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1 | AN ACT concerning employment.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Prevailing Wage Act is amended by changing | |||||||||||||||||||||
5 | Sections 4 and 11 as follows:
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6 | (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
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7 | Sec. 4. Ascertaining prevailing wage. | |||||||||||||||||||||
8 | (a) The prevailing rate of wages paid to individuals | |||||||||||||||||||||
9 | covered under this Act shall not be less than the
rate that | |||||||||||||||||||||
10 | prevails for work of a similar character on public works in the | |||||||||||||||||||||
11 | locality in which the
work is performed under collective | |||||||||||||||||||||
12 | bargaining agreements or understandings between employers
or | |||||||||||||||||||||
13 | employer associations and bona fide labor organizations | |||||||||||||||||||||
14 | relating to each craft or type of
worker or mechanic needed to | |||||||||||||||||||||
15 | execute the contract or perform such work, and collective
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16 | bargaining agreements or understandings successor thereto, | |||||||||||||||||||||
17 | provided that said employers or
members of said employer | |||||||||||||||||||||
18 | associations employ at least 30% of the laborers, workers, or
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19 | mechanics in the same trade or occupation in the locality | |||||||||||||||||||||
20 | where the work is being performed. | |||||||||||||||||||||
21 | (b) If the prevailing rates of wages and fringe benefits | |||||||||||||||||||||
22 | cannot reasonably and fairly be applied
in any locality | |||||||||||||||||||||
23 | because no such agreements or understandings exist, the |
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1 | Department of Labor
shall determine the rates and fringe | ||||||
2 | benefits for the same or most similar work in the nearest and
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3 | most similar neighboring locality in which such agreements or | ||||||
4 | understandings exist. The
Department of Labor shall keep a | ||||||
5 | record of its findings available for inspection by any | ||||||
6 | interested
party in the office of the Department of Labor. | ||||||
7 | (c) In the event it is determined, after a written | ||||||
8 | objection is filed and hearing is held in
accordance with | ||||||
9 | Section 9 of this Act, that less than 30% of the laborers, | ||||||
10 | workers, or
mechanics in a particular trade or occupation in | ||||||
11 | the locality where the work is performed receive
a | ||||||
12 | collectively bargained rate of wage, then the average wage | ||||||
13 | paid to such laborers, workers, or
mechanics in the same trade | ||||||
14 | or occupation in the locality for the 12-month period | ||||||
15 | preceding
the Department of Labor's annual determination shall | ||||||
16 | be the prevailing rate of wage. | ||||||
17 | (d) The public body awarding any contract for public work | ||||||
18 | or
otherwise undertaking any public works shall
specify in the | ||||||
19 | call for bids for the
contract, or where the public body | ||||||
20 | performs the work without letting the contract in a written | ||||||
21 | instrument provided to the contractor, that the general | ||||||
22 | prevailing rate of wages in the locality for
each craft or type | ||||||
23 | of worker or mechanic needed to execute the contract
or | ||||||
24 | perform such work, also the general prevailing rate for legal | ||||||
25 | holiday
and overtime work, as ascertained by the
Department of | ||||||
26 | Labor shall be paid for each craft or type of worker
needed to |
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1 | execute the contract or to perform such work, and it shall be
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2 | mandatory upon the contractor to whom the contract is awarded | ||||||
3 | and upon
any subcontractor under him, and where the public | ||||||
4 | body performs the
work, upon the public body, to pay not less | ||||||
5 | than the specified rates to
all laborers, workers and | ||||||
6 | mechanics employed by them in the execution of
the contract or | ||||||
7 | such work. Compliance with this Act is a matter of statewide | ||||||
8 | concern, and a public body may not opt out of any provisions | ||||||
9 | herein. | ||||||
10 | (e) The public body or other entity awarding the
contract | ||||||
11 | shall cause to be inserted in the project specifications and | ||||||
12 | the
contract a stipulation to the
effect that not less than the | ||||||
13 | prevailing rate of wages as found by the
Department of Labor or | ||||||
14 | determined by the court on review
shall be paid to all | ||||||
15 | laborers, workers and mechanics performing work
under the | ||||||
16 | contract.
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17 | (f) When a public body or other entity covered by this Act | ||||||
18 | has awarded work to a contractor without a public bid, | ||||||
19 | contract or project specification, such public body or other | ||||||
20 | entity shall comply with subsection (e) by providing the | ||||||
21 | contractor with written notice on the purchase order related | ||||||
22 | to the work to be done or on a separate document indicating | ||||||
23 | that not less than the prevailing rate of wages ascertained by | ||||||
24 | the Department of Labor or determined by the court on review | ||||||
25 | shall be paid to all laborers, workers, and mechanics | ||||||
26 | performing work on the project. |
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1 | (g) Where a complaint is made and the Department of Labor | ||||||
2 | determines that a violation occurred, the Department of Labor | ||||||
3 | shall determine if proper written notice under this Section 4 | ||||||
4 | was given. If proper written notice was not provided to the | ||||||
5 | contractor by the public body or other entity, the Department | ||||||
6 | of Labor shall order the public body or other entity to pay any | ||||||
7 | interest, penalties or fines that would have been owed by the | ||||||
8 | contractor if proper written notice were provided. The failure | ||||||
9 | by a public body or other entity to provide written notice does | ||||||
10 | not relieve the contractor of the duty to comply with the | ||||||
11 | prevailing wage rate, nor of the obligation to pay any back | ||||||
12 | wages, as determined under this Act. For the purposes of this | ||||||
13 | subsection, back wages shall be limited to the difference | ||||||
14 | between the actual amount paid and the prevailing rate of | ||||||
15 | wages required to be paid for the project. The failure of a | ||||||
16 | public body or other entity to provide written notice under | ||||||
17 | this Section 4 does not diminish the right of a laborer, | ||||||
18 | worker, or mechanic to the prevailing rate of wages as | ||||||
19 | determined under this Act. | ||||||
20 | Any laborer, worker, or mechanic who is employed by the | ||||||
21 | contractor or by any sub-contractor and is paid for services | ||||||
22 | in a sum less than the prevailing wage rates for work performed | ||||||
23 | on a project shall have a right of action for whatever | ||||||
24 | difference there may be between (i) the amount so paid and (ii) | ||||||
25 | the prevailing rates required to be paid for work performed on | ||||||
26 | the project. |
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1 | (h) It shall also be mandatory upon the contractor to whom | ||||||
2 | the contract is
awarded
to insert into each subcontract and | ||||||
3 | into the project specifications for each
subcontract a written | ||||||
4 | stipulation to the effect that not less than the
prevailing
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5 | rate of wages shall be paid to all laborers, workers, and | ||||||
6 | mechanics performing
work under the contract. It shall also be | ||||||
7 | mandatory upon each subcontractor to
cause to be inserted into | ||||||
8 | each lower tiered subcontract
and into the project | ||||||
9 | specifications for each lower tiered subcontract a
stipulation | ||||||
10 | to the effect that not less
than the prevailing rate of wages | ||||||
11 | shall be paid to all laborers, workers, and
mechanics | ||||||
12 | performing work under the contract. A contractor or | ||||||
13 | subcontractor who
fails to comply with this subsection is in | ||||||
14 | violation of this Act.
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15 | (i) When a contractor has awarded work to a subcontractor | ||||||
16 | without a contract or contract specification, the contractor | ||||||
17 | shall comply with subsection (h) by providing a subcontractor | ||||||
18 | with a written statement indicating that not less than the | ||||||
19 | prevailing rate of wages shall be paid to all laborers, | ||||||
20 | workers, and mechanics performing work on the project. A | ||||||
21 | contractor or subcontractor who fails to comply with this | ||||||
22 | subsection is in violation of this Act. | ||||||
23 | (j) Where a complaint is made and the Department of Labor | ||||||
24 | determines that a violation has occurred, the Department of | ||||||
25 | Labor shall determine if proper written notice under this | ||||||
26 | Section 4 was given. If proper written notice was not provided |
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1 | to the subcontractor by the contractor, the Department of | ||||||
2 | Labor shall order the contractor to pay any interest, | ||||||
3 | penalties, or fines that would have been owed by the | ||||||
4 | subcontractor if proper written notice were provided. The | ||||||
5 | failure by a contractor to provide written notice to a | ||||||
6 | subcontractor does not relieve the subcontractor of the duty | ||||||
7 | to comply with the prevailing wage rate, nor of the obligation | ||||||
8 | to pay any back wages, as determined under this Act. For the | ||||||
9 | purposes of this subsection, back wages shall be limited to | ||||||
10 | the difference between the actual amount paid and the | ||||||
11 | prevailing rate of wages required for the project. However, if | ||||||
12 | proper written notice was not provided to the contractor by | ||||||
13 | the public body or other entity under this Section 4, the | ||||||
14 | Department of Labor shall order the public body or other | ||||||
15 | entity to pay any interest, penalties, or fines that would | ||||||
16 | have been owed by the subcontractor if proper written notice | ||||||
17 | were provided. The failure by a public body or other entity to | ||||||
18 | provide written notice does not relieve the subcontractor of | ||||||
19 | the duty to comply with the prevailing wage rate, nor of the | ||||||
20 | obligation to pay any back wages, as determined under this | ||||||
21 | Act. For the purposes of this subsection, back wages shall be | ||||||
22 | limited to the difference between the actual amount paid and | ||||||
23 | the prevailing rate of wages required for the project. The | ||||||
24 | failure to provide written notice by a public body, other | ||||||
25 | entity, or contractor does not diminish the right of a | ||||||
26 | laborer, worker, or mechanic to the prevailing rate of wages |
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1 | as determined under this Act. | ||||||
2 | (k) A public body or other entity shall also require in all | ||||||
3 | contractor's and subcontractor's bonds
that the contractor or | ||||||
4 | subcontractor include such provision as will guarantee the
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5 | faithful performance of such prevailing wage clause as | ||||||
6 | provided by
contract or other written instrument. All bid | ||||||
7 | specifications shall list the specified rates to all
laborers, | ||||||
8 | workers and mechanics in the locality for each craft or type of
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9 | worker or mechanic needed to execute the contract.
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10 | (l) If the Department of Labor
revises the prevailing rate | ||||||
11 | of hourly wages to be paid by the public body or other entity, | ||||||
12 | the
revised rate shall apply to such contract, and the public | ||||||
13 | body or other entity shall be
responsible to notify the | ||||||
14 | contractor and each subcontractor, of the revised
rate.
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15 | The public body or other entity shall discharge its duty | ||||||
16 | to notify of the revised rates by inserting a written | ||||||
17 | stipulation in all contracts or other written instruments that | ||||||
18 | states the prevailing rate of wages are revised by the | ||||||
19 | Department of Labor and are available on the Department's | ||||||
20 | official website. This shall be deemed to be proper | ||||||
21 | notification of any rate changes under this subsection. | ||||||
22 | (m) Two or more investigatory hearings under this Section | ||||||
23 | on the issue
of establishing a new prevailing wage | ||||||
24 | classification for a particular craft
or type of worker shall | ||||||
25 | be consolidated in a single hearing before the
Department. The | ||||||
26 | party requesting
a consolidated investigatory hearing shall |
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1 | have the burden of establishing that
there is no existing | ||||||
2 | prevailing wage classification for the particular craft or
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3 | type of worker in any of the localities under consideration.
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4 | (n) It shall be mandatory upon the contractor or | ||||||
5 | construction manager
to whom a contract for public works is | ||||||
6 | awarded to post, at a
location on the project site of the | ||||||
7 | public works that is
easily accessible to the workers engaged | ||||||
8 | on the project,
the prevailing wage rates for each craft or | ||||||
9 | type of worker
or mechanic needed to execute the contract or | ||||||
10 | project or
work to be performed. In lieu of posting on the | ||||||
11 | project site of the public works, a contractor which has a | ||||||
12 | business location where laborers, workers, and mechanics | ||||||
13 | regularly visit may: (1) post in a conspicuous location at | ||||||
14 | that business the current prevailing wage rates for each | ||||||
15 | county in which the contractor is performing work; or (2) | ||||||
16 | provide such laborer, worker, or mechanic engaged on the | ||||||
17 | public works project a written notice indicating the | ||||||
18 | prevailing wage rates for the public works project. A failure | ||||||
19 | to post or provide a prevailing wage
rate as required by this | ||||||
20 | Section is a violation of this Act.
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21 | (Source: P.A. 100-1177, eff. 6-1-19 .)
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22 | (820 ILCS 130/11) (from Ch. 48, par. 39s-11)
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23 | Sec. 11. No public works project shall be instituted | ||||||
24 | unless the
provisions of this Act have been complied with. The | ||||||
25 | provisions of this
Act shall not be applicable to Federal |
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1 | construction projects which
require a prevailing wage | ||||||
2 | determination by the United States Secretary
of Labor. The | ||||||
3 | Illinois Department of Labor represented by the Attorney
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4 | General is empowered to sue for injunctive relief against the | ||||||
5 | awarding of
any contract or the continuation of work under any | ||||||
6 | contract for public works
at a time when the prevailing wage | ||||||
7 | prerequisites have not been met. Any
contract for public works | ||||||
8 | awarded at a time when the prevailing wage prerequisites
had | ||||||
9 | not been met shall be void as against public policy and the | ||||||
10 | contractor
is prohibited from recovering any damages
for the | ||||||
11 | voiding of the contract or pursuant to the terms of the | ||||||
12 | contract.
The contractor is limited to a claim for amounts | ||||||
13 | actually paid for labor
and materials supplied to the public | ||||||
14 | body. Where objections to a determination
of the prevailing | ||||||
15 | rate of
wages or a court action relative thereto is pending, | ||||||
16 | the public body
shall not continue work on the project unless | ||||||
17 | sufficient funds are
available to pay increased wages if such | ||||||
18 | are finally determined or
unless the Department of Labor | ||||||
19 | certifies such determination of the
prevailing rate of wages | ||||||
20 | as correct.
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21 | Any laborer, worker or mechanic employed by the contractor | ||||||
22 | or by any sub-contractor
under him who is paid for his services | ||||||
23 | in a sum less than the prevailing stipulated
rates for work | ||||||
24 | done under such contract, shall
have a right of action for | ||||||
25 | whatever difference there may be between the
amount so paid, | ||||||
26 | and the rates provided by the contract together with
costs and |
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1 | such reasonable attorney's fees as
shall be allowed by the | ||||||
2 | court. Such contractor or subcontractor shall also
be liable | ||||||
3 | to the
Department of Labor for
20% of
such underpayments and | ||||||
4 | shall be additionally liable to the laborer, worker
or | ||||||
5 | mechanic for punitive damages in the amount of
2% of the amount | ||||||
6 | of any
such penalty to the
State for underpayments for each | ||||||
7 | month following the date of payment during
which such | ||||||
8 | underpayments
remain unpaid. Where a second or subsequent | ||||||
9 | action to recover underpayments is brought against a | ||||||
10 | contractor or subcontractor and the contractor or | ||||||
11 | subcontractor is found liable for underpayments to any | ||||||
12 | laborer, worker, or mechanic, the contractor or subcontractor | ||||||
13 | shall also be liable to the Department of Labor for 50% of the | ||||||
14 | underpayments payable as a result of the second or subsequent | ||||||
15 | action, and shall be additionally liable for 5% of the amount | ||||||
16 | of any such penalty to the State for underpayments for each | ||||||
17 | month following the date of payment during which the | ||||||
18 | underpayments remain unpaid. The Department shall also have a | ||||||
19 | right of action on behalf
of any individual who has a right of | ||||||
20 | action under this Section. An action brought
to recover same | ||||||
21 | shall be deemed to be a suit for wages, and any and all
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22 | judgments entered therein shall have the same force and effect | ||||||
23 | as other
judgments for wages.
The action shall be brought | ||||||
24 | within 5 years from the date of the failure to pay the wages or | ||||||
25 | compensation. At the request of any laborer, workman or | ||||||
26 | mechanic
employed by the contractor or by any subcontractor |
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1 | under him who is paid
less than the prevailing wage rate | ||||||
2 | required by this Act, the Department
of Labor may take an | ||||||
3 | assignment of such wage claim in trust for the assigning
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4 | laborer, workman or mechanic and may bring any legal action | ||||||
5 | necessary to
collect such claim, and the contractor or | ||||||
6 | subcontractor shall be required
to pay the costs incurred in | ||||||
7 | collecting such claim.
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8 | (Source: P.A. 98-328, eff. 1-1-14.)
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