Bill Text: IL SB1344 | 2025-2026 | 104th General Assembly | Enrolled

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Bill Title: Amends the Prevailing Wage Act. Provides that the definition of "public works" includes sewer inspection projects that use a closed-circuit television to identify issues in a sewer system, such as cracks in pipes, root intrusion, blockages, or other structural damage. Provides that any contractor or subcontractor, who the Department of Labor finds has failed to file the certified payroll for any public works project, is subject to a civil penalty, payable to the Department, of up to $1,000 for a first offense and up to $2,000 for a second or subsequent offense no more than 5 years after the first offense. Sets forth provisions concerning hearings and enforcement. Provides that all moneys owed to the Department of Labor under the Act shall be remitted to the Employee Classification Fund. Amends the Employee Classification Act. Provides that moneys in the Employee Classification Fund shall be used, subject to appropriation, by the Department for administration, investigation, outreach, and educational activities related to the Act and the Prevailing Wage Act and other expenses incurred in carrying out its powers and duties under the Act and the Prevailing Wage Act. Makes conforming changes. Amends the Workplace Transparency Act. Provides, if and only if House Bill 3638 of the 104th General Assembly becomes law, for the recovery of compensatory damages incurred in challenging a contract for violation of the Act. Effective immediately, except for changes to the Workplace Transparency Act.

Sponsorship: Partisan Bill (Democrat 3)

Status: (Passed) 2025-06-30 - Public Act . . . . . . . . . 104-0023 [SB1344 Detail]

Download: Illinois-2025-SB1344-Enrolled.html

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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
Section 2, 5, and 11 as follows:
(820 ILCS 130/2)
Sec. 2. This Act applies to the wages of laborers,
mechanics and other workers employed in any public works, as
hereinafter defined, by any public body and to anyone under
contracts for public works. This includes any maintenance,
repair, assembly, or disassembly work performed on equipment
whether owned, leased, or rented.
As used in this Act, unless the context indicates
otherwise:
"Public works" means all fixed works constructed or
demolished by any public body, or paid for wholly or in part
out of public funds. "Public works" as defined herein includes
all projects financed in whole or in part with bonds, grants,
loans, or other funds made available by or through the State or
any of its political subdivisions, including but not limited
to: bonds issued under the Industrial Project Revenue Bond Act
(Article 11, Division 74 of the Illinois Municipal Code), the
Industrial Building Revenue Bond Act, the Illinois Finance

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Authority Act, the Illinois Sports Facilities Authority Act,
or the Build Illinois Bond Act; loans or other funds made
available pursuant to the Build Illinois Act; loans or other
funds made available pursuant to the Riverfront Development
Fund under Section 10-15 of the River Edge Redevelopment Zone
Act; or funds from the Fund for Illinois' Future under Section
6z-47 of the State Finance Act, funds for school construction
under Section 5 of the General Obligation Bond Act, funds
authorized under Section 3 of the School Construction Bond
Act, funds for school infrastructure under Section 6z-45 of
the State Finance Act, and funds for transportation purposes
under Section 4 of the General Obligation Bond Act. "Public
works" also includes (i) all projects financed in whole or in
part with funds from the Environmental Protection Agency under
the Illinois Renewable Fuels Development Program Act for which
there is no project labor agreement; (ii) all work performed
pursuant to a public private agreement under the Public
Private Agreements for the Illiana Expressway Act or the
Public-Private Agreements for the South Suburban Airport Act;
(iii) all projects undertaken under a public-private agreement
under the Public-Private Partnerships for Transportation Act
or the Department of Natural Resources World Shooting and
Recreational Complex Act; and (iv) all transportation
facilities undertaken under a design-build contract or a
Construction Manager/General Contractor contract under the
Innovations for Transportation Infrastructure Act. "Public

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works" also includes all projects at leased facility property
used for airport purposes under Section 35 of the Local
Government Facility Lease Act. "Public works" also includes
the construction of a new wind power facility by a business
designated as a High Impact Business under Section
5.5(a)(3)(E) of the Illinois Enterprise Zone Act, the
construction of a new utility-scale solar power facility by a
business designated as a High Impact Business under Section
5.5(a)(3)(E-5) of the Illinois Enterprise Zone Act, the
construction of a new battery energy storage solution facility
by a business designated as a High Impact Business under
Section 5.5(a)(3)(I) of the Illinois Enterprise Zone Act, and
the construction of a high voltage direct current converter
station by a business designated as a High Impact Business
under Section 5.5(a)(3)(J) of the Illinois Enterprise Zone
Act. "Public works" also includes electric vehicle charging
station projects financed pursuant to the Electric Vehicle Act
and renewable energy projects required to pay the prevailing
wage pursuant to the Illinois Power Agency Act. "Public works"
also includes power washing projects by a public body or paid
for wholly or in part out of public funds in which steam or
pressurized water, with or without added abrasives or
chemicals, is used to remove paint or other coatings, oils or
grease, corrosion, or debris from a surface or to prepare a
surface for a coating. "Public works" also includes all
electric transmission systems projects subject to the Electric

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Transmission Systems Construction Standards Act. "Public
works" does not include work done directly by any public
utility company, whether or not done under public supervision
or direction, or paid for wholly or in part out of public
funds. "Public works" also includes construction projects
performed by a third party contracted by any public utility,
as described in subsection (a) of Section 2.1, in public
rights-of-way, as defined in Section 21-201 of the Public
Utilities Act, whether or not done under public supervision or
direction, or paid for wholly or in part out of public funds.
"Public works" also includes construction projects that exceed
15 aggregate miles of new fiber optic cable, performed by a
third party contracted by any public utility, as described in
subsection (b) of Section 2.1, in public rights-of-way, as
defined in Section 21-201 of the Public Utilities Act, whether
or not done under public supervision or direction, or paid for
wholly or in part out of public funds. "Public works" also
includes any corrective action performed pursuant to Title XVI
of the Environmental Protection Act for which payment from the
Underground Storage Tank Fund is requested. "Public works"
also includes all construction projects involving fixtures or
permanent attachments affixed to light poles that are owned by
a public body, including street light poles, traffic light
poles, and other lighting fixtures, whether or not done under
public supervision or direction, or paid for wholly or in part
out of public funds, unless the project is performed by

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employees employed directly by the public body. "Public works"
also includes work performed subject to the Mechanical
Insulation Energy and Safety Assessment Act. "Public works"
also includes the removal, hauling, and transportation of
biosolids, lime sludge, and lime residue from a water
treatment plant or facility and the disposal of biosolids,
lime sludge, and lime residue removed from a water treatment
plant or facility at a landfill. "Public works" also includes
sewer inspection projects that use a closed-circuit television
to identify issues in a sewer system, such as cracks in pipes,
root intrusion, blockages, or other structural damage. "Public
works" does not include projects undertaken by the owner at an
owner-occupied single-family residence or at an owner-occupied
unit of a multi-family residence. "Public works" does not
include work performed for soil and water conservation
purposes on agricultural lands, whether or not done under
public supervision or paid for wholly or in part out of public
funds, done directly by an owner or person who has legal
control of those lands.
"Construction" means all work on public works involving
laborers, workers or mechanics. This includes any maintenance,
repair, assembly, or disassembly work performed on equipment
whether owned, leased, or rented.
"Locality" means the county where the physical work upon
public works is performed, except (1) that if there is not
available in the county a sufficient number of competent

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skilled laborers, workers and mechanics to construct the
public works efficiently and properly, "locality" includes any
other county nearest the one in which the work or construction
is to be performed and from which such persons may be obtained
in sufficient numbers to perform the work and (2) that, with
respect to contracts for highway work with the Department of
Transportation of this State, "locality" may at the discretion
of the Secretary of the Department of Transportation be
construed to include two or more adjacent counties from which
workers may be accessible for work on such construction.
"Public body" means the State or any officer, board or
commission of the State or any political subdivision or
department thereof, or any institution supported in whole or
in part by public funds, and includes every county, city,
town, village, township, school district, irrigation, utility,
reclamation improvement or other district and every other
political subdivision, district or municipality of the state
whether such political subdivision, municipality or district
operates under a special charter or not.
"Labor organization" means an organization that is the
exclusive representative of an employer's employees recognized
or certified pursuant to the National Labor Relations Act.
The terms "general prevailing rate of hourly wages",
"general prevailing rate of wages" or "prevailing rate of
wages" when used in this Act mean the hourly cash wages plus
annualized fringe benefits for training and apprenticeship

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programs approved by the U.S. Department of Labor, Bureau of
Apprenticeship and Training, health and welfare, insurance,
vacations and pensions paid generally, in the locality in
which the work is being performed, to employees engaged in
work of a similar character on public works.
(Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21;
102-673, eff. 11-30-21; 102-813, eff. 5-13-22; 102-1094, eff.
6-15-22; 103-8, eff. 6-7-23; 103-327, eff. 1-1-24; 103-346,
eff. 1-1-24; 103-359, eff. 7-28-23; 103-447, eff. 8-4-23;
103-605, eff. 7-1-24; 103-1066, eff. 2-20-25.)
(820 ILCS 130/5) (from Ch. 48, par. 39s-5)
Sec. 5. Certified payroll.
(a) Any contractor and each subcontractor who participates
in public works shall:
(1) make and keep, for a period of not less than 3
years from the date of the last payment made before
January 1, 2014 (the effective date of Public Act 98-328)
and for a period of 5 years from the date of the last
payment made on or after January 1, 2014 (the effective
date of Public Act 98-328) on a contract or subcontract
for public works, records of all laborers, mechanics, and
other workers employed by them on the project; the records
shall include (i) the worker's name, (ii) the worker's
address, (iii) the worker's telephone number when
available, (iv) the last 4 digits of the worker's social

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security number, (v) the worker's gender, (vi) the
worker's race, (vii) the worker's ethnicity, (viii)
veteran status, (ix) the worker's classification or
classifications, (x) the worker's skill level, such as
apprentice or journeyman, (xi) the worker's gross and net
wages paid in each pay period, (xii) the worker's number
of hours worked each day, (xiii) the worker's starting and
ending times of work each day, (xiv) the worker's hourly
wage rate, (xv) the worker's hourly overtime wage rate,
(xvi) the worker's hourly fringe benefit rates, (xvii) the
name and address of each fringe benefit fund, (xviii) the
plan sponsor of each fringe benefit, if applicable, and
(xix) the plan administrator of each fringe benefit, if
applicable; and
(2) no later than the 15th day of each calendar month
file a certified payroll for the immediately preceding
month with the public body in charge of the project until
the Department of Labor activates the database created
under Section 5.1 at which time certified payroll shall
only be submitted to that database, except for projects
done by State agencies that opt to have contractors submit
certified payrolls directly to that State agency. A State
agency that opts to directly receive certified payrolls
must submit the required information in a specified
electronic format to the Department of Labor no later than
10 days after the certified payroll was filed with the

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State agency. A certified payroll must be filed for only
those calendar months during which construction on a
public works project has occurred. The certified payroll
shall consist of a complete copy of the records identified
in paragraph (1) of this subsection (a), but may exclude
the starting and ending times of work each day. The
certified payroll shall be accompanied by a statement
signed by the contractor or subcontractor or an officer,
employee, or agent of the contractor or subcontractor
which avers that: (i) he or she has examined the certified
payroll records required to be submitted by the Act and
such records are true and accurate; (ii) the hourly rate
paid to each worker is not less than the general
prevailing rate of hourly wages required by this Act; and
(iii) the contractor or subcontractor is aware that filing
a certified payroll that he or she knows to be false is a
Class A misdemeanor. A general contractor is not
prohibited from relying on the certification of a lower
tier subcontractor, provided the general contractor does
not knowingly rely upon a subcontractor's false
certification. Any contractor or subcontractor subject to
this Act and any officer, employee, or agent of such
contractor or subcontractor whose duty as such officer,
employee, or agent it is to file such certified payroll
who willfully fails to file such a certified payroll on or
before the date such certified payroll is required by this

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paragraph to be filed and any person who willfully files a
false certified payroll that is false as to any material
fact is in violation of this Act and guilty of a Class A
misdemeanor. The public body in charge of the project
shall keep the records submitted in accordance with this
paragraph (2) of subsection (a) before January 1, 2014
(the effective date of Public Act 98-328) for a period of
not less than 3 years, and the records submitted in
accordance with this paragraph (2) of subsection (a) on or
after January 1, 2014 (the effective date of Public Act
98-328) for a period of 5 years, from the date of the last
payment for work on a contract or subcontract for public
works or until the Department of Labor activates the
database created under Section 5.1, whichever is less.
After the activation of the database created under Section
5.1, the Department of Labor rather than the public body
in charge of the project shall keep the records and
maintain the database. The records submitted in accordance
with this paragraph (2) of subsection (a) shall be
considered public records, except an employee's address,
telephone number, social security number, race, ethnicity,
and gender, and made available in accordance with the
Freedom of Information Act. The public body shall accept
any reasonable submissions by the contractor that meet the
requirements of this Section.
A contractor, subcontractor, or public body may retain

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records required under this Section in paper or electronic
format.
(b) Upon 7 business days' notice, the contractor and each
subcontractor shall make available for inspection and copying
at a location within this State during reasonable hours, the
records identified in paragraph (1) of subsection (a) of this
Section to the public body in charge of the project, its
officers and agents, the Director of Labor and his deputies
and agents, and to federal, State, or local law enforcement
agencies and prosecutors.
(c) A contractor or subcontractor who remits contributions
to fringe benefit funds that are jointly maintained and
jointly governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act shall make and keep certified payroll records
that include the information required under items (i) through
(viii) of paragraph (1) of subsection (a) only. However, the
information required under items (ix) through (xv) of
paragraph (1) of subsection (a) shall be required for any
contractor or subcontractor who remits contributions to a
fringe benefit fund that is not jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act.
(d) Any contractor or subcontractor subject to this Act
and any officer, employee, or agent of the contractor or

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subcontractor whose duty as the officer, employee, or agent is
to file the certified payroll, who the Department of Labor
finds has failed to file the certified payroll for any public
works project as required under this Act, is subject to a civil
penalty, payable to the Department of Labor, of up to $1,000
for a first offense and up to $2,000 for a second or subsequent
offense no more than 5 years after the first offense. A second
or subsequent offense that occurs more than 5 years after the
first offense shall be considered a first offense. Each month
in which a violation of this Section occurs shall constitute a
separate offense.
A finding of an offense by the Department of Labor for
failure to file the certified payroll may be challenged if a
request for administrative hearing is received no later than
10 business days after receipt of the notice of the offense.
The Department of Labor shall have the burden of establishing
good cause for its action. Good cause exists if the Department
of Labor establishes that the contractor or subcontractor
participated in a public works project under this Act and
failed to submit a certified payroll to the Department of
Labor's electronic database no later than 15 calendar days
after the immediately preceding month in which the public
works were performed by the contractor or subcontractor. Any
mitigating evidence that a contractor or subcontractor
attempted to timely submit certified payrolls to the
Department of Labor's electronic database but failed due to

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technical issues shall be considered. A contractor or
subcontractor's lack of knowledge of the requirements of this
Section shall not be considered as mitigating evidence.
All hearings held under this Section shall comply with the
Illinois Administrative Procedure Act and the Department of
Labor's rules for administrative hearings. The final
administrative decision by the Department of Labor shall be
rendered after the conclusion of the hearing. A final
administrative decision made under this Section is subject to
the Administrative Review Law. If a final administrative
decision issued by the Department of Labor requires a
contractor or subcontractor to pay a civil penalty, and the
subcontractor or contractor has not: (i) made the required
payment within 35 days after the issuance of the final
administrative decision; or (ii) timely filed a complaint
seeking review of the final administrative decision within 35
days after the issuance of the final administrative decision
in a court of competent jurisdiction, the Department of Labor,
by and through the Office of the Attorney General, may file a
verified petition against the contractor or subcontractor to
enforce the final administrative decision and to collect any
amounts due in the circuit court of any county where an office
of the Department of Labor is located.
(Source: P.A. 100-1177, eff. 6-1-19; 101-31, eff. 6-28-19.)
(820 ILCS 130/11) (from Ch. 48, par. 39s-11)

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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 rates for work done under

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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

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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.
All moneys owed to the Department under this Act shall be
remitted to the Employee Classification Fund, and the
Department may use those funds for the purposes identified in
Section 50 of the Employee Classification Act.
(Source: P.A. 103-48, eff. 1-1-24.)
Section 10. The Employee Classification Act is amended by
changing Section 50 as follows:
(820 ILCS 185/50)
Sec. 50. Employee Classification Fund. All moneys received
by the Department as fees and civil penalties under this Act
and all moneys owed to the Department under the Prevailing
Wage Act shall be deposited into the Employee Classification
Fund and shall be used, subject to appropriation by the
General Assembly, by the Department for administration,
investigation, outreach, and educational activities related to

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this Act and the Prevailing Wage Act and other expenses
incurred in carrying out its powers and duties under this Act
and the Prevailing Wage Act. The Department shall hire as many
investigators and other personnel as may be necessary to carry
out the purposes of this Act. Any moneys in the Fund at the end
of a fiscal year in excess of those moneys necessary for the
Department to carry out its powers and duties under this Act
shall be available to the Department for the next fiscal year
for any of the Department's duties.
(Source: P.A. 95-26, eff. 1-1-08.)
Section 15. If and only if House Bill 3638 of the 104th
General Assembly becomes law, then the Workplace Transparency
Act is amended by changing Section 1-35 as follows:
(820 ILCS 96/1-35)
Sec. 1-35. Compensatory damages, costs, Costs and
attorney's fees. An employee, prospective employee, or former
employee shall be entitled to compensatory damages, in
addition to reasonable attorney's fees and costs incurred in
challenging a contract for violation of this Act upon a final,
non-appealable action in favor of the employee, prospective
employee, or former employee on the question of the validity
and enforceability of the contract or defending an action for
breach of a confidentiality agreement pursuant to this Act.
(Source: P.A. 101-221, eff. 1-1-20.)

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Section 99. Effective date. This Act takes effect upon
becoming law, except that Section 15 takes effect upon
becoming law or on the date House Bill 3638 of the 104th
General Assembly takes effect, whichever is later.