Illinois Benefits for Temporary Workers, A Partial Reprieve

Illinois Benefits for Temporary Workers, A Partial Reprieve

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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.

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Illinois Benefits for Temporary Workers, A Partial Reprievehttps://www.cbiz.com/Portals/0/Images/GettyImages-1356386941-2.jpg?ver=4A5sKydC15LLtEwyMEsaTA%3d%3dThe 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.2024-04-02T17:00:00-05:00The 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.Regulatory, Compliance, & LegislativeEmployee Benefits ComplianceNo
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