HB1054ham001 104TH GENERAL ASSEMBLY

Rep. Dave Vella

Filed: 3/21/2025

10400HB1054ham001 LRB104 03164 SPS 23935 a

AMENDMENT TO HOUSE BILL 1054

AMENDMENT NO. ______. Amend House Bill 1054 by replacing everything after the enacting clause with the following:

"Section 5. The Prevailing Wage Act is amended by changing Section 5 as follows:

(820 ILCS 130/5) (from Ch. 48, par. 39s-5)

Sec. 5. Certified payroll.

(a) Any contractor and each subcontractor who participates in public works shall:

(1) make and keep, for a period of not less than 3 years from the date of the last payment made before January 1, 2014 (the effective date of Public Act 98-328) and for a period of 5 years from the date of the last payment made on or after January 1, 2014 (the effective date of Public Act 98-328) on a contract or subcontract for public works, records of all laborers, mechanics, and other workers employed by them on the project; the records shall include (i) the worker's name, (ii) the worker's address, (iii) the worker's telephone number when available, (iv) the last 4 digits of the worker's social security number, (v) the worker's gender, (vi) the worker's race, (vii) the worker's ethnicity, (viii) veteran status, (ix) the worker's classification or classifications, (x) the worker's skill level, such as apprentice or journeyman, (xi) the worker's gross and net wages paid in each pay period, (xii) the worker's number of hours worked each day, (xiii) the worker's starting and ending times of work each day, (xiv) the worker's hourly wage rate, (xv) the worker's hourly overtime wage rate, (xvi) the worker's hourly fringe benefit rates, (xvii) the name and address of each fringe benefit fund, (xviii) the plan sponsor of each fringe benefit, if applicable, and (xix) the plan administrator of each fringe benefit, if applicable; and

(2) no later than the 15th day of each calendar month file a certified payroll for the immediately preceding month with the public body in charge of the project until the Department of Labor activates the database created under Section 5.1 at which time certified payroll shall only be submitted to that database, except for projects done by State agencies that opt to have contractors submit certified payrolls directly to that State agency. A State agency that opts to directly receive certified payrolls must submit the required information in a specified electronic format to the Department of Labor no later than 10 days after the certified payroll was filed with the State agency. A certified payroll must be filed for only those calendar months during which construction on a public works project has occurred. The certified payroll shall consist of a complete copy of the records identified in paragraph (1) of this subsection (a), but may exclude the starting and ending times of work each day. The certified payroll shall be accompanied by a statement signed by the contractor or subcontractor or an officer, employee, or agent of the contractor or subcontractor which avers that: (i) he or she has examined the certified payroll records required to be submitted by the Act and such records are true and accurate; (ii) the hourly rate paid to each worker is not less than the general prevailing rate of hourly wages required by this Act; and (iii) the contractor or subcontractor is aware that filing a certified payroll that he or she knows to be false is a Class A misdemeanor. A general contractor is not prohibited from relying on the certification of a lower tier subcontractor, provided the general contractor does not knowingly rely upon a subcontractor's false certification. Any contractor or subcontractor subject to this Act and any officer, employee, or agent of such contractor or subcontractor whose duty as such officer, employee, or agent it is to file such certified payroll who willfully fails to file such a certified payroll on or before the date such certified payroll is required by this paragraph to be filed and any person who willfully files a false certified payroll that is false as to any material fact is in violation of this Act and guilty of a Class A misdemeanor. The public body in charge of the project shall keep the records submitted in accordance with this paragraph (2) of subsection (a) before January 1, 2014 (the effective date of Public Act 98-328) for a period of not less than 3 years, and the records submitted in accordance with this paragraph (2) of subsection (a) on or after January 1, 2014 (the effective date of Public Act 98-328) for a period of 5 years, from the date of the last payment for work on a contract or subcontract for public works or until the Department of Labor activates the database created under Section 5.1, whichever is less. After the activation of the database created under Section 5.1, the Department of Labor rather than the public body in charge of the project shall keep the records and maintain the database. The records submitted in accordance with this paragraph (2) of subsection (a) shall be considered public records, except an employee's address, telephone number, social security number, race, ethnicity, and gender, and made available in accordance with the Freedom of Information Act. The public body shall accept any reasonable submissions by the contractor that meet the requirements of this Section.

A contractor, subcontractor, or public body may retain records required under this Section in paper or electronic format.

(b) Upon 7 business days' notice, the contractor and each subcontractor shall make available for inspection and copying at a location within this State during reasonable hours, the records identified in paragraph (1) of subsection (a) of this Section to the public body in charge of the project, its officers and agents, the Director of Labor and his deputies and agents, and to federal, State, or local law enforcement agencies and prosecutors.

(c) A contractor or subcontractor who remits contributions to fringe benefit funds that are jointly maintained and jointly governed by one or more employers and one or more labor organizations in accordance with the federal Labor Management Relations Act shall make and keep certified payroll records that include the information required under items (i) through (viii) of paragraph (1) of subsection (a) only. However, the information required under items (ix) through (xv) of paragraph (1) of subsection (a) shall be required for any contractor or subcontractor who remits contributions to a fringe benefit fund that is not jointly maintained and jointly governed by one or more employers and one or more labor organizations in accordance with the federal Labor Management Relations Act.

(d) Any contractor or subcontractor subject to this Act and any officer, employee, or agent of the contractor or subcontractor whose duty as the officer, employee, or agent is to file the certified payroll, who the Department of Labor finds has failed to file the certified payroll for any public works project as required under this Act, is subject to a civil penalty, payable to the Department of Labor, of up to $1,000 for a first offense and up to $2,000 for a second or subsequent offense no more than 5 years after the first offense. A second or subsequent offense that occurs more than 5 years after the first offense shall be considered a first offense. Each month in which a violation of this Section occurs shall constitute a separate offense.

A finding of an offense by the Department of Labor for failure to file the certified payroll may be challenged if a request for administrative hearing is received no later than 10 business days after receipt of the notice of the offense. The Department of Labor shall have the burden of establishing good cause for its action. Good cause exists if the Department of Labor establishes that the contractor or subcontractor participated in a public works project under this Act and failed to submit a certified payroll to the Department of Labor's electronic database no later than 15 calendar days after the immediately preceding month that the public works was performed by the contractor or subcontractor. Any mitigating evidence that a contractor or subcontractor attempted to timely submit certified payrolls to the Department of Labor's electronic database but failed due to technical issues shall be considered. A contractor or subcontractor's lack of knowledge of the requirements of this Section shall not be considered as mitigating evidence.

All hearings held under this Section shall comply with the Illinois Administrative Procedure Act and the Department of Labor's rules for administrative hearings. The final administrative decision by the Department of Labor shall be rendered after the conclusion of the hearing. A final administrative decision made under this Section is subject to the Administrative Review Law. If a final administrative decision issued by the Department of Labor requires a contractor or subcontractor to pay a civil penalty, and the subcontractor or contractor has not: (i) made the required payment within 35 days after the issuance of the final administrative decision; or (ii) timely filed a complaint seeking review of the final administrative decision within 35 days after the issuance of the final administrative decision in a court of competent jurisdiction, the Department of Labor, by and through the Office of the Attorney General, may file a verified petition against the contractor or subcontractor to enforce the final administrative decision and to collect any amounts due in the circuit court of any county where an office of the Department of Labor is located.

(Source: P.A. 100-1177, eff. 6-1-19; 101-31, eff. 6-28-19.)".