A staffing firm franchisee paid $1.5 million to settle the class action claims of thousands of temporary workers who alleged the company failed to give them accrued vacation pay in violation of Illinois law, according to the May issue of the Legs & Regs Advisor, now online.

Among its findings in the case, the court held that under the Illinois Wage Payment and Collection Act, employees are entitled to a pro rata share of vested vacation pay upon termination and accrued vacation is part of workers’ wages and cannot be forfeited.

Staffing firms should review benefits accrual and payout policies to ensure they are in compliance with state and federal law and that it can be particularly challenging to track vacation accrual for offsite temp workers, the Advisor suggests.

Also in the May issue:

• Temp agency settles overtime claims
• Wisconsin court rules independent contractor cannot sue under Fair Credit Reporting Act
• Maine enacts law defining ‘independent contractor’

The Legs & Regs Advisor is produced by Staffing Industry Analysts in conjunction with employment law firm Littler Mendelson. Staffing Industry Analysts corporate members can access the full issue by clicking here.