What Is the Illinois Law That Impacts Temp Worker Wages?

 Posted on November 27, 2023 in Illinois employment lawyer

In August, Illinois lawmakers passed the Temp Worker Fairness and Safety Act to protect temporary workers from being kept in temporary “limbo.” According to the new law, employers are now required to pay temporary workers comparable wages as company employees after the temp workers have passed the 90-day mark on the job. This practice is referred to as “permatemping.” If your company regularly employs temp workers, it is important to speak to an Illinois employment lawyer to ensure you are following the law.

Issues for Temporary Employees

According to statistics from the Illinois Department of Labor, over 300 temporary labor agencies operate in the state. Last year, more than 980,000 Illinois residents were employed as temp workers. One national study conducted in 2021 revealed that more than 60 percent of staffing agencies engaged in discrimination.

The new law amends the Day and Temporary Labor Services Act of 2017. The changes are meant to address some of the unique challenges individuals employed in temporary or contingent work arrangements face. With a focus on enhancing wages and fair treatment, the Act seeks to create a more equitable labor landscape in the state.

One of those changes will be how much temporary workers will now be paid – approximately $4 an hour more.

The Act also imposes limits on the duration of temporary assignments. Temporary work is meant to be just that — temporary. The Act sets a maximum length for temporary assignments to 90 days. This is to prevent the misuse of labor and encourage employers to provide stable, long-term employment opportunities. After 90 days, the employee must be paid the equivalent of the company employees working in similar positions.

The new law also establishes mechanisms for temp workers to report violations and seek redress. Previously, the only place a temp worker could file a complaint was with the Illinois Department of Labor; however, proponents of the new law said the lack of investigators frustrated many temp workers. Under the new law, workers can now be filed by the Illinois Attorney General’s Office and workers’ rights groups.

The new law also requires staffing agencies to register with the state. Failure to do so could result in a fine of up to $45,000. Workers’ rights groups have already started filing complaints against staffing agencies that have yet to register.

Contact an Illinois Labor Attorney for Legal Assistance

If your company has questions about the new Act, do not hesitate to call The Miller Law Firm, P.C. at 847-995-1205 to schedule a free and confidential consultation with a seasoned Schaumburg, IL employment law attorney.