The Illinois legislature recently passed HB2862 amending the Day and Temporary Labor Services Act (the “Act”). If signed by Gov. J.B. Pritzker in its current form as expected, it will have significant implications for staffing agencies and their clients (i.e. employers that use staffing agencies to supplement their workforce with non-employee, temporary workers). Gov. Pritzker has 60 days from June 16, 2023, to sign the bill. Once signed, the bill takes effect immediately.

Importantly, the amendments do not alter who is covered under the Act or their corresponding definitions. Under the Act:

• “Day and temporary labor service agency” (“Labor Service Agency”) means “a person or entity engaged in the business of employing day or temporary laborers to provide services, for a fee, to or for any third party client pursuant to a contract with the day and temporary labor service agency and the third party client.”
• “Third-party client” (“client company”) means “any person that contracts with a day and temporary labor service agency for obtaining day or temporary laborers.”
• “Person” means “any natural person, firm, partnership, co-partnership, limited liability company, corporation, association, business trust, or other legal entity, or its legal representatives, agents, or assign.”
• “Day and temporary labor” means “work performed by a day or temporary laborer at a third party client, the duration of which may be specific or undefined, pursuant to a contract or understanding between...

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