Bill Text: IL HB5538 | 2021-2022 | 102nd General Assembly | Engrossed
Bill Title: Amends the Prevailing Wage Act. Provides that the provisions of the Act apply to the construction or demolition of public works performed by an employee of a public body engaged in the construction or demolition of public works on behalf of another public body. Makes conforming changes.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Engrossed - Dead) 2022-03-25 - Rule 3-9(a) / Re-referred to Assignments [HB5538 Detail]
Download: Illinois-2021-HB5538-Engrossed.html
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1 | AN ACT concerning employment.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Prevailing Wage Act is amended by changing | ||||||
5 | Sections 1, 2, 3, 5, and 11 as follows:
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6 | (820 ILCS 130/1) (from Ch. 48, par. 39s-1)
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7 | Sec. 1.
It is the policy of the State of Illinois that a | ||||||
8 | wage of no
less than the general prevailing hourly rate as paid | ||||||
9 | for work of a
similar character in the locality in which the | ||||||
10 | work is performed, shall
be paid to all laborers, workers and | ||||||
11 | mechanics employed by or on behalf
of any and all public bodies | ||||||
12 | engaged in public works. It is also the policy of the State of | ||||||
13 | Illinois that a wage of no less than the general prevailing | ||||||
14 | hourly rate as paid for work of a similar character in the | ||||||
15 | locality in which the work is performed shall be paid to all | ||||||
16 | employees of public bodies when engaged in public works on | ||||||
17 | behalf of other public bodies.
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18 | (Source: P.A. 83-443.)
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19 | (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
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20 | Sec. 2. This Act applies to the wages of laborers, | ||||||
21 | mechanics and
other workers employed in any public works, as | ||||||
22 | hereinafter defined, by
any public body and to anyone under |
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1 | contracts for public works. This includes any maintenance, | ||||||
2 | repair, assembly, or disassembly work performed on equipment | ||||||
3 | whether owned, leased, or rented.
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4 | As used in this Act, unless the context indicates | ||||||
5 | otherwise:
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6 | "Public works" means all fixed works constructed or | ||||||
7 | demolished by
any public body,
or paid for wholly or in part | ||||||
8 | out of public funds , including fixed works constructed or | ||||||
9 | demolished by a public body on behalf of another public body . | ||||||
10 | "Public works" as
defined herein includes all projects | ||||||
11 | financed in whole
or in part with bonds, grants, loans, or | ||||||
12 | other funds made available by or through the State or any of | ||||||
13 | its political subdivisions, including but not limited to: | ||||||
14 | bonds issued under the Industrial Project Revenue Bond
Act | ||||||
15 | (Article 11, Division 74 of the Illinois Municipal Code), the | ||||||
16 | Industrial
Building Revenue Bond Act, the Illinois Finance | ||||||
17 | Authority Act,
the Illinois Sports Facilities Authority Act, | ||||||
18 | or the Build Illinois Bond Act; loans or other funds made
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19 | available pursuant to the Build Illinois Act; loans or other | ||||||
20 | funds made available pursuant to the Riverfront Development | ||||||
21 | Fund under Section 10-15 of the River Edge Redevelopment Zone | ||||||
22 | Act; or funds from the Fund for
Illinois' Future under Section | ||||||
23 | 6z-47 of the State Finance Act, funds for school
construction | ||||||
24 | under Section 5 of the General Obligation Bond Act, funds
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25 | authorized under Section 3 of the School Construction Bond | ||||||
26 | Act, funds for
school infrastructure under Section 6z-45 of |
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1 | the State Finance Act, and funds
for transportation purposes | ||||||
2 | under Section 4 of the General Obligation Bond
Act. "Public | ||||||
3 | works" also includes (i) all projects financed in whole or in | ||||||
4 | part
with funds from the Environmental Protection Agency under | ||||||
5 | the Illinois Renewable Fuels Development Program
Act for which | ||||||
6 | there is no project labor agreement; (ii) all work performed | ||||||
7 | pursuant to a public private agreement under the Public | ||||||
8 | Private Agreements for the Illiana Expressway Act or the | ||||||
9 | Public-Private Agreements for the South Suburban Airport Act; | ||||||
10 | and (iii) all projects undertaken under a public-private | ||||||
11 | agreement under the Public-Private Partnerships for | ||||||
12 | Transportation Act. "Public works" also includes all projects | ||||||
13 | at leased facility property used for airport purposes under | ||||||
14 | Section 35 of the Local Government Facility Lease Act. "Public | ||||||
15 | works" also includes the construction of a new wind power | ||||||
16 | facility by a business designated as a High Impact Business | ||||||
17 | under Section 5.5(a)(3)(E) and the construction of a new | ||||||
18 | utility-scale solar power facility by a business designated as | ||||||
19 | a High Impact Business under Section 5.5(a)(3)(E-5) of the | ||||||
20 | Illinois Enterprise Zone Act.
"Public works" also includes | ||||||
21 | electric vehicle charging station projects financed pursuant | ||||||
22 | to the Electric Vehicle Act and renewable energy projects | ||||||
23 | required to pay the prevailing wage pursuant to the Illinois | ||||||
24 | Power Agency Act. "Public works" does not include work done | ||||||
25 | directly by any public utility company, whether or not done | ||||||
26 | under public supervision or direction, or paid for wholly or |
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1 | in part out of public funds. "Public works" also includes | ||||||
2 | construction projects performed by a third party contracted by | ||||||
3 | any public utility, as described in subsection (a) of Section | ||||||
4 | 2.1, in public rights-of-way, as defined in Section 21-201 of | ||||||
5 | the Public Utilities Act, whether or not done under public | ||||||
6 | supervision or direction, or paid for wholly or in part out of | ||||||
7 | public funds. "Public works" also includes construction | ||||||
8 | projects that exceed 15 aggregate miles of new fiber optic | ||||||
9 | cable, performed by a third party contracted by any public | ||||||
10 | utility, as described in subsection (b) of Section 2.1, in | ||||||
11 | public rights-of-way, as defined in Section 21-201 of the | ||||||
12 | Public Utilities Act, whether or not done under public | ||||||
13 | supervision or direction, or paid for wholly or in part out of | ||||||
14 | public funds. "Public works" also includes any corrective | ||||||
15 | action performed pursuant to Title XVI of the Environmental | ||||||
16 | Protection Act for which payment from the Underground Storage | ||||||
17 | Tank Fund is requested. "Public works" does not include | ||||||
18 | projects undertaken by the owner at an owner-occupied | ||||||
19 | single-family residence or at an owner-occupied unit of a | ||||||
20 | multi-family residence. "Public works" does not include work | ||||||
21 | performed for soil and water conservation purposes on | ||||||
22 | agricultural lands, whether or not done under public | ||||||
23 | supervision or paid for wholly or in part out of public funds, | ||||||
24 | done directly by an owner or person who has legal control of | ||||||
25 | those lands.
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26 | "Construction" means all work on public works involving |
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1 | laborers,
workers or mechanics. This includes any maintenance, | ||||||
2 | repair, assembly, or disassembly work performed on equipment | ||||||
3 | whether owned, leased, or rented.
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4 | "Locality" means the county where the physical work upon | ||||||
5 | public works
is performed, except (1) that if there is not | ||||||
6 | available in the county a
sufficient number of competent | ||||||
7 | skilled laborers, workers and mechanics
to construct the | ||||||
8 | public works efficiently and properly, "locality"
includes any | ||||||
9 | other county nearest the one in which the work or
construction | ||||||
10 | is to be performed and from which such persons may be
obtained | ||||||
11 | in sufficient numbers to perform the work and (2) that, with
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12 | respect to contracts for highway work with the Department of
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13 | Transportation of this State, "locality" may at the discretion | ||||||
14 | of the
Secretary of the Department of Transportation be | ||||||
15 | construed to include
two or more adjacent counties from which | ||||||
16 | workers may be accessible for
work on such construction.
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17 | "Public body" means the State or any officer, board or | ||||||
18 | commission of
the State or any political subdivision or | ||||||
19 | department thereof, or any
institution supported in whole or | ||||||
20 | in part by public funds,
and includes every county, city, | ||||||
21 | town,
village, township, school district, irrigation, utility, | ||||||
22 | reclamation
improvement or other district and every other | ||||||
23 | political subdivision,
district or municipality of the state | ||||||
24 | whether such political
subdivision, municipality or district | ||||||
25 | operates under a special charter
or not.
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26 | "Labor organization" means an organization that is the |
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1 | exclusive representative of an
employer's employees recognized | ||||||
2 | or certified pursuant to the National Labor Relations Act. | ||||||
3 | The terms "general prevailing rate of hourly wages", | ||||||
4 | "general
prevailing rate of wages" or "prevailing rate of | ||||||
5 | wages" when used in
this Act mean the hourly cash wages plus | ||||||
6 | annualized fringe benefits for training and
apprenticeship | ||||||
7 | programs approved by the U.S. Department of Labor, Bureau of
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8 | Apprenticeship and Training, health and welfare, insurance, | ||||||
9 | vacations and
pensions paid generally, in the
locality in | ||||||
10 | which the work is being performed, to employees engaged in
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11 | work of a similar character on public works.
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12 | (Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21; | ||||||
13 | 102-673, eff. 11-30-21; revised 12-9-21.)
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14 | (820 ILCS 130/3) (from Ch. 48, par. 39s-3)
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15 | Sec. 3. Not less than the general prevailing rate of | ||||||
16 | hourly wages for
work of a similar character on public works in | ||||||
17 | the locality in which the
work is performed, and not less than | ||||||
18 | the general prevailing rate of
hourly wages for legal holiday | ||||||
19 | and overtime work, shall be paid to all
laborers, workers and | ||||||
20 | mechanics employed by or on behalf of any public
body engaged | ||||||
21 | in the construction or demolition of public works.
This | ||||||
22 | includes any maintenance, repair, assembly, or disassembly | ||||||
23 | work performed on equipment whether owned, leased, or rented. | ||||||
24 | This also includes the construction or demolition of public | ||||||
25 | works performed by an employee of a public body engaged in the |
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1 | construction or demolition of public works on behalf of | ||||||
2 | another public body. Only such laborers, workers and mechanics | ||||||
3 | as are
directly employed by contractors or subcontractors in | ||||||
4 | actual
construction work on the site of the building or | ||||||
5 | construction job, and
laborers, workers and mechanics engaged | ||||||
6 | in the transportation of
materials and equipment to or from | ||||||
7 | the site, but not including the
transportation by the sellers | ||||||
8 | and suppliers or the manufacture or
processing of materials or | ||||||
9 | equipment, in the execution of any contract
or contracts for | ||||||
10 | public works with any public body shall be deemed to be
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11 | employed upon public works. The wage for a tradesman | ||||||
12 | performing maintenance
is equivalent to that of a tradesman | ||||||
13 | engaged in construction or demolition.
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14 | (Source: P.A. 95-341, eff. 8-21-07; 96-186, eff. 1-1-10.)
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15 | (820 ILCS 130/5) (from Ch. 48, par. 39s-5)
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16 | Sec. 5. Certified payroll.
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17 | (a) Any contractor and each subcontractor who participates | ||||||
18 | in public works and any public body that participates in | ||||||
19 | public works on behalf of another public body shall: | ||||||
20 | (1) make and keep, for a period of not less
than 3 | ||||||
21 | years from the date of the last payment made before | ||||||
22 | January 1, 2014 (the effective date of Public Act 98-328) | ||||||
23 | and for a period of 5 years from the date of the last | ||||||
24 | payment made on or after January 1, 2014 (the effective | ||||||
25 | date of Public Act 98-328) on a contract or subcontract |
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1 | for public works, records of all laborers, mechanics, and | ||||||
2 | other workers employed by them on the project; the records | ||||||
3 | shall include (i) the worker's name, (ii) the worker's | ||||||
4 | address, (iii) the worker's telephone number
when | ||||||
5 | available, (iv) the last 4 digits of the worker's social | ||||||
6 | security number, (v) the worker's gender, (vi) the | ||||||
7 | worker's race, (vii) the
worker's ethnicity, (viii) | ||||||
8 | veteran status, (ix) the worker's classification or | ||||||
9 | classifications, (x) the worker's skill level, such as | ||||||
10 | apprentice or journeyman, (xi) the worker's gross and net | ||||||
11 | wages paid in each pay period, (xii) the worker's number | ||||||
12 | of hours worked each day, (xiii) the worker's starting and | ||||||
13 | ending times of work each day, (xiv) the worker's hourly | ||||||
14 | wage rate, (xv) the worker's hourly overtime wage rate, | ||||||
15 | (xvi) the worker's hourly fringe benefit rates, (xvii) the | ||||||
16 | name and address of each fringe benefit fund, (xviii) the | ||||||
17 | plan sponsor of each fringe benefit, if applicable, and | ||||||
18 | (xix) the plan administrator of each fringe benefit, if | ||||||
19 | applicable; and | ||||||
20 | (2) no later than the 15th day of each calendar month | ||||||
21 | file a certified payroll for the immediately preceding | ||||||
22 | month with the public body in charge of the project until | ||||||
23 | the Department of Labor activates the database created | ||||||
24 | under Section 5.1 at which time certified payroll shall | ||||||
25 | only be submitted to that database, except for projects | ||||||
26 | done by State agencies that opt to have contractors submit |
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1 | certified payrolls directly to that State agency. A State | ||||||
2 | agency that opts to directly receive certified payrolls | ||||||
3 | must submit the required information in a specified | ||||||
4 | electronic format to the Department of Labor no later than | ||||||
5 | 10 days after the certified payroll was filed with the | ||||||
6 | State agency. A certified payroll must be filed for only | ||||||
7 | those calendar months during which construction on a | ||||||
8 | public works project has occurred. The certified payroll | ||||||
9 | shall consist of a complete copy of the records identified | ||||||
10 | in paragraph (1) of this subsection (a), but may exclude | ||||||
11 | the starting and ending times of work each day. The | ||||||
12 | certified payroll shall be accompanied by a statement | ||||||
13 | signed by the contractor or subcontractor or an officer, | ||||||
14 | employee, or agent of the contractor or subcontractor or | ||||||
15 | an officer, employee, or agent of a public body engaged in | ||||||
16 | the construction or demolition of public works on behalf | ||||||
17 | of another public body, which avers that: (i) he or she has | ||||||
18 | examined the certified payroll records required to be | ||||||
19 | submitted by the Act and such records are true and | ||||||
20 | accurate; (ii) the hourly rate paid to each worker is not | ||||||
21 | less than the general prevailing rate of hourly wages | ||||||
22 | required by this Act; and (iii) the public body engaged in | ||||||
23 | the construction or demolition of public works on behalf | ||||||
24 | of another public body or the contractor or subcontractor | ||||||
25 | is aware that filing a certified payroll that he or she | ||||||
26 | knows to be false is a Class A misdemeanor. A general |
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1 | contractor is not prohibited from relying on the | ||||||
2 | certification of a lower tier subcontractor, provided the | ||||||
3 | general contractor does not knowingly rely upon a | ||||||
4 | subcontractor's false certification. Any public body | ||||||
5 | engaged in the construction or demolition of public works | ||||||
6 | on behalf of another public body, any officer, employee, | ||||||
7 | or agent of a public body engaged in the construction or | ||||||
8 | demolition of public works on behalf of another public | ||||||
9 | body, any contractor or subcontractor subject to this Act , | ||||||
10 | and any officer, employee, or agent of such contractor or | ||||||
11 | subcontractor whose duty as such officer, employee, or | ||||||
12 | agent it is to file such certified payroll who willfully | ||||||
13 | fails to file such a certified payroll on or before the | ||||||
14 | date such certified payroll is required by this paragraph | ||||||
15 | to be filed and any person who willfully files a false | ||||||
16 | certified payroll that is false as to any material fact is | ||||||
17 | in violation of this Act and guilty of a Class A | ||||||
18 | misdemeanor. The public body in charge of the project | ||||||
19 | shall keep the records submitted in accordance with this | ||||||
20 | paragraph (2) of subsection (a) before January 1, 2014 | ||||||
21 | (the effective date of Public Act 98-328) for a period of | ||||||
22 | not less than 3 years, and the records submitted in | ||||||
23 | accordance with this paragraph (2) of subsection (a) on or | ||||||
24 | after January 1, 2014 (the effective date of Public Act | ||||||
25 | 98-328) for a period of 5 years, from the date of the last | ||||||
26 | payment for work on a contract or subcontract for public |
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1 | works or until the Department of Labor activates the | ||||||
2 | database created under Section 5.1, whichever is less. | ||||||
3 | After the activation of the database created under Section | ||||||
4 | 5.1, the Department of Labor rather than the public body | ||||||
5 | in charge of the project shall keep the records and | ||||||
6 | maintain the database. The records submitted in accordance | ||||||
7 | with this paragraph (2) of subsection (a) shall be | ||||||
8 | considered public records, except an employee's address, | ||||||
9 | telephone number, social security number, race, ethnicity, | ||||||
10 | and gender, and made available in accordance with the | ||||||
11 | Freedom of Information Act. The public body shall accept | ||||||
12 | any reasonable submissions by the contractor that meet the | ||||||
13 | requirements of this Section.
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14 | A contractor, subcontractor, or public body may retain | ||||||
15 | records required under this Section in paper or electronic | ||||||
16 | format. | ||||||
17 | (b) Upon 7 business days' notice, the public body engaged | ||||||
18 | in the construction or demolition of public works on behalf of | ||||||
19 | another public body or the contractor and each subcontractor | ||||||
20 | shall make available for inspection and copying at a location | ||||||
21 | within this State during reasonable hours, the records | ||||||
22 | identified in paragraph (1) of subsection (a) of this Section | ||||||
23 | to the public body
in charge of the project, its officers and | ||||||
24 | agents, the Director of Labor
and his deputies and agents, and | ||||||
25 | to federal, State, or local law enforcement agencies and | ||||||
26 | prosecutors. |
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1 | (c) A contractor or subcontractor who remits contributions | ||||||
2 | to fringe benefit funds that are jointly maintained and | ||||||
3 | jointly governed by one or more employers and one or more labor | ||||||
4 | organizations in accordance with the federal Labor Management | ||||||
5 | Relations Act shall make and keep certified payroll records | ||||||
6 | that include the information required under items (i) through | ||||||
7 | (viii) of paragraph (1) of subsection (a) only. However, the | ||||||
8 | information required under items (ix) through (xv) of | ||||||
9 | paragraph (1) of subsection (a) shall be required for any | ||||||
10 | contractor or subcontractor who remits contributions to a | ||||||
11 | fringe benefit fund that is not jointly maintained and jointly | ||||||
12 | governed by one or more employers and one or more labor | ||||||
13 | organizations in accordance with the federal Labor Management | ||||||
14 | Relations Act. | ||||||
15 | (Source: P.A. 100-1177, eff. 6-1-19; 101-31, eff. 6-28-19.)
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16 | (820 ILCS 130/11) (from Ch. 48, par. 39s-11)
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17 | Sec. 11. No public works project shall be instituted | ||||||
18 | unless the
provisions of this Act have been complied with. The | ||||||
19 | provisions of this
Act shall not be applicable to Federal | ||||||
20 | construction projects which
require a prevailing wage | ||||||
21 | determination by the United States Secretary
of Labor. The | ||||||
22 | Illinois Department of Labor represented by the Attorney
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23 | General is empowered to sue for injunctive relief against the | ||||||
24 | awarding of
any contract or the continuation of work under any | ||||||
25 | contract for public works
at a time when the prevailing wage |
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1 | prerequisites have not been met. Any
contract for public works | ||||||
2 | awarded at a time when the prevailing wage prerequisites
had | ||||||
3 | not been met shall be void as against public policy and the | ||||||
4 | public body engaged in the construction or demolition of | ||||||
5 | public works on behalf of another public body or the | ||||||
6 | contractor
is prohibited from recovering any damages
for the | ||||||
7 | voiding of the contract or pursuant to the terms of the | ||||||
8 | contract.
The public body engaged in the construction or | ||||||
9 | demolition of public works on behalf of another public body or | ||||||
10 | the contractor is limited to a claim for amounts actually paid | ||||||
11 | for labor
and materials supplied to the public body. Where | ||||||
12 | objections to a determination
of the prevailing rate of
wages | ||||||
13 | or a court action relative thereto is pending, the public body
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14 | shall not continue work on the project unless sufficient funds | ||||||
15 | are
available to pay increased wages if such are finally | ||||||
16 | determined or
unless the Department of Labor certifies such | ||||||
17 | determination of the
prevailing rate of wages as correct.
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18 | Any employee of a public body that engaged in the | ||||||
19 | construction or demolition of public works on behalf of | ||||||
20 | another public body and any laborer, worker or mechanic | ||||||
21 | employed by the contractor or by any sub-contractor
under him | ||||||
22 | who is paid for his services in a sum less than the stipulated
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23 | rates for work done under such contract, shall
have a right of | ||||||
24 | action for whatever difference there may be between the
amount | ||||||
25 | so paid, and the rates provided by the contract together with
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26 | costs and such reasonable attorney's fees as
shall be allowed |
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1 | by the court. Such contractor or subcontractor shall also
be | ||||||
2 | liable to the
Department of Labor for
20% of
such | ||||||
3 | underpayments and shall be additionally liable to the laborer, | ||||||
4 | worker
or mechanic for punitive damages in the amount of
2% of | ||||||
5 | the amount of any
such penalty to the
State for underpayments | ||||||
6 | for each month following the date of payment during
which such | ||||||
7 | underpayments
remain unpaid. Where a second or subsequent | ||||||
8 | action to recover underpayments is brought against a public | ||||||
9 | body that engaged in the construction or demolition of public | ||||||
10 | works on behalf of another public body or a contractor or | ||||||
11 | subcontractor and the public body or contractor or | ||||||
12 | subcontractor is found liable for underpayments to any | ||||||
13 | employee, laborer, worker, or mechanic, the public body or | ||||||
14 | contractor or subcontractor shall also be liable to the | ||||||
15 | Department of Labor for 50% of the underpayments payable as a | ||||||
16 | result of the second or subsequent action, and shall be | ||||||
17 | additionally liable for 5% of the amount of any such penalty to | ||||||
18 | the State for underpayments for each month following the date | ||||||
19 | of payment during which the underpayments remain unpaid. The | ||||||
20 | Department shall also have a right of action on behalf
of any | ||||||
21 | individual who has a right of action under this Section. An | ||||||
22 | action brought
to recover same shall be deemed to be a suit for | ||||||
23 | wages, and any and all
judgments entered therein shall have | ||||||
24 | the same force and effect as other
judgments for wages.
The | ||||||
25 | action shall be brought within 5 years from the date of the | ||||||
26 | failure to pay the wages or compensation. At the request of any |
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1 | employee employed by a public body that engaged in the | ||||||
2 | construction or demolition of public works on behalf of | ||||||
3 | another public body or any laborer, workman or mechanic
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4 | employed by the contractor or by any subcontractor under him | ||||||
5 | who is paid
less than the prevailing wage rate required by this | ||||||
6 | Act, the Department
of Labor may take an assignment of such | ||||||
7 | wage claim in trust for the assigning
laborer, workman or | ||||||
8 | mechanic and may bring any legal action necessary to
collect | ||||||
9 | such claim, and the public body that engaged in the | ||||||
10 | construction or demolition of public works on behalf of | ||||||
11 | another public body or the contractor or subcontractor shall | ||||||
12 | be required
to pay the costs incurred in collecting such | ||||||
13 | claim.
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14 | (Source: P.A. 98-328, eff. 1-1-14.)
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