Full Text of HB5212 97th General Assembly
HB5212enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning wages.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Prevailing Wage Act is amended by changing | 5 | | Section 4 as follows:
| 6 | | (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
| 7 | | Sec. 4. Ascertaining prevailing wage. | 8 | | (a) The public body awarding any contract for public work | 9 | | or
otherwise undertaking any public works, shall ascertain the | 10 | | general
prevailing rate of hourly wages in the locality in | 11 | | which the work is to
be performed, for each craft or type of | 12 | | worker or mechanic needed to
execute the contract, and where | 13 | | the public body performs the work
without letting a contract | 14 | | therefor, shall ascertain the prevailing rate
of wages on a per | 15 | | hour basis in the locality, and such public body shall
specify | 16 | | in the resolution or ordinance and in the call for bids for the
| 17 | | contract, that the general prevailing rate of wages in the | 18 | | locality for
each craft or type of worker or mechanic needed to | 19 | | execute the contract
or perform such work, also the general | 20 | | prevailing rate for legal holiday
and overtime work, as | 21 | | ascertained by the public body or by the
Department of Labor | 22 | | shall be paid for each craft or type of worker
needed to | 23 | | execute the contract or to perform such work, and it shall be
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| 1 | | mandatory upon the contractor to whom the contract is awarded | 2 | | and upon
any subcontractor under him, and where the public body | 3 | | performs the
work, upon the public body, to pay not less than | 4 | | the specified rates to
all laborers, workers and mechanics | 5 | | employed by them in the execution of
the contract or such work; | 6 | | provided, however, that if the public body
desires that the | 7 | | Department of Labor ascertain the prevailing rate of
wages, it | 8 | | shall notify the Department of Labor to ascertain the general
| 9 | | prevailing rate of hourly wages for work under contract, or for | 10 | | work
performed by a public body without letting a contract as | 11 | | required in the
locality in which the work is to be performed, | 12 | | for each craft or type of
worker or mechanic needed to execute | 13 | | the contract or project or work to
be performed. Upon such | 14 | | notification the Department of Labor shall
ascertain such | 15 | | general prevailing rate of wages, and certify the
prevailing | 16 | | wage to such public body. | 17 | | (a-1) The public body or other entity awarding the
contract | 18 | | shall cause to be inserted in the project specifications and | 19 | | the
contract a stipulation to the
effect that not less than the | 20 | | prevailing rate of wages as found by the
public body or | 21 | | Department of Labor or determined by the court on review
shall | 22 | | be paid to all laborers, workers and mechanics performing work
| 23 | | under the contract.
| 24 | | (a-2) When a public body or other entity covered by this | 25 | | Act has awarded work to a contractor without a public bid, | 26 | | contract or project specification, such public body or other |
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| 1 | | entity shall comply with subsection (a-1) by providing the | 2 | | contractor with written notice on the purchase order related to | 3 | | the work to be done or on a separate document indicating that | 4 | | not less than the prevailing rate of wages as found by the | 5 | | public body or Department of Labor or determined by the court | 6 | | on review shall be paid to all laborers, workers, and mechanics | 7 | | performing work on the project. | 8 | | (a-3) Where a complaint is made and the Department of Labor | 9 | | determines that a violation occurred, the Department of Labor | 10 | | shall determine if proper written notice under this Section 4 | 11 | | was given. If proper written notice was not provided to the | 12 | | contractor by the public body or other entity, the Department | 13 | | of Labor shall order the public body or other entity to pay any | 14 | | interest, penalties or fines that would have been owed by the | 15 | | contractor if proper written notice were provided. The failure | 16 | | by a public body or other entity to provide written notice does | 17 | | not relieve the contractor of the duty to comply with the | 18 | | prevailing wage rate, nor of the obligation to pay any back | 19 | | wages, as determined under this Act. For the purposes of this | 20 | | subsection, back wages shall be limited to the difference | 21 | | between the actual amount paid and the prevailing rate of wages | 22 | | required to be paid for the project. The failure of a public | 23 | | body or other entity to provide written notice under this | 24 | | Section 4 does not diminish the right of a laborer, worker, or | 25 | | mechanic to the prevailing rate of wages as determined under | 26 | | this Act. |
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| 1 | | (b) It shall also be mandatory upon the contractor to whom | 2 | | the contract is
awarded
to insert into each subcontract and | 3 | | into the project specifications for each
subcontract a written | 4 | | stipulation to the effect that not less than the
prevailing
| 5 | | rate of wages shall be paid to all laborers, workers, and | 6 | | mechanics performing
work under the contract. It shall also be | 7 | | mandatory upon each subcontractor to
cause to be inserted into | 8 | | each lower tiered subcontract
and into the project | 9 | | specifications for each lower tiered subcontract a
stipulation | 10 | | to the effect that not less
than the prevailing rate of wages | 11 | | shall be paid to all laborers, workers, and
mechanics | 12 | | performing work under the contract. A contractor or | 13 | | subcontractor who
fails to comply with this subsection (b) is | 14 | | in violation of this Act.
| 15 | | (b-1) When a contractor has awarded work to a subcontractor | 16 | | without a contract or contract specification, the contractor | 17 | | shall comply with subsection (b) by providing a subcontractor | 18 | | with a written statement indicating that not less than the | 19 | | prevailing rate of wages shall be paid to all laborers, | 20 | | workers, and mechanics performing work on the project. A | 21 | | contractor or subcontractor who fails to comply with this | 22 | | subsection (b-1) is in violation of this Act. | 23 | | (b-2) Where a complaint is made and the Department of Labor | 24 | | determines that a violation has occurred, the Department of | 25 | | Labor shall determine if proper written notice under this | 26 | | Section 4 was given. If proper written notice was not provided |
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| 1 | | to the subcontractor by the contractor, the Department of Labor | 2 | | shall order the contractor to pay any interest, penalties, or | 3 | | fines that would have been owed by the subcontractor if proper | 4 | | written notice were provided. The failure by a contractor to | 5 | | provide written notice to a subcontractor does not relieve the | 6 | | subcontractor of the duty to comply with the prevailing wage | 7 | | rate, nor of the obligation to pay any back wages, as | 8 | | determined under this Act. For the purposes of this subsection, | 9 | | back wages shall be limited to the difference between the | 10 | | actual amount paid and the prevailing rate of wages required | 11 | | for the project. However, if proper written notice was not | 12 | | provided to the contractor by the public body or other entity | 13 | | under this Section 4, the Department of Labor shall order the | 14 | | public body or other entity to pay any interest, penalties, or | 15 | | fines that would have been owed by the subcontractor if proper | 16 | | written notice were provided. The failure by a public body or | 17 | | other entity to provide written notice does not relieve the | 18 | | subcontractor of the duty to comply with the prevailing wage | 19 | | rate, nor of the obligation to pay any back wages, as | 20 | | determined under this Act. For the purposes of this subsection, | 21 | | back wages shall be limited to the difference between the | 22 | | actual amount paid and the prevailing rate of wages required | 23 | | for the project. The failure to provide written notice by a | 24 | | public body, other entity, or contractor does not diminish the | 25 | | right of a laborer, worker, or mechanic to the prevailing rate | 26 | | of wages as determined under this Act. |
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| 1 | | (c) A public body or other entity shall also require in all | 2 | | contractor's and subcontractor's bonds
that the contractor or | 3 | | subcontractor include such provision as will guarantee the
| 4 | | faithful performance of such prevailing wage clause as provided | 5 | | by
contract or other written instrument. All bid specifications | 6 | | shall list the specified rates to all
laborers, workers and | 7 | | mechanics in the locality for each craft or type of
worker or | 8 | | mechanic needed to execute the contract.
| 9 | | (d) If the Department of Labor
revises the prevailing rate | 10 | | of hourly wages to be paid by the public body or other entity , | 11 | | the
revised rate shall apply to such contract, and the public | 12 | | body or other entity shall be
responsible to notify the | 13 | | contractor and each subcontractor, of the revised
rate.
| 14 | | The public body or other entity shall discharge its duty to | 15 | | notify of the revised rates by inserting a written stipulation | 16 | | in all contracts or other written instruments that states the | 17 | | prevailing rate of wages are revised by the Department of Labor | 18 | | and are available on the Department's official website. This | 19 | | shall be deemed to be proper notification of any rate changes | 20 | | under this subsection. | 21 | | (e) Two or more investigatory hearings under this Section | 22 | | on the issue
of establishing a new prevailing wage | 23 | | classification for a particular craft
or type of worker shall | 24 | | be consolidated in a single hearing before the
Department. Such | 25 | | consolidation shall occur whether each separate investigatory
| 26 | | hearing is conducted by a public body or the Department. The |
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| 1 | | party requesting
a consolidated investigatory hearing shall | 2 | | have the burden of establishing that
there is no existing | 3 | | prevailing wage classification for the particular craft or
type | 4 | | of worker in any of the localities under consideration.
| 5 | | (f) It shall be mandatory upon the contractor or | 6 | | construction manager
to whom a contract for public works is | 7 | | awarded to post, at a
location on the project site of the | 8 | | public works that is
easily accessible to the workers engaged | 9 | | on the project,
the prevailing wage rates for each craft or | 10 | | type of worker
or mechanic needed to execute the contract or | 11 | | project or
work to be performed. In lieu of posting on the | 12 | | project site of the public works, a contractor which has a | 13 | | business location where laborers, workers, and mechanics | 14 | | regularly visit may: (1) post in a conspicuous location at that | 15 | | business the current prevailing wage rates for each county in | 16 | | which the contractor is performing work; or (2) provide such | 17 | | laborer, worker, or mechanic engaged on the public works | 18 | | project a written notice indicating the prevailing wage rates | 19 | | for the public works project. A failure to post or provide a | 20 | | prevailing wage
rate as required by this Section is a violation | 21 | | of this Act.
| 22 | | (Source: P.A. 95-331, eff. 8-21-07; 96-437, eff. 1-1-10.)
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