Illinois General Assembly - Full Text of HB5538
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Full Text of HB5538  102nd General Assembly

HB5538eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB5538 EngrossedLRB102 25275 SPS 34548 b

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 1, 2, 3, 5, and 11 as follows:
 
6    (820 ILCS 130/1)  (from Ch. 48, par. 39s-1)
7    Sec. 1. It is the policy of the State of Illinois that a
8wage of no less than the general prevailing hourly rate as paid
9for work of a similar character in the locality in which the
10work is performed, shall be paid to all laborers, workers and
11mechanics employed by or on behalf of any and all public bodies
12engaged in public works. It is also the policy of the State of
13Illinois that a wage of no less than the general prevailing
14hourly rate as paid for work of a similar character in the
15locality in which the work is performed shall be paid to all
16employees of public bodies when engaged in public works on
17behalf of other public bodies.
18(Source: P.A. 83-443.)
 
19    (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
20    Sec. 2. This Act applies to the wages of laborers,
21mechanics and other workers employed in any public works, as
22hereinafter defined, by any public body and to anyone under

 

 

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1contracts for public works. This includes any maintenance,
2repair, assembly, or disassembly work performed on equipment
3whether owned, leased, or rented.
4    As used in this Act, unless the context indicates
5otherwise:
6    "Public works" means all fixed works constructed or
7demolished by any public body, or paid for wholly or in part
8out of public funds, including fixed works constructed or
9demolished by a public body on behalf of another public body.
10"Public works" as defined herein includes all projects
11financed in whole or in part with bonds, grants, loans, or
12other funds made available by or through the State or any of
13its political subdivisions, including but not limited to:
14bonds issued under the Industrial Project Revenue Bond Act
15(Article 11, Division 74 of the Illinois Municipal Code), the
16Industrial Building Revenue Bond Act, the Illinois Finance
17Authority Act, the Illinois Sports Facilities Authority Act,
18or the Build Illinois Bond Act; loans or other funds made
19available pursuant to the Build Illinois Act; loans or other
20funds made available pursuant to the Riverfront Development
21Fund under Section 10-15 of the River Edge Redevelopment Zone
22Act; or funds from the Fund for Illinois' Future under Section
236z-47 of the State Finance Act, funds for school construction
24under Section 5 of the General Obligation Bond Act, funds
25authorized under Section 3 of the School Construction Bond
26Act, funds for school infrastructure under Section 6z-45 of

 

 

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1the State Finance Act, and funds for transportation purposes
2under Section 4 of the General Obligation Bond Act. "Public
3works" also includes (i) all projects financed in whole or in
4part with funds from the Environmental Protection Agency under
5the Illinois Renewable Fuels Development Program Act for which
6there is no project labor agreement; (ii) all work performed
7pursuant to a public private agreement under the Public
8Private Agreements for the Illiana Expressway Act or the
9Public-Private Agreements for the South Suburban Airport Act;
10and (iii) all projects undertaken under a public-private
11agreement under the Public-Private Partnerships for
12Transportation Act. "Public works" also includes all projects
13at leased facility property used for airport purposes under
14Section 35 of the Local Government Facility Lease Act. "Public
15works" also includes the construction of a new wind power
16facility by a business designated as a High Impact Business
17under Section 5.5(a)(3)(E) and the construction of a new
18utility-scale solar power facility by a business designated as
19a High Impact Business under Section 5.5(a)(3)(E-5) of the
20Illinois Enterprise Zone Act. "Public works" also includes
21electric vehicle charging station projects financed pursuant
22to the Electric Vehicle Act and renewable energy projects
23required to pay the prevailing wage pursuant to the Illinois
24Power Agency Act. "Public works" does not include work done
25directly by any public utility company, whether or not done
26under public supervision or direction, or paid for wholly or

 

 

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1in part out of public funds. "Public works" also includes
2construction projects performed by a third party contracted by
3any public utility, as described in subsection (a) of Section
42.1, in public rights-of-way, as defined in Section 21-201 of
5the Public Utilities Act, whether or not done under public
6supervision or direction, or paid for wholly or in part out of
7public funds. "Public works" also includes construction
8projects that exceed 15 aggregate miles of new fiber optic
9cable, performed by a third party contracted by any public
10utility, as described in subsection (b) of Section 2.1, in
11public rights-of-way, as defined in Section 21-201 of the
12Public Utilities Act, whether or not done under public
13supervision or direction, or paid for wholly or in part out of
14public funds. "Public works" also includes any corrective
15action performed pursuant to Title XVI of the Environmental
16Protection Act for which payment from the Underground Storage
17Tank Fund is requested. "Public works" does not include
18projects undertaken by the owner at an owner-occupied
19single-family residence or at an owner-occupied unit of a
20multi-family residence. "Public works" does not include work
21performed for soil and water conservation purposes on
22agricultural lands, whether or not done under public
23supervision or paid for wholly or in part out of public funds,
24done directly by an owner or person who has legal control of
25those lands.
26    "Construction" means all work on public works involving

 

 

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1laborers, workers or mechanics. This includes any maintenance,
2repair, assembly, or disassembly work performed on equipment
3whether owned, leased, or rented.
4    "Locality" means the county where the physical work upon
5public works is performed, except (1) that if there is not
6available in the county a sufficient number of competent
7skilled laborers, workers and mechanics to construct the
8public works efficiently and properly, "locality" includes any
9other county nearest the one in which the work or construction
10is to be performed and from which such persons may be obtained
11in sufficient numbers to perform the work and (2) that, with
12respect to contracts for highway work with the Department of
13Transportation of this State, "locality" may at the discretion
14of the Secretary of the Department of Transportation be
15construed to include two or more adjacent counties from which
16workers may be accessible for work on such construction.
17    "Public body" means the State or any officer, board or
18commission of the State or any political subdivision or
19department thereof, or any institution supported in whole or
20in part by public funds, and includes every county, city,
21town, village, township, school district, irrigation, utility,
22reclamation improvement or other district and every other
23political subdivision, district or municipality of the state
24whether such political subdivision, municipality or district
25operates under a special charter or not.
26    "Labor organization" means an organization that is the

 

 

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1exclusive representative of an employer's employees recognized
2or certified pursuant to the National Labor Relations Act.
3    The terms "general prevailing rate of hourly wages",
4"general prevailing rate of wages" or "prevailing rate of
5wages" when used in this Act mean the hourly cash wages plus
6annualized fringe benefits for training and apprenticeship
7programs approved by the U.S. Department of Labor, Bureau of
8Apprenticeship and Training, health and welfare, insurance,
9vacations and pensions paid generally, in the locality in
10which the work is being performed, to employees engaged in
11work of a similar character on public works.
12(Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21;
13102-673, eff. 11-30-21; revised 12-9-21.)
 
14    (820 ILCS 130/3)  (from Ch. 48, par. 39s-3)
15    Sec. 3. Not less than the general prevailing rate of
16hourly wages for work of a similar character on public works in
17the locality in which the work is performed, and not less than
18the general prevailing rate of hourly wages for legal holiday
19and overtime work, shall be paid to all laborers, workers and
20mechanics employed by or on behalf of any public body engaged
21in the construction or demolition of public works. This
22includes any maintenance, repair, assembly, or disassembly
23work performed on equipment whether owned, leased, or rented.
24This also includes the construction or demolition of public
25works performed by an employee of a public body engaged in the

 

 

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1construction or demolition of public works on behalf of
2another public body. Only such laborers, workers and mechanics
3as are directly employed by contractors or subcontractors in
4actual construction work on the site of the building or
5construction job, and laborers, workers and mechanics engaged
6in the transportation of materials and equipment to or from
7the site, but not including the transportation by the sellers
8and suppliers or the manufacture or processing of materials or
9equipment, in the execution of any contract or contracts for
10public works with any public body shall be deemed to be
11employed upon public works. The wage for a tradesman
12performing maintenance is equivalent to that of a tradesman
13engaged in construction or demolition.
14(Source: P.A. 95-341, eff. 8-21-07; 96-186, eff. 1-1-10.)
 
15    (820 ILCS 130/5)  (from Ch. 48, par. 39s-5)
16    Sec. 5. Certified payroll.
17    (a) Any contractor and each subcontractor who participates
18in public works and any public body that participates in
19public works on behalf of another public body shall:
20        (1) make and keep, for a period of not less than 3
21    years from the date of the last payment made before
22    January 1, 2014 (the effective date of Public Act 98-328)
23    and for a period of 5 years from the date of the last
24    payment made on or after January 1, 2014 (the effective
25    date of Public Act 98-328) on a contract or subcontract

 

 

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1    for public works, records of all laborers, mechanics, and
2    other workers employed by them on the project; the records
3    shall include (i) the worker's name, (ii) the worker's
4    address, (iii) the worker's telephone number when
5    available, (iv) the last 4 digits of the worker's social
6    security number, (v) the worker's gender, (vi) the
7    worker's race, (vii) the worker's ethnicity, (viii)
8    veteran status, (ix) the worker's classification or
9    classifications, (x) the worker's skill level, such as
10    apprentice or journeyman, (xi) the worker's gross and net
11    wages paid in each pay period, (xii) the worker's number
12    of hours worked each day, (xiii) the worker's starting and
13    ending times of work each day, (xiv) the worker's hourly
14    wage rate, (xv) the worker's hourly overtime wage rate,
15    (xvi) the worker's hourly fringe benefit rates, (xvii) the
16    name and address of each fringe benefit fund, (xviii) the
17    plan sponsor of each fringe benefit, if applicable, and
18    (xix) the plan administrator of each fringe benefit, if
19    applicable; and
20        (2) no later than the 15th day of each calendar month
21    file a certified payroll for the immediately preceding
22    month with the public body in charge of the project until
23    the Department of Labor activates the database created
24    under Section 5.1 at which time certified payroll shall
25    only be submitted to that database, except for projects
26    done by State agencies that opt to have contractors submit

 

 

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1    certified payrolls directly to that State agency. A State
2    agency that opts to directly receive certified payrolls
3    must submit the required information in a specified
4    electronic format to the Department of Labor no later than
5    10 days after the certified payroll was filed with the
6    State agency. A certified payroll must be filed for only
7    those calendar months during which construction on a
8    public works project has occurred. The certified payroll
9    shall consist of a complete copy of the records identified
10    in paragraph (1) of this subsection (a), but may exclude
11    the starting and ending times of work each day. The
12    certified payroll shall be accompanied by a statement
13    signed by the contractor or subcontractor or an officer,
14    employee, or agent of the contractor or subcontractor or
15    an officer, employee, or agent of a public body engaged in
16    the construction or demolition of public works on behalf
17    of another public body, which avers that: (i) he or she has
18    examined the certified payroll records required to be
19    submitted by the Act and such records are true and
20    accurate; (ii) the hourly rate paid to each worker is not
21    less than the general prevailing rate of hourly wages
22    required by this Act; and (iii) the public body engaged in
23    the construction or demolition of public works on behalf
24    of another public body or the contractor or subcontractor
25    is aware that filing a certified payroll that he or she
26    knows to be false is a Class A misdemeanor. A general

 

 

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1    contractor is not prohibited from relying on the
2    certification of a lower tier subcontractor, provided the
3    general contractor does not knowingly rely upon a
4    subcontractor's false certification. Any public body
5    engaged in the construction or demolition of public works
6    on behalf of another public body, any officer, employee,
7    or agent of a public body engaged in the construction or
8    demolition of public works on behalf of another public
9    body, any contractor or subcontractor subject to this Act,
10    and any officer, employee, or agent of such contractor or
11    subcontractor whose duty as such officer, employee, or
12    agent it is to file such certified payroll who willfully
13    fails to file such a certified payroll on or before the
14    date such certified payroll is required by this paragraph
15    to be filed and any person who willfully files a false
16    certified payroll that is false as to any material fact is
17    in violation of this Act and guilty of a Class A
18    misdemeanor. The public body in charge of the project
19    shall keep the records submitted in accordance with this
20    paragraph (2) of subsection (a) before January 1, 2014
21    (the effective date of Public Act 98-328) for a period of
22    not less than 3 years, and the records submitted in
23    accordance with this paragraph (2) of subsection (a) on or
24    after January 1, 2014 (the effective date of Public Act
25    98-328) for a period of 5 years, from the date of the last
26    payment for work on a contract or subcontract for public

 

 

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1    works or until the Department of Labor activates the
2    database created under Section 5.1, whichever is less.
3    After the activation of the database created under Section
4    5.1, the Department of Labor rather than the public body
5    in charge of the project shall keep the records and
6    maintain the database. The records submitted in accordance
7    with this paragraph (2) of subsection (a) shall be
8    considered public records, except an employee's address,
9    telephone number, social security number, race, ethnicity,
10    and gender, and made available in accordance with the
11    Freedom of Information Act. The public body shall accept
12    any reasonable submissions by the contractor that meet the
13    requirements of this Section.
14    A contractor, subcontractor, or public body may retain
15records required under this Section in paper or electronic
16format.
17    (b) Upon 7 business days' notice, the public body engaged
18in the construction or demolition of public works on behalf of
19another public body or the contractor and each subcontractor
20shall make available for inspection and copying at a location
21within this State during reasonable hours, the records
22identified in paragraph (1) of subsection (a) of this Section
23to the public body in charge of the project, its officers and
24agents, the Director of Labor and his deputies and agents, and
25to federal, State, or local law enforcement agencies and
26prosecutors.

 

 

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1    (c) A contractor or subcontractor who remits contributions
2to fringe benefit funds that are jointly maintained and
3jointly governed by one or more employers and one or more labor
4organizations in accordance with the federal Labor Management
5Relations Act shall make and keep certified payroll records
6that include the information required under items (i) through
7(viii) of paragraph (1) of subsection (a) only. However, the
8information required under items (ix) through (xv) of
9paragraph (1) of subsection (a) shall be required for any
10contractor or subcontractor who remits contributions to a
11fringe benefit fund that is not jointly maintained and jointly
12governed by one or more employers and one or more labor
13organizations in accordance with the federal Labor Management
14Relations Act.
15(Source: P.A. 100-1177, eff. 6-1-19; 101-31, eff. 6-28-19.)
 
16    (820 ILCS 130/11)  (from Ch. 48, par. 39s-11)
17    Sec. 11. No public works project shall be instituted
18unless the provisions of this Act have been complied with. The
19provisions of this Act shall not be applicable to Federal
20construction projects which require a prevailing wage
21determination by the United States Secretary of Labor. The
22Illinois Department of Labor represented by the Attorney
23General is empowered to sue for injunctive relief against the
24awarding of any contract or the continuation of work under any
25contract for public works at a time when the prevailing wage

 

 

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1prerequisites have not been met. Any contract for public works
2awarded at a time when the prevailing wage prerequisites had
3not been met shall be void as against public policy and the
4public body engaged in the construction or demolition of
5public works on behalf of another public body or the
6contractor is prohibited from recovering any damages for the
7voiding of the contract or pursuant to the terms of the
8contract. The public body engaged in the construction or
9demolition of public works on behalf of another public body or
10the contractor is limited to a claim for amounts actually paid
11for labor and materials supplied to the public body. Where
12objections to a determination of the prevailing rate of wages
13or a court action relative thereto is pending, the public body
14shall not continue work on the project unless sufficient funds
15are available to pay increased wages if such are finally
16determined or unless the Department of Labor certifies such
17determination of the prevailing rate of wages as correct.
18    Any employee of a public body that engaged in the
19construction or demolition of public works on behalf of
20another public body and any laborer, worker or mechanic
21employed by the contractor or by any sub-contractor under him
22who is paid for his services in a sum less than the stipulated
23rates for work done under such contract, shall have a right of
24action for whatever difference there may be between the amount
25so paid, and the rates provided by the contract together with
26costs and such reasonable attorney's fees as shall be allowed

 

 

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1by the court. Such contractor or subcontractor shall also be
2liable to the Department of Labor for 20% of such
3underpayments and shall be additionally liable to the laborer,
4worker or mechanic for punitive damages in the amount of 2% of
5the amount of any such penalty to the State for underpayments
6for each month following the date of payment during which such
7underpayments remain unpaid. Where a second or subsequent
8action to recover underpayments is brought against a public
9body that engaged in the construction or demolition of public
10works on behalf of another public body or a contractor or
11subcontractor and the public body or contractor or
12subcontractor is found liable for underpayments to any
13employee, laborer, worker, or mechanic, the public body or
14contractor or subcontractor shall also be liable to the
15Department of Labor for 50% of the underpayments payable as a
16result of the second or subsequent action, and shall be
17additionally liable for 5% of the amount of any such penalty to
18the State for underpayments for each month following the date
19of payment during which the underpayments remain unpaid. The
20Department shall also have a right of action on behalf of any
21individual who has a right of action under this Section. An
22action brought to recover same shall be deemed to be a suit for
23wages, and any and all judgments entered therein shall have
24the same force and effect as other judgments for wages. The
25action shall be brought within 5 years from the date of the
26failure to pay the wages or compensation. At the request of any

 

 

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1employee employed by a public body that engaged in the
2construction or demolition of public works on behalf of
3another public body or any laborer, workman or mechanic
4employed by the contractor or by any subcontractor under him
5who is paid less than the prevailing wage rate required by this
6Act, the Department of Labor may take an assignment of such
7wage claim in trust for the assigning laborer, workman or
8mechanic and may bring any legal action necessary to collect
9such claim, and the public body that engaged in the
10construction or demolition of public works on behalf of
11another public body or the contractor or subcontractor shall
12be required to pay the costs incurred in collecting such
13claim.
14(Source: P.A. 98-328, eff. 1-1-14.)