On Aug. 4, 2023, Illinois Gov. J.B. Pritzker signed HB 2862 into law, making material changes to the Illinois Day and Temporary Labor Services Act. The new law, among other things, requires that the pay for temporary workers assigned to a third-party client for more than 90 days be equal to that of their directly hired employee counterparts. This law is effective immediately.
Illinois joins New Jersey, which passed a similar law concerning equal pay for temporary workers earlier this year.
In particular, the new law provides that temporary workers who have been assigned to work for more than 90 days shall be paid, at minimum, equal to the rate of pay and benefits of the lowest paid direct employee of the third-party client with the same seniority and performing the same or substantially similar work on jobs requiring “substantially similar skill, effort, and responsibility.”
In the event there is no comparable employee, the temporary worker shall be paid equal to the rate of pay and benefits of the lowest paid employee with the closest level of seniority, according to the law. With respect to benefits, the law provides that the temporary worker agency may pay the hourly cash equivalent of the actual cost of the benefits, in lieu of actually providing the benefits.
Interestingly, the third-party client also must provide, upon request, “all necessary information” concerning jobs, pay, and benefits of the comparable employees to allow the...
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