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Ordinance No. G78-02 Revised AN ORDINANCE AMENDING THE ELGIN MUNICIPAL CODE, 1976, AS AMENDED, BY ADDING CHAPTER 6.18 ENTITLED “DAY AND TEMPORARY LABOR AGENCIES” WHEREAS, the City Council of the City of Elgin has determined that in order to protect the public health, safety and welfare that it is necessary and desirable to license and regulate day and temporary labor agencies; and WHEREAS, the City of Elgin is a home rule unit authorized to exercise any power and perform any function relating to its government and affairs; and WHEREAS, the licensing and regulation of day and temporary labor agencies pertains to the government and affairs of the City of Elgin. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. That Title 6 entitled “Business Licenses and Regulations” of the Elgin Municipal Code, 1976, as amended, be and is hereby further amended by adding Chapter 6.18 entitled “Day and Temporary Labor Agencies” to read as follows: “Chapter 6.18 DAY AND TEMPORARY LABOR AGENCIES 6.18.010 DEFINITIONS: Whenever used in this chapter the following terms shall have the following meanings: “City” means the City of Elgin. “Day and Temporary Labor” means labor or employment that is occasional or irregular at which a person is employed for not longer than the time required to complete the assignment for which the person was hired and where wage payments are made directly or indirectly by the day and temporary labor agency or the third party employer for work undertaken by one or more day or temporary laborers. For purposes of this chapter, “day and temporary labor” does not include secretarial, clerical or professional services. “Day and Temporary Labor Agency” means any person or entity engaged in the business of employing day or temporary laborers to provide services to or for any third party employer pursuant to an oral or written contract with the day and temporary labor service and a third party employer. The term does not include any not-for-profit organization. “Day or Temporary Laborer” means a person who contracts either orally or in writing for employment with a day and temporary labor service agency. “Third Party Employer” means any person that contracts either orally or in writing with a day and temporary labor service agency for the employment of day or temporary laborers. 6.18.020 LICENSE REQUIRED: No person shall engage in the business of a day and temporary labor agency without first having obtained a license pursuant to this chapter issued by the city’s fiscal services manager. 6.18.030 LICENSE APPLICATION - CONTENTS: An application for a license under this chapter shall be made in writing to the city’s fiscal services manager, in accordance with such requirements as may be required by the city’s fiscal services manager. The application shall contain: A. The full name of the applicant; B. The business address and telephone number of the applicant; C. The full name, residence address and telephone number of each beneficial owner of more than 25% of in the business; D. The full name, residence address and telephone of every officer, director, partner and manager of the applicant; E. A description of the applicant’s day and temporary labor agency business in any other jurisdiction, including name, address, location and disciplinary history; F. The applicant’s license under the Illinois Day and Temporary Labor Services Act; G. The license fee specified in Section 6.18.040 of this chapter; H. Such other information as the city’s fiscal services manager may require concerning the operation of the applicant’s business. 6.18.040 APPLICATION FEE: At the time the application for a license is filed with the fiscal services manager the applicant shall pay a fee to the city in the amount of $220.00. 6.18.050 ELIGIBILITY FOR LICENSE: No applicant shall be eligible for a license under this chapter if the applicant or any of its officers, directors, partners, manager or owners: A. has been adjudicated guilty or, has admitted guilt of, or has been under any portion of a sentence for, any crime involving moral turpitude or dishonesty within the past five years prior to filing the application; or B. has been involved, as owner, officer, director, partner or manager of any day and temporary labor agency whose license has been revoked, suspended or application denied within the past ten years prior to filing the application; or C. is under the age if 18. For purposes of this section, an adjudication or admission of guilt may be in either civil or criminal proceedings, and in any jurisdiction. For purposes of Subsection B of this section, “license” means any license, permit, certificate or other form of authorization given by any unit, officer or agency of any government for the operation of a day and temporary labor agency in any jurisdiction. 6.18.060 APPLICATION REVIEW AND LICENSE ISSUANCE: A. Upon receipt of an application, the fiscal services manager, or his authorized representative, shall review the application as deemed necessary to insure that it has been properly and completely submitted and as otherwise necessary to insure the protection of the public health, safety and general welfare. An inspection of the premises of a day and temporary labor agency shall be conducted as part of the application review process. Any inspections of a premises of a day and temporary labor agency, either as part of the application process, or to otherwise determine compliance with the provisions of this chapter or other requirements of law shall be conducted by the city’s department of code administration and development services. B. If the fiscal services manager, or his authorized representative, finds the application to be satisfactory, the fiscal services manager, or his authorized representative, shall endorse his approval on the application and shall, upon payment of the prescribed fee, deliver the required license to the applicant. C. The license shall show the name and address of the licensee, the date of issuance and the length of time the license shall be in effect. A record of all licenses issued pursuant to this chapter shall be maintained by the city’s finance department. 6.18.070 DENIAL OF LICENSE: A. Upon the fiscal services manager review of the application, the fiscal services manager may refuse to issue a license to the applicant under this chapter for any of the following reasons: 1. An investigation reveals the applicant falsified information on the application; 2. The applicant is ineligible for a license pursuant to Section 6.18.050; 3. The applicant does not meet the requirements of other city ordinances or other applicable requirements of law; or 4. The applicant has been denied a license under this chapter within the immediate past year, unless the applicant can and does show to the satisfaction of the fiscal services manager the reasons for such earlier denial no longer exists. B. The fiscal services manager’s disapproval and the reasons for disapproval shall be noted on the application, and the applicant shall be notified that his application is disapproved and that no permit will be issued. Notice shall be mailed to the applicant at the address shown on the application form, or the applicant’s last known address. 6.18.080 ANNUAL LICENSE; TERMINATION DATE: Licenses issued pursuant to this chapter shall be an annual license and shall expire on December 31, next day after the date of issue. 6.18.090 OPERATING STANDARDS: A. In the event there is an area at a day and temporary labor agency where day or temporary laborers wait referral or transportation to a third party employer, a day and temporary labor agency must provide toilet facilities within its place of business to accommodate the needs of day or temporary laborers using the agency. The day and temporary labor agency may not charge a day or temporary laborer for the use of toilet facilities. B. In the event there is an area at a day and temporary labor agency where day or temporary laborers wait referral or transportation to a third party employer, the temperature in the area of the day and temporary labor agency where day or temporary laborers await referral or transportation to a third party employer shall not differ from the temperature of the area reserved for the agency’s manager or other non-day or temporary labor employees, by more than three degrees Fahrenheit. C. In the event there is an area at a day and temporary labor agency where day or temporary laborers wait referral or transportation to a third party employer, the day and temporary labor agency must obtain an occupancy card indicating the permitted capacity of the area of the day and temporary labor agency where day or temporary laborers await referral or transportation to a third party employer. Benches, chairs or a combination of benches and chairs shall be provided for the number of persons indicated on the occupancy card. D. A day and temporary labor agency shall pay a day or temporary laborer for each hour the laborer works, or for each hour for which the agency receives compensation from a third party employer in relation to that day or temporary laborer, whichever number of hours is greater. E. No day and temporary labor agency may require, as a condition of placing a day or temporary laborer with a third party employer, that the day or temporary laborer purchase or rent from the agency or from the third party employer any item of clothing or equipment, if the employee has in his possession substantially equivalent clothing or equipment. F. At the time a day or temporary laborer applies for placement with a third party employer, a day and temporary labor agency must disclose the cost of each item of clothing or equipment required to be used by a day or temporary laborer in connection with that placement. The day and temporary labor agency may not charge a day or temporary laborer for any item of equipment or clothing that he or she returned to the agency in a timely manner and in good condition. G. A day and temporary labor agency is responsible for the conduct and performance of any person who transports a day or temporary laborer from the agency to a work site, unless the transporter is (1) Pace or another component of the Regional Transportation Authority; or (2) the day or temporary laborer providing his or her own transportation; or (3) is paid for by the day or temporary laborer for transportation in a vehicle not owned or operated by the day and temporary labor agency. Any day and temporary labor agency that provides transportation in vehicles owned or operated by the day and temporary labor agency is responsible for the safety of the day or temporary laborers during the period of transportation, must limit the occupancy of these vehicles to their allowable legal seating and comply with the State of Illinois and City of Elgin motor vehicle statutes and ordinances. H. A day and temporary labor agency or a third party employer shall charge no more than the actual cost to transport a day or temporary laborer to or from the designated work site; however, the total cost to each day or temporary laborer shall not exceed three percent (3%) of the day or temporary laborer’s daily wages. Any motor vehicle that is owned or operated by the day and temporary labor agency or a third party employer, or a contractor of either, which is used for the transportation of day or temporary laborers, shall have proof of financial responsibility as provided for in Chapter 8 of the Illinois Vehicle Code. I. A day and temporary labor agency must post in a conspicuous location a sign in English and Spanish, describing the rights and obligations of the agency and day or temporary laborers. The content of the notice shall be determined by the fiscal services manager. 6.18.100 HUMAN RELATIONS ORDINANCE APPLICABLE: The City of Elgin human relations ordinance, Chapter 3.12 of this code, as amended, shall be applicable to every decision and action of a day and temporary labor agency in the selection, hiring, assignment, compensation, retention, and all other conditions of employment of day and temporary laborers. 6.18.110 DUTY TO RETAIN RECORDS: A day and temporary labor agency shall create an accurate record of each transaction by which a day or temporary laborer was sent to a third party employer. The record shall include: A. the name of the day or temporary laborer and date of the transaction; B. the address of the day or temporary laborer; C. the name, address and telephone number of the third party employer; D. the name and title of the individual at the third party employer’s place of business responsible for the transaction; E. the type of work to be performed; F. any specific qualifications or attributes of a day or temporary laborer, requested by the third party employer; G. the hourly rate of pay to the day or temporary laborer; H. the number of hours worked by the day or temporary laborer; I. actual deductions from the day or temporary laborer’s compensation made either by the third party employer or by the agency for the day or temporary laborer’s transportation, food, equipment, withheld income tax, withheld social security payments, and every other deduction; J. the nature, brand and unit price of any equipment given to the day or temporary laborer and a listing of all fees, taxes or other items for which a deduction is taken from the laborer’s pay; and The day and temporary labor agency shall maintain all records under this section for a period of five years from their creation. The records shall be open to inspection by the city during normal business hours. It is a violation of this section to make any false, inaccurate or incomplete entry into any record required by this section, or to delete required information from any such record. 6.18.120 DAY OR TEMPORARY LABORER TO RECEIVE WORK TICKET: Upon request by a day or temporary laborer, a day and temporary labor agency shall provide to each day or temporary laborer a work ticket, signed by the manager of the agency. If the day or temporary laborer is placed with a third party employer, the ticket shall include the information described in Subsections A, B, C, E, G, H, I and J of Section 6.18.110, plus the time the day or temporary laborer is dispatched to the third party employer and the time of return. 6.18.130 LICENSE REVOCATION: Any license issued under this chapter may be revoked or suspended by the fiscal services manager after notice and hearing, for any of the following reasons: A. Fraud, misrepresentation or false statement contained in the application for a license; B. Fraud, misrepresentation or false statement made by the licensee in the course of conducting the business of a day and temporary labor agency; C. Conducting the business of a day and temporary labor agency contrary to the provisions of this chapter or other requirements of law; or D. Conviction of the licensee or any of its owners, officers, partners or managers for any crime involving moral turpitude or dishonesty. 6.18.140 NOTICE AND HEARING: Notice of a hearing for revocation or suspension of a license issued under this chapter shall be provided in writing and shall set forth specifically the grounds for the proposed revocation and the time and place of the hearing. Notice shall be mailed, postage prepaid, to the licensee at the address shown on the license application or at the last known address of the licensee. 6.18.150 PENALTY FOR VIOLATIONS: Any person who violates any portion of this chapter shall be subject to a fine of not less than $500 and not more than $5,000 for each offense. Each day that a violation shall continue shall constitute a separate and distinct offense. Any licensee who violates any provision of this chapter shall also be subject to suspension or revocation of his license.” Section 2. That all ordinances or parts of ordinances in conflict with the provisions of this ordinance be and are hereby repealed. Section 3. That this ordinance shall be in full force and effect from and after January 1, 2003. s/ Ed Schock Ed Schock, Mayor Presented: November 6, 2002 Passed: November 6, 2002 Vote: Yeas: 7 Nays: 0 Recorded: November 7, 2002 Published: November 8, 2002 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk
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