HB4938 104TH GENERAL ASSEMBLY

LRB104 19472 SPS 32920 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4938

Introduced , by Rep. Jay Hoffman

SYNOPSIS AS INTRODUCED:

820 ILCS 130/2.2 new
820 ILCS 130/2.3 new
820 ILCS 130/5.1
820 ILCS 130/11	from Ch. 48, par. 39s-11

Amends the Prevailing Wage Act. Provides that, if a laborer, mechanic, or other worker, to whom the prevailing rate of wages is required to be paid, is classified in 2 or more trade titles for any amount of time during a day on which the individual is employed on a public works project, the individual shall receive the prevailing rate of wages that is the highest among those trade titles for all hours worked that day. Provides that a laborer, mechanic, or other worker, to whom the prevailing wage is required to be paid, may be paid at an apprentice rate of pay if the laborer is enrolled in an apprenticeship and training program. Provides for the withholding of payments for violations of the Act. Makes other changes. Effective immediately.

A BILL FOR

AN ACT concerning employment.

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 Sections 5.1 and 11 and by adding Sections 2.2 and 2.3 as follows:

(820 ILCS 130/2.2 new)

Sec. 2.2. Multiple classifications. Except as provided in Section 2.3, if a laborer, mechanic, or other worker, to whom the prevailing rate of wages is required to be paid, is classified in 2 or more trade titles for any amount of time during a day on which the individual is employed on a public works project, the individual shall receive the prevailing rate of wages that is the highest among those trade titles for all hours worked that day.

(820 ILCS 130/2.3 new)

Sec. 2.3. Apprentices. A laborer, mechanic, or other worker, to whom the prevailing wage is required to be paid, may be paid at an apprentice rate of pay, including hourly cash wages plus full journeyman annualized fringe benefits as set forth in this Act, if the laborer is enrolled in an apprenticeship and training program approved by and registered with the United States Department of Labor's Bureau of Apprenticeship and Training. The cash wage portion of the prevailing rate of wages for an apprentice shall be at the rate established by the apprenticeship and training program. Any laborer, mechanic, or other worker who is not properly registered as an apprentice or who is working out of the ratio established by the apprenticeship and training program shall be paid as a journeyman. A laborer, mechanic, or other worker shall only be paid at an apprentice rate of pay for work performed under one trade title classification on a project. If a laborer, mechanic, or other worker is classified in any other trade title during the project or an associated project subject to this Act, then the individual shall be paid as a journeyman in that other trade.

(820 ILCS 130/5.1)

Sec. 5.1. Electronic database. The Department shall develop and maintain an electronic database capable of accepting and retaining certified payrolls submitted under this Act no later than April 1, 2020. The database shall accept certified payroll forms provided by the Department that are fillable and designed to accept electronic signatures. Beginning January 1, 2022, the Department shall make accessible to the public on its website by the 16th day of each month following the month the work was performed the following information from certified payrolls submitted under this Act: each worker's (i) classification or classifications, (ii) skill level, such as apprentice or journeyman, (iii) gross wages paid in each pay period, (iv) number of hours worked each day, (v) starting and ending times of work each day, (vi) hourly wage rate, (vii) hourly overtime wage rate, and (viii) hourly fringe benefit rate, and (ix) the first and last name of each payee. The database shall be searchable by contractor name, project name, county in which the work was performed, and contracting public body.

(Source: P.A. 102-332, eff. 8-6-21.)

(820 ILCS 130/11) (from Ch. 48, par. 39s-11)

Sec. 11. No public works project shall be instituted unless the provisions of this Act have been complied with. The provisions of this Act shall not be applicable to federal construction projects that require a prevailing wage determination by the United States Secretary of Labor, except as described in Section 2. The Illinois Department of Labor represented by the Attorney General is empowered to sue for injunctive relief against the awarding of any contract or the continuation of work under any contract for public works at a time when the prevailing wage prerequisites have not been met. Any contract for public works awarded at a time when the prevailing wage prerequisites had not been met shall be void as against public policy and the contractor is prohibited from recovering any damages for the voiding of the contract or pursuant to the terms of the contract. The contractor is limited to a claim for amounts actually paid for labor and materials supplied to the public body. If the Department of Labor determines that a violation has occurred, in addition to any other remedies available under this Act and any other law, the Department shall notify the Comptroller of the violation and, until the matter is resolved to the satisfaction of the Department of Labor, the Comptroller shall withhold any and all payments associated with the work. Any withholding made in accordance this Section is not subject to any penalty for late payment under the State Prompt Payment Act. Where objections to a determination of the prevailing rate of wages or a court action relative thereto is pending, the public body shall not continue work on the project unless sufficient funds are available to pay increased wages if such are finally determined or unless the Department of Labor certifies such determination of the prevailing rate of wages as correct.

Any laborer, worker or mechanic employed by the contractor or by any sub-contractor under him who is paid for his services in a sum less than the prevailing rates for work done under such contract, shall have a right of action for whatever difference there may be between the amount so paid, and the rates provided by the contract together with costs and such reasonable attorney's fees as shall be allowed by the court. Such contractor or subcontractor shall also be liable to the Department of Labor for 20% of such underpayments and shall be additionally liable to the laborer, worker or mechanic for punitive damages in the amount of 2% of the amount of any such penalty to the State for underpayments for each month following the date of payment during which such underpayments remain unpaid. Where a second or subsequent action to recover underpayments is brought against a contractor or subcontractor and the contractor or subcontractor is found liable for underpayments to any laborer, worker, or mechanic, the contractor or subcontractor shall also be liable to the Department of Labor for 50% of the underpayments payable as a result of the second or subsequent action, and shall be additionally liable for 5% of the amount of any such penalty to the State for underpayments for each month following the date of payment during which the underpayments remain unpaid. The Department shall also have a right of action on behalf of any individual who has a right of action under this Section. An action brought to recover same shall be deemed to be a suit for wages, and any and all judgments entered therein shall have the same force and effect as other judgments for wages. The action shall be brought within 5 years from the date of the failure to pay the wages or compensation. At the request of any laborer, workman or mechanic employed by the contractor or by any subcontractor under him who is paid less than the prevailing wage rate required by this Act, the Department of Labor may take an assignment of such wage claim in trust for the assigning laborer, workman or mechanic and may bring any legal action necessary to collect such claim, and the contractor or subcontractor shall be required to pay the costs incurred in collecting such claim.

All moneys owed to the Department under this Act shall be remitted to the Employee Classification Fund, and the Department may use those funds for the purposes identified in Section 50 of the Employee Classification Act.

(Source: P.A. 103-48, eff. 1-1-24; 104-23, eff. 6-30-25; 104-160, eff. 8-14-25; revised 9-12-25.)

Section 97. Severability. The provisions of this Act are severable under Section 1.31 of the Statute on Statutes.

Section 99. Effective date. This Act takes effect upon becoming law.