Update Applicable to:	Effective date
All covered entities in Illinois	April 1, 2024

What happened?

On June 21, 2024, the Illinois Legislature passed HB 3650, which was sent to the governor and is waiting for his signature.

What are the details?

Key Bites:

• Amends the Day and Temporary Labor Services Act.

• Defines terms such as labor dispute and applicant.

• The employment notice is amended and has additional requirements, as well as an addition of application receipt, in the form and manner provided by the bill.

• It provides that a day and temporary labor service agency shall pay a day or temporary laborer who is assigned to work and performs work at the same third-party client for more than 720 hours within a 12-month period, beginning on or after April 1, 2024.

• The compensation is established according to a method chosen at the sole discretion of the third-party client:
  (1) third-party client employee compensation or
  (2) data from the Bureau of Labor Statistics.

• Changes provisions concerning the right to refuse assignment due to a labor dispute.

• Provides that if an applicant seeks a work assignment as a day or temporary laborer with a day and temporary labor service agency, including in-person, online, or through an app-based system, and is not placed with a third-party client or otherwise contracted to work for that day by the day and temporary labor service agency, the day and temporary labor service agency shall provide the applicant with a confirmation that the applicant sought work that satisfies specified criteria.

• The bill also sets forth compensation requirements for day or temporary laborers based on directly hired comparative employees of a third party. It provides that it shall be the responsibility and duty of a day and temporary labor service agency to calculate and determine the hourly rate of pay and the benefits it shall offer to a day or temporary laborer, including any cash equivalents.

• There is a preliminary injunction order still in effect against the Illinois Department of Labor (IDOL).

For a good breakdown of the bill.

Business Considerations

• Employers should familiarize themselves with the new requirements, including understanding the requirements for compensation, the rights of laborers, and the responsibilities of third-party clients.
• Employers should review their current practices to ensure they comply with the new law, including the audit and review of the compensation practices, their use of day and temporary laborers, and their relationships with third-party clients.
• Employers should educate their staff about the new law, its requirements, and its implications. This includes educating managers and supervisors about the rights of day and temporary laborers and the responsibilities of third-party clients.
• Employers should be prepared for potential audits and ensure they have the necessary documentation to demonstrate compliance.

Source References

• IL SB 3650
• Illinois Amends Temp Worker Law to Increase Business Obligations: 4 Things You Need to Know (Fisher & Phillips LLP.)

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