HB3293sam001 102ND GENERAL ASSEMBLY

Sen. Cristina Castro

Filed: 10/27/2021

10200HB3293sam001 LRB102 14216 KTG 30203 a

AMENDMENT TO HOUSE BILL 3293

AMENDMENT NO. ______. Amend House Bill 3293 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Wage Payment and Collection Act is amended by adding Section 13.5 as follows:

(820 ILCS 115/13.5 new)

Sec. 13.5. Primary contractor responsibility for wage claims in construction industry.

(a) For all contracts entered into on or after July 1, 2022, a primary contractor making or taking a contract in the State for the erection, construction, alteration, or repair of a building, structure, or other private work in the State, shall assume, and is liable for, any debt owed to a wage claimant incurred pursuant to this Act by a subcontractor at any tier acting under, by, or for the primary contractor for the wage claimant's performance of labor included in the subject of the contract between the primary contractor and the owner. This Section does not apply to work performed by a contractor of the State, a special district, a city, a county, or any political subdivision of the State.

(b) As used in this Section:

"Primary contractor" means a contractor that has a direct contractual relationship with a property owner. "Primary contractor" may have the same meaning as a "general contractor" or "prime contractor". However, a property owner who acts as a primary contractor related to the erection, construction, alteration, or repair of his or her primary residence where the aggregate costs of the project amounts to less than $100,000 shall be exempt from liability under this Section.

"Private work" means any erection, construction, alteration, or repair of a building, structure, or other work that is funded or financed wholly without public funds.

"Subcontractor" means a contractor that has a contractual relationship with the primary contractor or with another subcontractor at any tier, who furnishes any goods or services in connection with the contract between the primary contractor and the property owner, but does not include contractors who solely provide goods and transport of such goods related to the contract.

(c) The primary contractor's liability under this Section shall extend only to any unpaid wages, including interest owed and reasonable attorney's fees, but shall not extend to wage supplements, penalties, or liquidated damages.

(d) A primary contractor or any other person shall not evade or commit any act that negates the requirements of this Section. Except as otherwise provided in a contract between the primary contractor and the subcontractor, the subcontractor shall indemnify the primary contractor for any wages, damages, interest, penalties, or attorney's fees owed as a result of the subcontractor's failure to pay wages to the subcontractor's employees as provided in this Section, unless the subcontractor's failure to pay the wages was due to the primary contractor's failure to pay moneys due to the subcontractor in accordance with the terms of their contractual relationship.

(e) The obligations and remedies provided in this Section shall be in addition to any obligations and remedies otherwise provided by law, except that nothing in this Section shall be construed to impose liability on a primary contractor for anything other than unpaid wages, interest owed, and reasonable attorney's fees.

(f) Claims brought pursuant to this Section shall be done so in accordance with Section 11 of this Act.".