State ex rel. Raoul v. Elite Staffing, Inc.

2024 IL 128763
CourtIllinois Supreme Court
DecidedJanuary 19, 2024
Docket128763
StatusPublished
Cited by5 cases

This text of 2024 IL 128763 (State ex rel. Raoul v. Elite Staffing, Inc.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Raoul v. Elite Staffing, Inc., 2024 IL 128763 (Ill. 2024).

Opinion

2024 IL 128763

IN THE SUPREME COURT

OF THE STATE OF ILLINOIS

(Docket No. 128763)

THE STATE OF ILLINOIS ex rel. KWAME RAOUL, Attorney General, Appellee, v. ELITE STAFFING, INC., et al., Appellants.

Opinion filed January 19, 2024.

JUSTICE NEVILLE delivered the judgment of the court, with opinion.

Chief Justice Theis and Justices Overstreet, Holder White, Rochford, and O’Brien concurred in the judgment and opinion.

Justice Cunningham took no part in the decision.

OPINION

¶1 The State of Illinois filed a complaint in which it alleged Elite Staffing, Inc., Metro Staff, Inc., and Midway Staffing, Inc. (collectively, the staffing agencies), violated the Illinois Antitrust Act. 740 ILCS 10/3 (West 2018). The staffing agencies filed a motion to dismiss the complaint, claiming that the act did not apply to the charged conduct. The circuit court of Cook County denied the motion but certified for interlocutory review two questions about the reach of the act:

“1. Whether the definition of ‘Service’ under Section 4 of the Illinois Antitrust Act, 740 ILCS 10/4, which states that Service ‘shall not be deemed to include labor which is performed by natural persons as employees of others,’ applies to the Illinois Antitrust Act as a whole and thus excludes all labor services from the Illinois Antitrust Act’s coverage.

2. Whether the per se rule under Section 3(1) of the Illinois Antitrust Act, 740 ILCS 10/3(1), which states that it applies to conspiracies among ‘competitor[s],’ extends to alleged horizontal agreements facilitated by a vertical noncompetitor.”

The appellate court answered the second question, but instead of answering question 1, it answered a different question:

“whether the exclusion of individual labor from the definition of ‘service’ in section 4 of the [Illinois Antitrust Act] also excludes the labor-related services provided by temporary staffing agencies and therefore exempts such agencies from [its] coverage.” 2022 IL App (1st) 210840, ¶ 11.

¶2 We granted the staffing agencies’ petition for leave to appeal from the appellate court decision. Ill. S. Ct. R. 315 (a) (eff. Oct. 1, 2021).

¶3 We hold that the Illinois Antitrust Act does not exempt from antitrust scrutiny all agreements between competitors to hold down wages and to limit employment opportunities for their employees. We vacate the appellate court’s answer to the question it formulated, answer the circuit court’s first certified question, do not address the second certified question because the parties have not sought our review of that question and its answer, and remand for further proceedings.

¶4 I. BACKGROUND

¶5 The State alleged in its complaint that Colony Display (Colony) hired the staffing agencies to supply the temporary workers it needed. Colony, which installs fixtures and displays for home improvement and retail businesses, relies heavily on

-2- temporary workers, who form the majority of Colony’s workforce. 2022 IL App (1st) 210840, ¶ 3. At Colony’s request, the State alleged, the staffing agencies agreed to fix the wages for their employees who worked for Colony at below- market rates, and they agreed not to hire each other’s employees. Id. ¶¶ 5-6. Colony helped the staffing agencies enforce their agreement. Id. The State claimed the alleged conduct constituted an agreement between competitors to fix the price paid for services and therefore that it had violated section 3(1)(a) of the Illinois Antitrust Act (740 ILCS 10/3(1) (West 2018)). 2022 IL App (1st) 210840, ¶ 12. The defendants filed a motion to dismiss the complaint under section 2-615 of the Code of Civil Procedure (735 ILCS 5/2-615 (West 2018)), claiming that the complaint did not state a cause of action because the Illinois Antitrust Act provides that services otherwise subject to the act “shall not be deemed to include labor which is performed by natural persons as employees of others” (740 ILCS 10/4 (West 2018)). 2022 IL App (1st) 210840, ¶ 7.

¶6 The circuit court denied the motion but certified for interlocutory review the following issue:

“ ‘Whether the definition of “Service” under Section 4 of the Illinois Antitrust Act, 740 ILCS 10/4, which states that Service “shall not be deemed to include labor which is performed by natural persons as employees of others,” applies to the Illinois Antitrust Act as a whole and thus excludes all labor services from the Illinois Antitrust Act’s coverage.’ ” Id. ¶ 1.

¶7 The parties have not asked this court to address in this appeal the second question the circuit court certified for interlocutory review. See id.

¶8 A. Appellate Court

¶9 The appellate court found first that the question as phrased relied on an incorrect assumption that, if the definition of “service” applied to the Illinois Antitrust Act as a whole, it exempts all labor services from the act’s coverage. Id. ¶ 11. The appellate court restated the question and addressed instead the issue of “whether the exclusion of individual labor from the definition of ‘service’ in section 4 of the [Illinois Antitrust Act] also excludes the labor-related services provided by

-3- temporary staffing agencies and therefore exempts such agencies from [its] coverage.” Id.

¶ 10 The appellate court found that the legislature narrowed the definition of service “to allow individuals to engage in otherwise anticompetitive behavior regarding their own labor by participating in collective bargaining and related conduct.” Id. ¶ 15. The appellate court found the exemption of section 4 did not extend to services provided by staffing agencies. The court held:

“[T]o the extent that the alleged unlawful conduct concerns restraints that they place on their own services (i.e., recruiting, hiring, and managing temporary employees) and do not concern restraints on a natural person’s individual labor, temporary staffing agencies like the Agency Defendants in this case are subject to the Act’s provisions and, in particular, section 3’s prohibitions on anticompetitive restraints on services.” Id. ¶ 23.

¶ 11 This court granted the agencies’ petition for leave to appeal. Ill. S. Ct. R. 315(a) (eff. Oct. 1, 2021). We accepted briefs amici curiae from (1) the United States Department of Justice in support of the State’s position; (2) Raise the Floor Alliance, National Legal Advocacy Network, and National Employment Law Project in support of the State’s position; and (3) Staffing Services Association of Illinois and American Staffing Association in support of the staffing agencies’ position. Ill. S. Ct. R. 345 (eff. Sept. 20, 2010).

¶ 12 II. ANALYSIS

¶ 13 Rule 315 gives this court jurisdiction over the appeal. Ill. S. Ct. R. 315(a) (eff. Oct. 1, 2021); Moore v. Chicago Park District, 2012 IL 112788, ¶ 7. Illinois courts usually limit review under Rule 308 (Ill. S. Ct. R. 308 (eff. Oct. 1, 2019)) to answering the certified question, unless the question rests on an erroneous legal assumption. De Bouse v. Bayer AG, 235 Ill. 2d 544, 550, 557 (2009).

¶ 14 Both parties ask this court to answer the question certified by the circuit court rather than the question the appellate court answered. We do not interpret the circuit court’s question as incorrectly assuming that, if the definition of service applies to the Illinois Antitrust Act as a whole, the act necessarily excludes all labor services

-4- from its coverage.

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2024 IL 128763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-raoul-v-elite-staffing-inc-ill-2024.