Full Text of SB1347 100th General Assembly
SB1347sam001 100TH GENERAL ASSEMBLY | Sen. Daniel Biss Filed: 3/29/2017
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| 1 | | AMENDMENT TO SENATE BILL 1347
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1347 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Living Wage Act. | 6 | | Section 5. Policy. It is the policy of the State of | 7 | | Illinois that in order to increase efficiency and cost savings | 8 | | in the work performed by parties who contract with the State of | 9 | | Illinois the hourly minimum wage to be paid by those | 10 | | contractors shall be $16.36, and shall be increased annually | 11 | | thereafter by an amount specified herein. It is further the | 12 | | policy of the State of Illinois that raising the pay of | 13 | | low-wage workers increases the productivity and quality of | 14 | | their work, lowers turnover, and reduces supervisory costs. | 15 | | These savings and quality improvements will lead to an improved | 16 | | economy in Illinois and more efficient State procurement. |
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| 1 | | Section 10. Definitions. As used in this Act: | 2 | | "Concessions contract" means a contract under which the | 3 | | State grants a right to use State property, including land or | 4 | | facilities, for furnishing services. "Concessions contract" | 5 | | includes, but is not limited to, a contract the principal | 6 | | purpose of which is to furnish food, lodging, automobile fuel, | 7 | | souvenirs, newspaper stands, or recreational equipment, or any | 8 | | combination thereof, regardless of whether the services are of | 9 | | direct benefit to the State, its personnel, or the general | 10 | | public. | 11 | | "Contractor" means any individual or other legal entity | 12 | | that is awarded a contract or subcontract by the State. | 13 | | "Contractor" refers to both a prime contractor and all of its | 14 | | subcontractors of any tier on a contract with the State. | 15 | | "Contract" means all types of State agreements, regardless | 16 | | of what they may be called, for the procurement, use, or | 17 | | disposal of supplies, services, professional or artistic | 18 | | services; construction or for leases of real property where the | 19 | | State is the lessee; and capital improvements, including | 20 | | renewals, and includes master contracts; contracts for | 21 | | financing through use of installment or lease-purchase | 22 | | arrangements; renegotiated contracts; amendments to contracts; | 23 | | and change orders, as defined in Section 1-15.30 of the | 24 | | Illinois Procurement Code. "Contract" includes all contracts | 25 | | and any subcontracts of any tier thereunder, whether negotiated |
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| 1 | | or advertised, including any procurement actions, lease | 2 | | agreements, cooperative agreements, provider agreements, | 3 | | intergovernmental service agreements, service agreements, | 4 | | licenses, permits, or any other type of agreement, regardless | 5 | | of nomenclature, type, or particular form, and whether entered | 6 | | into verbally or in writing. The term "contract" shall be | 7 | | interpreted broadly as to include, but not be limited to, any | 8 | | contract that may be consistent with the definition provided in | 9 | | the Illinois Procurement Code or any other applicable Illinois | 10 | | law. Contracts may be the result of competitive bidding or | 11 | | awarded to a single source under applicable authority to do so. | 12 | | In addition to bilateral instruments, "contract" includes, but | 13 | | is not limited to, awards and notices of awards; job orders or | 14 | | task letters issued under basic ordering agreements; letter | 15 | | contracts; orders, such as purchase orders, under which the | 16 | | contract becomes effective by written acceptance or | 17 | | performance; bilateral contract modifications; and concessions | 18 | | contracts. | 19 | | "Minimum wage" means, for purposes of this Act, a wage that | 20 | | is at least: | 21 | | (1) $16.36 per hour beginning January 1, 2018; and | 22 | | (2) Beginning January 1, 2019, and annually | 23 | | thereafter, an amount determined by the Department of Labor | 24 | | pursuant to Section 15 of this Act. | 25 | | "New contract" means a contract that results from a | 26 | | solicitation issued on or after January 1, 2018, or a contract |
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| 1 | | that is awarded outside the solicitation process on or after | 2 | | January 1, 2018. "New contract" includes both new contracts and | 3 | | replacements for expiring contracts. For purposes of this Act, | 4 | | a contract that is entered into prior to January 1, 2018 will | 5 | | constitute a new contract if, through bilateral negotiation, on | 6 | | or after January 1, 2018: | 7 | | (1) the contract is renewed; | 8 | | (2) the contract is extended, unless the extension is | 9 | | made pursuant to a term in the contract as of December 31, | 10 | | 2016 providing for a short-term limited extension; or | 11 | | (3) the contract is amended pursuant to a modification | 12 | | that is outside the scope of the contract. | 13 | | "State" means the State of Illinois, including executive | 14 | | departments and State agencies. | 15 | | "Worker" means any person engaged in performing work on or | 16 | | in connection with a contract covered by this Act, other than | 17 | | individuals employed in a bona fide executive, administrative, | 18 | | or professional capacity, regardless of the contractual | 19 | | relationship alleged to exist between the individual and the | 20 | | employer. | 21 | | Section 15. Establishing a minimum wage for State | 22 | | contractors and subcontractors. | 23 | | (a) The State shall ensure that new contracts include a | 24 | | provision, which the contractor and any subcontractors shall | 25 | | incorporate directly into lower-tier subcontracts, specifying |
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| 1 | | that, as a condition of payment of the contract, the minimum | 2 | | wage to be paid to workers in the performance of the contract | 3 | | or subcontract shall be at least: | 4 | | (1) $16.36 per hour; and | 5 | | (2) beginning January 1, 2019, and annually | 6 | | thereafter, the amount of the hourly minimum wage required | 7 | | by new contracts shall be published by the Department of | 8 | | Labor. | 9 | | The minimum wage after adjustment under this | 10 | | subsection (a) shall be: | 11 | | (A) no less than the amount published as the | 12 | | minimum wage effective at the date of determination; | 13 | | (B) increased from the existing amount by the | 14 | | annual percentage increase in the Consumer Price Index | 15 | | for Urban Wage Earners and Clerical Workers (Midwest | 16 | | Region, all items); | 17 | | (C) and rounded to the nearest multiple of 10 | 18 | | cents. | 19 | | (3) The minimum wage rates shall be calculated on an | 20 | | annual basis, as described herein, and take effect January | 21 | | 1 of each year. The Department of Labor shall publish the | 22 | | minimum wage rates for the upcoming year at least 90 days | 23 | | before the new rates take effect. | 24 | | (b) When calculating the annual percentage increase in the | 25 | | Consumer Price Index for purposes of item (B) of paragraph (2) | 26 | | of subsection (a) of this Section, the Director of Labor shall |
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| 1 | | compare the Consumer Price Index for the most recent month | 2 | | available with the Consumer Price Index for the same month in | 3 | | the preceding year. | 4 | | (c) Each worker engaged in the performance of a covered | 5 | | contract by the prime contractor or any subcontractor, | 6 | | regardless of any contractual relationship which may be alleged | 7 | | to exist between the contractor and worker, shall be paid not | 8 | | less than the applicable minimum wage under this Act. | 9 | | (d) The contractor may not discharge any part of its | 10 | | minimum wage obligation under this Act by furnishing fringe | 11 | | benefits or the cash equivalent thereof. | 12 | | (e) The contractor shall pay unconditionally to each worker | 13 | | all wages due free and clear and without subsequent deduction | 14 | | rebate, or kickback on any account, except that the provisions | 15 | | of this Act shall not apply as to any deduction made by | 16 | | employers under any title of the federal Social Security Act or | 17 | | the federal Unemployment Insurance Tax Act, or as to any | 18 | | deductions made for union dues pursuant to any bona fide | 19 | | collective bargaining agreement. The payments shall be made no | 20 | | later than one pay period following the end of the regular pay | 21 | | period in which such wages were earned or accrued. A pay period | 22 | | under this Act may not be of any duration longer than | 23 | | semi-monthly. | 24 | | (f) Nothing in this Act shall be construed as relieving a | 25 | | contractor of any other obligation under federal, State or | 26 | | local law, or under contract or collective bargaining |
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| 1 | | agreement, for the payment of a higher wage to any worker, nor | 2 | | shall a lower prevailing wage under any federal, State, or | 3 | | local law, or under contract, entitle a contractor to pay any | 4 | | worker less than the minimum wage established annually under | 5 | | this Act. | 6 | | Section 20. Application of wage standards to collective | 7 | | bargaining agreements. Nothing in this Act shall be construed | 8 | | as to interfere with, impede, or in any way diminish the right | 9 | | of employees to bargain collectively with their employers | 10 | | through representatives of their own choosing in order to | 11 | | establish wages or other conditions of employment in excess of | 12 | | the applicable minimum wage standards in this Act. | 13 | | Section 25. Enforcement, penalties, and private right of | 14 | | action. | 15 | | (a) Any officer, agent, or representative of any public | 16 | | body who willfully violates, or willfully fails to comply with, | 17 | | any of the provisions of this Act, and any contractor or | 18 | | subcontractor, and any officer, employee, or agent thereof, who | 19 | | as such officer, employee, who willfully violates, or willfully | 20 | | fails to comply with, any of the provisions of this Act, is | 21 | | guilty of a Class A misdemeanor. | 22 | | (b) The Department of Labor shall inquire diligently as to | 23 | | any violation of this Act, shall institute actions for | 24 | | penalties herein prescribed, and shall enforce generally the |
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| 1 | | provisions of this Act. The Attorney General shall prosecute | 2 | | such violations upon complaint by the Department or any | 3 | | interested person. | 4 | | (c) Failure to comply with the minimum wage requirement as | 5 | | stated in this Act shall be considered evidence bearing on a | 6 | | contractor's qualification for award of future contracts. | 7 | | (d) The prime contractor and any upper-tier subcontractor | 8 | | shall be responsible for the compliance by any subcontractor or | 9 | | lower-tier subcontractor with the minimum wage requirements | 10 | | set forth in this Act. In the event of any violation of the | 11 | | minimum wage obligation of this subsection (d), the contractor | 12 | | and subcontractor, if any, responsible for the violation shall | 13 | | be liable for the unpaid wages. | 14 | | (e) Under this Act, any worker engaged in the performance | 15 | | of a covered contract by the prime contractor or any | 16 | | subcontractor under it who is paid for his services in a sum | 17 | | less than the stipulated rates for work done under the contract | 18 | | shall have a right of action for whatever difference there may | 19 | | be between the amount so paid and the rates provided by the | 20 | | contract, together with costs and any reasonable attorney's | 21 | | fees as shall be allowed by the court. The contractor or | 22 | | subcontractor shall also be liable to the Department of Labor | 23 | | for 20% of the underpayments and shall be additionally liable | 24 | | to the individual employed by the contractor or subcontractor | 25 | | for punitive damages in the amount of 2% of the amount of any | 26 | | penalty to the State for underpayments for each month following |
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| 1 | | the date of payment during which the underpayments remain | 2 | | unpaid. | 3 | | Where a second or subsequent action to recover | 4 | | underpayments is brought against a contractor or subcontractor | 5 | | and the contractor or subcontractor is found liable for | 6 | | underpayments to any individual working for the contractor or | 7 | | subcontractor, the contractor or subcontractor shall also be | 8 | | liable to the Department of Labor for 50% of the underpayments | 9 | | payable as a result of the second or subsequent action and | 10 | | shall be additionally liable for 5% of the amount of any | 11 | | penalty to the State for underpayments for each month following | 12 | | the date of payment during which the underpayments remain | 13 | | unpaid. | 14 | | The Department shall also have a right of action on behalf | 15 | | of any worker who has a right of action under this Section. An | 16 | | action brought to recover under this Act shall be deemed to be | 17 | | a suit for wages, and any and all judgments entered therein | 18 | | shall have the same force and effect as other judgments for | 19 | | wages. At the request of any worker engaged in the performance | 20 | | of a covered contract by the prime contractor or by any | 21 | | subcontractor under it who is paid less than the minimum wage | 22 | | rate required by this Act, the Department of Labor may take an | 23 | | assignment of the wage claim in trust for the assigning worker | 24 | | and may bring any legal action necessary to collect the claim, | 25 | | and the contractor or subcontractor shall be required to pay | 26 | | the costs incurred in collecting such claim. |
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| 1 | | (f) In the event of a failure to pay any worker all or part | 2 | | of the wages due under this Act, the contracting agency may on | 3 | | its own action or after authorization or by direction of the | 4 | | Department of Labor or the Attorney General acting on behalf | 5 | | the Department of Labor and written notification to the | 6 | | contractor, take action to cause suspension of any further | 7 | | payment, advance, or guarantee of funds until the violations | 8 | | have ceased. Additionally, any failure to comply with the | 9 | | requirements of this Act may be grounds for termination of the | 10 | | right to proceed with the contract work. In that event, the | 11 | | State may enter into other contracts or arrangements for | 12 | | completion of the work, charging the contractor in default with | 13 | | any additional cost. A breach of the contract clause may be | 14 | | grounds for debarment as a contractor and subcontractor as | 15 | | provided in Section 30 of this Act. | 16 | | Section 30. Debarment. The Director of the Department of | 17 | | Labor shall publish in the Illinois Register no less often than | 18 | | once each calendar quarter a list of contractors or | 19 | | subcontractors found to have disregarded their obligations to | 20 | | workers under this Act. The Department of Labor shall determine | 21 | | the contractors or subcontractors who, on 2 separate occasions | 22 | | within 5 years, have been determined to have violated the | 23 | | provisions of this Act. Upon that determination, the Department | 24 | | shall notify the violating contractor or subcontractor. The | 25 | | contractor or subcontractor shall then have 10 working days to |
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| 1 | | request a hearing by the Department on the alleged violations. | 2 | | Failure to respond within the 10 working day period shall | 3 | | result in automatic and immediate placement and publication on | 4 | | the list. If the contractor or subcontractor requests a hearing | 5 | | within the 10 working day period, the Director shall set a | 6 | | hearing on the alleged violations. The hearing shall take place | 7 | | no later than 45 calendar days after the receipt by the | 8 | | Department of Labor of the request for a hearing. The | 9 | | Department of Labor is empowered to adopt rules to govern the | 10 | | hearing procedure. No contract shall be awarded to a contractor | 11 | | or subcontractor appearing on the list, or to any firm, | 12 | | corporation, partnership or association in which such | 13 | | contractor or subcontractor has an interest until 4 years have | 14 | | elapsed from the date of publication of the list containing the | 15 | | name of such contractor or subcontractor. | 16 | | A contractor or subcontractor convicted or found guilty | 17 | | under Section 25 of this Act shall be subject to an automatic | 18 | | and immediate debarment, thereafter prohibited from | 19 | | participating in any public works project for 4 years, with no | 20 | | right to a hearing. | 21 | | Section 35. Notice requirement. The contractor or | 22 | | subcontractor must notify all workers performing work on or in | 23 | | connection with a covered contract of the applicable minimum | 24 | | wage rate under this Act. With respect workers performing work | 25 | | under contracts subject to prevailing wage requirements where |
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| 1 | | the prevailing wage rate is in excess of the minimum wage rate | 2 | | established under this Act, the contractor may meet this | 3 | | requirement by posting, in a prominent and accessible place at | 4 | | the worksite, the applicable wage determination under those | 5 | | laws. With respect to workers performing work under contracts | 6 | | whose wages are not subject to prevailing wage requirements, or | 7 | | workers performing work under contracts whose wages are subject | 8 | | to prevailing wage requirements where the prevailing rate is | 9 | | less than the minimum wage established under this Act, the | 10 | | contractor must post a notice provided by the Department of | 11 | | Labor in a prominent and accessible place at the worksite so it | 12 | | may be readily seen by workers. | 13 | | Section 97. Severability. The provisions of this Act are | 14 | | severable under Section 1.31 of the Statute on Statutes.
| 15 | | Section 99. Effective date. This Act takes effect January | 16 | | 1, 2018.".
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