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Wednesday, December 3, 2025

Temp Agency or Tech Platform? Advocates Say Staffing Apps Are Skirting Laws, But Companies Say They’re Exempt - WTTW News

For years, the debate has raged over ride hailing apps Uber and Lyft — are they taxi companies or tech firms?

The tech giants have been firm in their stance that they’re merely a tech platform connecting independent drivers with passengers looking for a ride. To regulators, worker advocates and other detractors, the companies are cab services trying to avoid classifying their drivers as employees.

Now, a similar crop of apps has arisen in the temporary employment arena. The apps connect people looking for work with companies just as staffing agencies do, but assert they’re tech platforms exempt from regulations aimed at protecting temp workers.

The companies have drawn millions in funding, hundreds of thousands of workers, and legal action over their labor practices — including here in Illinois.

“Not surprisingly, their assertion is much like the Uber defense — ‘We’re not an employer of record, we provide laborers through an app, we connect workers with jobs, like Monster.com or LinkedIn,’” said Chris Williams, a labor attorney who’s brought complaints against several temp staffing apps on behalf of the Chicago Workers Collaborative.

Williams argues that under the state law governing temp work, it’s irrelevant if the companies are a direct employer.

“It doesn’t turn on the relationship being an employment relationship, it turns on the relationship being one provides labor to the other,” Williams said. “We think there’s no question that they fall into this category.”

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