Reproduced with permission from Daily Labor
Report, 155 DLR A-12 (Aug. 14, 2009). Copyright 2009
by The Bureau of National Affairs, Inc.
(800-372-1033) http://www.bna.com

CHICAGO — Gov. Pat Quinn (D) signed legislation Aug. 11 extending legal protections for temporary labor services companies through language permitting the recovery of attorneys' fees in breach of contract disputes.Quinn provided additional support to the industry on the same day by signing a bill permitting labor services companies to seek state-subsidized health insurance for their employees' dependent children.

The governor signed S.B. 1612, which amends the Illinois Day and Temporary Labor Services Act. The new law (Public Act 96-332) specifies that a day and temporary labor services agency can recover attorneys' fees and court costs in a civil action brought against a client for breach of contract. The measure became effective with Quinn's endorsement.

Jeff Kubas, president of the Staffing Services Association of Illinois, said his organization pushed for the legislation to give labor services firms greater leverage as they assert their legal rights against deadbeat customers. He said the new law may become more important during the current period of economic uncertainty.

“Occasionally members of our association run into situations where customers don't pay their bills,” Kubas told BNA. “If they can't recover attorneys' fees, they have to weigh that as one of the risks associated with going to court. This ensures that a judge will award fees when a judgment is determined.”

Quinn also signed S.B. 1449, creating the Free Healthcare Benefits Application Assistance Act. The new law (Public Act 96-326) permits day and emporary labor services agencies to serve as “unpaid application agents” for Illinois' ALL KIDS health insurance program. ALL KIDS is a state-supported program that provides children with comprehensive, affordable health insurance, regardless of family income, immigration status, or health condition.

Kubas said day and temporary staffing services companies frequently interact with workers whose families could qualify for the ALL KIDS program. He said S.B. 1449 permits these employers to efficiently direct their workers toward the state program without paying any fees. Previously churches, community groups, and social services agencies were the only entities permitted to serve as unpaid application agents to ALL KIDS.

“Many of our employees have children that qualify for this plan,” Kubas said. “In an effort to aid our employees and their families, we decided to seek the approval of the state to be able to do that and waive the fee.”

By Michael Bologna

Text of the legislation may be accessed at http://www.ilga.gov/.          
                      
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