The Illinois Day and Temporary Labor Services Act provides that, as of April 1, 2024, previously August 4, 2023, day and temporary labor service agencies must pay day and temporary laborers who work for a third-party client for 90 calendar days or more, at the least the same wages and benefits as an equivalent employee directly hired by the third-party employer at the same worksite. See prior Benefit Beat article here.
Three temporary staffing agencies and two trade associations then sued to enjoin the following three new provisions:
- Section 42 – equal pay for equal work,
- Section 11 – right to refuse assignment to a labor dispute, and
- Section 67 – grants a private right of action to any interested party.
On March 11, 2024, Honorable Thomas Durkin, US District Judge for the Northern District of Illinois granted a preliminary injunction prohibiting the enforcement of the equivalent benefits or cash equivalent of the actual cost of benefits for equal work provision.
The court found the plaintiffs sufficiently demonstrated that the equivalent benefits or cash equivalent of the actual cost of benefits for equal work provision is preempted by ERISA and the agencies would suffer irreparable harm if the Illinois Department of Labor enforced the provision. All other parts of the law remain in effect.
Employers will want to keep an eye on this case as the Illinois Department of Labor could appeal the court’s decision or the Illinois legislature may further amend the law.
The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.
© Copyright CBIZ, Inc. All rights reserved. Use of the material contained herein without the express written consent of the firms is prohibited by law. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. Material contained in this publication is informational and promotional in nature and not intended to be specific financial, tax or consulting advice. Readers are advised to seek professional consultation regarding circumstances affecting their organization.
“CBIZ” is the brand name under which CBIZ CPAs P.C. and CBIZ, Inc. and its subsidiaries, including CBIZ Advisors, LLC, provide professional services. CBIZ CPAs P.C. and CBIZ, Inc. (and its subsidiaries) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. CBIZ CPAs P.C. is a licensed independent CPA firm that provides attest services to its clients. CBIZ, Inc. and its subsidiary entities provide tax, advisory, and consulting services to their clients. CBIZ, Inc. and its subsidiary entities are not licensed CPA firms and, therefore, cannot provide attest services.