HB3491 Enrolled LRB103 26348 SPS 52709 b
1		AN ACT concerning employment.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Prevailing Wage Act is amended by changing
5		Sections 4 and 11 as follows:
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
9		covered under this Act shall not be less than the rate that
10		prevails for work of a similar character on public works in the
11		locality in which the work is performed under collective
12		bargaining agreements or understandings between employers or
13		employer associations and bona fide labor organizations
14		relating to each craft or type of worker or mechanic needed to
15		execute the contract or perform such work, and collective
16		bargaining agreements or understandings successor thereto,
17		provided that said employers or members of said employer
18		associations employ at least 30% of the laborers, workers, or
19		mechanics in the same trade or occupation in the locality
20		where the work is being performed.
21		(b) If the prevailing rates of wages and fringe benefits
22		cannot reasonably and fairly be applied in any locality
23		because no such agreements or understandings exist, the

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

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1		execute the contract or to perform such work, and it shall be
2		mandatory upon the contractor to whom the contract is awarded
3		and upon any subcontractor under him, and where the public
4		body performs the work, upon the public body, to pay not less
5		than the specified rates to all laborers, workers and
6		mechanics employed by them in the execution of the contract or
7		such work. Compliance with this Act is a matter of statewide
8		concern, and a public body may not opt out of any provisions
9		herein.
10		(e) The public body or other entity awarding the contract
11		shall cause to be inserted in the project specifications and
12		the contract a stipulation to the effect that not less than the
13		prevailing rate of wages as found by the Department of Labor or
14		determined by the court on review shall be paid to all
15		laborers, workers and mechanics performing work under the
16		contract.
17		(f) When a public body or other entity covered by this Act
18		has awarded work to a contractor without a public bid,
19		contract or project specification, such public body or other
20		entity shall comply with subsection (e) by providing the
21		contractor with written notice on the purchase order related
22		to the work to be done or on a separate document indicating
23		that not less than the prevailing rate of wages ascertained by
24		the Department of Labor or determined by the court on review
25		shall be paid to all laborers, workers, and mechanics
26		performing work on the project.

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1		(g) Where a complaint is made and the Department of Labor
2		determines that a violation occurred, the Department of Labor
3		shall determine if proper written notice under this Section 4
4		was given. If proper written notice was not provided to the
5		contractor by the public body or other entity, the Department
6		of Labor shall order the public body or other entity to pay any
7		interest, penalties or fines that would have been owed by the
8		contractor if proper written notice were provided. The failure
9		by a public body or other entity to provide written notice does
10		not relieve the contractor of the duty to comply with the
11		prevailing wage rate, nor of the obligation to pay any back
12		wages, as determined under this Act. For the purposes of this
13		subsection, back wages shall be limited to the difference
14		between the actual amount paid and the prevailing rate of
15		wages required to be paid for the project. The failure of a
16		public body or other entity to provide written notice under
17		this Section 4 does not diminish the right of a laborer,
18		worker, or mechanic to the prevailing rate of wages as
19		determined under this Act.
20		Any laborer, worker, or mechanic who is employed by the
21		contractor or by any sub-contractor and is paid for services
22		in a sum less than the prevailing wage rates for work performed
23		on a project shall have a right of action for whatever
24		difference there may be between (i) the amount so paid and (ii)
25		the prevailing rates required to be paid for work performed on
26		the project.

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1		(h) It shall also be mandatory upon the contractor to whom
2		the contract is awarded to insert into each subcontract and
3		into the project specifications for each subcontract a written
4		stipulation to the effect that not less than the prevailing
5		rate of wages shall be paid to all laborers, workers, and
6		mechanics performing work under the contract. It shall also be
7		mandatory upon each subcontractor to cause to be inserted into
8		each lower tiered subcontract and into the project
9		specifications for each lower tiered subcontract a stipulation
10		to the effect that not less than the prevailing rate of wages
11		shall be paid to all laborers, workers, and mechanics
12		performing work under the contract. A contractor or
13		subcontractor who fails to comply with this subsection is in
14		violation of this Act.
15		(i) When a contractor has awarded work to a subcontractor
16		without a contract or contract specification, the contractor
17		shall comply with subsection (h) by providing a subcontractor
18		with a written statement indicating that not less than the
19		prevailing rate of wages shall be paid to all laborers,
20		workers, and mechanics performing work on the project. A
21		contractor or subcontractor who fails to comply with this
22		subsection is in violation of this Act.
23		(j) Where a complaint is made and the Department of Labor
24		determines that a violation has occurred, the Department of
25		Labor shall determine if proper written notice under this
26		Section 4 was given. If proper written notice was not provided

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1		to the subcontractor by the contractor, the Department of
2		Labor shall order the contractor to pay any interest,
3		penalties, or fines that would have been owed by the
4		subcontractor if proper written notice were provided. The
5		failure by a contractor to provide written notice to a
6		subcontractor does not relieve the subcontractor of the duty
7		to comply with the prevailing wage rate, nor of the obligation
8		to pay any back wages, as determined under this Act. For the
9		purposes of this subsection, back wages shall be limited to
10		the difference between the actual amount paid and the
11		prevailing rate of wages required for the project. However, if
12		proper written notice was not provided to the contractor by
13		the public body or other entity under this Section 4, the
14		Department of Labor shall order the public body or other
15		entity to pay any interest, penalties, or fines that would
16		have been owed by the subcontractor if proper written notice
17		were provided. The failure by a public body or other entity to
18		provide written notice does not relieve the subcontractor of
19		the duty to comply with the prevailing wage rate, nor of the
20		obligation to pay any back wages, as determined under this
21		Act. For the purposes of this subsection, back wages shall be
22		limited to the difference between the actual amount paid and
23		the prevailing rate of wages required for the project. The
24		failure to provide written notice by a public body, other
25		entity, or contractor does not diminish the right of a
26		laborer, worker, or mechanic to the prevailing rate of wages

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1		as determined under this Act.
2		(k) A public body or other entity shall also require in all
3		contractor's and subcontractor's bonds that the contractor or
4		subcontractor include such provision as will guarantee the
5		faithful performance of such prevailing wage clause as
6		provided by contract or other written instrument. All bid
7		specifications shall list the specified rates to all laborers,
8		workers and mechanics in the locality for each craft or type of
9		worker or mechanic needed to execute the contract.
10		(l) If the Department of Labor revises the prevailing rate
11		of hourly wages to be paid by the public body or other entity,
12		the revised rate shall apply to such contract, and the public
13		body or other entity shall be responsible to notify the
14		contractor and each subcontractor, of the revised rate.
15		The public body or other entity shall discharge its duty
16		to notify of the revised rates by inserting a written
17		stipulation in all contracts or other written instruments that
18		states the prevailing rate of wages are revised by the
19		Department of Labor and are available on the Department's
20		official website. This shall be deemed to be proper
21		notification of any rate changes under this subsection.
22		(m) Two or more investigatory hearings under this Section
23		on the issue of establishing a new prevailing wage
24		classification for a particular craft or type of worker shall
25		be consolidated in a single hearing before the Department. The
26		party requesting a consolidated investigatory hearing shall

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1		have the burden of establishing that there is no existing
2		prevailing wage classification for the particular craft or
3		type of worker in any of the localities under consideration.
4		(n) It shall be mandatory upon the contractor or
5		construction manager to whom a contract for public works is
6		awarded to post, at a location on the project site of the
7		public works that is easily accessible to the workers engaged
8		on the project, the prevailing wage rates for each craft or
9		type of worker or mechanic needed to execute the contract or
10		project or work to be performed. In lieu of posting on the
11		project site of the public works, a contractor which has a
12		business location where laborers, workers, and mechanics
13		regularly visit may: (1) post in a conspicuous location at
14		that business the current prevailing wage rates for each
15		county in which the contractor is performing work; or (2)
16		provide such laborer, worker, or mechanic engaged on the
17		public works project a written notice indicating the
18		prevailing wage rates for the public works project. A failure
19		to post or provide a prevailing wage rate as required by this
20		Section is a violation of this Act.
21		(Source: P.A. 100-1177, eff. 6-1-19.)
22		(820 ILCS 130/11) (from Ch. 48, par. 39s-11)
23		Sec. 11. No public works project shall be instituted
24		unless the provisions of this Act have been complied with. The
25		provisions of this Act shall not be applicable to Federal

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1		construction projects which require a prevailing wage
2		determination by the United States Secretary of Labor. The
3		Illinois Department of Labor represented by the Attorney
4		General is empowered to sue for injunctive relief against the
5		awarding of any contract or the continuation of work under any
6		contract for public works at a time when the prevailing wage
7		prerequisites have not been met. Any contract for public works
8		awarded at a time when the prevailing wage prerequisites had
9		not been met shall be void as against public policy and the
10		contractor is prohibited from recovering any damages for the
11		voiding of the contract or pursuant to the terms of the
12		contract. The contractor is limited to a claim for amounts
13		actually paid for labor and materials supplied to the public
14		body. Where objections to a determination of the prevailing
15		rate of wages or a court action relative thereto is pending,
16		the public body shall not continue work on the project unless
17		sufficient funds are available to pay increased wages if such
18		are finally determined or unless the Department of Labor
19		certifies such determination of the prevailing rate of wages
20		as correct.
21		Any laborer, worker or mechanic employed by the contractor
22		or by any sub-contractor under him who is paid for his services
23		in a sum less than the prevailing stipulated rates for work
24		done under such contract, shall have a right of action for
25		whatever difference there may be between the amount so paid,
26		and the rates provided by the contract together with costs and

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1		such reasonable attorney's fees as shall be allowed by the
2		court. Such contractor or subcontractor shall also be liable
3		to the Department of Labor for 20% of such underpayments and
4		shall be additionally liable to the laborer, worker or
5		mechanic for punitive damages in the amount of 2% of the amount
6		of any such penalty to the State for underpayments for each
7		month following the date of payment during which such
8		underpayments remain unpaid. Where a second or subsequent
9		action to recover underpayments is brought against a
10		contractor or subcontractor and the contractor or
11		subcontractor is found liable for underpayments to any
12		laborer, worker, or mechanic, the contractor or subcontractor
13		shall also be liable to the Department of Labor for 50% of the
14		underpayments payable as a result of the second or subsequent
15		action, and shall be additionally liable for 5% of the amount
16		of any such penalty to the State for underpayments for each
17		month following the date of payment during which the
18		underpayments remain unpaid. The Department shall also have a
19		right of action on behalf of any individual who has a right of
20		action under this Section. An action brought to recover same
21		shall be deemed to be a suit for wages, and any and all
22		judgments entered therein shall have the same force and effect
23		as other judgments for wages. The action shall be brought
24		within 5 years from the date of the failure to pay the wages or
25		compensation. At the request of any laborer, workman or
26		mechanic employed by the contractor or by any subcontractor

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1		under him who is paid less than the prevailing wage rate
2		required by this Act, the Department of Labor may take an
3		assignment of such wage claim in trust for the assigning
4		laborer, workman or mechanic and may bring any legal action
5		necessary to collect such claim, and the contractor or
6		subcontractor shall be required to pay the costs incurred in
7		collecting such claim.
8		(Source: P.A. 98-328, eff. 1-1-14.)