Sen. Laura Fine
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AMENDMENT TO HOUSE BILL 2838
AMENDMENT NO. ______. Amend House Bill 2838 by replacing
everything after the enacting clause with the following:
The Illinois Wage Payment and Collection Act is
amended by adding Section 13.5 as follows:
(820 ILCS 115/13.5 new)
Primary contractor responsibility for wage
claims in construction industry.
(a) For all contracts entered into on or after July 1,
2019, 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
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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) For the purposes of 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
(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
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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. This Section does not prohibit a primary contractor or
subcontractor at any tier from establishing by contract or
enforcing any otherwise lawful remedies against a
subcontractor it hires for liability created by the nonpayment
of wages by the subcontractor or by a subcontractor at any tier
working under that subcontractor.
(e) If the primary contractor complies with the following
requirements, the primary contractor shall not be liable for
payments to a subcontractors' employees of any tier for unpaid
wages for the project identified and for the specific time
period. The primary contractor must obtain from the
subcontractor, for each project and for each specific time
period the applicable payment is being made, the following
prior to making any payment to the subcontractor:
(1) An affidavit from the subcontractor that all wages
have been paid for each of the employees for the specific
period of time of the applicable payment on the specific
project. The affidavit shall identify the project's
address, and list all of the subcontractor's employees by
name, address, and the last four digits of the employee's
social security number.
(2) A copy of the subcontractor's payroll records
identifying each employee and redacting the employee's
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social security number, except for the last four digits,
the payroll period, the amount of wages paid, hours worked,
withholdings, and other deductions made.
(3) If the subcontractor has any lower tiered
subcontractors on the project, the subcontractor shall
supply similar affidavits, statements, and notices as
required in this Section. If the subcontractor does not
have any lower tiered subcontractors, the subcontractor
shall state that it did not utilize any.
Any primary contractor that receives the statements
and affidavits required under this subsection is not required
to conduct any additional verification as to the truthfulness
of the statements set forth therein, but is entitled to rely on
good faith on the statements and authorize payment to the
subcontractor for the specified project and time period. Any
primary contractor that complies with the requirements set
forth in this Section, has a defense to any action brought by a
subcontractor's employee or third party entitled to receive any
unpaid wages under this Section on said employee's behalf,
provided that the primary contractor did not know or should not
have known that the statements and affidavits contained false
or misleading information or material omissions.
(f) Any primary contractor receiving the statements and
affidavits required under subsection (e) is required to
maintain all statements and affidavits for a period of one year
from the date of making the payment to the subcontractor for
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the specific period.
(g) 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
(h) Claims brought pursuant to this Section shall be done
so in accordance with Section 11 of this Act.
This Act takes effect upon