New State Temp law creates more challenges for IL manufacturers

Temp Workers to Receive Same Benefits as Full-Time Employees After 90 Days

SCHAUMBURG, IL – More than 70% of Illinois small and midsized manufacturers anticipate a negative impact from a new state law, according to a survey of Technology & Manufacturing Association (TMA) members.

HB2862, which Governor Pritzker signed into law last month and is effective immediately, will require employers to pay temporary (temp) workers equal pay and benefits, including health insurance, as their lowest paid full-time employee after 90 days. 27% of manufacturers anticipate needing to hire new temp workers every 90 days, which will require them to spend more resources on training. 18% stated they will not be able to employ enough workers, 14.5% said they will be forced to issue pay cuts if temp workers are needed to fill roles long-term, and 12% of manufacturers said they will have to make cuts to health care insurance offerings and benefits.

“While other states make it easier for manufacturers to do business, Illinois continues to make it harder and more expensive to operate in this state, and it puts our hardworking and vital manufacturers at a disadvantage,” said TMA Executive Vice President Dennis LaComb. “This law benefits some workers at the expense of others, forcing small business owners to choose between continuing to provide growth and incentives to their full-time employees or spending more resources on temporary workers.”

Only 10% responded to the survey stating they would see no impact with the new law. Another 10% were unsure how this would impact their business, and 8% were unaware of the new law.

TMA regularly surveys local small and midsized manufacturers on issues impacting their business, employees, and industry. More information can be found at

About TMA: Founded in 1925, the Technology and Manufacturing Association is an independent trade organization exclusively focused on assisting small and midsize manufacturers by providing a diverse portfolio of benefits and services, including: community, information, training, resources, and advocacy. TMA has nearly 1,000 members representing over 35,000 manufacturing employees and more than 25 million square feet of manufacturing plant.