Bill Text: IL SB1646 | 2019-2020 | 101st General Assembly | Introduced

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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: (Failed) 2021-01-13 - Session Sine Die [SB1646 Detail]

Download: Illinois-2019-SB1646-Introduced.html

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101ST GENERAL ASSEMBLY State of Illinois 2019 and 2020 SB1646 Introduced 2/15/2019, 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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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 4 as follows:
(820 ILCS 130/4) (from Ch. 48, par. 39s-4)
(Text of Section before amendment by P.A. 100-1177)
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

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execute the contract or to perform such work, and it shall be
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,

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contract or project specification, such public body or other
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

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this Act.
(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

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Section 4 was given. If proper written notice was not provided
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

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of wages as determined under this Act.
(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) 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
be consolidated in a single hearing before the Department. Such
consolidation shall occur whether each separate investigatory

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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.)
(Text of Section after amendment by P.A. 100-1177)
Sec. 4. Ascertaining prevailing wage.

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(a) The prevailing rate of wages paid to individuals
covered under this Act shall not be less than the rate that
prevails for work of a similar character on public works in the
locality in which the work is performed under collective
bargaining agreements or understandings between employers or
employer associations and bona fide labor organizations
relating to each craft or type of worker or mechanic needed to
execute the contract or perform such work, and collective
bargaining agreements or understandings successor thereto,
provided that said employers or members of said employer
associations employ at least 30% of the laborers, workers, or
mechanics in the same trade or occupation in the locality where
the work is being performed.
(b) If the prevailing rates of wages and fringe benefits
cannot reasonably and fairly be applied in any locality because
no such agreements or understandings exist, the Department of
Labor shall determine the rates and fringe benefits for the
same or most similar work in the nearest and most similar
neighboring locality in which such agreements or
understandings exist. The Department of Labor shall keep a
record of its findings available for inspection by any
interested party in the office of the Department of Labor.
(c) In the event it is determined, after a written
objection is filed and hearing is held in accordance with
Section 9 of this Act, that less than 30% of the laborers,
workers, or mechanics in a particular trade or occupation in

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the locality where the work is performed receive a collectively
bargained rate of wage, then the average wage paid to such
laborers, workers, or mechanics in the same trade or occupation
in the locality for the 12-month period preceding the
Department of Labor's annual determination shall be the
prevailing rate of wage.
(d) The public body awarding any contract for public work
or otherwise undertaking any public works shall specify in the
call for bids for the contract, or where the public body
performs the work without letting the contract in a written
instrument provided to the contractor, 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 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
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.
Compliance with this Act is a matter of statewide concern, and
a public body may not opt out of any provisions herein.
(e) The public body or other entity awarding the contract
shall cause to be inserted in the project specifications and

SB1646 - 10 - LRB101 09149 JLS 54243 b
the contract a stipulation to the effect that not less than the
prevailing rate of wages as found by the Department of Labor or
determined by the court on review shall be paid to all
laborers, workers and mechanics performing work under the
contract.
(f) 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 entity
shall comply with subsection (e) 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 ascertained by the Department
of Labor or determined by the court on review shall be paid to
all laborers, workers, and mechanics performing work on the
project.
(g) 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

SB1646 - 11 - LRB101 09149 JLS 54243 b
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.
(h) 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 is in
violation of this Act.
(i) When a contractor has awarded work to a subcontractor
without a contract or contract specification, the contractor
shall comply with subsection (h) by providing a subcontractor
with a written statement indicating that not less than the

SB1646 - 12 - LRB101 09149 JLS 54243 b
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 is in violation of this Act.
(j) 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
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

SB1646 - 13 - LRB101 09149 JLS 54243 b
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.
(k) 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.
(l) 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

SB1646 - 14 - LRB101 09149 JLS 54243 b
shall be deemed to be proper notification of any rate changes
under this subsection.
(m) (Blank). 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
be consolidated in a single hearing before 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.
(n) 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

SB1646 - 15 - LRB101 09149 JLS 54243 b
of this Act.
(o) The creation of any new prevailing wage classification
shall be promulgated by administrative rule by the Department
of Labor in accordance with the Illinois Administrative
Procedure Act.
(Source: P.A. 100-1177, eff. 6-1-19.)
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.