Citations Affected:
IC 22-5-6.
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.
January 11, 2000, read first time and referred to Committee on Labor and Employment.
A BILL FOR AN ACT to amend the Indiana Code concerning labor
and industrial safety.
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.