Federal Court Decision Provides Relief for Staffing Agencies in Illinois
A recent decision by the U.S. District Court for the Northern District of Illinois grants partial relief concerning amendments to the Illinois Day and Temporary Labor Act (DTLSA). This marks a significant victory for all staffing agencies operating in Illinois, including The Reserves Network.
The ruling, issued on March 11, 2024, prevents the enforcement of certain provisions of the amended DTLSA, specifically the requirement for staffing agencies to provide equivalent benefits to temporary workers as the comparable direct employees of their client companies. This decision, however, does not impact the obligation for staffing agencies to provide equal wages after 90 days of work at a client.
The court determined that the equal benefits provision within the amendment violates the federal Employee Retirement Income Security Act (ERISA). In essence, requiring staffing agencies adjust their benefit plans for temporary workers based on varying client demands undermines the agencies’ ability to consistently administer benefit plans across multiple client locations and states.
“The Court’s decision recognizes the challenges faced by staffing agencies in complying with the amended DTLSA,” says Neil Stallard, CEO. “It allows us to continue serving our clients and supporting the workforce in Illinois to the best of our ability.”
The Reserves Network remains committed to upholding the highest standards of compliance and providing exceptional service to clients and temporary workers. We will continue to monitor developments related to the DTLSA and other relevant legislation to ensure that our operations remain in full compliance with state and federal laws.
About The Reserves Network
Founded in 1984, The Reserves Network is a leading staffing and recruiting company specializing in temporary, temp-to-hire, direct source, and direct hire placements. The family- and veteran-founded company has more than 45 operating locations, doing business in over 35 states, and placing over 20,000 people in jobs annually. Additional information about The Reserves Network is available at www.TRNstaffing.com.
