Public Act 097-0964
 
HB5212 EnrolledLRB097 19755 JLS 65018 b


  
    AN ACT concerning wages. 
  
 
    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)



    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 
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, 
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 
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 
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 
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

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. 95-331, eff. 8-21-07; 96-437, eff. 1-1-10.)