99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB0714

 

Introduced 2/3/2015, by Sen. Jason A. Barickman

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 130/4  from Ch. 48, par. 39s-4
820 ILCS 130/9  from Ch. 48, par. 39s-9

    Amends the Prevailing Wage Act. Provides that a prevailing wage determined at the time of bid submission shall continue for the duration of the contract.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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 4 and 9 as follows:
 
6    (820 ILCS 130/4)  (from Ch. 48, par. 39s-4)
7    Sec. 4. Ascertaining prevailing wage.
8    (a) The public body awarding any contract for public work
9or otherwise undertaking any public works, shall ascertain the
10general prevailing rate of hourly wages in the locality in
11which the work is to be performed, for each craft or type of
12worker or mechanic needed to execute the contract, and where
13the public body performs the work without letting a contract
14therefor, shall ascertain the prevailing rate of wages on a per
15hour basis in the locality, and such public body shall specify
16in the resolution or ordinance and in the call for bids for the
17contract, that the general prevailing rate of wages in the
18locality for each craft or type of worker or mechanic needed to
19execute the contract or perform such work, also the general
20prevailing rate for legal holiday and overtime work, as
21ascertained by the public body or by the Department of Labor
22shall be paid for each craft or type of worker needed to
23execute the contract or to perform such work, and it shall be

 

 

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1mandatory upon the contractor to whom the contract is awarded
2and upon any subcontractor under him, and where the public body
3performs the work, upon the public body, to pay not less than
4the specified rates to all laborers, workers and mechanics
5employed by them in the execution of the contract or such work;
6provided, however, that if the public body desires that the
7Department of Labor ascertain the prevailing rate of wages, it
8shall notify the Department of Labor to ascertain the general
9prevailing rate of hourly wages for work under contract, or for
10work performed by a public body without letting a contract as
11required in the locality in which the work is to be performed,
12for each craft or type of worker or mechanic needed to execute
13the contract or project or work to be performed. Upon such
14notification the Department of Labor shall ascertain such
15general prevailing rate of wages, and certify the prevailing
16wage to such public body.
17    (a-1) The public body or other entity awarding the contract
18shall cause to be inserted in the project specifications and
19the contract a stipulation to the effect that not less than the
20prevailing rate of wages as found by the public body or
21Department of Labor or determined by the court on review shall
22be paid to all laborers, workers and mechanics performing work
23under the contract.
24    (a-2) When a public body or other entity covered by this
25Act has awarded work to a contractor without a public bid,
26contract or project specification, such public body or other

 

 

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1entity shall comply with subsection (a-1) by providing the
2contractor with written notice on the purchase order related to
3the work to be done or on a separate document indicating that
4not less than the prevailing rate of wages as found by the
5public body or Department of Labor or determined by the court
6on review shall be paid to all laborers, workers, and mechanics
7performing work on the project.
8    (a-3) Where a complaint is made and the Department of Labor
9determines that a violation occurred, the Department of Labor
10shall determine if proper written notice under this Section 4
11was given. If proper written notice was not provided to the
12contractor by the public body or other entity, the Department
13of Labor shall order the public body or other entity to pay any
14interest, penalties or fines that would have been owed by the
15contractor if proper written notice were provided. The failure
16by a public body or other entity to provide written notice does
17not relieve the contractor of the duty to comply with the
18prevailing wage rate, nor of the obligation to pay any back
19wages, as determined under this Act. For the purposes of this
20subsection, back wages shall be limited to the difference
21between the actual amount paid and the prevailing rate of wages
22required to be paid for the project. The failure of a public
23body or other entity to provide written notice under this
24Section 4 does not diminish the right of a laborer, worker, or
25mechanic to the prevailing rate of wages as determined under
26this Act.

 

 

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1    (b) It shall also be mandatory upon the contractor to whom
2the contract is awarded to insert into each subcontract and
3into the project specifications for each subcontract a written
4stipulation to the effect that not less than the prevailing
5rate of wages shall be paid to all laborers, workers, and
6mechanics performing work under the contract. It shall also be
7mandatory upon each subcontractor to cause to be inserted into
8each lower tiered subcontract and into the project
9specifications for each lower tiered subcontract a stipulation
10to the effect that not less than the prevailing rate of wages
11shall be paid to all laborers, workers, and mechanics
12performing work under the contract. A contractor or
13subcontractor who fails to comply with this subsection (b) is
14in violation of this Act.
15    (b-1) When a contractor has awarded work to a subcontractor
16without a contract or contract specification, the contractor
17shall comply with subsection (b) by providing a subcontractor
18with a written statement indicating that not less than the
19prevailing rate of wages shall be paid to all laborers,
20workers, and mechanics performing work on the project. A
21contractor or subcontractor who fails to comply with this
22subsection (b-1) is in violation of this Act.
23    (b-2) Where a complaint is made and the Department of Labor
24determines that a violation has occurred, the Department of
25Labor shall determine if proper written notice under this
26Section 4 was given. If proper written notice was not provided

 

 

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1to the subcontractor by the contractor, the Department of Labor
2shall order the contractor to pay any interest, penalties, or
3fines that would have been owed by the subcontractor if proper
4written notice were provided. The failure by a contractor to
5provide written notice to a subcontractor does not relieve the
6subcontractor of the duty to comply with the prevailing wage
7rate, nor of the obligation to pay any back wages, as
8determined under this Act. For the purposes of this subsection,
9back wages shall be limited to the difference between the
10actual amount paid and the prevailing rate of wages required
11for the project. However, if proper written notice was not
12provided to the contractor by the public body or other entity
13under this Section 4, the Department of Labor shall order the
14public body or other entity to pay any interest, penalties, or
15fines that would have been owed by the subcontractor if proper
16written notice were provided. The failure by a public body or
17other entity to provide written notice does not relieve the
18subcontractor of the duty to comply with the prevailing wage
19rate, nor of the obligation to pay any back wages, as
20determined under this Act. For the purposes of this subsection,
21back wages shall be limited to the difference between the
22actual amount paid and the prevailing rate of wages required
23for the project. The failure to provide written notice by a
24public body, other entity, or contractor does not diminish the
25right of a laborer, worker, or mechanic to the prevailing rate
26of wages as determined under this Act.

 

 

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1    (c) A public body or other entity shall also require in all
2contractor's and subcontractor's bonds that the contractor or
3subcontractor include such provision as will guarantee the
4faithful performance of such prevailing wage clause as provided
5by contract or other written instrument. All bid specifications
6shall list the specified rates to all laborers, workers and
7mechanics in the locality for each craft or type of worker or
8mechanic needed to execute the contract.
9    (d) Any prevailing rate determined by a public body or the
10Department at the time of bid submission shall be the rate
11applicable for the duration of the contract awarded by the
12public body. If the Department of Labor revises the prevailing
13rate of hourly wages to be paid by the public body or other
14entity, the revised rate shall apply to such contract, and the
15public body or other entity shall be responsible to notify the
16contractor and each subcontractor, of the revised rate.
17    The public body or other entity shall discharge its duty to
18notify of the revised rates by inserting a written stipulation
19in all contracts or other written instruments that states the
20prevailing rate of wages are revised by the Department of Labor
21and are available on the Department's official website. This
22shall be deemed to be proper notification of any rate changes
23under this subsection.
24    (e) Two or more investigatory hearings under this Section
25on the issue of establishing a new prevailing wage
26classification for a particular craft or type of worker shall

 

 

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1be consolidated in a single hearing before the Department. Such
2consolidation shall occur whether each separate investigatory
3hearing is conducted by a public body or the Department. The
4party requesting a consolidated investigatory hearing shall
5have the burden of establishing that there is no existing
6prevailing wage classification for the particular craft or type
7of worker in any of the localities under consideration.
8    (f) It shall be mandatory upon the contractor or
9construction manager to whom a contract for public works is
10awarded to post, at a location on the project site of the
11public works that is easily accessible to the workers engaged
12on the project, the prevailing wage rates for each craft or
13type of worker or mechanic needed to execute the contract or
14project or work to be performed. In lieu of posting on the
15project site of the public works, a contractor which has a
16business location where laborers, workers, and mechanics
17regularly visit may: (1) post in a conspicuous location at that
18business the current prevailing wage rates for each county in
19which the contractor is performing work; or (2) provide such
20laborer, worker, or mechanic engaged on the public works
21project a written notice indicating the prevailing wage rates
22for the public works project. A failure to post or provide a
23prevailing wage rate as required by this Section is a violation
24of this Act.
25(Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)
 

 

 

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1    (820 ILCS 130/9)  (from Ch. 48, par. 39s-9)
2    Sec. 9. To effectuate the purpose and policy of this Act
3each public body shall, during the month of June of each
4calendar year, investigate and ascertain the prevailing rate of
5wages as defined in this Act and publicly post or keep
6available for inspection by any interested party in the main
7office of such public body its determination of such prevailing
8rate of wage and shall promptly file, no later than July 15 of
9each year, a certified copy thereof in the office of the
10Illinois Department of Labor.
11    The Department of Labor shall during the month of June of
12each calendar year, investigate and ascertain the prevailing
13rate of wages for each county in the State. If a public body
14does not investigate and ascertain the prevailing rate of wages
15during the month of June as required by the previous paragraph,
16then the prevailing rate of wages for that public body shall be
17the rate as determined by the Department under this paragraph
18for the county in which such public body is located.
19    Where the Department of Labor ascertains the prevailing
20rate of wages, it is the duty of the Department of Labor within
2130 days after receiving a notice from the public body
22authorizing the proposed work, to conduct an investigation to
23ascertain the prevailing rate of wages as defined in this Act
24and such investigation shall be conducted in the locality in
25which the work is to be performed. The Department of Labor
26shall send a certified copy of its findings to the public body

 

 

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1authorizing the work and keep a record of its findings
2available for inspection by any interested party in the office
3of the Department of Labor at Springfield.
4    The public body except for the Department of Transportation
5with respect to highway contracts shall within 30 days after
6filing with the Department of Labor, or the Department of Labor
7shall within 30 days after filing with such public body,
8publish in a newspaper of general circulation within the area
9that the determination is effective, a notice of its
10determination and shall promptly mail a copy of its
11determination to any employer, and to any association of
12employers and to any person or association of employees who
13have filed their names and addresses, requesting copies of any
14determination stating the particular rates and the particular
15class of workers whose wages will be affected by such rates.
16    At any time within 30 days after the Department of Labor
17has published on its official web site a prevailing wage
18schedule, any person affected thereby may object in writing to
19the determination or such part thereof as they may deem
20objectionable by filing a written notice with the public body
21or Department of Labor, whichever has made such determination,
22stating the specified grounds of the objection. It shall
23thereafter be the duty of the public body or Department of
24Labor to set a date for a hearing on the objection after giving
25written notice to the objectors at least 10 days before the
26date of the hearing and said notice shall state the time and

 

 

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1place of such hearing. Such hearing by a public body shall be
2held within 45 days after the objection is filed, and shall not
3be postponed or reset for a later date except upon the consent,
4in writing, of all the objectors and the public body. If such
5hearing is not held by the public body within the time herein
6specified, the Department of Labor may, upon request of the
7objectors, conduct the hearing on behalf of the public body.
8    The public body or Department of Labor, whichever has made
9such determination, is authorized in its discretion to hear
10each written objection filed separately or consolidate for
11hearing any one or more written objections filed with them. At
12such hearing the public body or Department of Labor shall
13introduce in evidence the investigation it instituted which
14formed the basis of its determination, and the public body or
15Department of Labor, or any interested objectors may thereafter
16introduce such evidence as is material to the issue.
17Thereafter, the public body or Department of Labor, must rule
18upon the written objection and make such final determination as
19it believes the evidence warrants, and promptly file a
20certified copy of its final determination with such public
21body, and serve a copy by personal service or registered mail
22on all parties to the proceedings. The final determination by
23the Department of Labor or a public body shall be rendered
24within 30 days after the conclusion of the hearing.
25    If proceedings to review judicially the final
26determination of the public body or Department of Labor are not

 

 

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1instituted as hereafter provided, such determination shall be
2final and binding.
3    The provisions of the Administrative Review Law, and all
4amendments and modifications thereof, and the rules adopted
5pursuant thereto, shall apply to and govern all proceedings for
6the judicial review of final administrative decisions of any
7public body or the Department of Labor hereunder. The term
8"administrative decision" is defined as in Section 3-101 of the
9Code of Civil Procedure.
10    Appeals from all final orders and judgments entered by the
11court in review of the final administrative decision of the
12public body or Department of Labor, may be taken by any party
13to the action.
14    Any proceeding in any court affecting a determination of
15the Department of Labor or public body shall have priority in
16hearing and determination over all other civil proceedings
17pending in said court, except election contests.
18    In all reviews or appeals under this Act, it shall be the
19duty of the Attorney General to represent the Department of
20Labor, and defend its determination. The Attorney General shall
21not represent any public body, except the State, in any such
22review or appeal.
23    Notwithstanding the provisions of this Section, any
24prevailing rate determined by a public body or the Department
25at the time of bid submission shall be the rate applicable for
26the duration of the contract awarded by the public body.

 

 

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1(Source: P.A. 98-173, eff. 1-1-14.)