State high court to hear case against staffing agencies accused of suppressing wages
By HANNAH MEISEL
& DILPREET RAJU
Capitol News Illinois
news@capitolnewsillinois.com
The Illinois Supreme Court on Wednesday will hear arguments from three staffing agencies that say their industry is exempt from state antitrust laws in a case claiming the firms conspired to hold down wages for their workers.
The Chicagoland-based companies have already lost twice in lower court. But they contend those decisions are a new interpretation of Illinois’ decades-old antitrust law.
Wednesday’s oral arguments come after Attorney General Kwame Raoul sued the companies in 2020, alleging they used their mutual client to coordinate no-poach agreements, which created a secondary agreement to pay less than the market rate.
“No-poach agreements allow employers to take advantage of low-wage workers by trapping them in low-paying jobs and limiting their opportunities for advancement,” Raoul said in a news release at the time.
The three companies – Elite Staffing Inc., based in Chicago, Midway Staffing Inc. and Metro Staffing Inc., both headquartered in Chicago suburbs – all had contracted with a construction company also located in the suburbs.
Elgin-based Colony Display LLC designs and builds display models and custom furniture for commercial properties like motels, grocery stores and restaurants. While the company operates in seven states, Colony manufactures, assembles and houses most of their furniture in three Illinois warehouses.
The vast majority of Colony’s workforce is temporary. According to court records, at any given time the company “employs approximately 75 to 100 full-time employees,” compared with “between 200 to 1,000 temporary workers,” the original complaint alleged.
The staffing agencies’ contracts with Colony gave the company sole discretion over hiring, firing and assigning workers. And, the lawsuit alleged, the staffing agencies began to take advantage of that setup as early as 2018, communicating with each other via Colony.
“For example, many Midway employees wanted to switch to Elite because they were ‘not happy working for Midway’; they cited ‘pay issues’ and a lack of communication and support from their employer,” according to court records.
In response, Midway Staffing allegedly asked Colony for assistance in “squashing” the transfer of employees, resulting in Colony informing Elite Staffing that hiring other agencies’ employees was “bad practice” and wasn’t allowed. Elite Staffing then produced its own policy to Colony, which the company then forwarded on to Midway Staffing, thus enforcing the no-poaching policy, according to Raoul’s office.
“As this incident shows, the no-poach conspiracy eliminated competition among (the staffing agencies)…which resulted in a lower quality of employment for the workers,” lawyers for the attorney general’s office wrote in a brief this summer.
As a result, “the workers could not seek better wages, on-time payment, improved communication from supervisors, or other benefits” by switching to another of the staffing agencies.
The staffing agencies also used Colony as a medium to set wages lower than the market rate, according to Raoul’s office.
“At one point, for instance, the fixed wage was $10 per hour but, according to a survey done by Elite, the ‘fair wage’ was $13 per hour,” according to court records.
For their part, the staffing agencies claim their business models preclude them from the state’s Antitrust Act, basing their legal arguments on a 1980s update to a key definition in the law.
The law prohibits “restraint of trade” that decreases competition between “persons engaged in commerce and trade,” and then further defines commerce and trade as “all economic activity involving or relating to any commodity or service.”
But the staffing agencies point to that 1980s-era update that defines service as anything that isn’t a commodity. The definition also stipulates that “service” doesn’t include “labor which is performed by natural persons as employees of others.”
In an appellate court opinion last year, Judge Thomas Hoffman wrote that “services provided by staffing agencies are generally not excluded from the Act’s coverage.” He also said the agencies are attempting to broaden the law’s exceptions by distinguishing the “labor” of its temp workers from the “service” the agencies provide.
In June, three workers’ rights groups – the National Legal Advocacy Network, the National Employment Law Project, and the Raise the Floor Alliance – filed an amicus brief in support of the Attorney General’s claim, writing that “temporary staffing jobs, including those working in warehouse and manufacturing facilities like those operated by Colony, often do the same work as direct-hire employees, but for less pay, worse benefits, increased health and safety risks, and no job security.”
It went on to argue that temporary workers are “disproportionately people of color” and such conditions “are contributing to the racial wealth gap and economic insecurity for communities of color.”
A second related case was also scheduled for oral arguments Wednesday morning, but an attorney for Colony confirmed the case was recently settled with Raoul’s office and would not be heard. That case was filed directly against Colony and concerned more granular aspects of the state’s antitrust laws.
The attorney indicated the settlement was confidential and declined to comment.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to hundreds of newspapers, radio and TV stations statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation, along with major contributions from the Illinois Broadcasters Foundation and Southern Illinois Editorial Association.
Local News
Strus tops former coach in Stagg’s win over Sandburg
Spread the loveBy Jeff Vorva Staff writer Marty Strus has nothing but good things to say about his former high school coach, John Daniels. “He’s meant a ton to me,” Strus said of the coach he faced off against last week when his Stagg Chargers took on Sandburg. “He meant a lot to me as…
Palos Area Chamber dedicated to promoting area
Spread the loveBy Kelly White Dedicated to helping local area businesses strive is the Palos Area Chamber of Commerce. The chamber was formed in 1949 when a small group of merchants joined together for the purpose of advancing economic, industrial, professional, cultural, and civic welfare of the Palos Heights area. For 68 years, the Palos…
We need real solutions to crime
Spread the loveBy Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 Crime and safety concerns are the number one topic of all the calls and texts I receive. It seems that many politicians offer no solutions except the usual lists of ways to keep safe. I think everyone knows about locking…
Icy spill yielded plenty of good will
Spread the loveBy Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 284-7394 Here is a giant shout out to our first responders in the community. On Jan. 9, when a sheet of ice descended on Chicago, I was walking the dog. Walking around Peck School was great.…
It’s a busy January in Gage Park
Spread the loveBy Joan Hadac Neighborhood correspondent at large Greetings, Gage Parkers! I’m pleased to be filling in this week for Karen Sala. It’s fun for me to report on Gage Park, the neighborhood where I lived for the first 26 years of my life. There’s always something happening in this big, exciting part of…
You can bank on good service here
Spread the loveBy Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 In this world of corporate takeovers, it is kind of hard to feel safe in the hands of big business. First, we have to supply some of our personal information to the automated system. Then there’s…
Palos Park police to hold active shooter drill
Spread the loveFrom staff reports Palos Park Police will fine tune their strategies for dealing with an active shooter to ensure the safety of both officers and citizens later this month. The end goal of the January 30 drlll is to test the department’s active shooter response plans and fine tune them. “Palos Park effective…
Richards’ Principal walks 24 hours for a cause
Spread the loveBy Kelly White Most people spend New Year’s Day relaxing. Richards High School Principal Dr. Mike Jacobson spent it on the treadmill. For the second year in a row, Jacobson inspired generous donations of more than $20,000 on New Year’s Day by walking 24 hours on a treadmill without stopping. All of the money raised goes directly…
Victress Women’s Wellness Center sets goals for 2022
Spread the loveBy Kelly White Empowering women in the new year is Victress, a wellness center for women, in Palos Heights. The center opened in October at 7120 W. 127th St. and welcomed in the new year with a goal-setting seminar open to women in the local community called, Achieve 2022: This year set goals,…
Neighbors
Nothing NU at SeatGeek
Spread the loveBy Jeff Vorva Correspondent There was speculation that because of the renovations being done at Ryan Field, Northwestern would schedule a few football games at SeatGeek Stadium in Bridgeview this fall. The Wildcats announced their schedule and no home games are listed at SeatGeek, but the situation is still fluid. They are opting…
College Softball | Close losses at nationals end Saint Xavier’s season
Spread the loveBy Jeff Vorva Correspondent The Saint Xavier softball team played three nailbiters in the opening round of the NAIA Tournament. But the end result was a 1-2 record to eliminate the Cougars from advancing. SXU (28-14) opened the tournament by nipping Bellevue (Nebraska), 5-4, in Sioux City, Iowa on May 13. Alexus Reese…
Red Stars’ Naeher misses loss to Gotham
Spread the loveBy Jeff Vorva Correspondent The world’s best kept secret is still a mystery. The Chicago Red Stars are not releasing information to the public about the severity of a thigh injury or the status of world-class goalie Alyssa Naeher. What is known is that she did not play in a 2-1 loss to…
Summer calendar filling up quickly
Spread the love. By Patti Tyznik Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • ptyznik@gmail.com . Summer is rapidly approaching, and the neighborhood is geared up for lots of great summer fun and activities. The Midway Chamber of Commerce’s farmer’s market will be opening on Wednesdays at the end of May through September…
Shepard’s Kyla Motley cruises to two medals at girls state track finals
Spread the loveBy Jeff Vorva Correspondent Shepard junior Kyla Motley medaled in two events in the Class 3A girls state track and field meet, the finals for which were held May 18 at Eastern Illinois University in Charleston. Motley finished fourth in the long jump with a leap of 18 feet, 4 inches. She finished…
Boys Tennis | Lyons’ Jack McLane and Mason Mazzone win sectional doubles title
Spread the loveBy Jeff Vorva Correspondent The area produced a handful of boys tennis state qualifiers, but only one entry is headed to state as a sectional champion. At the Class 2A Lyons Sectional, the Lions’ Jack McLane and Mason Mazzone were doubles champs. The state meet opens May 23 at various sites in the…
Water Polo | Lyons boys win third state title; girls finish 3rd
Spread the loveBy Jeff Vorva Correspondent The best matchup of the IHSA boys water polo state tournament was arguably in the quarterfinals. That battle between Lyons and New Trier could have been considered the real state championship match. But no matter what, the Lions are state champions. Heading into the postseason, Lyons had just three…
Golf is for all at Marquette Park
Spread the love. Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 . Last week we began by talking about how golf season is in full swing at Marquette Park. What if you have thought about playing, but have never played before? There are three programs at Marquette,…
Legislation to acquire new police district facility on Southwest Side passes General Assembly
Spread the love. Porfirio, Guerrero-Cuellar measure heads to Pritzker’s desk . From staff reports State Senator Mike Porfirio (D-11th) and State Rep. Angelica “Angie” Guerrero-Cuellar (D-22nd) recently passed legislation in the General Assembly to acquire a new police district facility representing their districts on the Southwest Side. The bill passed both chambers with veto-proof margins.…
Lyons water polo teams splash to state
Spread the loveBy Jeff Vorva Correspondent Both of Lyons water polo team qualified for the state quarterfinals. Lyons’ girls water polo team won its own sectional by beating Mother McAuley, 13-9, in the title game on May 11. The Lions will face York in the state quarterfinals on May 17 at Stevenson High School in…