HB 2862 Opposed by IMA is Signed Into Law

HB 2862 Opposed by IMA is Signed Into Law Main Photo

7 Aug 2023

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Governor JB Pritzker signs HB 2862 into law, bringing immediate changes to Illinois' Day and Temporary Labor Services Act that regulates staffing and temporary worker agencies.

This new law, which the IMA adamantly opposed throughout the legislative process, will impact manufacturers who utilize day and temporary laborers. Primarily, this new law requires staffing agencies to pay their employees who are assigned to a client for more than 90 calendar days, the same level of pay and benefits as regular employees of the business that have the same level of seniority and are performing the same or substantially similar work. Not only does this increase costs and provide confusion on how to appropriately calculate earnings, it also discourages Illinois companies, including manufacturers, retailers, office workers and more, from extending job opportunities to temporary workers after 90 days of work.

In order for staffing agencies to meet this requirement and adequately pay their employees, the law further requires all employers to provide temporary agencies, upon their request, all "necessary information related to job duties, pay, and benefits of directly hired employees necessary for the day and temporary labor service agency to comply [...]" If businesses don't comply with the sensitive information request, they will be in violation of the law and subjected to fines.

Equally troubling, the new law prevents staffing agencies from assigning workers facilities experiencing “labor trouble” which is undefined, but specifically includes strikes and lockouts.

The IMA was one of only a few business groups who opposed these changes to the Illinois' Day and Temporary Labor Services Act. After the bill passed both legislative chambers, the IMA sent this veto request letter to the Governor and then coordinated this veto request letter from over 200 Illinois manufacturers and businesses. We are disappointed that the Governor chose not to listen to the business community's concerns on this matter.

On July 25, the IMA hosted the "Laws Impacting Manufacturers: Changes are Coming to Illinois' Day and Temporary Labor Service Act and Equal Pay Act" program with IMA member Scott Cruz, Greensfelder, Hemker & Gale, P.C. During the program, this new law was explained and guidance for manufacturers was provided. You can find the recording of this program here, as well as the slides from the program, here.

The IMA has asked for further guidance from the Illinois Department of Labor and will share that information once it is available. In the meantime, if you have further questions on the changes to the day and temporary labor law, please contact IMA Vice President of Government Affairs, Donovan Griffith.