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

CHICAGO, IL — The Illinois Department of Labor (IDOL) is reminding businesses to verify that a day and temporary labor staffing agency is registered with the Department before contracting with the agency for staffing needs.  The Day and Temporary Labor Service Act, which is enforced by IDOL, requires staffing agencies to register annually with the Department.

The Act requires a day and temporary labor service agency to register with the Department by December 31st of each year or incur a penalty of $500 for each day it remains unlicensed, and for each violation of the Act. 

The law also requires third party clients to verify a day and temporary labor service agency's status with the Department before entering into a contract with such an agency, and on March 1 and September 1 of each year. A listing of registered agencies that are compliant with the law may be found by clicking on the following link: http://1.usa.gov/1RO7uSh.

Third-party clients and businesses that contract with unregistered temporary staffing companies can face penalties of up to $500 per day. Each day during which a day and temporary labor service agency operates without registering with the Department shall be a separate and distinct violation of this Act.

Agencies can register with the Department by submitting a full application and the required documentation, including but not limited to surety bond, proof of unemployment insurance, employment notice, articles of incorporation/by-laws and workers’ compensation insurance. All applicable fees and penalties must also be submitted with the application.  The registration application may be found at http://1.usa.gov/1IQVxsS or obtained by calling (312) 793-2804.