Illinois General Assembly - Full Text of HB0924
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Full Text of HB0924  98th General Assembly

HB0924eng 98TH GENERAL ASSEMBLY



 


 
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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
5Sections 2, 4, and 5 as follows:
 
6    (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
7    Sec. 2. This Act applies to the wages of laborers,
8mechanics and other workers employed in any public works, as
9hereinafter defined, by any public body and to anyone under
10contracts for public works. This includes any maintenance,
11repair, assembly, or disassembly work performed on equipment
12whether owned, leased, or rented.
13    As used in this Act, unless the context indicates
14otherwise:
15    "Public works" means all fixed works constructed or
16demolished by any public body, or paid for wholly or in part
17out of public funds. "Public works" as defined herein includes
18all projects financed in whole or in part with bonds, grants,
19loans, or other funds made available by or through the State or
20any of its political subdivisions, including but not limited
21to: bonds issued under the Industrial Project Revenue Bond Act
22(Article 11, Division 74 of the Illinois Municipal Code), the
23Industrial Building Revenue Bond Act, the Illinois Finance

 

 

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1Authority Act, the Illinois Sports Facilities Authority Act, or
2the Build Illinois Bond Act; loans or other funds made
3available pursuant to the Build Illinois Act; or funds from the
4Fund for Illinois' Future under Section 6z-47 of the State
5Finance Act, funds for school construction under Section 5 of
6the General Obligation Bond Act, funds authorized under Section
73 of the School Construction Bond Act, funds for school
8infrastructure under Section 6z-45 of the State Finance Act,
9and funds for transportation purposes under Section 4 of the
10General Obligation Bond Act. "Public works" also includes (i)
11all projects financed in whole or in part with funds from the
12Department of Commerce and Economic Opportunity under the
13Illinois Renewable Fuels Development Program Act for which
14there is no project labor agreement; (ii) all work performed
15pursuant to a public private agreement under the Public Private
16Agreements for the Illiana Expressway Act; and (iii) all
17projects undertaken under a public-private agreement under the
18Public-Private Partnerships for Transportation Act. "Public
19works" also includes all projects at leased facility property
20used for airport purposes under Section 35 of the Local
21Government Facility Lease Act. "Public works" also includes the
22construction of a new wind power facility by a business
23designated as a High Impact Business under Section 5.5(a)(3)(E)
24of the Illinois Enterprise Zone Act. "Public works" does not
25include work done directly by any public utility company,
26whether or not done under public supervision or direction, or

 

 

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1paid for wholly or in part out of public funds. "Public works"
2does not include projects undertaken by the owner at an
3owner-occupied single-family residence or at an owner-occupied
4unit of a multi-family residence.
5    "Construction" means all work on public works involving
6laborers, workers or mechanics. This includes any maintenance,
7repair, assembly, or disassembly work performed on equipment
8whether owned, leased, or rented.
9    "Locality" means the county where the physical work upon
10public works is performed, except (1) that if there is not
11available in the county a sufficient number of competent
12skilled laborers, workers and mechanics to construct the public
13works efficiently and properly, "locality" includes any other
14county nearest the one in which the work or construction is to
15be performed and from which such persons may be obtained in
16sufficient numbers to perform the work and (2) that, with
17respect to contracts for highway work with the Department of
18Transportation of this State, "locality" may at the discretion
19of the Secretary of the Department of Transportation be
20construed to include two or more adjacent counties from which
21workers may be accessible for work on such construction.
22    "Public body" means the State or any officer, board or
23commission of the State or any political subdivision or
24department thereof, or any institution supported in whole or in
25part by public funds, and includes every county, city, town,
26village, township, school district, irrigation, utility,

 

 

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1reclamation improvement or other district and every other
2political subdivision, district or municipality of the state
3whether such political subdivision, municipality or district
4operates under a special charter or not.
5    The terms "general prevailing rate of hourly wages",
6"general prevailing rate of wages" or "prevailing rate of
7wages" when used in this Act mean the hourly cash wages plus
8fringe benefits for training and apprenticeship programs
9approved by the U.S. Department of Labor, Bureau of
10Apprenticeship and Training, health and welfare, insurance,
11vacations and pensions paid generally, in the locality in which
12the work is being performed, to employees engaged in work of a
13similar character on public works.
14    "Responsible bidder" means those individuals or firms
15meeting the requirements of Section 30-22 of the Illinois
16Procurement Code.
17(Source: P.A. 96-28, eff. 7-1-09; 96-58, eff. 1-1-10; 96-186,
18eff. 1-1-10; 96-913, eff. 6-9-10; 96-1000, eff. 7-2-10; 97-502,
19eff. 8-23-11.)
 
20    (820 ILCS 130/4)  (from Ch. 48, par. 39s-4)
21    Sec. 4. Ascertaining prevailing wage.
22    (a) The public body awarding any contract for public work
23or otherwise undertaking any public works, shall ascertain the
24general prevailing rate of hourly wages in the locality in
25which the work is to be performed, for each craft or type of

 

 

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1worker or mechanic needed to execute the contract, and where
2the public body performs the work without letting a contract
3therefor, shall ascertain the prevailing rate of wages on a per
4hour basis in the locality, and such public body shall specify
5in the resolution or ordinance and in the call for bids for the
6contract, that the general prevailing rate of wages in the
7locality for each craft or type of worker or mechanic needed to
8execute the contract or perform such work, also the general
9prevailing rate for legal holiday and overtime work, as
10ascertained by the public body or by the Department of Labor
11shall be paid for each craft or type of worker needed to
12execute the contract or to perform such work, and it shall be
13mandatory upon the contractor to whom the contract is awarded
14and upon any subcontractor under him, and where the public body
15performs the work, upon the public body, to pay not less than
16the specified rates to all laborers, workers and mechanics
17employed by them in the execution of the contract or such work;
18provided, however, that if the public body desires that the
19Department of Labor ascertain the prevailing rate of wages, it
20shall notify the Department of Labor to ascertain the general
21prevailing rate of hourly wages for work under contract, or for
22work performed by a public body without letting a contract as
23required in the locality in which the work is to be performed,
24for each craft or type of worker or mechanic needed to execute
25the contract or project or work to be performed. Upon such
26notification the Department of Labor shall ascertain such

 

 

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1general prevailing rate of wages, and certify the prevailing
2wage to such public body.
3    (a-0.5) To effectuate the purpose and policy of this Act, a
4public body awarding a contract for public work or otherwise
5undertaking any public works shall specify in the call for bids
6and shall require that each bidder be a responsible bidder.
7    (a-1) The public body or other entity awarding the contract
8shall cause to be inserted in the project specifications and
9the contract a stipulation to the effect that not less than the
10prevailing rate of wages as found by the public body or
11Department of Labor or determined by the court on review shall
12be paid to all laborers, workers and mechanics performing work
13under the contract.
14    (a-2) When a public body or other entity covered by this
15Act has awarded work to a contractor without a public bid,
16contract or project specification, such public body or other
17entity shall comply with subsection (a-1) by providing the
18contractor with written notice on the purchase order related to
19the work to be done or on a separate document indicating that
20not less than the prevailing rate of wages as found by the
21public body or Department of Labor or determined by the court
22on review shall be paid to all laborers, workers, and mechanics
23performing work on the project.
24    (a-3) Where a complaint is made and the Department of Labor
25determines that a violation occurred, the Department of Labor
26shall determine if proper written notice under this Section 4

 

 

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1was given. If proper written notice was not provided to the
2contractor by the public body or other entity, the Department
3of Labor shall order the public body or other entity to pay any
4interest, penalties or fines that would have been owed by the
5contractor if proper written notice were provided. The failure
6by a public body or other entity to provide written notice does
7not relieve the contractor of the duty to comply with the
8prevailing wage rate, nor of the obligation to pay any back
9wages, as determined under this Act. For the purposes of this
10subsection, back wages shall be limited to the difference
11between the actual amount paid and the prevailing rate of wages
12required to be paid for the project. The failure of a public
13body or other entity to provide written notice under this
14Section 4 does not diminish the right of a laborer, worker, or
15mechanic to the prevailing rate of wages as determined under
16this Act.
17    (b) It shall also be mandatory upon the contractor to whom
18the contract is awarded to insert into each subcontract and
19into the project specifications for each subcontract a written
20stipulation to the effect that not less than the prevailing
21rate of wages shall be paid to all laborers, workers, and
22mechanics performing work under the contract. It shall also be
23mandatory upon each subcontractor to cause to be inserted into
24each lower tiered subcontract and into the project
25specifications for each lower tiered subcontract a stipulation
26to the effect that not less than the prevailing rate of wages

 

 

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1shall be paid to all laborers, workers, and mechanics
2performing work under the contract. A contractor or
3subcontractor who fails to comply with this subsection (b) is
4in violation of this Act.
5    (b-1) When a contractor has awarded work to a subcontractor
6without a contract or contract specification, the contractor
7shall comply with subsection (b) by providing a subcontractor
8with a written statement indicating that not less than the
9prevailing rate of wages shall be paid to all laborers,
10workers, and mechanics performing work on the project. A
11contractor or subcontractor who fails to comply with this
12subsection (b-1) is in violation of this Act.
13    (b-2) Where a complaint is made and the Department of Labor
14determines that a violation has occurred, the Department of
15Labor shall determine if proper written notice under this
16Section 4 was given. If proper written notice was not provided
17to the subcontractor by the contractor, the Department of Labor
18shall order the contractor to pay any interest, penalties, or
19fines that would have been owed by the subcontractor if proper
20written notice were provided. The failure by a contractor to
21provide written notice to a subcontractor does not relieve the
22subcontractor of the duty to comply with the prevailing wage
23rate, nor of the obligation to pay any back wages, as
24determined under this Act. For the purposes of this subsection,
25back wages shall be limited to the difference between the
26actual amount paid and the prevailing rate of wages required

 

 

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1for the project. However, if proper written notice was not
2provided to the contractor by the public body or other entity
3under this Section 4, the Department of Labor shall order the
4public body or other entity to pay any interest, penalties, or
5fines that would have been owed by the subcontractor if proper
6written notice were provided. The failure by a public body or
7other entity to provide written notice does not relieve the
8subcontractor of the duty to comply with the prevailing wage
9rate, nor of the obligation to pay any back wages, as
10determined under this Act. For the purposes of this subsection,
11back wages shall be limited to the difference between the
12actual amount paid and the prevailing rate of wages required
13for the project. The failure to provide written notice by a
14public body, other entity, or contractor does not diminish the
15right of a laborer, worker, or mechanic to the prevailing rate
16of wages as determined under this Act.
17    (c) A public body or other entity shall also require in all
18contractor's and subcontractor's bonds that the contractor or
19subcontractor include such provision as will guarantee the
20faithful performance of such prevailing wage clause as provided
21by contract or other written instrument. All bid specifications
22shall list the specified rates to all laborers, workers and
23mechanics in the locality for each craft or type of worker or
24mechanic needed to execute the contract.
25    (d) If the Department of Labor revises the prevailing rate
26of hourly wages to be paid by the public body or other entity,

 

 

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1the revised rate shall apply to such contract, and the public
2body or other entity shall be responsible to notify the
3contractor and each subcontractor, of the revised rate.
4    The public body or other entity shall discharge its duty to
5notify of the revised rates by inserting a written stipulation
6in all contracts or other written instruments that states the
7prevailing rate of wages are revised by the Department of Labor
8and are available on the Department's official website. This
9shall be deemed to be proper notification of any rate changes
10under this subsection.
11    (e) Two or more investigatory hearings under this Section
12on the issue of establishing a new prevailing wage
13classification for a particular craft or type of worker shall
14be consolidated in a single hearing before the Department. Such
15consolidation shall occur whether each separate investigatory
16hearing is conducted by a public body or the Department. The
17party requesting a consolidated investigatory hearing shall
18have the burden of establishing that there is no existing
19prevailing wage classification for the particular craft or type
20of worker in any of the localities under consideration.
21    (f) It shall be mandatory upon the contractor or
22construction manager to whom a contract for public works is
23awarded to post, at a location on the project site of the
24public works that is easily accessible to the workers engaged
25on the project, the prevailing wage rates for each craft or
26type of worker or mechanic needed to execute the contract or

 

 

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1project or work to be performed. In lieu of posting on the
2project site of the public works, a contractor which has a
3business location where laborers, workers, and mechanics
4regularly visit may: (1) post in a conspicuous location at that
5business the current prevailing wage rates for each county in
6which the contractor is performing work; or (2) provide such
7laborer, worker, or mechanic engaged on the public works
8project a written notice indicating the prevailing wage rates
9for the public works project. A failure to post or provide a
10prevailing wage rate as required by this Section is a violation
11of this Act.
12(Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)
 
13    (820 ILCS 130/5)  (from Ch. 48, par. 39s-5)
14    Sec. 5. Certified payroll.
15    (a) Any contractor and each subcontractor who participates
16in public works shall:
17        (1) make and keep, for a period of not less than 3
18    years from the date of the last payment on a contract or
19    subcontract for public works, records of all laborers,
20    mechanics, and other workers employed by them on the
21    project; the records shall include each worker's name,
22    address, telephone number when available, social security
23    number, classification or classifications, the hourly
24    wages paid in each pay period, the number of hours worked
25    each day, and the starting and ending times of work each

 

 

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1    day; and
2        (2) no later than the tenth day of each calendar month
3    file a certified payroll for the immediately preceding
4    month with the public body in charge of the project. A
5    certified payroll must be filed for only those calendar
6    months during which construction on a public works project
7    has occurred. The certified payroll shall consist of a
8    complete copy of the records identified in paragraph (1) of
9    this subsection (a), but may exclude the starting and
10    ending times of work each day. The certified payroll shall
11    be accompanied by a statement signed by the contractor or
12    subcontractor or an officer, employee, or agent of the
13    contractor or subcontractor which avers that: (i) he or she
14    has examined the certified payroll records required to be
15    submitted by the Act and such records are true and
16    accurate; (ii) the hourly rate paid to each worker is not
17    less than the general prevailing rate of hourly wages
18    required by this Act; and (iii) the contractor or
19    subcontractor is aware that filing a certified payroll that
20    he or she knows to be false is a Class A misdemeanor. A
21    general contractor is not prohibited from relying on the
22    certification of a lower tier subcontractor, provided the
23    general contractor does not knowingly rely upon a
24    subcontractor's false certification. Any contractor or
25    subcontractor subject to this Act and any officer,
26    employee, or agent of such contractor or subcontractor

 

 

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1    whose duty as such officer, employee, or agent it is to
2    file such certified payroll who willfully fails to file
3    such a certified payroll on or before the date such
4    certified payroll is required by this paragraph to be filed
5    and any person who willfully files a false certified
6    payroll that is false as to any material fact is in
7    violation of this Act and guilty of a Class A misdemeanor.
8    The public body in charge of the project shall keep the
9    records submitted in accordance with this paragraph (2) of
10    subsection (a) for a period of not less than 3 years from
11    the date of the last payment for work on a contract or
12    subcontract for public works. The records submitted in
13    accordance with this paragraph (2) of subsection (a) shall
14    be considered public records, except an employee's
15    address, telephone number, and social security number, and
16    made available in accordance with the Freedom of
17    Information Act. The public body shall accept any
18    reasonable submissions by the contractor that meet the
19    requirements of this Section; and .
20        (3) identify and report to the public body in charge of
21    the project the number of hours worked by minorities and
22    females, as defined in the Illinois Human Rights Act, for
23    each craft or type of worker or mechanic needed to execute
24    the contract. Each contractor and subcontractor shall
25    provide this information on a certified payroll report, or
26    on a monthly manpower utilization report.

 

 

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1    (b) Upon 7 business days' notice, the contractor and each
2subcontractor shall make available for inspection and copying
3at a location within this State during reasonable hours, the
4records identified in paragraph (1) of subsection (a) of this
5Section to the public body in charge of the project, its
6officers and agents, the Director of Labor and his deputies and
7agents, and to federal, State, or local law enforcement
8agencies and prosecutors.
9    (c) No later than October 1 of each year, the following
10State agencies shall submit a report to the General Assembly
11compiling the total number of hours worked during the
12immediately preceding fiscal year by minorities and females as
13reported in accordance with subsection (a): the Illinois
14Capital Development Board, Illinois Department of
15Transportation, and Illinois State Toll Highway Authority.
16This report shall be filed as provided in Section 3.1 of the
17General Assembly Organization Act.
18(Source: P.A. 97-571, eff. 1-1-12.)