act of $500 for each violation. Each
day during which a day and temporary labor service agency
operates without registering with the Department shall be a
separate and distinct violation of this Act.
(c) An applicant is not eligible to register to operate a
day and temporary labor service agency under this Act if the
applicant or any of its officers, directors, partners, or
managers or any owner of 25% or greater beneficial interest:
(1) has been involved, as owner, officer, director,

HB1604 - 25 - LRB103 26056 SPS 52411 b
partner, or manager, of any day and temporary labor
service agency whose registration has been revoked or has
been suspended without being reinstated within the 5 years
immediately preceding the filing of the application; or
(2) is under the age of 18.
(d) Every agency shall post and keep posted at each
location, in a position easily accessible to all employees,
notices as supplied and required by the Department containing
a copy or summary of the provisions of the Act and a notice
which informs the public of a toll-free telephone number for
day or temporary laborers and the public to file wage dispute
complaints and other alleged violations by day and temporary
labor service agencies. Such notices shall be in English or
any other language generally understood in the locale of the
day and temporary labor service agency.
(Source: P.A. 100-517, eff. 6-1-18.)
(820 ILCS 175/50)
Sec. 50. Violations. The Department shall have the
authority to deny, suspend, or revoke the registration of a
day and temporary labor service agency if warranted by public
health and safety concerns or violations of this Act. The
Attorney General, pursuant to its authority under Section 6.3
of the Attorney General Act, may request that a circuit court
suspend or revoke the registration of a day and temporary
labor service agency when warranted by public health concern

HB1604 - 26 - LRB103 26056 SPS 52411 b
or violations of this Act.
(Source: P.A. 94-511, eff. 1-1-06.)
(820 ILCS 175/55)
Sec. 55. Enforcement by the Department.
(a) It shall be the duty of the Department to enforce the
provisions of this Act. The Department shall have the power to
conduct investigations in connection with the administration
and enforcement of this Act and any investigator with the
Department shall be authorized to visit and inspect, at all
reasonable times, any places covered by this Act and shall be
authorized to inspect, at all reasonable times, contracts for
the employment of all day or temporary laborers entered into
by a third party client if the Department has received a
complaint indicating that the third party client may have
contracted with a day and temporary labor service agency that
is not registered under this Act. The Department shall conduct
hearings in accordance with the Illinois Administrative
Procedure Act upon written complaint by an investigator of the
Department or any interested person of a violation of the Act.
After the hearing, if supported by the evidence, the
Department may (i) issue and cause to be served on any party an
order to cease and desist from further violation of the Act,
(ii) take affirmative or other action as deemed reasonable to
eliminate the effect of the violation, (iii) deny, suspend, or
revoke any registration under this Act, and (iv) determine the

HB1604 - 27 - LRB103 26056 SPS 52411 b
amount of any civil penalty allowed by the Act. The Director of
Labor or his or her representative may compel, by subpoena,
the attendance and testimony of witnesses and the production
of books, payrolls, records, papers, and other evidence in any
investigation or hearing and may administer oaths to
witnesses. Nothing in this Act applies to labor or employment
of a clerical or professional nature.
(b) If action has been initiated by an interested party as
to any violations pursuant to this Section prior to an
investigation by the Department, the Department shall not
launch an investigation of such violations until the
conclusion of the civil matter. The Department may intervene
in the civil matter as a party in interest. Intervention by the
Department shall not alter the rights of the interested party
under Section 67.
(c) Nothing in this Section shall in any way preclude a day
or temporary laborer or their representatives from bringing an
action to enforce rights pursuant to Section 95.
(Source: P.A. 93-441, eff. 1-1-04; 94-511, eff. 1-1-06.)
(820 ILCS 175/67 new)
Sec. 67. Action for civil penalties brought by an
interested party.
(a) Upon a reasonable belief that a day and temporary
labor service agency or a third party client covered by this
Act is in violation of any part of this Act, an interested

HB1604 - 28 - LRB103 26056 SPS 52411 b
party may file suit against the covered entity in a circuit
court, in any county where some or all the alleged offenses
occurred, without regard to exhaustion of any alternative
administrative remedies provided in this Act.
(b) In an action brought under this Section, an interested
party may recover against the covered entity any statutory
penalties set forth in Section 70 and injunctive relief. An
interested party who prevails shall receive 10% of any
statutory penalties assessed, plus any attorney's fees and
expenses in bringing the action. The remaining 90% of any
statutory penalties assessed shall be deposited into the Child
Labor and Day and Temporary Labor Services Enforcement Fund
and shall be used exclusively for enforcement of this Act by
the Department.
(c) If the Department has initiated an investigation of
any alleged violation of the Act at the time a civil action is
filed, the civil action shall be stayed as to those violations
until the Department has completed its investigation. Recovery
by the Department of civil penalties under Section 70 for any
violation of the Act shall be an absolute defense to the civil
action by an interested party as to those violations only.
(d) The right of an interested party to bring an action
under this Section terminates upon the passing of 3 years from
the latest date of the violation. This period is tolled for the
period a civil action under this Section is stayed pending the
outcome of an investigation by the Department.

HB1604 - 29 - LRB103 26056 SPS 52411 b
(e) Nothing in this Section shall in any way prevent a day
or temporary laborer or his or her representatives from
bringing an action to enforce rights pursuant to Section 95.
(820 ILCS 175/70)
Sec. 70. Penalties.
(a) A day and temporary labor service agency or third
party client that violates any of the provisions of this Act or
any rule adopted under this Act shall be subject to a civil
penalty of not less than $100 and not more than to exceed
$1,000 $6,000 for each violation violations found in the first
audit by the Department or determined by a court in a civil
action brought by an interested party, or determined by a
court in a civil action brought by the Attorney General
pursuant to its authority under Section 6.3 of the Attorney
General Act. Following a first audit or civil action, a day and
temporary labor service agency or third party client shall be
subject to a civil penalty of not less than $500 and not more
than to exceed $2,500 for each repeat violation found by the
Department or circuit court within 3 years. For purposes of
this subsection, each violation of this Act for each day or
temporary laborer and for each day the violation continues
shall constitute a separate and distinct violation. In
determining the amount of a penalty, the Director or circuit
court shall consider the appropriateness of the penalty to the
day and temporary labor service agency or third party client

HB1604 - 30 - LRB103 26056 SPS 52411 b
charged, upon the determination of the gravity of the
violations. For any violation determined by the Department or
circuit court to be willful which is within 3 years of an
earlier violation, the Department may revoke the registration
of the violator, if the violator is a day and temporary labor
service agency. The amount of the penalty, when finally
determined, may be:
(1) Recovered in a civil action brought by the
Director of Labor in any circuit court. In this
litigation, the Director of Labor shall be represented by
the Attorney General.
(2) Ordered by the court, in an action brought by any
party, including the Attorney General pursuant to its
authority under Section 6.3 of the Attorney General Act,
for a violation under this Act, to be paid to the Director
of Labor.
(b) The Department shall adopt rules for violation
hearings and penalties for violations of this Act or the
Department's rules in conjunction with the penalties set forth
in this Act.
Any administrative determination by the Department as to
the amount of each penalty shall be final unless reviewed as
provided in Section 60 of this Act.
(Source: P.A. 96-1185, eff. 7-22-10.)
(820 ILCS 175/85)

HB1604 - 31 - LRB103 26056 SPS 52411 b
Sec. 85. Third party clients.
(a) It is a violation of this Act for a third party client
to enter into a contract for the employment of day or temporary
laborers with any day and temporary labor service agency not
registered under Section 45 of this Act. A third party client
has a duty to verify a day and temporary labor service agency's
status with the Department before entering into a contract
with such an agency, and on March 1 and September 1 of each
year. A day and temporary labor service agency shall be
required to provide each of its third party clients with proof
of valid registration issued by the Department at the time of
entering into a contract. A day and temporary labor service
agency shall be required to notify, both by telephone and in
writing, each day or temporary laborer it employs and each
third party client with whom it has a contract within 24 hours
of any denial, suspension, or revocation of its registration
by the Department. All contracts between any day and temporary
labor service agency and any third party client shall be
considered null and void from the date any such denial,
suspension, or revocation of registration becomes effective
and until such time as the day and temporary labor service
agency becomes registered and considered in good standing by
the Department as provided in Section 50 and Section 55. Upon
request, the Department shall provide to a third party client
a list of entities registered as day and temporary labor
service agencies. The Department shall provide on the Internet

HB1604 - 32 - LRB103 26056 SPS 52411 b
a list of entities registered as day and temporary labor
service agencies. A third party client may rely on information
provided by the Department or maintained on the Department's
website pursuant to Section 45 of this Act and shall be held
harmless if such information maintained or provided by the
Department was inaccurate. Any third party client that
violates this provision of the Act is subject to a civil
penalty of not less than $100 and not to exceed $1,000 $500.
Each day during which a third party client contracts with a day
and temporary labor service agency not registered under
Section 45 of this Act shall constitute a separate and
distinct offense.
(b) If a third party client leases or contracts with a day
and temporary service agency for the services of a day or
temporary laborer, the third party client shall share all
legal responsibility and liability for the payment of wages
under the Illinois Wage Payment and Collection Act and the
Minimum Wage Law.
(c) Whenever a day or temporary laborer is assigned to
work at a third party client, the day or temporary laborer
shall receive training on all machinery that the day or
temporary laborer is required to operate or work on in the
vicinity of where reasonable precautions would be expected to
be taken equivalent to any training provided to directly hired
employees of the third party client who operate the same or
substantially similar machinery in advance of the day or

HB1604 - 33 - LRB103 26056 SPS 52411 b
temporary laborer operating or working in the vicinity of such
machinery. The third party client and day and temporary labor
service agency shall jointly have a duty to ensure that such
training is provided in advance of any work performed by a day
or temporary laborer. Failure to provide the training
prescribed in this Section constitutes a health and safety
violation by the third party client and the day and temporary
labor service agency under Section 95 in addition to any other
relief available to the day or temporary laborer under law.
(Source: P.A. 93-441, eff. 1-1-04; 94-511, eff. 1-1-06.)
(820 ILCS 175/87 new)
Sec. 87. Prohibition against abusive contracts.
(a) Any contract entered into between a day or temporary
laborer and a day and temporary labor service agency or third
party client that in any way limits or affects the day or
temporary laborer's ability to enforce rights under this Act,
including the venue for enforcement, or other workplace-based
rights under Illinois law must meet the following criteria to
be valid and enforceable:
(1) the contract must be in writing and executed by
original, ink signatures with a hard copy given to the day
or temporary laborer;
(2) the contract must be signed by any party that
seeks to bind the day or temporary laborer to the
agreement;

HB1604 - 34 - LRB103 26056 SPS 52411 b
(3) the contract must be valid only for the term of the
day or temporary laborer's current assignment to a client
company and expires after the assignment concludes;
(4) the original contract must be maintained and
produced in any proceeding to enforce the terms of the
contract; and
(5) if any provision of such a contract is deemed
unenforceable under Illinois law, the entire agreement
must be unenforceable.
(b) Any contract entered into between a temporary labor
service agency and any third party client that may impact a day
or temporary laborer's wages, ability to work at another day
and temporary labor service agency or third party client
company must be disclosed and a copy provided to each day or
temporary laborer in a language that the day or temporary
laborer understands within 7 days after the contract goes into
effect or impacts the day or temporary laborer.
(c) The failure by a day and temporary labor service
agency or client company to provide any of the information
required by this Section shall constitute a notice violation
under Section 95. The failure to provide each piece of
information required by this Section at each time it is
required by this Section shall constitute a separate and
distinct notice violation.
(820 ILCS 175/90)

HB1604 - 35 - LRB103 26056 SPS 52411 b
Sec. 90. Retaliation.
(a) Prohibition. It is a violation of this Act for a day
and temporary labor service agency or third party client, or
any agent of a day and temporary labor service agency or third
party client, to retaliate through removal from an assignment,
a failure to assign, discharge, or in any other manner of
negative job actions against any day or temporary laborer for
exercising any rights granted under this Act. Such retaliation
shall subject a day and temporary labor service agency or
third party client, or both, to civil penalties pursuant to
this Act or a private cause of action.
(b) Protected Acts from Retaliation. It is a violation of
this Act for a day and temporary labor service agency or third
party client to retaliate against a day or temporary laborer
for:
(1) making a complaint to a day and temporary labor
service agency, to a third party client, to a co-worker,
to a community organization, before a public hearing, or
to a State or federal agency that rights guaranteed under
this Act have been violated;
(2) causing to be instituted any proceeding under or
related to this Act; or
(3) testifying or preparing to testify in an
investigation or proceeding under this Act; or .
(4) refusing an assignment to any place where a
strike, a lockout, or other labor trouble exists.

HB1604 - 36 - LRB103 26056 SPS 52411 b
(Source: P.A. 94-511, eff. 1-1-06.)
(820 ILCS 175/95)
Sec. 95. Private Right of Action.
(a) A person aggrieved by a violation of this Act or any
rule adopted under this Act by a day and temporary labor
service agency or a third party client may file suit in circuit
court of Illinois, in the county where the alleged offense
occurred or where any day or temporary laborer who is party to
the action resides, without regard to exhaustion of any
alternative administrative remedies provided in this Act. A
day and temporary labor service agency aggrieved by a
violation of this Act or any rule adopted under this Act by a
third party client may file suit in circuit court of Illinois,
in the county where the alleged offense occurred or where the
day and temporary labor service agency which is party to the
action is located. Actions may be brought by one or more day or
temporary laborers for and on behalf of themselves and other
day or temporary laborers similarly situated. A day or
temporary laborer whose rights have been violated under this
Act by a day and temporary labor service agency or a third
party client or a day and temporary labor service agency whose
rights have been violated under this Act by a third party
client is entitled to collect:
(1) in the case of a wage and hour violation, the
amount of any wages, salary, employment benefits, or other

HB1604 - 37 - LRB103 26056 SPS 52411 b
compensation denied or lost to the day or temporary
laborer or day and temporary labor service agency by
reason of the violation, plus an equal amount in
liquidated damages;
(2) in the case of a health and safety or notice
violation, compensatory damages and an amount of not less
than $100 but not more than $1,000 for each up to $500 for
the violation of each subpart of each Section;
(3) in the case of unlawful retaliation, the greater
of all legal or equitable relief as may be appropriate or
liquidated damages equal to $25,000 per incident of
retaliation, at the selection of the aggrieved person, and
reinstatement, if appropriate; and
(4) attorney's fees and costs.
(a-5) Upon a reasonable belief that a day and temporary
labor service agency has violated any provision of this Act,
an interested party shall have the right to bring an action for
any such violation on the same basis as an aggrieved day or
temporary laborer provided in subsection (a), except that the
interested party need not be aggrieved in order to:
(1) disgorge, in the case of a wage and hour
violation, any financial benefit to the employer from
unpaid wages in the amount of all unpaid wages, plus
statutory interest and statutory damages and attorneys'
fees and costs as provided herein and in the Minimum Wage
Law and Wage Payment and Collection Act; and

HB1604 - 38 - LRB103 26056 SPS 52411 b
(2) pursue, in the case of a health and safety or
notice violation, an amount of not less than $100 but not
more than $1,000 for each violation of each subpart of
each Section.
An interested party may bring an action to disgorge the
amounts provided in paragraphs (1) and (2) for similarly
situated employees of the day and temporary labor service
agency who do not request to exclude themselves from the
proceeding. In adjudicating an action involving a class of
similarly situated employees brought under this subsection,
the circuit court shall apply the procedures set forth in Part
8 of Article II of the Code of Civil Procedure, except that
there shall be no requirement that the interested party have a
claim or claims that are common to or are typical of the
members of the class. Any funds for unpaid wages, statutory
interest or statutory damages disgorged from an employer and
awarded in an action brought under this subsection shall be
distributed to all employees, other than those who exclude
themselves from the action pursuant to the procedure set forth
in subsection (b) of Section 2-804 of the Code of Civil
Procedure, in proportion to the amount of each employee's
unpaid wages.
(b) The right of an aggrieved person to bring an action
under this Section terminates upon the passing of 3 years from
the final date of employment by the day and temporary labor
agency or the third party client or upon the passing of 3 years

HB1604 - 39 - LRB103 26056 SPS 52411 b
from the date of termination of the contract between the day
and temporary labor service agency and the third party client.
This limitations period is tolled if a day labor employer has
deterred a day and temporary labor service agency or day or
temporary laborer's exercise of rights under this Act by
contacting or threatening to contact law enforcement agencies.
The right of an interested party to bring an action under this
Section on behalf of a day or temporary laborer, a group of day
or temporary laborers, or a class of day or temporary laborers
terminates 3 years after the date of termination of the
contract between the day and temporary labor service agency
and the third party client.
(Source: P.A. 96-1185, eff. 7-22-10.)
Section 99. Effective date. This Act takes effect July 1,
2023.