[co-author: Stephanie Kozol]*

On July 6, Illinois Attorney General Kwame Raoul announced a $950,000 settlement concerning the Illinois Wage Payments and Collection Act, marking the conclusion of an investigation into GrapeTree Medical Staffing (GrapeTree), a medical staffing company that operates in 12 states.

Employees of GrapeTree sign up for shifts through an online app and manage their schedules. GrapeTree became the target of an investigation by the Illinois Department of Labor in connection with allegations that the company would deduct a fee ranging from $50 to $200 from an employee’s paycheck if the employee did not show up for a shift or canceled within 72 hours. Illinois only allows deductions in limited circumstances and explicitly prohibits deductions as a method of employee discipline. In addition to the monetary settlement, GrapeTree will cease the allegedly unlawful payment practices in Illinois.

After the investigation, AG Raoul celebrated the Department of Labor’s efforts in carrying out its mission to protect workers in Illinois, explaining the settlement ensures that workers “will receive the wages that were wrongfully deducted from them.”

Why Does This Matter?

The investigation and settlement underscore the need for companies that operate in regulated industries to maintain robust compliance programs — especially when business operations span multiple jurisdictions. The announcement also illustrates increased attention by regulators on temporary staffing agencies, specifically those that operate in the medical industry, as the economy recovers from the significant disruption caused by the COVID-19 pandemic.

*Senior Government Relations Manager