SCHAUMBURG – 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.
As passed into law, HB 2862
- Provides that a day or temporary laborer who is assigned to work at a third party client for more than 90 calendar days shall be paid not less than the rate of pay and equivalent benefits as the lowest paid directly hired employee of the third party client with the same level of seniority at the company and performing the same or substantially similar work on jobs the performance of which requires substantially similar skill, effort, and responsibility, and that are performed under similar working conditions.
- Provides that upon request, a third party client to which a day or temporary laborer has been assigned for more than 90 calendar days shall be obligated to timely provide the day and temporary labor service agency with all necessary information related to job duties, pay, and benefits of directly hired employees necessary for the day and temporary labor service agency to comply with the amendatory Act.
Among those polled by TMA, 27% of small to midsized 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.
TMA Responds to new Temp Worker Law
“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 TMANews.com, at Immediate Changes to Illinois Day & Temporary Service Act, written by TMA HR Legal Counsel Jerilyn Baran.