January 26, 2000






HOUSE BILL No. 1318

_____


DIGEST OF HB 1318 (Updated January 25, 2000 11:18 AM - DI 96)



Citations Affected: IC 22-5.

Synopsis: Temporary employees in the construction trades. Requires a temporary employment agency employing temporary help employees in the construction trades to provide to the employees, upon request, a copy of the contractual agreement between the temporary employment agency and the client company, and to include a written notification with each wage payment of the hourly rate paid for the temporary help employee to the temporary employment agency by the client company and an itemized list of benefits provided by the temporary employment agency. Prohibits a temporary employment agency under certain circumstances from charging a liquidity fee against a temporary help employee in the construction trades or against the client company if the temporary employee is hired by the client company. Requires a temporary employment agency to offer pay and benefits to its employees that are equal to those provided the permanent employees of the client company where the temporary help employees work, under certain circumstances. Requires a client company to hire a temporary help employee in the construction trades, upon application, who has worked for the client company for at least three months, and prohibits the client company from classifying the employee as an independent contractor in the construction trades. Provides that a temporary help employee may bring a civil action against a temporary help agency or a client company for violations of these provisions. Provides that the department of labor may assess a fine of not more than $5,000 for a violation of this chapter.

Effective: July 1, 2000.





Liggett




    January 11, 2000, read first time and referred to Committee on Labor and Employment.
    January 25, 2000, reported _ Do Pass.







January 26, 2000

Second Regular Session 111th General Assembly (2000)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1318



    A BILL FOR AN ACT to amend the Indiana Code concerning labor and industrial safety.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 22-5-6; (00)HB1318.1.1. -->     SECTION 1. IC 22-5-6 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]:
     Chapter 6. Temporary Employee Protection for Employees in the Construction Industry
    Sec. 1. As used in this chapter, "benefits" means any of the following:
        (1) Accrual of seniority.
        (2) Credit for length of service.
        (3) Disability and health insurance.
        (4) Holiday pay or time off.
        (5) Pension entitlement accrual.
        (6) Sick leave.
        (7) Vacation leave or pay.
Benefits are compensation provided in addition to wages.

     Sec. 2. As used in this chapter, "client company" means a business that leases the services of employees or receives services or functions through temporary employment agencies.
    Sec. 3. As used in this chapter, "construction trades" means any trade or occupation involving construction, alteration, remodeling, repairing, wrecking or demolition, addition to, or improvement of any building, highway, road, railroad, dam, bridge, structure, or excavation.
    Sec. 4. As used in this chapter, "department" refers to the department of labor.
    Sec. 5. As used in this chapter, "independent contractor in the construction trades" refers to a person described in IC 22-3-6-1(b)(7) .

     Sec. 6. As used in this chapter, "liquidity fee" means a penalty charged by a temporary employment agency against:
        (1) a temporary help employee for accepting a position of employment with the client company; or
        (2) a client company for hiring a temporary help employee.
    Sec. 7. As used in this chapter, "substantially equivalent work" means work on jobs:
        (1) the performance of which requires equal skill, effort, and responsibility; and
        (2) under similar working conditions.
    Sec. 8. As used in this chapter, "temporary employment agency" means an employer that for a fee:
        (1) recruits;
        (2) procures:
        (3) refers;
        (4) places; or
        (5) employs;
workers to perform personal services
on a temporary basis to a third party under the direction and control of the third party.
     Sec. 9. As used in this chapter, "temporary help employee" means a temporary employment agency employee who, in the course of employment, performs personal services on a temporary basis to a third party under the direction and control of the third party. The term does not include independent contractors in the construction trades.
     Sec. 10. Upon request by a temporary help employee in the construction trades, a temporary employment agency shall furnish the temporary help employee with a copy of any contractual agreements made between the temporary employment agency and the client company with respect to the temporary employee's assignment.
     Sec. 11. All temporary employment agencies employing a temporary help employee in the construction trades shall include

a written notification with each payment of wages to the temporary help employee, specifying:
        (1) the hourly rate paid for the temporary help employee to the temporary employment agency by the client company; and
        (2) an itemized list of benefits provided to the temporary help employee by the temporary employment agency.
The notification may be included on the temporary help employee's statement of earnings and deductions.

     Sec. 12. Temporary employment agencies are prohibited from charging a liquidity fee against a:
        (1) temporary help employee in the construction trades if the temporary help employee accepts a position with the client company; or

         (2) client company if the temporary help employee in the construction trades accepts a position with the client company.
     Sec. 13. Temporary employment agencies shall offer pay and benefits equal to those provided to the permanent employees of the client company to temporary help employees in the construction trades who perform substantially equivalent work compared to employees of the client company where the temporary help employees work.
    Sec. 14. A temporary employment agency shall not:
        (1) discharge;
        (2) discipline; or
        (3) penalize in any other manner;
a temporary help employee in the construction trades because the temporary help employee, or a person acting on behalf of the temporary help employee, reports a violation or alleged violation of section 10, 11, 12, or 13 of this chapter to the temporary employment agency or to a local or state official, or because the temporary help employee, or a person acting on behalf of the temporary help employee, exercises any right under this chapter.
    Sec. 15. A client company in the construction trades may not:
        (1) refuse to hire any temporary help employee who has worked under the direction and control of the client company for at least three (3) months, if the temporary help employee applies for employment with the client company; or
        (2) classify a temporary help employee, who has worked under the direction and control of the client company for at least three (3) months, as an independent contractor in the construction trades after the temporary help employee applies

for employment with the client company.
    Sec. 16. (a) A temporary help employee in the construction trades may bring a civil action against a:
        (1) temporary employment agency to enforce section 10, 11, 12, 13, or 14 of this chapter; or
        (2) client company to enforce section 15 of this chapter;
within two (2) years after the alleged violation.
    (b) If a temporary help agency violates section 10, 11, 12, 13, or 14 of this chapter, or a client company violates section 15 of this chapter, the court may do the following:
        (1) Award:
            (A) treble damages for loss of wages and other benefits; and
            (B) court costs and reasonable attorney's fees;
        to the prevailing temporary help employee.
        (2) Enjoin further violations of this chapter by the temporary employment agency.
    Sec. 17.
(a) The department and its authorized inspectors and agents shall enforce this chapter. The department and its inspectors and agents may visit and inspect, at all reasonable hours and as often as practicable and necessary, all establishments governed by this chapter.
    (b) When requested in writing by the department, the attorney general shall assist the department in the enforcement of this chapter against all violations.

    (c) In addition to the civil action that may be brought by the temporary help employee under section 16(a) of this chapter, a person, firm, limited liability company, or corporation that violates this chapter may be assessed a fine of not less than two thousand five hundred dollars ($2,500) and not more than five thousand dollars ($5,000) for each offense by the department. The department shall collect the fines and shall disburse the fines as reimbursement of wages to those temporary help employees who have been found by the department to have been damaged by the temporary employment agency's failure to comply with this chapter, with any remaining balance deposited in the state general fund.
    (d) A civil penalty assessed under subsection (c):
        (1) is subject to IC 4-21.5-3-6 ; and
        (2) becomes effective without a proceeding under IC 4-21.5-3 unless a person requests an administrative review not later than thirty (30) days after notice of the assessment is given.