Holmes reforms employment agency lawWorking alongside Attorney General Lisa Madigan to crack down on unlicensed employment agencies, State Sen. Linda Holmes advanced a plan out of committee Wednesday.

“Employers who are flouting the law are exploiting some of the most vulnerable workers in some of the lowest-paid jobs,” Holmes said. “At the urging of Attorney General Madigan, I’m putting this proposal forward to toughen enforcement and make sure jobseekers are protected.”

Agencies that refer jobseekers to employers for a one-time fee are regulated under an act that has not seen substantive updates in decades. Those regulations also provide inadequate tools for the Attorney General’s Office to enforce compliance.

Workers who have been placed by such unregulated agencies have alleged instances of abuse they have suffered at the hands of employers, including being made to work 6-day work weeks of 12-hour shifts to pay off referral fees, being referred to jobs that pay below the minimum wage, being housed in crowded and substandard conditions and being denied medical treatment for on-the-job injuries.

“My office initiated this legislation after uncovering instances of low-income and immigrant workers being subject to dangerous and often illegal working conditions. They were placed in those conditions by employment agencies that were frequently operating without licenses,” Madigan said. “This bill will strengthen our laws so that we can stop licensed and unlicensed employment agencies from taking unfair advantage of Illinois workers.”

In addition to providing civil penalties for such violations, Holmes’ proposal directs the Department of Labor to create and maintain a database of employment agencies with suspended or revoked licenses, requires employment agencies to keep records of their placements longer and provides whistleblower protection to employees who report misconduct.

The legislation is Senate Bill 1859. It proceeds to the Senate floor for a vote.