|
| Public Act 103-0048
|
| HB3491 Enrolled | LRB103 26348 SPS 52709 b |
|
|
AN ACT concerning employment.
|
Be it enacted by the People of the State of Illinois,
|
represented in the General Assembly:
|
Section 5. The Prevailing Wage Act is amended by changing |
Sections 4 and 11 as follows:
|
(820 ILCS 130/4) (from Ch. 48, par. 39s-4)
|
Sec. 4. Ascertaining prevailing wage. |
(a) The prevailing rate of wages paid to individuals |
covered under this Act shall not be less than the
rate that |
prevails for work of a similar character on public works in the |
locality in which the
work is performed under collective |
bargaining agreements or understandings between employers
or |
employer associations and bona fide labor organizations |
relating to each craft or type of
worker or mechanic needed to |
execute the contract or perform such work, and collective
|
bargaining agreements or understandings successor thereto, |
provided that said employers or
members of said employer |
associations employ at least 30% of the laborers, workers, or
|
mechanics in the same trade or occupation in the locality |
where the work is being performed. |
(b) If the prevailing rates of wages and fringe benefits |
cannot reasonably and fairly be applied
in any locality |
because no such agreements or understandings exist, the |
|
Department of Labor
shall determine the rates and fringe |
benefits for the same or most similar work in the nearest and
|
most similar neighboring locality in which such agreements or |
understandings exist. The
Department of Labor shall keep a |
record of its findings available for inspection by any |
interested
party in the office of the Department of Labor. |
(c) In the event it is determined, after a written |
objection is filed and hearing is held in
accordance with |
Section 9 of this Act, that less than 30% of the laborers, |
workers, or
mechanics in a particular trade or occupation in |
the locality where the work is performed receive
a |
collectively bargained rate of wage, then the average wage |
paid to such laborers, workers, or
mechanics in the same trade |
or occupation in the locality for the 12-month period |
preceding
the Department of Labor's annual determination shall |
be the prevailing rate of wage. |
(d) The public body awarding any contract for public work |
or
otherwise undertaking any public works shall
specify in the |
call for bids for the
contract, or where the public body |
performs the work without letting the contract in a written |
instrument provided to the contractor, that the general |
prevailing rate of wages in the locality for
each craft or type |
of worker or mechanic needed to execute the contract
or |
perform such work, also the general prevailing rate for legal |
holiday
and overtime work, as ascertained by the
Department of |
Labor shall be paid for each craft or type of worker
needed to |
|
execute the contract or to perform such work, and it shall be
|
mandatory upon the contractor to whom the contract is awarded |
and upon
any subcontractor under him, and where the public |
body performs the
work, upon the public body, to pay not less |
than the specified rates to
all laborers, workers and |
mechanics employed by them in the execution of
the contract or |
such work. Compliance with this Act is a matter of statewide |
concern, and a public body may not opt out of any provisions |
herein. |
(e) The public body or other entity awarding the
contract |
shall cause to be inserted in the project specifications and |
the
contract a stipulation to the
effect that not less than the |
prevailing rate of wages as found by the
Department of Labor or |
determined by the court on review
shall be paid to all |
laborers, workers and mechanics performing work
under the |
contract.
|
(f) When a public body or other entity covered by this Act |
has awarded work to a contractor without a public bid, |
contract or project specification, such public body or other |
entity shall comply with subsection (e) by providing the |
contractor with written notice on the purchase order related |
to the work to be done or on a separate document indicating |
that not less than the prevailing rate of wages ascertained by |
the Department of Labor or determined by the court on review |
shall be paid to all laborers, workers, and mechanics |
performing work on the project. |
|
(g) Where a complaint is made and the Department of Labor |
determines that a violation occurred, the Department of Labor |
shall determine if proper written notice under this Section 4 |
was given. If proper written notice was not provided to the |
contractor by the public body or other entity, the Department |
of Labor shall order the public body or other entity to pay any |
interest, penalties or fines that would have been owed by the |
contractor if proper written notice were provided. The failure |
by a public body or other entity to provide written notice does |
not relieve the contractor of the duty to comply with the |
prevailing wage rate, nor of the obligation to pay any back |
wages, as determined under this Act. For the purposes of this |
subsection, back wages shall be limited to the difference |
between the actual amount paid and the prevailing rate of |
wages required to be paid for the project. The failure of a |
public body or other entity to provide written notice under |
this Section 4 does not diminish the right of a laborer, |
worker, or mechanic to the prevailing rate of wages as |
determined under this Act. |
Any laborer, worker, or mechanic who is employed by the |
contractor or by any sub-contractor and is paid for services |
in a sum less than the prevailing wage rates for work performed |
on a project shall have a right of action for whatever |
difference there may be between (i) the amount so paid and (ii) |
the prevailing rates required to be paid for work performed on |
the project. |
|
(h) It shall also be mandatory upon the contractor to whom |
the contract is
awarded
to insert into each subcontract and |
into the project specifications for each
subcontract a written |
stipulation to the effect that not less than the
prevailing
|
rate of wages shall be paid to all laborers, workers, and |
mechanics performing
work under the contract. It shall also be |
mandatory upon each subcontractor to
cause to be inserted into |
each lower tiered subcontract
and into the project |
specifications for each lower tiered subcontract a
stipulation |
to the effect that not less
than the prevailing rate of wages |
shall be paid to all laborers, workers, and
mechanics |
performing work under the contract. A contractor or |
subcontractor who
fails to comply with this subsection is in |
violation of this Act.
|
(i) When a contractor has awarded work to a subcontractor |
without a contract or contract specification, the contractor |
shall comply with subsection (h) by providing a subcontractor |
with a written statement indicating that not less than the |
prevailing rate of wages shall be paid to all laborers, |
workers, and mechanics performing work on the project. A |
contractor or subcontractor who fails to comply with this |
subsection is in violation of this Act. |
(j) Where a complaint is made and the Department of Labor |
determines that a violation has occurred, the Department of |
Labor shall determine if proper written notice under this |
Section 4 was given. If proper written notice was not provided |
|
to the subcontractor by the contractor, the Department of |
Labor shall order the contractor to pay any interest, |
penalties, or fines that would have been owed by the |
subcontractor if proper written notice were provided. The |
failure by a contractor to provide written notice to a |
subcontractor does not relieve the subcontractor of the duty |
to comply with the prevailing wage rate, nor of the obligation |
to pay any back wages, as determined under this Act. For the |
purposes of this subsection, back wages shall be limited to |
the difference between the actual amount paid and the |
prevailing rate of wages required for the project. However, if |
proper written notice was not provided to the contractor by |
the public body or other entity under this Section 4, the |
Department of Labor shall order the public body or other |
entity to pay any interest, penalties, or fines that would |
have been owed by the subcontractor if proper written notice |
were provided. The failure by a public body or other entity to |
provide written notice does not relieve the subcontractor of |
the duty to comply with the prevailing wage rate, nor of the |
obligation to pay any back wages, as determined under this |
Act. For the purposes of this subsection, back wages shall be |
limited to the difference between the actual amount paid and |
the prevailing rate of wages required for the project. The |
failure to provide written notice by a public body, other |
entity, or contractor does not diminish the right of a |
laborer, worker, or mechanic to the prevailing rate of wages |
|
as determined under this Act. |
(k) A public body or other entity shall also require in all |
contractor's and subcontractor's bonds
that the contractor or |
subcontractor include such provision as will guarantee the
|
faithful performance of such prevailing wage clause as |
provided by
contract or other written instrument. All bid |
specifications shall list the specified rates to all
laborers, |
workers and mechanics in the locality for each craft or type of
|
worker or mechanic needed to execute the contract.
|
(l) If the Department of Labor
revises the prevailing rate |
of hourly wages to be paid by the public body or other entity, |
the
revised rate shall apply to such contract, and the public |
body or other entity shall be
responsible to notify the |
contractor and each subcontractor, of the revised
rate.
|
The public body or other entity shall discharge its duty |
to notify of the revised rates by inserting a written |
stipulation in all contracts or other written instruments that |
states the prevailing rate of wages are revised by the |
Department of Labor and are available on the Department's |
official website. This shall be deemed to be proper |
notification of any rate changes under this subsection. |
(m) Two or more investigatory hearings under this Section |
on the issue
of establishing a new prevailing wage |
classification for a particular craft
or type of worker shall |
be consolidated in a single hearing before the
Department. The |
party requesting
a consolidated investigatory hearing shall |
|
have the burden of establishing that
there is no existing |
prevailing wage classification for the particular craft or
|
type of worker in any of the localities under consideration.
|
(n) It shall be mandatory upon the contractor or |
construction manager
to whom a contract for public works is |
awarded to post, at a
location on the project site of the |
public works that is
easily accessible to the workers engaged |
on the project,
the prevailing wage rates for each craft or |
type of worker
or mechanic needed to execute the contract or |
project or
work to be performed. In lieu of posting on the |
project site of the public works, a contractor which has a |
business location where laborers, workers, and mechanics |
regularly visit may: (1) post in a conspicuous location at |
that business the current prevailing wage rates for each |
county in which the contractor is performing work; or (2) |
provide such laborer, worker, or mechanic engaged on the |
public works project a written notice indicating the |
prevailing wage rates for the public works project. A failure |
to post or provide a prevailing wage
rate as required by this |
Section is a violation of this Act.
|
(Source: P.A. 100-1177, eff. 6-1-19.)
|
(820 ILCS 130/11) (from Ch. 48, par. 39s-11)
|
Sec. 11. No public works project shall be instituted |
unless the
provisions of this Act have been complied with. The |
provisions of this
Act shall not be applicable to Federal |
|
construction projects which
require a prevailing wage |
determination by the United States Secretary
of Labor. The |
Illinois Department of Labor represented by the Attorney
|
General is empowered to sue for injunctive relief against the |
awarding of
any contract or the continuation of work under any |
contract for public works
at a time when the prevailing wage |
prerequisites have not been met. Any
contract for public works |
awarded at a time when the prevailing wage prerequisites
had |
not been met shall be void as against public policy and the |
contractor
is prohibited from recovering any damages
for the |
voiding of the contract or pursuant to the terms of the |
contract.
The contractor is limited to a claim for amounts |
actually paid for labor
and materials supplied to the public |
body. Where objections to a determination
of the prevailing |
rate of
wages or a court action relative thereto is pending, |
the public body
shall not continue work on the project unless |
sufficient funds are
available to pay increased wages if such |
are finally determined or
unless the Department of Labor |
certifies such determination of the
prevailing rate of wages |
as correct.
|
Any laborer, worker or mechanic employed by the contractor |
or by any sub-contractor
under him who is paid for his services |
in a sum less than the prevailing stipulated
rates for work |
done under such contract, shall
have a right of action for |
whatever difference there may be between the
amount so paid, |
and the rates provided by the contract together with
costs and |
|
such reasonable attorney's fees as
shall be allowed by the |
court. Such contractor or subcontractor shall also
be liable |
to the
Department of Labor for
20% of
such underpayments and |
shall be additionally liable to the laborer, worker
or |
mechanic for punitive damages in the amount of
2% of the amount |
of any
such penalty to the
State for underpayments for each |
month following the date of payment during
which such |
underpayments
remain unpaid. Where a second or subsequent |
action to recover underpayments is brought against a |
contractor or subcontractor and the contractor or |
subcontractor is found liable for underpayments to any |
laborer, worker, or mechanic, the contractor or subcontractor |
shall also be liable to the Department of Labor for 50% of the |
underpayments payable as a result of the second or subsequent |
action, and shall be additionally liable for 5% of the amount |
of any such penalty to the State for underpayments for each |
month following the date of payment during which the |
underpayments remain unpaid. The Department shall also have a |
right of action on behalf
of any individual who has a right of |
action under this Section. An action brought
to recover same |
shall be deemed to be a suit for wages, and any and all
|
judgments entered therein shall have the same force and effect |
as other
judgments for wages.
The action shall be brought |
within 5 years from the date of the failure to pay the wages or |
compensation. At the request of any laborer, workman or |
mechanic
employed by the contractor or by any subcontractor |
|
under him who is paid
less than the prevailing wage rate |
required by this Act, the Department
of Labor may take an |
assignment of such wage claim in trust for the assigning
|
laborer, workman or mechanic and may bring any legal action |
necessary to
collect such claim, and the contractor or |
subcontractor shall be required
to pay the costs incurred in |
collecting such claim.
|
(Source: P.A. 98-328, eff. 1-1-14.)
|
