Bill Text: IL HB2495 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Prevailing Wage Act. Provides that the prevailing wage shall not be less than the rate that prevails for similar work performed under collective bargaining agreements in the locality provided that the agreements cover at least 30% of the workers. Provides that, if bargaining agreements do not exist in the locality, the Department of Labor shall ascertain the prevailing wage to be paid under the Act. Applies to public works performed without a written contract. Requires that the Department publish prevailing wages schedules on its website.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2017-04-28 - Rule 19(a) / Re-referred to Rules Committee [HB2495 Detail]

Download: Illinois-2017-HB2495-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2495

Introduced , by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:
820 ILCS 130/2 from Ch. 48, par. 39s-2
820 ILCS 130/4 from Ch. 48, par. 39s-4
820 ILCS 130/7 from Ch. 48, par. 39s-7
820 ILCS 130/9 from Ch. 48, par. 39s-9
820 ILCS 130/10 from Ch. 48, par. 39s-10
820 ILCS 130/8 rep.

Amends the Prevailing Wage Act. Provides that the prevailing wage shall not be less than the rate that prevails for similar work performed under collective bargaining agreements in the locality provided that the agreements cover at least 30% of the workers. Provides that, if bargaining agreements do not exist in the locality, the Department of Labor shall ascertain the prevailing wage to be paid under the Act. Applies to public works performed without a written contract. Requires that the Department publish prevailing wages schedules on its website.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

HB2495LRB100 06926 JLS 16977 b
1 AN ACT concerning employment.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Prevailing Wage Act is amended by changing
5Sections 2, 4, 7, 9, and 10 as follows:
6 (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
7 Sec. 2. This Act applies to the wages of laborers,
8mechanics and other workers employed in any public works, as
9hereinafter defined, by any public body and to anyone under
10contracts for public works. This includes any maintenance,
11repair, assembly, or disassembly work performed on equipment
12whether owned, leased, or rented.
13 As used in this Act, unless the context indicates
14otherwise:
15 "Public works" means all fixed works constructed or
16demolished by any public body, or paid for wholly or in part
17out of public funds. "Public works" as defined herein includes
18all projects financed in whole or in part with bonds, grants,
19loans, or other funds made available by or through the State or
20any of its political subdivisions, including but not limited
21to: bonds issued under the Industrial Project Revenue Bond Act
22(Article 11, Division 74 of the Illinois Municipal Code), the
23Industrial Building Revenue Bond Act, the Illinois Finance

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1Authority Act, the Illinois Sports Facilities Authority Act, or
2the Build Illinois Bond Act; loans or other funds made
3available pursuant to the Build Illinois Act; loans or other
4funds made available pursuant to the Riverfront Development
5Fund under Section 10-15 of the River Edge Redevelopment Zone
6Act; or funds from the Fund for Illinois' Future under Section
76z-47 of the State Finance Act, funds for school construction
8under Section 5 of the General Obligation Bond Act, funds
9authorized under Section 3 of the School Construction Bond Act,
10funds for school infrastructure under Section 6z-45 of the
11State Finance Act, and funds for transportation purposes under
12Section 4 of the General Obligation Bond Act. "Public works"
13also includes (i) all projects financed in whole or in part
14with funds from the Department of Commerce and Economic
15Opportunity under the Illinois Renewable Fuels Development
16Program Act for which there is no project labor agreement; (ii)
17all work performed pursuant to a public private agreement under
18the Public Private Agreements for the Illiana Expressway Act or
19the Public-Private Agreements for the South Suburban Airport
20Act; and (iii) all projects undertaken under a public-private
21agreement under the Public-Private Partnerships for
22Transportation Act. "Public works" also includes all projects
23at leased facility property used for airport purposes under
24Section 35 of the Local Government Facility Lease Act. "Public
25works" also includes the construction of a new wind power
26facility by a business designated as a High Impact Business

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1under Section 5.5(a)(3)(E) of the Illinois Enterprise Zone Act.
2"Public works" does not include work done directly by any
3public utility company, whether or not done under public
4supervision or direction, or paid for wholly or in part out of
5public funds. "Public works" also includes any corrective
6action performed pursuant to Title XVI of the Environmental
7Protection Act for which payment from the Underground Storage
8Tank Fund is requested. "Public works" does not include
9projects undertaken by the owner at an owner-occupied
10single-family residence or at an owner-occupied unit of a
11multi-family residence. "Public works" does not include work
12performed for soil and water conservation purposes on
13agricultural lands, whether or not done under public
14supervision or paid for wholly or in part out of public funds,
15done directly by an owner or person who has legal control of
16those lands.
17 "Construction" means all work on public works involving
18laborers, workers or mechanics. This includes any maintenance,
19repair, assembly, or disassembly work performed on equipment
20whether owned, leased, or rented.
21 "Locality" means the county where the physical work upon
22public works is performed, except (1) that if there is not
23available in the county a sufficient number of competent
24skilled laborers, workers and mechanics to construct the public
25works efficiently and properly, "locality" includes any other
26county nearest the one in which the work or construction is to

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1be performed and from which such persons may be obtained in
2sufficient numbers to perform the work and (2) that, with
3respect to contracts for highway work with the Department of
4Transportation of this State, "locality" may at the discretion
5of the Secretary of the Department of Transportation be
6construed to include two or more adjacent counties from which
7workers may be accessible for work on such construction.
8 "Public body" means the State or any officer, board or
9commission of the State or any political subdivision or
10department thereof, or any institution supported in whole or in
11part by public funds, and includes every county, city, town,
12village, township, school district, irrigation, utility,
13reclamation improvement or other district and every other
14political subdivision, district or municipality of the state
15whether such political subdivision, municipality or district
16operates under a special charter or not.
17 "Labor organization" means an organization that is the
18exclusive representative of an employer's employees recognized
19or certified pursuant to the National Labor Relations Act.
20 The terms "general prevailing rate of hourly wages",
21"general prevailing rate of wages" or "prevailing rate of
22wages" when used in this Act mean the hourly cash wages plus
23annualized fringe benefits for training and apprenticeship
24programs approved by the U.S. Department of Labor, Bureau of
25Apprenticeship and Training, health and welfare, insurance,
26vacations and pensions paid generally, in the locality in which

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1the work is being performed, to employees engaged in work of a
2similar character on public works.
3(Source: P.A. 97-502, eff. 8-23-11; 98-109, eff. 7-25-13;
498-482, eff. 1-1-14; 98-740, eff. 7-16-14; 98-756, eff.
57-16-14.)
6 (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
7 Sec. 4. Ascertaining prevailing wage.
8 (a) The prevailing rate of wages paid to individuals
9covered under this Act shall not be less than the rate that
10prevails for work of a similar character on public works in the
11locality in which the work is performed under collective
12bargaining agreements or understandings between employers or
13employer associations and bona fide labor organizations
14relating to each craft or type of worker or mechanic needed to
15execute the contract or perform such work, and collective
16bargaining agreements or understandings successor thereto,
17provided that said employers or members of said employer
18associations employ at least 30% of the laborers, workers, or
19mechanics in the same trade or occupation in the locality where
20the work is being performed.
21 (b) If the prevailing rates of wages and fringe benefits
22cannot reasonably and fairly be applied in any locality because
23no such agreements or understandings exist, the Department of
24Labor shall determine the rates and fringe benefits for the
25same or most similar work in the nearest and most similar

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1neighboring locality in which such agreements or
2understandings exist. The Department of Labor shall keep a
3record of its findings available for inspection by any
4interested party in the office of the Department of Labor.
5 (c) In the event it is determined, after a written
6objection is filed and hearing is held in accordance with
7Section 9 of this Act, that less than 30% of the laborers,
8workers, or mechanics in a particular trade or occupation in
9the locality where the work is performed receive a collectively
10bargained rate of wage, then the average wage paid to such
11laborers, workers, or mechanics in the same trade or occupation
12in the locality for the 12-month period preceding the
13Department of Labor's annual determination shall be the
14prevailing rate of wage.
15 (d) (a) The public body awarding any contract for public
16work or otherwise undertaking any public works, shall ascertain
17the general prevailing rate of hourly wages in the locality in
18which the work is to be performed, for each craft or type of
19worker or mechanic needed to execute the contract, and where
20the public body performs the work without letting a contract
21therefor, shall ascertain the prevailing rate of wages on a per
22hour basis in the locality, and such public body shall specify
23in the resolution or ordinance and in the call for bids for the
24contract, or where the public body performs the work without
25letting the contract in a written instrument provided to the
26contractor, that the general prevailing rate of wages in the

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1locality for each craft or type of worker or mechanic needed to
2execute the contract or perform such work, also the general
3prevailing rate for legal holiday and overtime work, as
4ascertained by the public body or by the Department of Labor
5shall be paid for each craft or type of worker needed to
6execute the contract or to perform such work, and it shall be
7mandatory upon the contractor to whom the contract is awarded
8and upon any subcontractor under him, and where the public body
9performs the work, upon the public body, to pay not less than
10the specified rates to all laborers, workers and mechanics
11employed by them in the execution of the contract or such work.
12Compliance with this Act is a matter of statewide concern, and
13a public body may not opt out of any provisions herein. ;
14provided, however, that if the public body desires that the
15Department of Labor ascertain the prevailing rate of wages, it
16shall notify the Department of Labor to ascertain the general
17prevailing rate of hourly wages for work under contract, or for
18work performed by a public body without letting a contract as
19required in the locality in which the work is to be performed,
20for each craft or type of worker or mechanic needed to execute
21the contract or project or work to be performed. Upon such
22notification the Department of Labor shall ascertain such
23general prevailing rate of wages, and certify the prevailing
24wage to such public body.
25 (e) (a-1) The public body or other entity awarding the
26contract shall cause to be inserted in the project

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1specifications and the contract a stipulation to the effect
2that not less than the prevailing rate of wages as found by the
3public body or Department of Labor or determined by the court
4on review shall be paid to all laborers, workers and mechanics
5performing work under the contract.
6 (f) (a-2) When a public body or other entity covered by
7this Act has awarded work to a contractor without a public bid,
8contract or project specification, such public body or other
9entity shall comply with subsection (e) (a-1) by providing the
10contractor with written notice on the purchase order related to
11the work to be done or on a separate document indicating that
12not less than the prevailing rate of wages ascertained as found
13by the public body or Department of Labor or determined by the
14court on review shall be paid to all laborers, workers, and
15mechanics performing work on the project.
16 (g) (a-3) Where a complaint is made and the Department of
17Labor determines that a violation occurred, the Department of
18Labor shall determine if proper written notice under this
19Section 4 was given. If proper written notice was not provided
20to the contractor by the public body or other entity, the
21Department of Labor shall order the public body or other entity
22to pay any interest, penalties or fines that would have been
23owed by the contractor if proper written notice were provided.
24The failure by a public body or other entity to provide written
25notice does not relieve the contractor of the duty to comply
26with the prevailing wage rate, nor of the obligation to pay any

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1back wages, as determined under this Act. For the purposes of
2this subsection, back wages shall be limited to the difference
3between the actual amount paid and the prevailing rate of wages
4required to be paid for the project. The failure of a public
5body or other entity to provide written notice under this
6Section 4 does not diminish the right of a laborer, worker, or
7mechanic to the prevailing rate of wages as determined under
8this Act.
9 (h) (b) It shall also be mandatory upon the contractor to
10whom the contract is awarded to insert into each subcontract
11and into the project specifications for each subcontract a
12written stipulation to the effect that not less than the
13prevailing rate of wages shall be paid to all laborers,
14workers, and mechanics performing work under the contract. It
15shall also be mandatory upon each subcontractor to cause to be
16inserted into each lower tiered subcontract and into the
17project specifications for each lower tiered subcontract a
18stipulation to the effect that not less than the prevailing
19rate of wages shall be paid to all laborers, workers, and
20mechanics performing work under the contract. A contractor or
21subcontractor who fails to comply with this subsection (b) is
22in violation of this Act.
23 (i) (b-1) When a contractor has awarded work to a
24subcontractor without a contract or contract specification,
25the contractor shall comply with subsection (h) (b) by
26providing a subcontractor with a written statement indicating

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1that not less than the prevailing rate of wages shall be paid
2to all laborers, workers, and mechanics performing work on the
3project. A contractor or subcontractor who fails to comply with
4this subsection (b-1) is in violation of this Act.
5 (j) (b-2) Where a complaint is made and the Department of
6Labor determines that a violation has occurred, the Department
7of Labor shall determine if proper written notice under this
8Section 4 was given. If proper written notice was not provided
9to the subcontractor by the contractor, the Department of Labor
10shall order the contractor to pay any interest, penalties, or
11fines that would have been owed by the subcontractor if proper
12written notice were provided. The failure by a contractor to
13provide written notice to a subcontractor does not relieve the
14subcontractor of the duty to comply with the prevailing wage
15rate, nor of the obligation to pay any back wages, as
16determined under this Act. For the purposes of this subsection,
17back wages shall be limited to the difference between the
18actual amount paid and the prevailing rate of wages required
19for the project. However, if proper written notice was not
20provided to the contractor by the public body or other entity
21under this Section 4, the Department of Labor shall order the
22public body or other entity to pay any interest, penalties, or
23fines that would have been owed by the subcontractor if proper
24written notice were provided. The failure by a public body or
25other entity to provide written notice does not relieve the
26subcontractor of the duty to comply with the prevailing wage

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1rate, nor of the obligation to pay any back wages, as
2determined under this Act. For the purposes of this subsection,
3back wages shall be limited to the difference between the
4actual amount paid and the prevailing rate of wages required
5for the project. The failure to provide written notice by a
6public body, other entity, or contractor does not diminish the
7right of a laborer, worker, or mechanic to the prevailing rate
8of wages as determined under this Act.
9 (k) (c) A public body or other entity shall also require in
10all contractor's and subcontractor's bonds that the contractor
11or subcontractor include such provision as will guarantee the
12faithful performance of such prevailing wage clause as provided
13by contract or other written instrument. All bid specifications
14shall list the specified rates to all laborers, workers and
15mechanics in the locality for each craft or type of worker or
16mechanic needed to execute the contract.
17 (l) (d) If the Department of Labor revises the prevailing
18rate of hourly wages to be paid by the public body or other
19entity, the revised rate shall apply to such contract, and the
20public body or other entity shall be responsible to notify the
21contractor and each subcontractor, of the revised rate.
22 The public body or other entity shall discharge its duty to
23notify of the revised rates by inserting a written stipulation
24in all contracts or other written instruments that states the
25prevailing rate of wages are revised by the Department of Labor
26and are available on the Department's official website. This

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1shall be deemed to be proper notification of any rate changes
2under this subsection.
3 (m) (e) Two or more investigatory hearings under this
4Section on the issue of establishing a new prevailing wage
5classification for a particular craft or type of worker shall
6be consolidated in a single hearing before the Department. Such
7consolidation shall occur whether each separate investigatory
8hearing is conducted by a public body or the Department. The
9party requesting a consolidated investigatory hearing shall
10have the burden of establishing that there is no existing
11prevailing wage classification for the particular craft or type
12of worker in any of the localities under consideration.
13 (n) (f) It shall be mandatory upon the contractor or
14construction manager to whom a contract for public works is
15awarded to post, at a location on the project site of the
16public works that is easily accessible to the workers engaged
17on the project, the prevailing wage rates for each craft or
18type of worker or mechanic needed to execute the contract or
19project or work to be performed. In lieu of posting on the
20project site of the public works, a contractor which has a
21business location where laborers, workers, and mechanics
22regularly visit may: (1) post in a conspicuous location at that
23business the current prevailing wage rates for each county in
24which the contractor is performing work; or (2) provide such
25laborer, worker, or mechanic engaged on the public works
26project a written notice indicating the prevailing wage rates

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1for the public works project. A failure to post or provide a
2prevailing wage rate as required by this Section is a violation
3of this Act.
4(Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)
5 (820 ILCS 130/7) (from Ch. 48, par. 39s-7)
6 Sec. 7. The finding of the public body awarding the
7contract or authorizing the work or the Department of Labor
8ascertaining and declaring the general prevailing rate of
9hourly wages shall be final for all purposes of the contract
10for public work then being considered, unless reviewed under
11the provisions of this Act. Nothing in this Act, however, shall
12be construed to prohibit the payment to any laborer, worker or
13mechanic employed on any public work, as aforesaid, of more
14than the prevailing rate of wages; provided further that
15nothing in this Act shall be construed to limit the hours of
16work which may be performed by any person in any particular
17period of time.
18(Source: P.A. 81-992.)
19 (820 ILCS 130/9) (from Ch. 48, par. 39s-9)
20 Sec. 9. To effectuate the purpose and policy of this Act,
21the each public body shall, during the month of June of each
22calendar year, investigate and ascertain the prevailing rate of
23wages as defined in this Act and publicly post or keep
24available for inspection by any interested party in the main

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1office of such public body its determination of such prevailing
2rate of wage and shall promptly file, no later than July 15 of
3each year, a certified copy thereof in the office of the
4Illinois Department of Labor. The Department of Labor shall,
5during the month of June of each calendar year, investigate and
6ascertain the prevailing rate of wages for each county in the
7State and shall publish the prevailing wage schedule
8ascertained on its official website no later than July 15 of
9each year. If the prevailing rate of wages is based on a
10collective bargaining agreement, any increases directly
11ascertainable from such collective bargaining agreement shall
12also be published on the website. Further, if the prevailing
13rate of wages is based on a collective bargaining agreement,
14the explanation of classes on the prevailing wage schedule
15shall be consistent with the classifications established under
16the collective bargaining agreement. If a public body does not
17investigate and ascertain the prevailing rate of wages during
18the month of June as required by the previous paragraph, then
19the prevailing rate of wages for that public body shall be the
20rate as determined by the Department under this paragraph for
21the county in which such public body is located.
22 Where the Department of Labor ascertains the prevailing
23rate of wages, it is the duty of the Department of Labor within
2430 days after receiving a notice from the public body
25authorizing the proposed work, to conduct an investigation to
26ascertain the prevailing rate of wages as defined in this Act

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1and such investigation shall be conducted in the locality in
2which the work is to be performed. The Department of Labor
3shall send a certified copy of its findings to the public body
4authorizing the work and keep a record of its findings
5available for inspection by any interested party in the office
6of the Department of Labor at Springfield.
7 The public body except for the Department of Transportation
8with respect to highway contracts shall within 30 days after
9filing with the Department of Labor, or the Department of Labor
10shall within 30 days after filing with such public body,
11publish in a newspaper of general circulation within the area
12that the determination is effective, a notice of its
13determination and shall promptly mail a copy of its
14determination to any employer, and to any association of
15employers and to any person or association of employees who
16have filed their names and addresses, requesting copies of any
17determination stating the particular rates and the particular
18class of workers whose wages will be affected by such rates.
19 At any time within 30 days after the Department of Labor
20has published on its official web site a prevailing wage
21schedule, any person affected thereby may object in writing to
22the determination or such part thereof as they may deem
23objectionable by filing a written notice with the public body
24or Department of Labor, whichever has made such determination,
25stating the specified grounds of the objection. A person filing
26an objection alleging that the actual percentage of laborers,

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1workers, or mechanics that receive a collectively bargained
2rate of wage is below the required 30% shall have the burden of
3establishing such and shall support the allegation with
4competent evidence. During the pendency of any objection and
5until final determination thereof, the work in question shall
6proceed under the rate established by the Department. It shall
7thereafter be the duty of the public body or Department of
8Labor to set a date for a hearing on the objection after giving
9written notice to the objectors at least 10 days before the
10date of the hearing and said notice shall state the time and
11place of such hearing. Such hearing by the Department of Labor
12a public body shall be held within 45 days after the objection
13is filed, and shall not be postponed or reset for a later date
14except upon the consent, in writing, of all the objectors and
15the Department of Labor public body. If such hearing is not
16held by the public body within the time herein specified, the
17Department of Labor may, upon request of the objectors, conduct
18the hearing on behalf of the public body.
19 The public body or Department of Labor may , whichever has
20made such determination, is authorized in its discretion to
21hear each written objection filed separately or consolidate for
22hearing any one or more written objections filed with them. At
23such hearing, the public body or Department of Labor shall
24introduce in evidence the investigation it instituted which
25formed the basis of its determination, and the public body or
26Department of Labor, or any interested objectors may thereafter

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1introduce such evidence as is material to the issue.
2Thereafter, the public body or Department of Labor, must rule
3upon the written objection and make such final determination as
4it believes the evidence warrants, and promptly file a
5certified copy of its final determination with such public
6body, and serve a copy by personal service, or registered mail,
7or electronic mail on all parties to the proceedings. The final
8determination by the Department of Labor or a public body shall
9be rendered within 30 days after the conclusion of the hearing.
10 If proceedings to review judicially the final
11determination of the public body or Department of Labor are not
12instituted as hereafter provided, such determination shall be
13final and binding.
14 The provisions of the Administrative Review Law, and all
15amendments and modifications thereof, and the rules adopted
16pursuant thereto, shall apply to and govern all proceedings for
17the judicial review of final administrative decisions of any
18public body or the Department of Labor hereunder. The term
19"administrative decision" is defined as in Section 3-101 of the
20Code of Civil Procedure.
21 Appeals from all final orders and judgments entered by the
22court in review of the final administrative decision of the
23public body or Department of Labor, may be taken by any party
24to the action.
25 Any proceeding in any court affecting a determination of
26the Department of Labor or public body shall have priority in

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1hearing and determination over all other civil proceedings
2pending in said court, except election contests.
3 In all reviews or appeals under this Act, it shall be the
4duty of the Attorney General to represent the Department of
5Labor, and defend its determination. The Attorney General shall
6not represent any public body, except the State, in any such
7review or appeal.
8(Source: P.A. 98-173, eff. 1-1-14.)
9 (820 ILCS 130/10) (from Ch. 48, par. 39s-10)
10 Sec. 10. The presiding officer of the public body, or his
11or her authorized representative and the Director of the
12Department of Labor, or his or her authorized representative
13may interview workers, administer oaths, take or cause to be
14taken the depositions of witnesses, and require by subpoena the
15attendance and testimony of witnesses, and the production of
16all books, records, and other evidence relative to the matter
17under investigation or hearing. Such subpoena shall be signed
18and issued by such presiding officer or his or her authorized
19representative, or the Director or his or her authorized
20representative.
21 Upon request by the Director of Labor or his or her
22deputies or agents, records shall be copied and submitted for
23evidence at no cost to the Department of Labor. Every employer
24upon request shall furnish to the Director or his or her
25authorized representative, on demand, a sworn statement of the

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1accuracy of the records. Any employer who refuses to furnish a
2sworn statement of the records is in violation of this Act.
3 In case of failure of any person to comply with any
4subpoena lawfully issued under this Section section or on the
5refusal of any witness to produce evidence or to testify to any
6matter regarding which he or she may be lawfully interrogated,
7it is the duty of any circuit court, upon application of such
8presiding officer or his or her authorized representative, or
9the Director or his or her authorized representative, to compel
10obedience by proceedings for contempt, as in the case of
11disobedience of the requirements of a subpoena issued by such
12court or a refusal to testify therein. The Such presiding
13officer and the Director may certify to official acts.
14(Source: P.A. 93-38, eff. 6-1-04.)
15 (820 ILCS 130/8 rep.)
16 Section 10. The Prevailing Wage Act is amended by repealing
17Section 8.
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