Through the remainder of the year in this space, ASA will recap the association’s efforts in successfully defeating or significantly mitigating proposed legislation that would have harmed the staffing industry.
Earlier this year, the Illinois legislature passed, and Gov. J.B. Pritzker signed into law, HB 2862, legislation that amends the Illinois Day and Temporary Labor Services Act. Advocacy efforts led by ASA; the Illinois Search and Staffing Association, an ASA-affiliated chapter; and ASA lobbyist Paul Rosenfeld of the Government Navigation Group were instrumental in mitigating the law’s burden on temporary staffing companies.

After several months of hearings and negotiations, leaders of the Illinois General Assembly made clear that the bill—including the requirement that certain temporary employees receive the same pay and benefits as equivalent direct hire employees after working for more than 90 calendar days for a client—was going to pass. Rep. Jay Hoffman (D-Belleville), the assistant majority leader of the Illinois House of Representatives, asked if there were any amendments that the industry would like to request, ASA submitted these suggested changes, which were adopted by the legislature:

• Removal of the requirement to collect race and ethnicity data on every applicant
• Removal of the requirement to disclose to employees the hourly bill rate charged to clients
• Increase in the waiting period to comply with the pay and benefits mandate from 60 days to 90 days

The law and amendments do not apply to temporary professional or clerical workers.

In August, the Illinois Department of Labor published proposed rules to implement HB 2862. ASA submitted a comment letter that suggested, among other things, that temporary labor agencies should have the option to calculate the 90-day waiting period based on their existing payroll systems and practices, that the equal pay mandate should apply only if the comparative direct hire job is “substantially similar,” and that the proposed safety training requirements should clarify that clients should conduct site-specific training.

Negotiations on a Technical Fix Amendment Lead to Delay in Equal Pay and Cost of Benefits Mandate
During a recent special legislative session, proponents and opponents of HB 2862 discussed possible technical corrections to the bill. The discussions ended without agreement. However, in early November, HB 3641 was enacted delaying implementation of the equal pay and benefits mandate. The law provides that calculation of the 90-day waiting period will not begin until April 1, 2024.

The delay bill was passed at the urging of ASA, the Illinois Search and Staffing Association, and the Staffing Services Association of Illinois. Industry representatives met with Rep. Hoffman, who was instrumental in achieving the delay.

The delay in implementing the equal pay and benefits mandate will give the Illinois Department of Labor time to draft regulations clarifying how the mandate will apply. State legislators had sharply criticized the department’s proposed rules, saying they were “too vague to provide meaningful guidance.”

ASA filed extensive comments on the proposed regulations and will continue to pursue legislative fixes when the legislature reconvenes in January.

Through the remainder of the year in this space, ASA will recap the association’s efforts in successfully defeating or significantly mitigating proposed legislation that would have harmed the staffing industry.
Earlier this year, advocacy efforts led by ASA; California Staffing Professionals, an ASA-affiliated chapter; and California lobbyists Mike Robson and Bridget McGowan of Edelstein Gilbert Robson & Smith LLC were instrumental in derailing two California bills that would have had a major negative impact on the staffing industry.

The first bill, AB 331, would establish various requirements for the use of automated decision tools (ADTs), including in the employment context. Among other things, it would require that developers and users of ADTs prepare yearly impact statements addressing the use and validity of the ADTs, prepare governance programs to manage the risk of algorithmic discrimination, notify all persons subject to a consequential decision made by an ADT, and provide an alternative selection process for individuals who choose not to be subject to ADT evaluation.

The second bill, SB 809, would eliminate an employer’s ability to consider an applicant’s conviction history save for a few very narrow exceptions, such as for jobs in industries the government deems sensitive in nature. Companies permitted to consider conviction history would be barred from taking adverse action against an applicant due to a delay in obtaining the applicant’s conviction history, even where that delay was outside of the company’s control.

The staffing industry worked with the California Chamber of Commerce to oppose the bills or suggest amendments to them. Amendments to AB 331 proposed by ASA would, among other things, limit when candidates may opt out of ADT evaluation, thereby ensuring that staffing firms could continue to place candidates in jobs in a timely manner. ASA joined a coalition of employer groups in opposing SB 809 on the basis that it would prohibit staffing firms from conducting criminal background checks for most jobs, even when clients require them.

Following weeks of discussions and negotiations, both AB 331 and SB 809 were moved to the inactive file, meaning they will not be taken up this year. Both bills can be reconsidered during the 2024 legislative session, and ASA will re-engage if necessary.

Through the remainder of the year in this space, ASA will recap the association’s efforts in successfully defeating or significantly mitigating proposed legislation that would have harmed the staffing industry.
Earlier this year, the Delaware House of Representatives introduced HB 199, a bill aimed at regulating temporary nurse staffing agencies. Among the provisions of the bill was language authorizing the state’s health department to “establish a maximum rate temporary nurse staffing agencies can charge long-term facilities.”

Working with Delaware lobbyist Ellen Valentino of the Cornerstone Government Affairs Group, ASA met with the bill’s sponsors and House and Senate leadership to express the industry’s concerns with the legislation as written. They discussed the potential problems a rate cap system posed to the state’s long-term care community and urged the legislature to take steps to address the nursing shortage instead of installing rate caps that will just exacerbate the nursing shortage and harm patient care.

When the legislature adjourned for the year at the end of June, no action had taken place on HB 199. Because legislation carries over to the second year of the legislative session, the bill is still active. ASA lobbyists are in the process of scheduling meetings with the bill’s sponsors to see what the future may hold for HB 199 and any other bill affecting temporary nurse staffing.

Through the remainder of the year in this space, ASA will recap the association’s efforts in successfully defeating or significantly mitigating proposed legislation that would have harmed the staffing industry.

In January, the New Hampshire legislature looked to introduce a bill that would require New Hampshire nurse agencies to register with the state’s Department of Health. Many states have licensing laws that prescribe basic nurse agency operating standards in the interest of patient safety and quality of care, which ASA supports. But this proposal did much more.

As introduced, SB 149 would have required nurse agencies to submit quarterly reports to the health department, by county, on each health care facility they contract with. The reports would have required agencies to detail the charges made to the facility for each licensed health care employee category, the average amount paid to employees in each category, and the average labor-related costs incurred by the agency in each category. In addition, agencies would have had to amend their client contracts to include a detailed schedule of the agency’s pay and bill rates for every category of employee, including average hourly base pay rates, plus hazard pay, shift differentials, overtime, holiday pay, and travel and mileage pay.

Through written testimony and meetings with lawmakers, ASA stressed that—while the industry supported reasonable quality-focused rules—the proposed reporting and record-keeping mandates would have increased nurse agency costs and required disclosure of confidential business information that has no relationship to operating standards, patient safety, or quality of care.

The association’s New Hampshire lobbyist, Bruce Berke with Sheehan Phinney Capitol Group, met with key legislators and was successful in getting onerous requirements removed. The bill was amended to establish a simple and straightforward registration process. Gov. Chris Sununu signed the bill into law in August.

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.

Through the remainder of the year in this space, ASA will recap the association’s efforts in successfully defeating or significantly mitigating proposed legislation that would have harmed the staffing industry.

In February, the Colorado legislature introduced and considered HB 23-1118, legislation that would have required businesses to offer additional work hours to existing employees before hiring a new employee, “including hiring through the use of staffing agencies.”

In written opposition testimony, ASA explained that the proposed legislation would deny jobs to thousands of temporary and contract workers—most of whom work full-time workweeks, enjoy the flexibility that temporary work offers, and otherwise would be assigned to work at peak seasons or to fill in for employee absences. These workers would be denied both the opportunity to work and a “bridge” that often leads to permanent employment. The testimony concluded that sacrificing the work opportunities for one group of workers, who generally work full-time workweeks, for the benefit of another group, some of whom may work part time, would make little sense.

ASA also voiced concerns through a meeting, arranged by lobbyist Jay Hicks of Hicks and Associates, with the bill sponsor. As a result of these efforts as well as strong opposition from the business community, the bill died when the legislature adjourned.

On Nov. 9, the Illinois legislature passed HB 3641, delaying the equal pay and benefits mandate under the Day and Temporary Labor Services Act. The mandate requires staffing agencies to provide temporary employees with equal pay and benefits after an employee has worked 90 days. HB 3641 provides that calculation of the 90-day waiting period will not begin until April 1, 2024.

The amendment was passed at the urging of ASA; the Staffing Services Association of Illinois; and the Illinois Search and Staffing Association, an ASA-affiliated chapter. Industry representatives met with assistant majority leader Rep. Jay Hoffman (D-113), who was instrumental in achieving the delay.

The delay in implementing the equal pay and benefits mandate will give the Illinois Department of Labor time to draft regulations clarifying how the mandate will apply. State legislators had sharply criticized the department’s proposed rules, saying they were “too vague to provide meaningful guidance.”

ASA filed extensive comments on the proposed regulations and will continue to pursue legislative fixes when the legislature reconvenes in January.

Through the remainder of the year in this space, ASA will recap the association’s efforts in successfully defeating or significantly mitigating proposed legislation that would have harmed the staffing industry.
Earlier this year, when the Ohio House of Representatives passed HB 33, the fiscal year 2023–24 budget bill, it contained language regulating nurse staffing firms—including language establishing rate caps and requiring nurse staffing firms to submit a schedule of rates to be charged to facilities.

When the bill was sent to the state Senate, ASA—along with member health care firms and Ohio lobbyist Andy Bowers of Park Street Law Group LLC—engaged key senators in an effort to have the nurse staffing-related language removed from the bill. Following several meetings and conversations, the efforts were successful as the bill was passed in the state Senate without the nurse staffing-related language.

When House and Senate leadership began negotiations to discuss what would be in the final bill, ASA remained engaged in the process and explained to leadership why rate caps and the reporting requirements would be harmful to the state’s health care system. Thanks to these and other efforts, the annual budget that was signed into law in Ohio did not include the nurse staffing-related language.

Through the remainder of the year in this space, ASA will recap the association’s efforts in successfully defeating or significantly mitigating proposed legislation that would have harmed the staffing industry.

In January, the Colorado legislature followed up its new law requiring the registration and licensure of all “supplemental health care staffing agencies” by introducing HB 23-1030. The bill, as originally drafted, prohibited agencies from including in a contract or agreement with a health care worker, nursing care facility, or assisted living residence a provision for liquidated damages, employment fees, or other compensation if the nursing care facility or assisted living residence hired the health care worker as a permanent employee either prior to or after the termination of the contract or agreement.

In a letter to the bill’s sponsors, ASA objected to the conversion fee ban because it would prohibit staffing agencies from recouping their recruiting and placement costs and allow clients to use them as a free employment agency. While testifying before the state senate’s business, labor, and technology committee, ASA vice president of government relations Toby Malara explained that these fees usually are paid on a sliding scale based on the hours the employee has worked on the agency’s payroll and are generally waived entirely if the employee is on the payroll for a period of time agreed to by both parties.

Following the hearing, ASA lobbyist Jay Hicks of Hicks & Associates arranged a meeting between interested parties and the committee chair. Representatives from the Colorado Health Care Association and Center for Assisted Living showed no interest in compromising, but the committee chair understood the association’s concerns and, at his direction, the bill was amended to allow for conversion fees to be charged during the first 30 days of a contract.

Today and through the remainder of the year in this space, ASA will recap the association’s efforts in successfully defeating or significantly mitigating proposed legislation that would have harmed the staffing industry.

Earlier this year, the Connecticut legislature introduced and considered HB 6859, legislation that would have required staffing agencies to provide employees with advance notice of work schedules and changes in schedules. The bill would have also required businesses to “make every effort” to schedule existing employees before hiring a new employee from a staffing agency. This was the sixth consecutive year that the state’s legislature considered such legislation.

In written opposition testimony, ASA explained that staffing firms could not comply with the bill’s requirement to provide a written estimate of the employee’s work schedule at the time of hire—including the average and range of hours the employee could expect to work each week plus the number, length, and days of their shifts—because staffing firms usually do not know that information at that time.

ASA also objected to the bill’s requirement that, before hiring a new employee from a staffing firm, an employer must “make every effort” to schedule its existing employees. ASA argued that every employer should be able, without delay, to obtain the help it needs in exigent circumstances. Many requests for temporary help could not be timely met, or met at all, if a business had to first canvass its workforce to identify individuals who might be willing and able to perform the work.

ASA lobbyist Kevin Hill of Powers, Griffin & Hill then arranged for a meeting with the bill’s sponsors to discuss the association’s concerns. Ultimately, the legislation was not called up for consideration and the bill died when the legislature adjourned in June.