Bill Text: IL SB0957 | 2017-2018 | 100th General Assembly | Introduced

---

Bill Title: Amends the Prevailing Wage Act. Provides that a prevailing wage determined at the time of bid submission shall continue for the duration of the contract.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2019-01-09 - Session Sine Die [SB0957 Detail]

Download: Illinois-2017-SB0957-Introduced.html

---

100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB0957 Introduced 2/7/2017, by Sen. Jason A. Barickman SYNOPSIS AS INTRODUCED:
820 ILCS 130/4 from Ch. 48, par. 39s-4
820 ILCS 130/9 from Ch. 48, par. 39s-9
Amends the Prevailing Wage Act. Provides that a prevailing wage determined at the time of bid submission shall continue for the duration of the contract.
LRB100 04284 JLS 14290 b
FISCAL NOTE ACT MAY APPLY
A BILL FOR
SB0957 LRB100 04284 JLS 14290 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 9 as follows:
(820 ILCS 130/4) (from Ch. 48, par. 39s-4)
Sec. 4. Ascertaining prevailing wage.
(a) The public body awarding any contract for public work
or otherwise undertaking any public works, shall ascertain the
general prevailing rate of hourly wages in the locality in
which the work is to be performed, for each craft or type of
worker or mechanic needed to execute the contract, and where
the public body performs the work without letting a contract
therefor, shall ascertain the prevailing rate of wages on a per
hour basis in the locality, and such public body shall specify
in the resolution or ordinance and in the call for bids for the
contract, 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 public body or 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

SB0957 - 2 - LRB100 04284 JLS 14290 b
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;
provided, however, that if the public body desires that the
Department of Labor ascertain the prevailing rate of wages, it
shall notify the Department of Labor to ascertain the general
prevailing rate of hourly wages for work under contract, or for
work performed by a public body without letting a contract as
required in the locality in which the work is to be performed,
for each craft or type of worker or mechanic needed to execute
the contract or project or work to be performed. Upon such
notification the Department of Labor shall ascertain such
general prevailing rate of wages, and certify the prevailing
wage to such public body.
(a-1) 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 public body or
Department of Labor or determined by the court on review shall
be paid to all laborers, workers and mechanics performing work
under the contract.
(a-2) 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

SB0957 - 3 - LRB100 04284 JLS 14290 b
entity shall comply with subsection (a-1) 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 as found by the
public body or Department of Labor or determined by the court
on review shall be paid to all laborers, workers, and mechanics
performing work on the project.
(a-3) 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.

SB0957 - 4 - LRB100 04284 JLS 14290 b
(b) 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 (b) is
in violation of this Act.
(b-1) When a contractor has awarded work to a subcontractor
without a contract or contract specification, the contractor
shall comply with subsection (b) 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 (b-1) is in violation of this Act.
(b-2) 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

SB0957 - 5 - LRB100 04284 JLS 14290 b
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.

SB0957 - 6 - LRB100 04284 JLS 14290 b
(c) 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.
(d) Any prevailing rate determined by a public body or the
Department at the time of bid submission shall be the rate
applicable for the duration of the contract awarded by the
public body. 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.
(e) 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

SB0957 - 7 - LRB100 04284 JLS 14290 b
be consolidated in a single hearing before the Department. Such
consolidation shall occur whether each separate investigatory
hearing is conducted by a public body or 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.
(f) 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. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)

SB0957 - 8 - LRB100 04284 JLS 14290 b
(820 ILCS 130/9) (from Ch. 48, par. 39s-9)
Sec. 9. To effectuate the purpose and policy of this Act
each public body shall, during the month of June of each
calendar year, investigate and ascertain the prevailing rate of
wages as defined in this Act and publicly post or keep
available for inspection by any interested party in the main
office of such public body its determination of such prevailing
rate of wage and shall promptly file, no later than July 15 of
each year, a certified copy thereof in the office of the
Illinois Department of Labor.
The Department of Labor shall during the month of June of
each calendar year, investigate and ascertain the prevailing
rate of wages for each county in the State. If a public body
does not investigate and ascertain the prevailing rate of wages
during the month of June as required by the previous paragraph,
then the prevailing rate of wages for that public body shall be
the rate as determined by the Department under this paragraph
for the county in which such public body is located.
Where the Department of Labor ascertains the prevailing
rate of wages, it is the duty of the Department of Labor within
30 days after receiving a notice from the public body
authorizing the proposed work, to conduct an investigation to
ascertain the prevailing rate of wages as defined in this Act
and such investigation shall be conducted in the locality in
which the work is to be performed. The Department of Labor
shall send a certified copy of its findings to the public body

SB0957 - 9 - LRB100 04284 JLS 14290 b
authorizing the work and keep a record of its findings
available for inspection by any interested party in the office
of the Department of Labor at Springfield.
The public body except for the Department of Transportation
with respect to highway contracts shall within 30 days after
filing with the Department of Labor, or the Department of Labor
shall within 30 days after filing with such public body,
publish in a newspaper of general circulation within the area
that the determination is effective, a notice of its
determination and shall promptly mail a copy of its
determination to any employer, and to any association of
employers and to any person or association of employees who
have filed their names and addresses, requesting copies of any
determination stating the particular rates and the particular
class of workers whose wages will be affected by such rates.
At any time within 30 days after the Department of Labor
has published on its official web site a prevailing wage
schedule, any person affected thereby may object in writing to
the determination or such part thereof as they may deem
objectionable by filing a written notice with the public body
or Department of Labor, whichever has made such determination,
stating the specified grounds of the objection. It shall
thereafter be the duty of the public body or Department of
Labor to set a date for a hearing on the objection after giving
written notice to the objectors at least 10 days before the
date of the hearing and said notice shall state the time and

SB0957 - 10 - LRB100 04284 JLS 14290 b
place of such hearing. Such hearing by a public body shall be
held within 45 days after the objection is filed, and shall not
be postponed or reset for a later date except upon the consent,
in writing, of all the objectors and the public body. If such
hearing is not held by the public body within the time herein
specified, the Department of Labor may, upon request of the
objectors, conduct the hearing on behalf of the public body.
The public body or Department of Labor, whichever has made
such determination, is authorized in its discretion to hear
each written objection filed separately or consolidate for
hearing any one or more written objections filed with them. At
such hearing the public body or Department of Labor shall
introduce in evidence the investigation it instituted which
formed the basis of its determination, and the public body or
Department of Labor, or any interested objectors may thereafter
introduce such evidence as is material to the issue.
Thereafter, the public body or Department of Labor, must rule
upon the written objection and make such final determination as
it believes the evidence warrants, and promptly file a
certified copy of its final determination with such public
body, and serve a copy by personal service or registered mail
on all parties to the proceedings. The final determination by
the Department of Labor or a public body shall be rendered
within 30 days after the conclusion of the hearing.
If proceedings to review judicially the final
determination of the public body or Department of Labor are not

SB0957 - 11 - LRB100 04284 JLS 14290 b
instituted as hereafter provided, such determination shall be
final and binding.
The provisions of the Administrative Review Law, and all
amendments and modifications thereof, and the rules adopted
pursuant thereto, shall apply to and govern all proceedings for
the judicial review of final administrative decisions of any
public body or the Department of Labor hereunder. The term
"administrative decision" is defined as in Section 3-101 of the
Code of Civil Procedure.
Appeals from all final orders and judgments entered by the
court in review of the final administrative decision of the
public body or Department of Labor, may be taken by any party
to the action.
Any proceeding in any court affecting a determination of
the Department of Labor or public body shall have priority in
hearing and determination over all other civil proceedings
pending in said court, except election contests.
In all reviews or appeals under this Act, it shall be the
duty of the Attorney General to represent the Department of
Labor, and defend its determination. The Attorney General shall
not represent any public body, except the State, in any such
review or appeal.
Notwithstanding the provisions of this Section, any
prevailing rate determined by a public body or the Department
at the time of bid submission shall be the rate applicable for
the duration of the contract awarded by the public body.

SB0957 - 12 - LRB100 04284 JLS 14290 b
(Source: P.A. 98-173, eff. 1-1-14.)