Illinois Reminds Businesses to Use Only Licensed Day and Temporary Labor Agencies

CHICAGO — The Illinois Department of Labor (IDOL) is reminding businesses intending to contract with day and temporary labor agencies for their staffing needs to first check if the agencies are licensed by the state.  Businesses and/or third-party clients must verify if a staffing agency is registered with IDOL to operate before they enter into a contract and at two additional times each year -- March 1 and September 1.

IDOL regulates the state’s temporary staffing agency industry through enforcement of the Day and Temporary Labor Service Act (DTLSA).  Under the Act, contracting with an unregistered day and temporary labor agency can incur penalties of up to $500 per day.  A list of agencies that are currently registered is available on IDOL’s website at http://www.state.il.us/agency/idol/listings/dlagency.htm.

Day and temporary labor agencies are required to register with IDOL by December 31 of each year or face stiff penalties of $500 for each day it remains unlicensed, and for each violation of the Act.  Agencies are required to provide documentation that includes proof of valid unemployment insurance, workers’ compensation insurance and a surety bond.  To view additional requirements and register a day and temporary staffing agency as required by law, please visit http://www.state.il.us/agency/idol/laws/Law175.htm or contact the Department at 312-793-7837.  All applicable fees and penalties must be submitted with the application.

In 2012, IDOL launched a compliance initiative to inform unlicensed day and temporary labor service agencies statewide about the law’s requirements and on how to apply for a license.  To date, the Department approved registration of 755 locations with over 250 corporate offices.