Bill Text: IL SB0958 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Prevailing Wage Act. Deletes provisions regarding investigatory hearings by the Department of Labor regarding new wage classifications. Requires the creation of any new prevailing wage classification to be promulgated by administrative rule by the Department of Labor in accordance with the Illinois Administrative Procedure Act.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2018-04-27 - Rule 3-9(a) / Re-referred to Assignments [SB0958 Detail]

Download: Illinois-2017-SB0958-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0958

Introduced 2/7/2017, by Sen. Jason A. Barickman

SYNOPSIS AS INTRODUCED:
820 ILCS 130/4 from Ch. 48, par. 39s-4

Amends the Prevailing Wage Act. Deletes provisions regarding investigatory hearings by the Department of Labor regarding new wage classifications. Requires the creation of any new prevailing wage classification to be promulgated by administrative rule by the Department of Labor in accordance with the Illinois Administrative Procedure Act.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

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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
5Section 4 as follows:
6 (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
7 Sec. 4. Ascertaining prevailing wage.
8 (a) The public body awarding any contract for public work
9or otherwise undertaking any public works, shall ascertain the
10general prevailing rate of hourly wages in the locality in
11which the work is to be performed, for each craft or type of
12worker or mechanic needed to execute the contract, and where
13the public body performs the work without letting a contract
14therefor, shall ascertain the prevailing rate of wages on a per
15hour basis in the locality, and such public body shall specify
16in the resolution or ordinance and in the call for bids for the
17contract, that the general prevailing rate of wages in the
18locality for each craft or type of worker or mechanic needed to
19execute the contract or perform such work, also the general
20prevailing rate for legal holiday and overtime work, as
21ascertained by the public body or by the Department of Labor
22shall be paid for each craft or type of worker needed to
23execute the contract or to perform such work, and it shall be

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1mandatory upon the contractor to whom the contract is awarded
2and upon any subcontractor under him, and where the public body
3performs the work, upon the public body, to pay not less than
4the specified rates to all laborers, workers and mechanics
5employed by them in the execution of the contract or such work;
6provided, however, that if the public body desires that the
7Department of Labor ascertain the prevailing rate of wages, it
8shall notify the Department of Labor to ascertain the general
9prevailing rate of hourly wages for work under contract, or for
10work performed by a public body without letting a contract as
11required in the locality in which the work is to be performed,
12for each craft or type of worker or mechanic needed to execute
13the contract or project or work to be performed. Upon such
14notification the Department of Labor shall ascertain such
15general prevailing rate of wages, and certify the prevailing
16wage to such public body.
17 (a-1) The public body or other entity awarding the contract
18shall cause to be inserted in the project specifications and
19the contract a stipulation to the effect that not less than the
20prevailing rate of wages as found by the public body or
21Department of Labor or determined by the court on review shall
22be paid to all laborers, workers and mechanics performing work
23under the contract.
24 (a-2) When a public body or other entity covered by this
25Act has awarded work to a contractor without a public bid,
26contract or project specification, such public body or other

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

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

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

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

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1party requesting a consolidated investigatory hearing shall
2have the burden of establishing that there is no existing
3prevailing wage classification for the particular craft or type
4of worker in any of the localities under consideration.
5 (f) It shall be mandatory upon the contractor or
6construction manager to whom a contract for public works is
7awarded to post, at a location on the project site of the
8public works that is easily accessible to the workers engaged
9on the project, the prevailing wage rates for each craft or
10type of worker or mechanic needed to execute the contract or
11project or work to be performed. In lieu of posting on the
12project site of the public works, a contractor which has a
13business location where laborers, workers, and mechanics
14regularly visit may: (1) post in a conspicuous location at that
15business the current prevailing wage rates for each county in
16which the contractor is performing work; or (2) provide such
17laborer, worker, or mechanic engaged on the public works
18project a written notice indicating the prevailing wage rates
19for the public works project. A failure to post or provide a
20prevailing wage rate as required by this Section is a violation
21of this Act.
22 (g) The creation of any new prevailing wage classification
23shall be promulgated by administrative rule by the Department
24of Labor in accordance with the Illinois Administrative
25Procedure Act.
26(Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)
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