IDOL encouraging Businesses to verify Licensed Temp Agencies

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ILLINOIS – The Illinois Department of Labor (IDOL) is reminding businesses to verify day and temporary labor agencies to avoid penalties from unlicensed agencies.

Staffing agencies are required to register annually with IDOL through The Day and Temporary Labor Service Act. Businesses must be registered with the Department by December 31 of each year, or they will incur a $500 penalty for each day it remains unlicensed, as well as for any additional violation of the act.

Third party clients are also held responsible by the Act. Clients must verify a day and temporary labor service agency’s status with IDOL before entering into a contract with them, and on March 1 and September 1 of each year.

Businesses and third-party clients found contracting with unlicensed entities can face penalties of up to $500 per day.

A list of agencies compliant with the law can be found here.

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
  • Workers’ compensation insurance

Copies of the 2015 and 2016 applications can be downloaded or obtained by calling 312-793-2804.

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