The Illinois Department of Labor has initiated the process of developing regulations to implement the equal benefits provision of the Day and Temporary Labor Services Act that was enacted in 2024. The provision requires day and temporary labor agencies to provide laborers who have completed 720 hours of service with a client in a 12-month period with benefits substantially similar to those provided to client employees performing the same or substantially similar work. Agencies have the option of paying laborers the hourly average cash equivalent of the cost of the benefits clients provide to such employees.

The benefits provision of the act is the subject of a lawsuit filed by ASA and several staffing agencies challenging the provision on the grounds that it violates the federal Employee Retirement Income Security Act. At the invitation of the Illinois Department of Labor, ASA has submitted comments asserting that any rules the department issues consistent with the act will necessarily also conflict with Erisa. Nonetheless, to mitigate some of the adverse consequences on staffing agencies should the law ultimately be deemed compliant with Erisa, ASA has proposed that the department clarify several of the benefit provisions that are unclear or ambiguous. A copy of the association’s comments is available at americanstaffing.net.

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