Illinois General Assembly - Full Text of HB5690
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Full Text of HB5690  97th General Assembly




State of Illinois
2011 and 2012


Introduced 2/16/2012, by Rep. Elizabeth Hernandez


820 ILCS 130/2  from Ch. 48, par. 39s-2
820 ILCS 130/5  from Ch. 48, par. 39s-5
820 ILCS 130/5.1 new
820 ILCS 130/11  from Ch. 48, par. 39s-11

    Amends the Prevailing Wage Act. Requires contractors to include in recording keeping the gross and net wage, hourly overtime rate, fringe benefit rates, and the sponsor and administrator of fringe benefit plans. Provides for filing of the records with the Department of Labor. Authorizes that Department to require electronic filing. Requires that Department to create and provide a form for the filing of certified payrolls. Allows any interested party to bring an action under the Act. Defines terms.

LRB097 19165 JLS 64407 b






HB5690LRB097 19165 JLS 64407 b

1    AN ACT concerning wages.
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 2, 5, and 11 and by adding Section 5.1 as follows:
6    (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
7    Sec. 2. This Act applies to the wages of laborers,
8mechanics and other workers employed in any public works, as
9hereinafter defined, by any public body and to anyone under
10contracts for public works. This includes any maintenance,
11repair, assembly, or disassembly work performed on equipment
12whether owned, leased, or rented.
13    As used in this Act, unless the context indicates
15    "Public works" means all fixed works constructed or
16demolished by any public body, or paid for wholly or in part
17out of public funds. "Public works" as defined herein includes
18all projects financed in whole or in part with bonds, grants,
19loans, or other funds made available by or through the State or
20any of its political subdivisions, including but not limited
21to: bonds issued under the Industrial Project Revenue Bond Act
22(Article 11, Division 74 of the Illinois Municipal Code), the
23Industrial Building Revenue Bond Act, the Illinois Finance



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1Authority Act, the Illinois Sports Facilities Authority Act, or
2the Build Illinois Bond Act; loans or other funds made
3available pursuant to the Build Illinois Act; or funds from the
4Fund for Illinois' Future under Section 6z-47 of the State
5Finance Act, funds for school construction under Section 5 of
6the General Obligation Bond Act, funds authorized under Section
73 of the School Construction Bond Act, funds for school
8infrastructure under Section 6z-45 of the State Finance Act,
9and funds for transportation purposes under Section 4 of the
10General Obligation Bond Act. "Public works" also includes (i)
11all projects financed in whole or in part with funds from the
12Department of Commerce and Economic Opportunity under the
13Illinois Renewable Fuels Development Program Act for which
14there is no project labor agreement; (ii) all work performed
15pursuant to a public private agreement under the Public Private
16Agreements for the Illiana Expressway Act; and (iii) all
17projects undertaken under a public-private agreement under the
18Public-Private Partnerships for Transportation Act. "Public
19works" also includes all projects at leased facility property
20used for airport purposes under Section 35 of the Local
21Government Facility Lease Act. "Public works" also includes the
22construction of a new wind power facility by a business
23designated as a High Impact Business under Section 5.5(a)(3)(E)
24of the Illinois Enterprise Zone Act. "Public works" does not
25include work done directly by any public utility company,
26whether or not done under public supervision or direction, or



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1paid for wholly or in part out of public funds. "Public works"
2does not include projects undertaken by the owner at an
3owner-occupied single-family residence or at an owner-occupied
4unit of a multi-family residence.
5    "Construction" means all work on public works involving
6laborers, workers or mechanics. This includes any maintenance,
7repair, assembly, or disassembly work performed on equipment
8whether owned, leased, or rented.
9    "Contractor" and "subcontractor" include an individual,
10partnership, association, corporation, limited liability
11company, business trust, and a person or group of persons
12acting directly or indirectly in the interest of a contractor
13or subcontractor in relation to any laborer, worker, or
14mechanic employed.
15    "Entity" means a sole proprietor, partnership, firm,
16corporation, limited liability company, association, or other
17business enterprise, but does not include (i) the State of
18Illinois or its officers, agencies, or political subdivisions
19or (ii) the federal government.
20    "Interested party" means a person or entity with an
21interest in compliance with this Act.
22    "Locality" means the county where the physical work upon
23public works is performed, except (1) that if there is not
24available in the county a sufficient number of competent
25skilled laborers, workers and mechanics to construct the public
26works efficiently and properly, "locality" includes any other



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1county nearest the one in which the work or construction is to
2be performed and from which such persons may be obtained in
3sufficient numbers to perform the work and (2) that, with
4respect to contracts for highway work with the Department of
5Transportation of this State, "locality" may at the discretion
6of the Secretary of the Department of Transportation be
7construed to include two or more adjacent counties from which
8workers may be accessible for work on such construction.
9    "Public body" means the State or any officer, board or
10commission of the State or any political subdivision or
11department thereof, or any institution supported in whole or in
12part by public funds, and includes every county, city, town,
13village, township, school district, irrigation, utility,
14reclamation improvement or other district and every other
15political subdivision, district or municipality of the state
16whether such political subdivision, municipality or district
17operates under a special charter or not.
18    The terms "general prevailing rate of hourly wages",
19"general prevailing rate of wages" or "prevailing rate of
20wages" when used in this Act mean the hourly cash wages plus
21annualized fringe benefits for training and apprenticeship
22programs approved by the U.S. Department of Labor, Bureau of
23Apprenticeship and Training, health and welfare, insurance,
24vacations and pensions paid generally, in the locality in which
25the work is being performed, to employees engaged in work of a
26similar character on public works.



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1(Source: P.A. 96-28, eff. 7-1-09; 96-58, eff. 1-1-10; 96-186,
2eff. 1-1-10; 96-913, eff. 6-9-10; 96-1000, eff. 7-2-10; 97-502,
3eff. 8-23-11.)
4    (820 ILCS 130/5)  (from Ch. 48, par. 39s-5)
5    Sec. 5. Certified payroll.
6    (a) Any contractor and each subcontractor who participates
7in public works shall:
8        (1) make and keep, for a period of not less than 3
9    years from the date of the last payment on a contract or
10    subcontract for public works, records of all laborers,
11    mechanics, and other workers employed by them on the
12    project; the records shall include each worker's name,
13    address, telephone number when available, social security
14    number, classification or classifications, gross and net
15    the hourly wages paid in each pay period, the number of
16    hours worked each day, the hourly wage rate, the hourly
17    overtime wage rate, hourly fringe benefit rates, the plan
18    sponsor of each fringe benefit, if applicable, the plan
19    administrator of each fringe benefit, if applicable, and
20    the starting and ending times of work each day; and
21        (2) no later than the tenth day of each calendar month
22    file a certified payroll for the immediately preceding
23    month with the public body in charge of the project. A
24    certified payroll must be filed on a form created and
25    provided by the Department of Labor. A certified payroll



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1    must be filed for only those calendar months during which
2    construction on a public works project has occurred. The
3    certified payroll shall consist of a complete copy of the
4    records identified in paragraph (1) of this subsection (a),
5    but may exclude the starting and ending times of work each
6    day. The certified payroll shall be accompanied by a
7    statement signed by the contractor or subcontractor or an
8    officer, employee, or agent of the contractor or
9    subcontractor which avers that: (i) he or she has examined
10    the certified payroll records required to be submitted by
11    the Act and such records are true and accurate; (ii) the
12    hourly rate paid to each worker is not less than the
13    general prevailing rate of hourly wages required by this
14    Act; and (iii) the contractor or subcontractor is aware
15    that filing a certified payroll that he or she knows to be
16    false is a Class A misdemeanor. A general contractor is not
17    prohibited from relying on the certification of a lower
18    tier subcontractor, provided the general contractor does
19    not knowingly rely upon a subcontractor's false
20    certification. Any contractor or subcontractor subject to
21    this Act and any officer, employee, or agent of such
22    contractor or subcontractor whose duty as such officer,
23    employee, or agent it is to file such certified payroll who
24    willfully fails to file such a certified payroll on or
25    before the date such certified payroll is required by this
26    paragraph to be filed and any person who willfully files a



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1    false certified payroll that is false as to any material
2    fact is in violation of this Act and guilty of a Class A
3    misdemeanor. The public body in charge of the project shall
4    keep the records submitted in accordance with this
5    paragraph (2) of subsection (a) for a period of not less
6    than 3 years from the date of the last payment for work on
7    a contract or subcontract for public works. The records
8    submitted in accordance with this paragraph (2) of
9    subsection (a) shall be considered public records, except
10    an employee's address, telephone number, and social
11    security number, and made available in accordance with the
12    Freedom of Information Act. The public body shall accept
13    any reasonable submissions by the contractor that meet the
14    requirements of this Section.
15    (b) Upon 7 business days' notice, the contractor and each
16subcontractor shall make available for inspection and copying
17at a location within this State during reasonable hours, the
18records identified in paragraph (1) of subsection (a) of this
19Section to the public body in charge of the project, its
20officers and agents, the Director of Labor and his deputies and
21agents, and to federal, State, or local law enforcement
22agencies and prosecutors.
23(Source: P.A. 97-571, eff. 1-1-12.)
24    (820 ILCS 130/5.1 new)
25    Sec. 5.1. Electronic database. Subject to appropriation,



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1the Department shall develop and maintain an electronic
2database capable of accepting and retaining certified payrolls
3submitted under this Act. The database shall accept certified
4payroll forms provided by the Department that are fillable and
5designed to accept electronic signatures.
6    (820 ILCS 130/11)  (from Ch. 48, par. 39s-11)
7    Sec. 11. No public works project shall be instituted unless
8the provisions of this Act have been complied with. The
9provisions of this Act shall not be applicable to Federal
10construction projects which require a prevailing wage
11determination by the United States Secretary of Labor. The
12Illinois Department of Labor represented by the Attorney
13General is empowered to sue for injunctive relief against the
14awarding of any contract or the continuation of work under any
15contract for public works at a time when the prevailing wage
16prerequisites have not been met. Any contract for public works
17awarded at a time when the prevailing wage prerequisites had
18not been met shall be void as against public policy and the
19contractor is prohibited from recovering any damages for the
20voiding of the contract or pursuant to the terms of the
21contract. The contractor is limited to a claim for amounts
22actually paid for labor and materials supplied to the public
23body. Where objections to a determination of the prevailing
24rate of wages or a court action relative thereto is pending,
25the public body shall not continue work on the project unless



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1sufficient funds are available to pay increased wages if such
2are finally determined or unless the Department of Labor
3certifies such determination of the prevailing rate of wages as
5    Any interested party laborer, worker or mechanic employed
6by the contractor or by any sub-contractor under him who is
7paid for his services in a sum less than the stipulated rates
8for work done under such contract, shall have a right of action
9for whatever difference there may be between the amount so
10paid, and the rates provided by the contract together with
11costs and such reasonable attorney's fees as shall be allowed
12by the court. Such contractor or subcontractor shall also be
13liable to the Department of Labor for 20% of such underpayments
14and shall be additionally liable to the laborer, worker or
15mechanic for punitive damages in the amount of 2% of the amount
16of any such penalty to the State for underpayments for each
17month following the date of payment during which such
18underpayments remain unpaid. Where a second or subsequent
19action to recover underpayments is brought against a contractor
20or subcontractor and the contractor or subcontractor is found
21liable for underpayments to any laborer, worker, or mechanic,
22the contractor or subcontractor shall also be liable to the
23Department of Labor for 50% of the underpayments payable as a
24result of the second or subsequent action, and shall be
25additionally liable for 5% of the amount of any such penalty to
26the State for underpayments for each month following the date



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1of payment during which the underpayments remain unpaid. The
2Department shall also have a right of action on behalf of any
3individual who has a right of action under this Section. An
4action brought to recover same shall be deemed to be a suit for
5wages, and any and all judgments entered therein shall have the
6same force and effect as other judgments for wages. At the
7request of any laborer, workman or mechanic employed by the
8contractor or by any subcontractor under him who is paid less
9than the prevailing wage rate required by this Act, the
10Department of Labor may take an assignment of such wage claim
11in trust for the assigning laborer, workman or mechanic and may
12bring any legal action necessary to collect such claim, and the
13contractor or subcontractor shall be required to pay the costs
14incurred in collecting such claim.
15(Source: P.A. 94-488, eff. 1-1-06.)