99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB2761
 
Introduced 2/17/2016, 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.



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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 


SB2761LRB099 18275 JLS 42646 b



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 
5Sections 4 and 9 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) Any prevailing rate determined by a public body or the 
10Department at the time of bid submission shall be the rate 
11applicable for the duration of the contract awarded by the 
12public body. If the Department of Labor
revises the prevailing 
13rate of hourly wages to be paid by the public body or other 
14entity, the
revised rate shall apply to such contract, and the 
15public body or other entity shall be
responsible to notify the 
16contractor and each subcontractor, of the revised
rate.

17 The public body or other entity shall discharge its duty to 
18notify of the revised rates by inserting a written stipulation 
19in all contracts or other written instruments that states the 
20prevailing rate of wages are revised by the Department of Labor 
21and are available on the Department's official website. This 
22shall be deemed to be proper notification of any rate changes 
23under this subsection.
24 (e) Two or more investigatory hearings under this Section 
25on the issue
of establishing a new prevailing wage 
26classification for a particular craft
or type of worker shall 
 
 
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1be consolidated in a single hearing before the
Department. Such 
2consolidation shall occur whether each separate investigatory

3hearing is conducted by a public body or the Department. The 
4party requesting
a consolidated investigatory hearing shall 
5have the burden of establishing that
there is no existing 
6prevailing wage classification for the particular craft or
type 
7of worker in any of the localities under consideration.

8 (f) It shall be mandatory upon the contractor or 
9construction manager
to whom a contract for public works is 
10awarded to post, at a
location on the project site of the 
11public works that is
easily accessible to the workers engaged 
12on the project,
the prevailing wage rates for each craft or 
13type of worker
or mechanic needed to execute the contract or 
14project or
work to be performed. In lieu of posting on the 
15project site of the public works, a contractor which has a 
16business location where laborers, workers, and mechanics 
17regularly visit may: (1) post in a conspicuous location at that 
18business the current prevailing wage rates for each county in 
19which the contractor is performing work; or (2) provide such 
20laborer, worker, or mechanic engaged on the public works 
21project a written notice indicating the prevailing wage rates 
22for the public works project. A failure to post or provide a 
23prevailing wage
rate as required by this Section is a violation 
24of this Act.

25(Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)





 
 
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1 (820 ILCS 130/9) (from Ch. 48, par. 39s-9)



2 Sec. 9. 
To effectuate the purpose and policy of this Act 
3each public
body shall, during the month of June of each 
4calendar year, investigate
and ascertain the prevailing rate of 
5wages as defined in this Act and
publicly post or keep 
6available for inspection by any interested party
in the main 
7office of such public body its determination of such
prevailing 
8rate of wage and shall promptly file, no later than July 15 of

9each year, a certified copy thereof
in the office of the

10Illinois Department of Labor.

11 The Department of Labor shall during the month of June of 
12each calendar
year, investigate and ascertain the prevailing 
13rate of wages for each county
in the State. If a public body 
14does not investigate and ascertain the
prevailing
rate of wages 
15during the month of June as required by the previous paragraph,

16then the prevailing rate of wages for that public body shall be 
17the rate
as determined by the Department under this paragraph 
18for the county in which
such public body is located.

19 Where the Department of Labor ascertains the prevailing 
20rate of
wages, it is the duty of the Department of Labor within 
2130 days after
receiving a notice from the public body 
22authorizing the proposed work,
to conduct an investigation to 
23ascertain the prevailing rate of wages as
defined in this Act 
24and such investigation shall be conducted in the
locality in 
25which the work is to be performed. The Department of Labor

26shall send a certified copy of its findings to the public body

 
 
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1authorizing the work and keep a record of its findings 
2available for
inspection by any interested party in the office 
3of the Department of
Labor at Springfield.

4 The public body except for the Department of Transportation 
5with
respect to highway contracts shall within 30 days after 
6filing with the Department of Labor, or the Department of Labor 
7shall within 30 days
after filing with such public body, 
8publish in a newspaper of general
circulation within the area 
9that the determination is effective, a
notice of its 
10determination and shall promptly mail a copy of its

11determination to any employer, and to any association of 
12employers and
to any person or association of employees who 
13have filed their names and
addresses, requesting copies of any 
14determination stating the particular
rates and the particular 
15class of workers whose wages will be affected
by such rates.

16 At any time within 30 days after the Department of Labor 
17has published
on its official web site a prevailing wage 
18schedule, any person affected
thereby may object in writing to 
19the determination or such part thereof
as they may deem 
20objectionable by filing a written notice with the
public body 
21or Department of Labor, whichever has made such
determination, 
22stating the specified grounds of the objection. It shall

23thereafter be the duty of the public body or Department of 
24Labor to set
a date for a hearing on the objection after giving 
25written notice to the
objectors at least 10 days before the 
26date of the hearing and said
notice shall state the time and 
 
 
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1place of such hearing. Such hearing by a
public body shall be 
2held within 45 days after the objection is filed,
and shall not 
3be postponed or reset for a later date except upon the
consent, 
4in writing, of all the objectors and the public body. If such

5hearing is not held by the public body within the time herein 
6specified,
the Department of Labor may, upon request of the 
7objectors, conduct the
hearing on behalf of the public body.

8 The public body or Department of Labor, whichever has made 
9such
determination, is authorized in its discretion to hear 
10each written
objection filed separately or consolidate for 
11hearing any one or more
written objections filed with them. At 
12such hearing the public body or
Department of Labor shall 
13introduce in evidence the investigation it
instituted which 
14formed the basis of its determination, and the public
body or 
15Department of Labor, or any interested objectors may thereafter

16introduce such evidence as is material to the issue. 
17Thereafter, the
public body or Department of Labor, must rule 
18upon the written objection
and make such final determination as 
19it believes the evidence warrants,
and promptly file a 
20certified copy of its final determination with such
public 
21body, and serve a copy by personal
service or registered mail 
22on all parties to the proceedings. The final
determination by 
23the Department of Labor or a public body shall be rendered

24within 30 days after the conclusion of the hearing.

25 If proceedings to review judicially the final 
26determination of the
public body or Department of Labor are not 
 
 
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1instituted as hereafter
provided, such determination shall be 
2final and binding.

3 The provisions of the Administrative Review Law, and all 
4amendments
and modifications thereof, and the rules
adopted 
5pursuant thereto, shall apply to and govern all proceedings for

6the judicial review of final administrative decisions of any 
7public body
or the Department of Labor hereunder. The term 
8"administrative decision"
is defined as in Section 3-101 of the 
9Code of Civil Procedure.

10 Appeals from all final orders and judgments entered by the 
11court in
review of the final administrative decision of the 
12public body or
Department of Labor, may be taken by any party 
13to the action.

14 Any proceeding in any court affecting a determination of 
15the
Department of Labor or public body shall have priority in 
16hearing and
determination over all other civil proceedings 
17pending in said court,
except election contests.

18 In all reviews or appeals under this Act, it shall be the 
19duty of the
Attorney General to represent the Department of 
20Labor, and defend its
determination. The Attorney General shall 
21not represent any public body,
except the State, in any such 
22review or appeal.

23 Notwithstanding the provisions of this Section, any 
24prevailing rate determined by a public body or the Department 
25at the time of bid submission shall be the rate applicable for 
26the duration of the contract awarded by the public body. 
 
 
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1(Source: P.A. 98-173, eff. 1-1-14.)