Full Text of SB2643 97th General Assembly
SB2643eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning employment.
| 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 | | Sections 2 and 4 as follows:
| 6 | | (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
| 7 | | 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.
| 13 | | As used in this Act, unless the context indicates | 14 | | otherwise:
| 15 | | "Public works" means all fixed works constructed or | 16 | | demolished by
any public body,
or paid for wholly or in part | 17 | | out of public funds. "Public works" as
defined herein includes | 18 | | all projects financed in whole
or in part with bonds, grants, | 19 | | loans, or other funds made available by or through the State or | 20 | | any of its political subdivisions, including but not limited | 21 | | to: bonds issued under the Industrial Project Revenue Bond
Act | 22 | | (Article 11, Division 74 of the Illinois Municipal Code), the | 23 | | Industrial
Building Revenue Bond Act, the Illinois Finance |
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| 1 | | Authority Act,
the Illinois Sports Facilities Authority Act, or | 2 | | the Build Illinois Bond Act; loans or other funds made
| 3 | | available pursuant to the Build Illinois Act; or funds from the | 4 | | Fund for
Illinois' Future under Section 6z-47 of the State | 5 | | Finance Act, funds for school
construction under Section 5 of | 6 | | the General Obligation Bond Act, funds
authorized under Section | 7 | | 3 of the School Construction Bond Act, funds for
school | 8 | | infrastructure under Section 6z-45 of the State Finance Act, | 9 | | and funds
for transportation purposes under Section 4 of the | 10 | | General Obligation Bond
Act. "Public works" also includes (i) | 11 | | all projects financed in whole or in part
with funds from the | 12 | | Department of Commerce and Economic Opportunity under the | 13 | | Illinois Renewable Fuels Development Program
Act for which | 14 | | there is no project labor agreement; (ii) all work performed | 15 | | pursuant to a public private agreement under the Public Private | 16 | | Agreements for the Illiana Expressway Act; and (iii) all | 17 | | projects undertaken under a public-private agreement under the | 18 | | Public-Private Partnerships for Transportation Act. "Public | 19 | | works" also includes all projects at leased facility property | 20 | | used for airport purposes under Section 35 of the Local | 21 | | Government Facility Lease Act. "Public works" also includes the | 22 | | construction of a new wind power facility by a business | 23 | | designated as a High Impact Business under Section 5.5(a)(3)(E) | 24 | | of the Illinois Enterprise Zone Act.
"Public works" does not | 25 | | include work done directly by any public utility company, | 26 | | whether or not done under public supervision or direction, or |
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| 1 | | paid for wholly or in part out of public funds. "Public works" | 2 | | does not include projects undertaken by the owner at an | 3 | | owner-occupied single-family residence or at an owner-occupied | 4 | | unit of a multi-family residence.
| 5 | | "Construction" means all work on public works involving | 6 | | laborers,
workers or mechanics. This includes any maintenance, | 7 | | repair, assembly, or disassembly work performed on equipment | 8 | | whether owned, leased, or rented.
| 9 | | "Locality" means the county where the physical work upon | 10 | | public works
is performed, except (1) that if there is not | 11 | | available in the county a
sufficient number of competent | 12 | | skilled laborers, workers and mechanics
to construct the public | 13 | | works efficiently and properly, "locality"
includes any other | 14 | | county nearest the one in which the work or
construction is to | 15 | | be performed and from which such persons may be
obtained in | 16 | | sufficient numbers to perform the work and (2) that, with
| 17 | | respect to contracts for highway work with the Department of
| 18 | | Transportation of this State, "locality" may at the discretion | 19 | | of the
Secretary of the Department of Transportation be | 20 | | construed to include
two or more adjacent counties from which | 21 | | workers may be accessible for
work on such construction.
| 22 | | "Public body" means the State or any officer, board or | 23 | | commission of
the State or any political subdivision or | 24 | | department thereof, or any
institution supported in whole or in | 25 | | part by public funds,
and includes every county, city, town,
| 26 | | village, township, school district, irrigation, utility, |
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| 1 | | reclamation
improvement or other district and every other | 2 | | political subdivision,
district or municipality of the state | 3 | | whether such political
subdivision, municipality or district | 4 | | operates under a special charter
or not.
| 5 | | The terms "general prevailing rate of hourly wages", | 6 | | "general
prevailing rate of wages" or "prevailing rate of | 7 | | wages" when used in
this Act mean the hourly cash wages plus | 8 | | fringe benefits for training and
apprenticeship programs | 9 | | approved by the U.S. Department of Labor, Bureau of
| 10 | | Apprenticeship and Training, health and welfare, insurance, | 11 | | vacations and
pensions paid generally, in the
locality in which | 12 | | the work is being performed, to employees engaged in
work of a | 13 | | similar character on public works.
| 14 | | "Responsible bidder" means those individuals or firms | 15 | | meeting the requirements of Section 30-22 of the Illinois | 16 | | Procurement Code. | 17 | | (Source: P.A. 96-28, eff. 7-1-09; 96-58, eff. 1-1-10; 96-186, | 18 | | eff. 1-1-10; 96-913, eff. 6-9-10; 96-1000, eff. 7-2-10; 97-502, | 19 | | eff. 8-23-11.)
| 20 | | (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
| 21 | | Sec. 4. Ascertaining prevailing wage. | 22 | | (a) The public body awarding any contract for public work | 23 | | or
otherwise undertaking any public works, shall ascertain the | 24 | | general
prevailing rate of hourly wages in the locality in | 25 | | which the work is to
be performed, for each craft or type of |
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| 1 | | worker or mechanic needed to
execute the contract, and where | 2 | | the public body performs the work
without letting a contract | 3 | | therefor, shall ascertain the prevailing rate
of wages on a per | 4 | | hour basis in the locality, and such public body shall
specify | 5 | | in the resolution or ordinance and in the call for bids for the
| 6 | | contract, that the general prevailing rate of wages in the | 7 | | locality for
each craft or type of worker or mechanic needed to | 8 | | execute the contract
or perform such work, also the general | 9 | | prevailing rate for legal holiday
and overtime work, as | 10 | | ascertained by the public body or by the
Department of Labor | 11 | | shall be paid for each craft or type of worker
needed to | 12 | | execute the contract or to perform such work, and it shall be
| 13 | | mandatory upon the contractor to whom the contract is awarded | 14 | | and upon
any subcontractor under him, and where the public body | 15 | | performs the
work, upon the public body, to pay not less than | 16 | | the specified rates to
all laborers, workers and mechanics | 17 | | employed by them in the execution of
the contract or such work; | 18 | | provided, however, that if the public body
desires that the | 19 | | Department of Labor ascertain the prevailing rate of
wages, it | 20 | | shall notify the Department of Labor to ascertain the general
| 21 | | prevailing rate of hourly wages for work under contract, or for | 22 | | work
performed by a public body without letting a contract as | 23 | | required in the
locality in which the work is to be performed, | 24 | | for each craft or type of
worker or mechanic needed to execute | 25 | | the contract or project or work to
be performed. Upon such | 26 | | notification the Department of Labor shall
ascertain such |
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| 1 | | general prevailing rate of wages, and certify the
prevailing | 2 | | wage to such public body. | 3 | | (a-0.5) To effectuate the purpose and policy of this Act, a | 4 | | public body awarding a contract for public work or otherwise | 5 | | undertaking any public works shall specify in the call for bids | 6 | | and shall require that each contractor and each subcontractor | 7 | | be a responsible bidder. | 8 | | (a-0.7) A public body awarding a contract for public work | 9 | | or otherwise undertaking any public works shall require that | 10 | | each contractor and each subcontractor include in each bid a | 11 | | total number of straight-time work hours, identified as either | 12 | | "journeyperson" or "apprentice", for each craft or type of | 13 | | worker or mechanic needed to execute the contract. | 14 | | (a-1) The public body or other entity awarding the
contract | 15 | | shall cause to be inserted in the project specifications and | 16 | | the
contract a stipulation to the
effect that not less than the | 17 | | prevailing rate of wages as found by the
public body or | 18 | | Department of Labor or determined by the court on review
shall | 19 | | be paid to all laborers, workers and mechanics performing work
| 20 | | under the contract.
| 21 | | (a-2) When a public body or other entity covered by this | 22 | | Act has awarded work to a contractor without a public bid, | 23 | | contract or project specification, such public body or other | 24 | | entity shall comply with subsection (a-1) by providing the | 25 | | contractor with written notice on the purchase order related to | 26 | | the work to be done or on a separate document indicating that |
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| 1 | | not less than the prevailing rate of wages as found by the | 2 | | public body or Department of Labor or determined by the court | 3 | | on review shall be paid to all laborers, workers, and mechanics | 4 | | performing work on the project. | 5 | | (a-3) Where a complaint is made and the Department of Labor | 6 | | determines that a violation occurred, the Department of Labor | 7 | | shall determine if proper written notice under this Section 4 | 8 | | was given. If proper written notice was not provided to the | 9 | | contractor by the public body or other entity, the Department | 10 | | of Labor shall order the public body or other entity to pay any | 11 | | interest, penalties or fines that would have been owed by the | 12 | | contractor if proper written notice were provided. The failure | 13 | | by a public body or other entity to provide written notice does | 14 | | not relieve the contractor of the duty to comply with the | 15 | | prevailing wage rate, nor of the obligation to pay any back | 16 | | wages, as determined under this Act. For the purposes of this | 17 | | subsection, back wages shall be limited to the difference | 18 | | between the actual amount paid and the prevailing rate of wages | 19 | | required to be paid for the project. The failure of a public | 20 | | body or other entity to provide written notice under this | 21 | | Section 4 does not diminish the right of a laborer, worker, or | 22 | | mechanic to the prevailing rate of wages as determined under | 23 | | this Act. | 24 | | (b) It shall also be mandatory upon the contractor to whom | 25 | | the contract is
awarded
to insert into each subcontract and | 26 | | into the project specifications for each
subcontract a written |
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| 1 | | stipulation to the effect that not less than the
prevailing
| 2 | | rate of wages shall be paid to all laborers, workers, and | 3 | | mechanics performing
work under the contract. It shall also be | 4 | | mandatory upon each subcontractor to
cause to be inserted into | 5 | | each lower tiered subcontract
and into the project | 6 | | specifications for each lower tiered subcontract a
stipulation | 7 | | to the effect that not less
than the prevailing rate of wages | 8 | | shall be paid to all laborers, workers, and
mechanics | 9 | | performing work under the contract. A contractor or | 10 | | subcontractor who
fails to comply with this subsection (b) is | 11 | | in violation of this Act.
| 12 | | (b-1) When a contractor has awarded work to a subcontractor | 13 | | without a contract or contract specification, the contractor | 14 | | shall comply with subsection (b) by providing a subcontractor | 15 | | with a written statement indicating that not less than the | 16 | | prevailing rate of wages shall be paid to all laborers, | 17 | | workers, and mechanics performing work on the project. A | 18 | | contractor or subcontractor who fails to comply with this | 19 | | subsection (b-1) is in violation of this Act. | 20 | | (b-2) Where a complaint is made and the Department of Labor | 21 | | determines that a violation has occurred, the Department of | 22 | | Labor shall determine if proper written notice under this | 23 | | Section 4 was given. If proper written notice was not provided | 24 | | to the subcontractor by the contractor, the Department of Labor | 25 | | shall order the contractor to pay any interest, penalties, or | 26 | | fines that would have been owed by the subcontractor if proper |
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| 1 | | written notice were provided. The failure by a contractor to | 2 | | provide written notice to a subcontractor does not relieve the | 3 | | subcontractor of the duty to comply with the prevailing wage | 4 | | rate, nor of the obligation to pay any back wages, as | 5 | | determined under this Act. For the purposes of this subsection, | 6 | | back wages shall be limited to the difference between the | 7 | | actual amount paid and the prevailing rate of wages required | 8 | | for the project. However, if proper written notice was not | 9 | | provided to the contractor by the public body or other entity | 10 | | under this Section 4, the Department of Labor shall order the | 11 | | public body or other entity to pay any interest, penalties, or | 12 | | fines that would have been owed by the subcontractor if proper | 13 | | written notice were provided. The failure by a public body or | 14 | | other entity to provide written notice does not relieve the | 15 | | subcontractor of the duty to comply with the prevailing wage | 16 | | rate, nor of the obligation to pay any back wages, as | 17 | | determined under this Act. For the purposes of this subsection, | 18 | | back wages shall be limited to the difference between the | 19 | | actual amount paid and the prevailing rate of wages required | 20 | | for the project. The failure to provide written notice by a | 21 | | public body, other entity, or contractor does not diminish the | 22 | | right of a laborer, worker, or mechanic to the prevailing rate | 23 | | of wages as determined under this Act. | 24 | | (c) A public body or other entity shall also require in all | 25 | | contractor's and subcontractor's bonds
that the contractor or | 26 | | subcontractor include such provision as will guarantee the
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| 1 | | faithful performance of such prevailing wage clause as provided | 2 | | by
contract or other written instrument. All bid specifications | 3 | | shall list the specified rates to all
laborers, workers and | 4 | | mechanics in the locality for each craft or type of
worker or | 5 | | mechanic needed to execute the contract.
| 6 | | (d) If the Department of Labor
revises the prevailing rate | 7 | | of hourly wages to be paid by the public body, the
revised rate | 8 | | shall apply to such contract, and the public body shall be
| 9 | | responsible to notify the contractor and each subcontractor, of | 10 | | the revised
rate.
| 11 | | (e) Two or more investigatory hearings under this Section | 12 | | on the issue
of establishing a new prevailing wage | 13 | | classification for a particular craft
or type of worker shall | 14 | | be consolidated in a single hearing before the
Department. Such | 15 | | consolidation shall occur whether each separate investigatory
| 16 | | hearing is conducted by a public body or the Department. The | 17 | | party requesting
a consolidated investigatory hearing shall | 18 | | have the burden of establishing that
there is no existing | 19 | | prevailing wage classification for the particular craft or
type | 20 | | of worker in any of the localities under consideration.
| 21 | | (f) 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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| 1 | | project or
work to be performed. In lieu of posting on the | 2 | | project site of the public works, a contractor which has a | 3 | | business location where laborers, workers, and mechanics | 4 | | regularly visit may: (1) post in a conspicuous location at that | 5 | | business the current prevailing wage rates for each county in | 6 | | which the contractor is performing work; or (2) provide such | 7 | | laborer, worker, or mechanic engaged on the public works | 8 | | project a written notice indicating the prevailing wage rates | 9 | | for the public works project. A failure to post or provide a | 10 | | prevailing wage
rate as required by this Section is a violation | 11 | | of this Act.
| 12 | | (Source: P.A. 95-331, eff. 8-21-07; 96-437, eff. 1-1-10.)
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