Public Act 103-0048
 
HB3491 EnrolledLRB103 26348 SPS 52709 b


  
    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 4 and 11 as follows:
 


    (820 ILCS 130/4)  (from Ch. 48, par. 39s-4)




    Sec. 4. Ascertaining prevailing wage. 
    (a) The prevailing rate of wages paid to individuals 
covered under this Act shall not be less than the
rate that 
prevails for work of a similar character on public works in the 
locality in which the
work is performed under collective 
bargaining agreements or understandings between employers
or 
employer associations and bona fide labor organizations 
relating to each craft or type of
worker or mechanic needed to 
execute the contract or perform such work, and collective

bargaining agreements or understandings successor thereto, 
provided that said employers or
members of said employer 
associations employ at least 30% of the laborers, workers, or

mechanics in the same trade or occupation in the locality 
where the work is being performed.
    (b) If the prevailing rates of wages and fringe benefits 
cannot reasonably and fairly be applied
in any locality 
because no such agreements or understandings exist, the 
Department of Labor
shall determine the rates and fringe 
benefits for the same or most similar work in the nearest and

most similar neighboring locality in which such agreements or 
understandings exist. The
Department of Labor shall keep a 
record of its findings available for inspection by any 
interested
party in the office of the Department of Labor.
    (c) In the event it is determined, after a written 
objection is filed and hearing is held in
accordance with 
Section 9 of this Act, that less than 30% of the laborers, 
workers, or
mechanics in a particular trade or occupation in 
the locality where the work is performed receive
a 
collectively bargained rate of wage, then the average wage 
paid to such laborers, workers, or
mechanics in the same trade 
or occupation in the locality for the 12-month period 
preceding
the Department of Labor's annual determination shall 
be the prevailing rate of wage. 
    (d) The public body awarding any contract for public work 
or
otherwise undertaking any public works shall
specify in the 
call for bids for the
contract, or where the public body 
performs the work without letting the contract in a written 
instrument provided to the contractor, that the general 
prevailing rate of wages in the locality for
each craft or type 
of worker or mechanic needed to execute the contract
or 
perform such work, also the general prevailing rate for legal 
holiday
and overtime work, as ascertained by the
Department of 
Labor shall be paid for each craft or type of worker
needed to 
execute the contract or to perform such work, and it shall be

mandatory upon the contractor to whom the contract is awarded 
and upon
any subcontractor under him, and where the public 
body performs the
work, upon the public body, to pay not less 
than the specified rates to
all laborers, workers and 
mechanics employed by them in the execution of
the contract or 
such work. Compliance with this Act is a matter of statewide 
concern, and a public body may not opt out of any provisions 
herein.
    (e)  The public body or other entity awarding the
contract 
shall cause to be inserted in the project specifications and 
the
contract a stipulation to the
effect that not less than the 
prevailing rate of wages as found by the
 Department of Labor or 
determined by the court on review
shall be paid to all 
laborers, workers and mechanics performing work
under the 
contract.

    (f)  When a public body or other entity covered by this Act 
has awarded work to a contractor without a public bid, 
contract or project specification, such public body or other 
entity shall comply with subsection (e) by providing the 
contractor with written notice on the purchase order related 
to the work to be done or on a separate document indicating 
that not less than the prevailing rate of wages ascertained by 
the Department of Labor or determined by the court on review 
shall be paid to all laborers, workers, and mechanics 
performing work on the project. 
    (g)  Where a complaint is made and the Department of Labor 
determines that a violation occurred, the Department of Labor 
shall determine if proper written notice under this Section 4 
was given.  If proper written notice was not provided to the 
contractor by the public body or other entity, the Department 
of Labor shall order the public body or other entity to pay any 
interest, penalties or fines that would have been owed by the 
contractor if proper written notice were provided.  The failure 
by a public body or other entity to provide written notice does 
not relieve the contractor of the duty to comply with the 
prevailing wage rate, nor of the obligation to pay any back 
wages, as determined under this Act.  For the purposes of this 
subsection, back wages shall be limited to the difference 
between the actual amount paid and the prevailing rate of 
wages required to be paid for the project.  The failure of a 
public body or other entity to provide written notice under 
this Section 4 does not diminish the right of a laborer, 
worker, or mechanic to the prevailing rate of wages as 
determined under this Act. 
    Any laborer, worker, or mechanic who is employed by the 
contractor or by any sub-contractor and is paid for services 
in a sum less than the prevailing wage rates for work performed 
on a project shall have a right of action for whatever 
difference there may be between (i) the amount so paid and (ii) 
the prevailing rates required to be paid for work performed on 
the project.
    (h) It shall also be mandatory upon the contractor to whom 
the contract is
awarded
to insert into each subcontract and 
into the project specifications for each
subcontract a written 
stipulation to the effect that not less than the
prevailing

rate of wages shall be paid to all laborers, workers, and 
mechanics performing
work under the contract. It shall also be 
mandatory upon each subcontractor to
cause to be inserted into 
each lower tiered subcontract
and into the project 
specifications for each lower tiered subcontract a
stipulation 
to the effect that not less
than the prevailing rate of wages 
shall be paid to all laborers, workers, and
mechanics 
performing work under the contract. A contractor or 
subcontractor who
fails to comply with this subsection is in 
violation of this Act.

    (i)  When a contractor has awarded work to a subcontractor 
without a contract or contract specification, the contractor 
shall comply with subsection (h) by providing a subcontractor 
with a written statement indicating that not less than the 
prevailing rate of wages shall be paid to all laborers, 
workers, and mechanics performing work on the project.  A 
contractor or subcontractor who fails to comply with this 
subsection is in violation of this Act. 
    (j)  Where a complaint is made and the Department of Labor 
determines that a violation has occurred, the Department of 
Labor shall determine if proper written notice under this 
Section 4 was given.  If proper written notice was not provided 
to the subcontractor by the contractor, the Department of 
Labor shall order the contractor to pay any interest, 
penalties, or fines that would have been owed by the 
subcontractor if proper written notice were provided.  The 
failure by a contractor to provide written notice to a 
subcontractor does not relieve the subcontractor of the duty 
to comply with the prevailing wage rate, nor of the obligation 
to pay any back wages, as determined under this Act.  For the 
purposes of this subsection, back wages shall be limited to 
the difference between the actual amount paid and the 
prevailing rate of wages required for the project.  However, if 
proper written notice was not provided to the contractor by 
the public body or other entity under this Section 4, the 
Department of Labor shall order the public body or other 
entity to pay any interest, penalties, or fines that would 
have been owed by the subcontractor if proper written notice 
were provided.  The failure by a public body or other entity to 
provide written notice does not relieve the subcontractor of 
the duty to comply with the prevailing wage rate, nor of the 
obligation to pay any back wages, as determined under this 
Act.  For the purposes of this subsection, back wages shall be 
limited to the difference between the actual amount paid and 
the prevailing rate of wages required for the project.  The 
failure to provide written notice by a public body, other 
entity, or contractor does not diminish the right of a 
laborer, worker, or mechanic to the prevailing rate of wages 
as determined under this Act. 
    (k) A public body or other entity shall also require in all 
contractor's and subcontractor's bonds
that the contractor or 
subcontractor include such provision as will guarantee the

faithful performance of such prevailing wage clause as 
provided by
contract or other written instrument.  All bid 
specifications shall list the specified rates to all
laborers, 
workers and mechanics in the locality for each craft or type of

worker or mechanic needed to execute the contract.

    (l) If the Department of Labor
revises the prevailing rate 
of hourly wages to be paid by the public body or other entity, 
the
revised rate shall apply to such contract, and the public 
body or other entity shall be
responsible to notify the 
contractor and each subcontractor, of the revised
rate.

    The public body or other entity shall discharge its duty 
to notify of the revised rates by inserting a written 
stipulation in all contracts or other written instruments that 
states the prevailing rate of wages are revised by the 
Department of Labor and are available on the Department's 
official website.  This shall be deemed to be  proper 
notification of any rate changes under this subsection.
    (m) Two or more investigatory hearings under this Section 
on the issue
of establishing a new prevailing wage 
classification for a particular craft
or type of worker shall 
be consolidated in a single hearing before the
Department.  The 
party requesting
a consolidated investigatory hearing shall 
have the burden of establishing that
there is no existing 
prevailing wage classification for the particular craft or

type of worker in any of the localities under consideration.

    (n) It shall be mandatory upon the contractor or 
construction manager
to whom a contract for public works is 
awarded to post, at a
location on the project site of the 
public works that is
easily accessible to the workers engaged 
on the project,
the prevailing wage rates for each craft or 
type of worker
or mechanic needed to execute the contract or 
project or
work to be performed.  In lieu of posting on the 
project site of the public works, a contractor which has a 
business location where laborers, workers, and mechanics 
regularly visit may: (1) post in a conspicuous location at 
that business the current prevailing wage rates for each 
county in which the contractor is performing work; or (2) 
provide such laborer, worker, or mechanic engaged on the 
public works project a written notice indicating the 
prevailing wage rates for the public works project. A failure 
to post or provide a prevailing wage
rate as required by this 
Section is a violation of this Act.

(Source: P.A. 100-1177, eff. 6-1-19.)

 



    (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 which
require a prevailing wage 
determination by the United States Secretary
of Labor.  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.  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 stipulated
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.

(Source: P.A. 98-328, eff. 1-1-14.)

  


Effective Date:  1/1/2024