On Friday, Governor Pritzker signed Senate Bill 3650 (SB 3650), marking the third major amendment to the Illinois Day and Labor Services Act in just over a year. These changes are effective immediately and directly impact both staffing agencies like QPS and our valued customers who utilize temporary labor in Illinois.
The latest amendments aim to clarify and build upon the significant changes introduced last August through House Bill 2862 (HB 2862). Here are the key points you should be aware of:
1. Equal Pay and Benefits Mandates
SB 3650 introduces new requirements for ensuring that temporary laborers who work more than 720 hours within a rolling 12-month period receive pay and benefits comparable to directly hired employees performing similar work. There are two methods to determine the hourly rate of pay:
- Method 1: Match the lowest paid, similarly situated regular employee at your company.
- Method 2: Use the median base hourly rate for the job classification in the same area, as per the U.S. Department of Labor’s data.
For those working over 4,160 hours within 48 months, pay must meet the 75th percentile rate for similar workers.
The benefits mandate remains subject to a federal court injunction, which is currently under appeal.
2. Collective Bargaining Agreement Exception
If your direct hire employees performing the same work are covered by a collective bargaining agreement, the equal pay and benefits mandate does not apply.
3. Updated Employee Notice and New Applicant Receipt Mandate
Staffing agencies like QPS must now provide detailed notices to workers, including job duties, pay, and seniority information. Additionally, if an applicant seeks but does not receive a work assignment, we must provide a confirmation receipt with specific details.
4. Request for Information
Upon request, customers must provide us with relevant job details to ensure compliance with the Act’s equal pay and benefits mandates.
5. Right to Refuse an Assignment to a Labor Dispute
We are required to inform temporary laborers of any ongoing labor disputes at your worksite and their right to refuse the assignment.
6. Safety Training Mandate Clarification
Safety training must be specific to the hazards and consistent with OSHA standards.
7. New Definitions
SB 3650 introduces definitions for terms such as “Applicant,” “Labor Dispute,” and “Seniority” to further clarify compliance requirements.
What’s Next?
The Illinois Department of Labor will be issuing new administrative rules to interpret these amendments and the changes from HB 2862. We will keep you updated as more information becomes available.
We understand that these changes may raise questions or concerns, and we are here to support you in navigating this evolving landscape. Please feel free to reach out to your QPS representative if you need further clarification or assistance.
