Full Text of HB0773 95th General Assembly
HB0773 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 HB0773
Introduced 2/7/2007, by Rep. John A. Fritchey SYNOPSIS AS INTRODUCED: |
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820 ILCS 130/2 |
from Ch. 48, par. 39s-2 |
820 ILCS 130/3 |
from Ch. 48, par. 39s-3 |
820 ILCS 130/4 |
from Ch. 48, par. 39s-4 |
820 ILCS 130/5 |
from Ch. 48, par. 39s-5 |
820 ILCS 130/6 |
from Ch. 48, par. 39s-6 |
820 ILCS 130/11 |
from Ch. 48, par. 39s-11 |
820 ILCS 130/11b |
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820 ILCS 130/11a rep. |
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Amends the Prevailing Wage Act. Provides that the Act applies to maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented. Provides that all contractors and subcontractors required to pay the prevailing wage shall make payment of the wage in legal tender without a deduction for food, sleeping accommodations, transportation, use of tools, or any other thing of any kind or description.
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FISCAL NOTE ACT MAY APPLY | |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| AN ACT concerning employment.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Prevailing Wage Act is amended by changing | 5 |
| Sections 2, 3, 4, 5, 6, 11, and 11b as follows:
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| (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
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| Sec. 2. This Act applies to the wages of laborers, | 8 |
| mechanics and
other workers employed in any public works, as | 9 |
| hereinafter defined, by
any public body and to anyone under | 10 |
| contracts for public works. This includes any maintenance, | 11 |
| repair, assembly, or disassembly work performed on equipment | 12 |
| whether owned, leased or rented.
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| As used in this Act, unless the context indicates | 14 |
| otherwise:
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| "Public works" means all fixed works constructed by
any | 16 |
| public body, other than work done directly by any public | 17 |
| utility
company, whether or not done under public supervision | 18 |
| or direction,
or paid for wholly or in part out of public | 19 |
| funds. "Public works" as
defined herein includes all projects | 20 |
| financed in whole
or in part with bonds issued under the | 21 |
| Industrial Project Revenue Bond
Act (Article 11, Division 74 of | 22 |
| the Illinois Municipal Code , the Tax Increment Allocation | 23 |
| Redevelopment Act (Article 11, Division 74.4 of the Illinois |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| Municipal Code ), the Industrial
Building Revenue Bond Act, the | 2 |
| Illinois Finance Authority Act,
the Illinois Sports Facilities | 3 |
| Authority Act, or the Build Illinois Bond Act,
and all projects | 4 |
| financed in whole or in part with loans or other funds made
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| available pursuant to the Build Illinois Act. "Public works" | 6 |
| also includes
all projects financed in whole or in part with | 7 |
| funds from the Fund for
Illinois' Future under Section 6z-47 of | 8 |
| the State Finance Act, funds for school
construction under | 9 |
| Section 5 of the General Obligation Bond Act, funds
authorized | 10 |
| under Section 3 of the School Construction Bond Act, funds for
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| school infrastructure under Section 6z-45 of the State Finance | 12 |
| Act, and funds
for transportation purposes under Section 4 of | 13 |
| the General Obligation Bond
Act. "Public works" also includes | 14 |
| all projects financed in whole or in part
with funds from the | 15 |
| Department of Commerce and Economic Opportunity under the | 16 |
| Illinois Renewable Fuels Development Program
Act for which | 17 |
| there is no project labor agreement. "Public works" also | 18 |
| includes all projects at leased facility property used for | 19 |
| airport purposes under Section 35 of the Local Government | 20 |
| Facility Lease Act and all projects financed in whole or in | 21 |
| part with loans or other funds made available pursuant to the | 22 |
| Illinois Enterprise Zone Loan Act .
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| "Construction" means all work on public works involving | 24 |
| laborers,
workers or mechanics. This includes any maintenance, | 25 |
| repair, assembly, or disassembly work performed on equipment | 26 |
| whether owned, leased, or rented.
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| "Locality" means the county where the physical work upon | 2 |
| public works
is performed, except (1) that if there is not | 3 |
| available in the county a
sufficient number of competent | 4 |
| skilled laborers, workers and mechanics
to construct the public | 5 |
| works efficiently and properly, "locality"
includes any other | 6 |
| county nearest the one in which the work or
construction is to | 7 |
| be performed and from which such persons may be
obtained in | 8 |
| sufficient numbers to perform the work and (2) that, with
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| respect to contracts for highway work with the Department of
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| Transportation of this State, "locality" may at the discretion | 11 |
| of the
Secretary of the Department of Transportation be | 12 |
| construed to include
two or more adjacent counties from which | 13 |
| workers may be accessible for
work on such construction.
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| "Public body" means the State or any officer, board or | 15 |
| commission of
the State or any political subdivision or | 16 |
| department thereof, or any
institution supported in whole or in | 17 |
| part by public funds,
and includes every county, city, town,
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| village, township, school district, irrigation, utility, | 19 |
| reclamation
improvement or other district and every other | 20 |
| political subdivision,
district or municipality of the state | 21 |
| whether such political
subdivision, municipality or district | 22 |
| operates under a special charter
or not.
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| The terms "general prevailing rate of hourly wages", | 24 |
| "general
prevailing rate of wages" or "prevailing rate of | 25 |
| wages" when used in
this Act mean the hourly cash wages plus | 26 |
| fringe benefits for training and
apprenticeship programs |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| approved by the U.S. Department of Labor, Bureau of
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| Apprenticeship and Training, health and welfare, insurance, | 3 |
| vacations and
pensions paid generally, in the
locality in which | 4 |
| the work is being performed, to employees engaged in
work of a | 5 |
| similar character on public works.
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| "Contractor" or "subcontractor" means any person or entity | 7 |
| who undertakes to, offers to undertake to, purports to have the | 8 |
| capacity to undertake to, submits a bid to, or does himself or | 9 |
| herself or by or through others, engage in a public works.
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| (Source: P.A. 93-15, eff. 6-11-03; 93-16, eff. 1-1-04; 93-205, | 11 |
| eff. 1-1-04; 94-750, eff. 5-9-06.)
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| (820 ILCS 130/3) (from Ch. 48, par. 39s-3)
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| Sec. 3. Not less than the general prevailing rate of hourly | 14 |
| wages for
work of a similar character on public works in the | 15 |
| locality in which the
work is performed, and not less than the | 16 |
| general prevailing rate of
hourly wages for legal holiday and | 17 |
| overtime work, shall be paid to all
laborers, workers and | 18 |
| mechanics employed by or on behalf of any public
body engaged | 19 |
| in the construction of public works.
This includes any | 20 |
| maintenance, repair, assembly, or disassembly work performed | 21 |
| on equipment whether owned, leased, or rented. Only such | 22 |
| laborers, workers and mechanics as are
directly employed by | 23 |
| contractors or subcontractors in actual
construction work on | 24 |
| the site of the building or construction job, or at a facility | 25 |
| dedicated exclusively, or nearly so, to performance of the |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| contract or project, and are located in proximity to the actual | 2 |
| construction location that it would be reasonable to include | 3 |
| them, and
laborers, workers and mechanics engaged in the | 4 |
| transportation of
materials and equipment to or from the site, | 5 |
| but not including the
transportation by the sellers and | 6 |
| suppliers or the manufacture or
processing of materials or | 7 |
| equipment, in the execution of any contract
or contracts for | 8 |
| public works with any public body shall be deemed to be
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| employed upon public works. The wage for a tradesman performing | 10 |
| maintenance
is equivalent to that of a tradesman engaged in | 11 |
| construction. All contractors and subcontractors required to | 12 |
| pay the prevailing wage under this Act shall make payment of | 13 |
| such wages in legal tender, without any deduction for food, | 14 |
| sleeping accommodations, transportation, use of tools, or any | 15 |
| other thing of any kind or description.
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| (Source: P.A. 93-15, eff. 6-11-03; 93-16, eff. 1-1-04.)
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| (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
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| Sec. 4. (a) The public body awarding any contract for | 19 |
| public work or
otherwise undertaking any public works, shall | 20 |
| ascertain the general
prevailing rate of hourly wages in the | 21 |
| locality in which the work is to
be performed, for each craft | 22 |
| or type of worker or mechanic needed to
execute the contract, | 23 |
| and where the public body performs the work
without letting a | 24 |
| contract therefor, shall ascertain the prevailing rate
of wages | 25 |
| on a per hour basis in the locality, and such public body shall
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| specify in the resolution or ordinance and in the call for bids | 2 |
| for the
contract, that the general prevailing rate of wages in | 3 |
| the locality for
each craft or type of worker or mechanic | 4 |
| needed to execute the contract
or perform such work, also the | 5 |
| general prevailing rate for legal holiday
and overtime work, as | 6 |
| ascertained by the public body or by the
Department of Labor | 7 |
| shall be paid for each craft or type of worker
needed to | 8 |
| execute the contract or to perform such work, and it shall be
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| mandatory upon the contractor to whom the contract is awarded | 10 |
| and upon
any subcontractor under him, and where the public body | 11 |
| performs the
work, upon the public body, to pay not less than | 12 |
| the specified rates to
all laborers, workers and mechanics | 13 |
| employed by them in the execution of
the contract or such work; | 14 |
| provided, however, that if the public body
desires that the | 15 |
| Department of Labor ascertain the prevailing rate of
wages, it | 16 |
| shall notify the Department of Labor to ascertain the general
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| prevailing rate of hourly wages for work under contract, or for | 18 |
| work
performed by a public body without letting a contract as | 19 |
| required in the
locality in which the work is to be performed, | 20 |
| for each craft or type of
worker or mechanic needed to execute | 21 |
| the contract or project or work to
be performed. Upon such | 22 |
| notification the Department of Labor shall
ascertain such | 23 |
| general prevailing rate of wages, and certify the
prevailing | 24 |
| wage to such public body. The public body awarding the
contract | 25 |
| shall cause to be inserted in the project specifications and | 26 |
| the
contract a stipulation to the
effect that not less than the |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| prevailing rate of wages as found by the
public body or | 2 |
| Department of Labor or determined by the court on review
shall | 3 |
| be paid to all laborers, workers and mechanics performing work
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| under the contract.
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| (b) When a public body or other entity covered by this Act | 6 |
| contracts for work with a contractor without a public bid or | 7 |
| project specification, such public body or other entity shall | 8 |
| provide the contractor with a written notice that the | 9 |
| prevailing wage is required to be paid on the project as a | 10 |
| statement on the purchase order related to the work to be done | 11 |
| or on a separate document. | 12 |
| (c) Where a complaint has been made and the Department has | 13 |
| determined that a violation has occurred, the Department shall | 14 |
| determine if proper notice under this Section 4 was given. If | 15 |
| proper notice was not provided to the contractor by the public | 16 |
| body, the Department shall order the public body to pay any | 17 |
| back wages, interest, penalties or fines owed by the contractor | 18 |
| to all laborers, mechanics and other workers who performed work | 19 |
| on the project. For the purposes of this subsection back wages | 20 |
| shall be limited to the difference between the actual amount | 21 |
| paid and the prevailing wages required to be paid for the | 22 |
| project. A contractor shall not be deemed in violation of this | 23 |
| Act if proper notice pursuant to this Section 4 is not | 24 |
| provided. The failure to provide notice by a public body does | 25 |
| not diminish the obligation of a contractor to pay the | 26 |
| prevailing wage rate as determined under this Act.
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| (d)
(b) It shall also be mandatory upon the contractor to | 2 |
| whom the contract is
awarded
to insert into each subcontract | 3 |
| and into the project specifications for each
subcontract a | 4 |
| written stipulation to the effect that not less than the
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| prevailing
rate of wages shall be paid to all laborers, | 6 |
| workers, and mechanics performing
work under the contract. It | 7 |
| shall also be mandatory upon each subcontractor to
cause to be | 8 |
| inserted into each lower tiered subcontract
and into the | 9 |
| project specifications for each lower tiered subcontract a
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| stipulation to the effect that not less
than the prevailing | 11 |
| rate of wages shall be paid to all laborers, workers, and
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| mechanics performing work under the contract. A contractor or | 13 |
| subcontractor who
fails to comply with this subsection (c)
(b) | 14 |
| is in violation of this Act.
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| (e) When a contractor has awarded work to a subcontractor | 16 |
| without a contract or without a contract specification, the | 17 |
| contractor may comply with this subsection (e) by providing a | 18 |
| subcontractor a written statement indicating that no less than | 19 |
| the prevailing wage rate shall be paid to all laborers, | 20 |
| mechanics and other workers performing work on the project. | 21 |
| (f) Where a complaint has been made and the Department has | 22 |
| determined that a violation has occurred, the Department shall | 23 |
| determine if proper notice under this Section 4 was given. If | 24 |
| proper notice was not provided to the subcontractor by the | 25 |
| contractor, the Department shall order the contractor to pay | 26 |
| any back wages, interest, penalties or fines owed by the |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| subcontractor to all laborers, mechanics and other workers who | 2 |
| performed work on the project. For the purposes of this | 3 |
| subsection back wages shall be limited to the difference | 4 |
| between the actual amount paid and the prevailing wages | 5 |
| required for the project. A subcontractor shall not be deemed | 6 |
| in violation of this Act if such notice is not provided. | 7 |
| However, if proper notice was not provided to the contractor by | 8 |
| the public body under subsections (a) or (b) of this Section 4, | 9 |
| the Department shall order the public body to pay any back | 10 |
| wages, interest, penalties or fines owed by the subcontractor | 11 |
| to all laborers, mechanics and other workers who performed work | 12 |
| on the project. The failure to provide notice by a contractor | 13 |
| does not diminish the obligation of a subcontractor to pay the | 14 |
| prevailing wage rate as determined under this Act.
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| (g)
(c) It shall also require in all such contractor's | 16 |
| bonds
that the contractor include such provision as will | 17 |
| guarantee the
faithful performance of such prevailing wage | 18 |
| clause as provided by
contract. All bid specifications shall | 19 |
| list the specified rates to all
laborers, workers and mechanics | 20 |
| in the locality for each craft or type of
worker or mechanic | 21 |
| needed to execute the contract.
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| (h)
(d) If the Department of Labor
revises the prevailing | 23 |
| rate of hourly wages to be paid by the public body, the
revised | 24 |
| rate shall apply to such contract, and the public body shall be
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| responsible to notify the contractor and each subcontractor | 26 |
| notifying its employees pursuant to this Act and paying the
, |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| of the revised
rate.
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| (i)
(e) Two or more investigatory hearings under this | 3 |
| Section on the issue
of establishing a new prevailing wage | 4 |
| classification for a particular craft
or type of worker shall | 5 |
| be consolidated in a single hearing before the
Department. Such | 6 |
| consolidation shall occur whether each separate investigatory
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| hearing is conducted by a public body or the Department. The | 8 |
| party requesting
a consolidated investigatory hearing shall | 9 |
| have the burden of establishing that
there is no existing | 10 |
| prevailing wage classification for the particular craft or
type | 11 |
| of worker in any of the localities under consideration. The | 12 |
| request for an investigatory hearing shall be filed within the | 13 |
| month of June. Upon receiving a request for an investigatory | 14 |
| hearing pursuant to this subsection, the Department shall set a | 15 |
| hearing. Such hearing shall take place no later than 45 | 16 |
| calendar days after the receipt by the Department of Labor of | 17 |
| the request for an investigatory hearing, unless all parties | 18 |
| consent to a later date. The Department of Labor is empowered | 19 |
| to promulgate, adopt, amend and rescind rules and regulations | 20 |
| to govern the hearing procedure.
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| (j) It shall be mandatory upon the contractor or | 22 |
| construction manager
to whom a contract for public works is | 23 |
| awarded to post, at a
location on the project site of the | 24 |
| public works that is
easily accessible to the workers engaged | 25 |
| on the project,
the prevailing wage rates for each craft or | 26 |
| type of worker
or mechanic needed to execute the contract or |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| project or
work to be performed. In lieu of posting on a job | 2 |
| site, a contractor which has a business location where | 3 |
| laborers, workers and mechanics regularly visit may: (1) post | 4 |
| in a conspicuous location at that business the current | 5 |
| prevailing wage rates for each county the contractor is | 6 |
| performing work; or (2) provide such laborer, worker or | 7 |
| mechanic engaged on the public works project a written notice | 8 |
| indicating the prevailing wage rates for the public works | 9 |
| project. A failure to post or provide a prevailing wage
rate as | 10 |
| required by this Section is a violation of this Act.
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| (k) The public body awarding any contract for a public | 12 |
| works or otherwise undertaking any public works shall notify | 13 |
| the Department of Labor in writing, on a form prescribed by the | 14 |
| Department of Labor, whenever a contract subject to the | 15 |
| provisions of this Act has been awarded. The notification | 16 |
| mentioned herein shall be filed with the Department of Labor | 17 |
| within 30 days after such contract is awarded or before | 18 |
| commencement of the public works, and shall include a list of | 19 |
| all first-tier subcontractors.
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| (Source: P.A. 92-783, eff. 8-6-02; 93-15, eff. 6-11-03; 93-16, | 21 |
| eff.
1-1-04; 93-38, eff. 6-1-04; revised 10-29-04.)
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| (820 ILCS 130/5) (from Ch. 48, par. 39s-5)
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| Sec. 5. Certified payroll.
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| (a) While participating on public works, the contractor and | 25 |
| each subcontractor shall: |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| (1) make and keep, for a period of not less
than 3 | 2 |
| years, records of all laborers, mechanics, and other | 3 |
| workers employed by them on the project; the records shall | 4 |
| include each worker's name, address, telephone number
when | 5 |
| available, social security number, classification or | 6 |
| classifications, the hourly wages paid in each pay period, | 7 |
| the number of hours worked each day , and the starting and | 8 |
| ending times of work each day ; and | 9 |
| (2) submit monthly, in person, by mail, or | 10 |
| electronically a certified payroll to the public body in | 11 |
| charge of the project. The certified payroll shall consist | 12 |
| of a complete copy of the records identified in paragraph | 13 |
| (1) of this subsection (a), but may exclude the starting | 14 |
| and ending times of work each day. The certified payroll | 15 |
| shall be accompanied by a statement signed by the | 16 |
| contractor or subcontractor which avers that: (i) such | 17 |
| records are true and accurate; (ii) the hourly rate paid to | 18 |
| each worker is not less than the general prevailing rate of | 19 |
| hourly wages required by this Act; and (iii) the contractor | 20 |
| or subcontractor is aware that filing a certified payroll | 21 |
| that he or she knows to be false is a Class B misdemeanor. | 22 |
| A general contractor is not prohibited from relying on the | 23 |
| certification of a lower tier subcontractor, provided the | 24 |
| general contractor does not knowingly rely upon a | 25 |
| subcontractor's false certification. Any contractor or | 26 |
| subcontractor subject to this Act who fails to submit a |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| certified payroll or knowingly files a false certified | 2 |
| payroll is in violation of this Act and guilty of a Class B | 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. The records submitted in accordance with this | 7 |
| paragraph (2) of subsection (a) shall be considered public | 8 |
| records, except an employee's address, telephone number, | 9 |
| and social security number, and made available in | 10 |
| accordance with the Freedom of Information Act. The public | 11 |
| body shall accept any reasonable submissions by the | 12 |
| contractor that meet the requirements of this Section. This | 13 |
| paragraph (a)(2) does not apply to a mechanic performing | 14 |
| maintenance, repair, assembly, or disassembly work on | 15 |
| leased or rented equipment when the mechanic performing the | 16 |
| work is an employee of the entity leasing or renting the | 17 |
| equipment, unless the entity leasing or renting the | 18 |
| equipment employs a mechanic on the public works project 3 | 19 |
| or more consecutive days or 10 or more days in a calendar | 20 |
| month.
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| (b) Upon 7 business days' notice, the contractor and each | 22 |
| subcontractor shall make available for inspection the records | 23 |
| identified in paragraph (1) of subsection (a) of this Section | 24 |
| to the public body
in charge of the project, its officers and | 25 |
| agents, and to the Director of Labor
and his deputies and | 26 |
| agents. Upon 7 business days' notice, the contractor and each |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| subcontractor shall make such records available at all | 2 |
| reasonable hours at a location within this State. | 3 |
| (Source: P.A. 93-38, eff. 6-1-04; 94-515, eff. 8-10-05; | 4 |
| 94-1023, eff. 7-12-06.)
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| (820 ILCS 130/6) (from Ch. 48, par. 39s-6)
| 6 |
| Sec. 6. Any officer, agent or representative of any public | 7 |
| body who
wilfully violates, or omits to comply with, any of the | 8 |
| provisions of
this Act, and any contractor or subcontractor, or | 9 |
| agent or
representative thereof, doing public work as | 10 |
| aforesaid, who wilfully violates, or omits to comply with, any | 11 |
| of the provisions of this Act,
neglects to
keep, or cause to be | 12 |
| kept, an accurate record of the names, occupation
and actual | 13 |
| wages paid to each laborer, worker and mechanic employed by
| 14 |
| him, in connection with the public work or who refuses to allow | 15 |
| access
to same at any reasonable hour to any person authorized | 16 |
| to inspect same
under this Act, is guilty of a Class A | 17 |
| misdemeanor.
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| The Department of Labor shall inquire diligently as to any | 19 |
| violation
of this Act, shall institute actions for penalties | 20 |
| herein prescribed,
and shall enforce generally the provisions | 21 |
| of this Act. The Attorney
General shall prosecute such cases | 22 |
| upon complaint by the Department or
any interested person.
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| (Source: P.A. 94-488, eff. 1-1-06.)
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| (820 ILCS 130/11) (from Ch. 48, par. 39s-11)
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| Sec. 11. (a) No public works project shall be instituted | 2 |
| unless the
provisions of this Act have been complied with. The | 3 |
| provisions of this
Act shall not be applicable to Federal | 4 |
| construction projects which
require a prevailing wage | 5 |
| determination by the United States Secretary
of Labor. The | 6 |
| Illinois Department of Labor represented by the Attorney
| 7 |
| General is empowered to sue for injunctive relief against the | 8 |
| awarding of
any contract or the continuation of work under any | 9 |
| contract for public works
at a time when the prevailing wage | 10 |
| prerequisites have not been met. Any
contract for public works | 11 |
| awarded at a time when the prevailing wage prerequisites
had | 12 |
| not been met shall be void as against public policy and the | 13 |
| contractor
is prohibited from recovering any damages
for the | 14 |
| voiding of the contract or pursuant to the terms of the | 15 |
| contract.
The contractor is limited to a claim for amounts | 16 |
| actually paid for labor
and materials supplied to the public | 17 |
| body. Where objections to a determination
of the prevailing | 18 |
| rate of
wages or a court action relative thereto is pending, | 19 |
| the public body
shall not continue work on the project unless | 20 |
| sufficient funds are
available to pay increased wages if such | 21 |
| are finally determined or
unless the Department of Labor | 22 |
| certifies such determination of the
prevailing rate of wages as | 23 |
| correct.
| 24 |
| Any laborer, worker or mechanic employed by the contractor | 25 |
| or by any sub-contractor
under him who is paid for his services | 26 |
| in a sum less than the stipulated
rates for work done under |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| such contract, shall
have a right of action for whatever | 2 |
| difference there may be between the
amount so paid, and the | 3 |
| prevailing rate of wages required to be paid on the public | 4 |
| works project
rates provided by the contract together with
| 5 |
| costs and such reasonable attorney's fees as
shall be allowed | 6 |
| by the court. Such contractor or subcontractor shall also
be | 7 |
| liable to the
Department of Labor for
20% of
such underpayments | 8 |
| and shall be additionally liable to the laborer, worker
or | 9 |
| mechanic for punitive damages in the amount of
2% of the amount | 10 |
| of any
such penalty to the
State for underpayments for each | 11 |
| month following the date of payment during
which such | 12 |
| underpayments
remain unpaid. Where a second or subsequent | 13 |
| action to recover underpayments is brought against a contractor | 14 |
| or subcontractor and the contractor or subcontractor is found | 15 |
| liable for underpayments to any laborer, worker, or mechanic, | 16 |
| the contractor or subcontractor shall also be liable to the | 17 |
| Department of Labor for 50% of the underpayments payable as a | 18 |
| result of the second or subsequent action, and shall be | 19 |
| additionally liable to the laborer, worker or mechanic for | 20 |
| punitive damages in the amount of
for 5% of the amount of any | 21 |
| such penalty to the State for underpayments for each month | 22 |
| following the date of payment during which the underpayments | 23 |
| remain unpaid. The Department shall also have a right of action | 24 |
| on behalf
of any individual who has a right of action under | 25 |
| this Section. An action brought
to recover same shall be deemed | 26 |
| to be a suit for wages, and any and all
judgments entered |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| therein shall have the same force and effect as other
judgments | 2 |
| for wages.
At the request of any laborer, workman or mechanic
| 3 |
| employed by the contractor or by any subcontractor under him | 4 |
| who is paid
less than the prevailing wage rate required by this | 5 |
| Act, the Department
of Labor may take an assignment of such | 6 |
| wage claim in trust for the assigning
laborer, workman or | 7 |
| mechanic and may bring any legal action necessary to
collect | 8 |
| such claim, and the contractor or subcontractor shall be | 9 |
| required
to pay the costs incurred in collecting such claim.
| 10 |
| (b) For purposes of this subsection, the following | 11 |
| definitions are applicable: | 12 |
| "Accurate records" means the payroll records required to be | 13 |
| filed with the public body in charge of the project as required | 14 |
| by Section 5 of the Act. Accurate records shall also mean the | 15 |
| hourly rate paid for fringe benefits, including pension, health | 16 |
| and welfare, training and vacations, and a designation of | 17 |
| whether such fringe benefits were paid into a fund or paid | 18 |
| directly to the employee. | 19 |
| "Act" means the Prevailing Wage Act. | 20 |
| "Construction manager" includes, but is not limited to, the | 21 |
| contractor, subcontractor or anyone overseeing any project | 22 |
| covered by the Act for purposes of the posting requirement. | 23 |
| "Contract" means an agreement either written or oral or | 24 |
| otherwise as agreed to between the parties. | 25 |
| "Decision" means that the Department has determined that a | 26 |
| violation has occurred that warrants the Director or the |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| Director's designee to issue a notice of violation to a | 2 |
| contractor or subcontractor. Each specific finding listed in | 3 |
| the notice of violation is a separate "Decision" that the Act | 4 |
| has been violated. | 5 |
| "Director" means the Director of the Illinois Department of | 6 |
| Labor or, at the Director's discretion, the Director's | 7 |
| designee, deputy or agent. | 8 |
| "Employee" means laborers, mechanics and other workers | 9 |
| employed in any public works, as defined and covered under the | 10 |
| Act, by anyone under contracts for public works. | 11 |
| "Employer" means a contractor or subcontractor, or both, | 12 |
| who performs public works projects subject to the Act. | 13 |
| "Notice of second violation" is a notice issued by the | 14 |
| Department advising a contractor or subcontractor that a | 15 |
| violation as defined in this subsection has occurred within | 16 |
| five years from the date of the notice of first violation. | 17 |
| "Notice of violation" means the formal written notice to a | 18 |
| contractor or subcontractor that the Department has made a | 19 |
| decision that the contractor or subcontractor has violated the | 20 |
| Act. | 21 |
| "Prevailing hourly rate of wages" means the hourly cash | 22 |
| wages plus fringe benefits for health and welfare, insurance, | 23 |
| training, vacations and pensions paid most frequently | 24 |
| (numerically most occurring), in the county in which the public | 25 |
| works is performed, to employees engaged on public works, as | 26 |
| determined by the public body awarding the contract or the most |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| recent revision as determined by the Department of Labor | 2 |
| effective prior to the date when the contract was let for bids | 3 |
| or, if not let for bids, when executed; and all revisions by | 4 |
| the Illinois Department of Labor when effected. | 5 |
| "Violation" means a written decision by the Department that | 6 |
| a contractor or subcontractor has: failed or refused to pay the | 7 |
| prevailing wage to one or more laborers, workers, or mechanics | 8 |
| under a single contract or subcontract as required by Section 3 | 9 |
| of the Act; failed to keep accurate records as required by the | 10 |
| Act; failed to produce to the Department accurate records or | 11 |
| records not in compliance with the provisions of Section 6 of | 12 |
| the Act; refused to submit records to the Department in | 13 |
| response to a subpoena issued in accordance with Section 10 of | 14 |
| the Act; refused to comply with the certified payroll provision | 15 |
| of Section 5 of the Act; refused the Department access, at any | 16 |
| reasonable hour or at any location designated by the | 17 |
| Department, to inspect the contractor's or subcontractor's | 18 |
| certified records and other records as required by the Act; | 19 |
| failed to insert into each subcontract or lower tiered | 20 |
| subcontract and into the project specifications for each | 21 |
| subcontract or lower tiered subcontract a written stipulation | 22 |
| that not less than the prevailing rate of wages be paid as | 23 |
| required by Section 4 of the Act; or the contractor failed to | 24 |
| obtain a bond that guarantees the faithful performance of the | 25 |
| prevailing wage clause in the contract. A violation also means | 26 |
| a written decision by the Department that a contractor or |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| construction manager failed to post or provide the prevailing | 2 |
| wage rates as required by Section 4 of the Act. | 3 |
| After receipt of a complaint or on the Department's | 4 |
| initiative, the Director shall review the investigative file to | 5 |
| determine whether there has been a violation or violations of | 6 |
| which the contractor or subcontractor must be given notice. All | 7 |
| information and observations made during an audit, | 8 |
| investigation or survey shall be considered and shall | 9 |
| constitute the basis for the Department's decision that the Act | 10 |
| has been violated and that a notice of violation shall be | 11 |
| issued. The notice of violation shall identify the specific | 12 |
| violations of the Act. | 13 |
| The notice of violation shall state the amount of monies | 14 |
| estimated due by the Department to be in controversy based on | 15 |
| reasons contained in the investigation file. | 16 |
| In making a decision that a contractor or subcontractor has | 17 |
| failed to allow the Director access to accurate payroll | 18 |
| records, the Director shall rely on the information contained | 19 |
| in the investigative file, the certified payroll records filed | 20 |
| with the public body in charge of the project or any other | 21 |
| information and shall assess a separate violation for each day | 22 |
| worked by each worker on the subject project. Each decision of | 23 |
| a separate violation under Section 5 of the Act shall be listed | 24 |
| in the notice of violation. | 25 |
| In deciding that the Act has been violated and that the | 26 |
| issuance of a notice of violation is required, the Director |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| shall base the decision on one or any combination of the | 2 |
| following reasons: | 3 |
| (1) The severity of the violations. The Director will | 4 |
| consider the following: | 5 |
| (i) The amount of wages that are determined to be | 6 |
| underpaid pursuant to the Act. | 7 |
| (ii) The activity or conduct complained of | 8 |
| violates the requirements of the statute and was not | 9 |
| merely a technical, non-substantive error. Examples of | 10 |
| a technical error include, but are not limited to, a | 11 |
| mathematical error, bookkeeping error, transposition | 12 |
| of numbers, or computer or programming error.
| 13 |
| (2) The nature and duration of the present violations | 14 |
| as well as prior history of the contractor or the | 15 |
| subcontractor related to the Act. The prior history | 16 |
| considered cannot exceed 7 years before the date of the | 17 |
| second notice of violation. | 18 |
| (3) Whether the contractor or subcontractor filed | 19 |
| certified payroll records with the public body in charge of | 20 |
| the project; whether the contractor or subcontractor has | 21 |
| kept the payroll records and accurate records for 3 years; | 22 |
| whether the contractor or subcontractor produced certified | 23 |
| payroll records in accordance with Section 5 of the Act. | 24 |
| (4) Whether the contractor or subcontractor has | 25 |
| violated any other provision of the Act.
| 26 |
| The notices of the first and second violations shall be |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| sent by the Department by certified mail, deposited in the | 2 |
| United States mail, postage prepaid, addressed to the last | 3 |
| known address of the persons, partnerships, associations, or | 4 |
| corporations involved. Said notices shall contain a reference | 5 |
| to the specific Sections of the Act alleged to have been | 6 |
| violated; identify the particular public works project | 7 |
| involved; the conduct complained of; an identification as to | 8 |
| first or second notice and a statement of remedies available to | 9 |
| the contractor or subcontractor and Department.
| 10 |
| (c) The Director of the Department of Labor shall publish | 11 |
| in the
Illinois Register no less often than once each calendar | 12 |
| quarter a list of
contractors or subcontractors found to have | 13 |
| disregarded their obligations
to employees under this Act. The | 14 |
| Department of Labor shall determine the
contractors or | 15 |
| subcontractors who, on 2 separate occasions within 5 years, | 16 |
| have been
determined to have violated the provisions of this | 17 |
| Act. If a violation of this Act involves a worker who is not a | 18 |
| legal resident alien or a United States citizen, then a finding | 19 |
| of a single violation within a 5-year period shall require the | 20 |
| Department of Labor to proceed directly to a notice of second | 21 |
| violation. Upon such determinations the Department shall | 22 |
| notify the violating
contractor or subcontractor. Such | 23 |
| contractor or subcontractor shall then
have 10 working days to | 24 |
| request a hearing by the Department on the alleged
violations. | 25 |
| Failure to respond within the 10 working day period shall
| 26 |
| result in automatic and immediate placement and publication on |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| the list.
If the contractor or subcontractor requests a hearing | 2 |
| within the 10 working
day period, the Director shall set a | 3 |
| hearing on the alleged violations.
Such hearing shall take | 4 |
| place no later than 45 calendar days after the
receipt by the | 5 |
| Department of Labor of the request for a hearing.
The | 6 |
| Department of Labor is empowered to promulgate, adopt, amend | 7 |
| and rescind
rules and regulations to govern the hearing | 8 |
| procedure. No contract shall
be awarded to a contractor or | 9 |
| subcontractor appearing on the list, or to
any firm, | 10 |
| corporation, partnership or association in which such | 11 |
| contractor
or subcontractor has an interest until 4 years have | 12 |
| elapsed from the date
of publication of the list containing the | 13 |
| name of such contractor or
subcontractor.
| 14 |
| (Source: P.A. 94-488, eff. 1-1-06.)
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| (820 ILCS 130/11b)
| 16 |
| Sec. 11b. Discharge or discipline of "whistle blowers" | 17 |
| prohibited.
| 18 |
| (a) No person shall discharge, discipline, or in any other | 19 |
| way discriminate
against, or cause to be discharged, | 20 |
| disciplined, or discriminated against, any
employee or
any
| 21 |
| authorized representative of employees by reason of the fact | 22 |
| that the employee
or representative has filed, instituted, or | 23 |
| caused to be filed or instituted
any proceeding under this Act, | 24 |
| or has testified or is about to testify
in any proceeding | 25 |
| resulting from the administration or enforcement of
this Act, |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| or offers any evidence of any violation of this Act.
| 2 |
| (b) Any employee or a representative of employees who | 3 |
| believes that he has
been discharged, disciplined, or otherwise | 4 |
| discriminated against by any person
in violation
of subsection | 5 |
| (a) of this Section may, within 180
30 days after the alleged
| 6 |
| violation occurs, apply to the Director of Labor for a
review | 7 |
| of the discharge, discipline, or alleged discrimination. A copy | 8 |
| of the
application
shall be sent to the person who allegedly | 9 |
| committed the violation, who
shall be the respondent. Upon | 10 |
| receipt of
an application, the Director
shall cause such | 11 |
| investigation to be made as he or she deems appropriate.
The | 12 |
| investigation shall provide an opportunity for a public hearing | 13 |
| at
the request of any party to the review to enable the parties | 14 |
| to present
information relating to the alleged violation. The | 15 |
| parties shall be given
written notice of the time and place of | 16 |
| the hearing at least 30
5 days before
the hearing. Upon | 17 |
| receiving the report of the investigation, the Director
shall | 18 |
| make findings of fact. If the Director finds that a violation | 19 |
| did occur,
he or she shall issue a decision incorporating his | 20 |
| or her
findings and
requiring the party committing the | 21 |
| violation to take such affirmative action
to abate the | 22 |
| violation as the Director deems appropriate, including, but
not | 23 |
| limited to, the rehiring or reinstatement of the employee or | 24 |
| representative
of employees to his or her former position and | 25 |
| compensating him or her for the
time he or she was unemployed. | 26 |
| The party committing the violation shall also be liable to the |
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HB0773 |
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LRB095 09068 RLC 29259 b |
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| Department of Labor for a penalty of $5,000 for each violation | 2 |
| of this Section. If the Director finds that there was no
| 3 |
| violation, he
or she
shall issue an order denying the | 4 |
| application. An order issued by the
Director under this Section | 5 |
| shall be subject to
judicial review under the Administrative | 6 |
| Review Law.
| 7 |
| (c) The Director shall adopt rules implementing this | 8 |
| Section in
accordance
with the Illinois Administrative | 9 |
| Procedure Act.
| 10 |
| (Source: P.A. 94-488, eff. 1-1-06.)
| 11 |
| (820 ILCS 130/11a rep.)
| 12 |
| Section 10. The Prevailing Wage Act is amended by repealing | 13 |
| Section 11a.
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