On Wednesday, Nov. 22, the American Staffing Association, the Staffing Services Association of Illinois, and three Illinois staffing firms were named plaintiffs in a lawsuit against the Illinois Department of Labor to immediately and permanently halt enforcement of new amendments to the Illinois Day and Temporary Labor Services Act. The complaint, which was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division, alleges that the amendments violate the state constitution and U.S. Constitution—as well as federal statutes including the Employee Retirement Income Security Act, Affordable Care Act, and National Labor Relations Act.
On Aug. 4, Illinois Gov. Jay Pritzker signed into law HB 2862, which created the sweeping amendments to the act. Among other things, the amendments require covered temporary employees who work 90 days to receive the same pay and benefits as the client’s employees. The act does not apply to temporary professional and clerical workers. After the law was enacted, the Illinois Department of Labor issued administrative regulations and proposed rules. On Nov. 17, the governor signed an amendment to delay the effective date of the onerous “equivalent pay and equivalent benefits” provision until April 1, 2024.
The lawsuit notes that the amendments and accompanying rules and regulations are too vague and impose extraordinary burden, cost, and compliance risks on staffing firms, including exposure to statutory penalties and lawsuits from uninjured third parties.
The plaintiffs are represented by Chicago law firms Locke Lord LLP and Herschman Levison Hobfoll PLLC.