Illinois General Assembly - Full Text of HB2838
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Full Text of HB2838  101st General Assembly

HB2838eng 101ST GENERAL ASSEMBLY

  
  
  

 


 
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1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Wage Payment and Collection Act is
5amended by adding Section 13.5 as follows:
 
6    (820 ILCS 115/13.5 new)
7    Sec. 13.5. Primary contractor responsibility in wage
8claims in construction industry.
9    (a)(1) For contracts entered into on or after July 1, 2019,
10a direct contractor making or taking a contract in the State
11for the erection, construction, alteration, or repair of a
12building, structure, or other private work shall assume, and is
13liable for, any debt owed to a wage claimant or third party on
14the wage claimant's behalf, incurred by a subcontractor at any
15tier acting under, by, or for the direct contractor for the
16wage claimant's performance of labor included in the subject of
17the contract between the direct contractor and the owner.
18    (2) The direct contractor's liability under this Section
19shall extend only to any unpaid wage, fringe or other benefit
20payment or contribution, including interest owed, but shall not
21extend to penalties or liquidated damages.
22    (3) A direct contractor or any other person shall not evade
23or commit any act that negates the requirements of this

 

 

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1Section. This Section does not prohibit a direct contractor or
2subcontractor at any tier from establishing by contract or
3enforcing any otherwise lawful remedies against a
4subcontractor it hires for liability created by the nonpayment
5of wages, fringe or other benefit payments, or contributions by
6that subcontractor or by a subcontractor at any tier working
7under that subcontractor.
8    (b)(1) The Department of Labor may enforce against a direct
9contractor the liability for unpaid wages created by subsection
10(a) pursuant to this Act or through a civil action. The direct
11contractor's liability shall be limited to unpaid wages,
12including any interest owed.
13    (2) A third party owed fringe or other benefit payments or
14contributions on a wage claimant's behalf may bring a civil
15action against a direct contractor to enforce the liability
16created by subsection (a). The court shall award a prevailing
17plaintiff in such an action its reasonable attorney's fees and
18costs, including expert witness fees.
19    (3) A joint labor-management cooperation committee
20established pursuant to the federal Labor Management
21Cooperation Act of 1978 (29 U.S.C. Sec. 175a) may bring an
22action in any court of competent jurisdiction against a direct
23contractor or subcontractor at any tier for unpaid wages owed
24to a wage claimant by the direct contractor or subcontractor
25for the performance of private work, including unpaid wages
26owed by the direct contractor, pursuant to subsection (a). The

 

 

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1court shall award a prevailing plaintiff in such an action its
2reasonable attorney's fees and costs, including expert witness
3fees. Prior to commencement of an action against a direct
4contractor to enforce the liability created by subsection (a),
5the committee shall provide the direct contractor and
6subcontractor that employed the wage claimant with at least 30
7days' notice by first-class mail. The notice need only describe
8the general nature of the claim and shall not limit the
9liability of the direct contractor or preclude subsequent
10amendments of an action to encompass additional wage claimants
11employed by the subcontractor.
12    (4) No other party may bring an action against a direct
13contractor to enforce the liability created by subsection (a).
14    (c) Unless otherwise provided by law, property of the
15direct contractor may be attached, after trial, for the payment
16of any judgment received pursuant to this Section.
17    (d) A civil action authorized by this Section must be
18commenced within one year from the date the claimed labor was
19performed or the claimed contract work was substantially
20completed or abandoned, whichever occurred first.
21    (e) This Section does not apply to work performed by an
22employee of the State, a special district, a city, a county, or
23any political subdivision of the State.
24    (f)(1) Upon request by a direct contractor to a
25subcontractor, the subcontractor and any lower-tier
26subcontractors under contract to the subcontractor shall

 

 

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1provide payroll records, that, at a minimum, contain the
2information set forth in Section 10 of its employees who are
3providing labor on a private work, which payroll records shall
4be marked or obliterated only to prevent disclosure of an
5individual's full social security number, but shall provide the
6last four digits of the social security number. The payroll
7records must contain information sufficient to apprise the
8requesting party of the subcontractor's payment status in
9making fringe or other benefit payments or contributions to a
10third party on the employee's behalf.
11    (2) Upon request of a direct contractor to a subcontractor,
12the subcontractor and any lower-tier subcontractors under
13contract to the subcontractor shall provide the direct
14contractor award information that includes the project name,
15name and address of the subcontractor, contractor with whom the
16subcontractor is under contract, anticipated start date,
17duration, and estimated journeymen and apprentice hours, and
18contact information for its subcontractors on the project.
19    (3) A subcontractor's failure to comply with this
20subsection shall not relieve a direct contractor from any of
21the obligations contained in this Section.
22    (g) For purposes of this Section, "direct contractor" means
23a contractor that has a direct contractual relationship with an
24owner. A reference in another statute to a "prime contractor"
25in connection with the provisions in this Section means a
26"direct contractor." "Subcontractor" means a contractor that

 

 

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1does not have a direct contractual relationship with an owner.
2"Subcontractor" includes a contractor that has a contractual
3relationship with a direct contractor or with another
4subcontractor.
5    (h) The obligations and remedies provided in this Section
6shall be in addition to any obligations and remedies otherwise
7provided by law, except that nothing in this Section shall be
8construed to impose liability on a direct contractor for
9anything other than unpaid wages and fringe or other benefit
10payments or contributions, including interest owed.
11    (i) Nothing in this Section shall alter the owner's
12obligation to timely pay a direct contractor as set forth in
13Section 3-2 of the State Prompt Payment Act, or a direct
14contractor's obligation to timely pay a subcontractor as set
15forth in subsection (a) of Section 7 of the State Prompt
16Payment Act, or the penalties for failing to make a timely
17payment as set forth in subsection (b) of Section 7 of the
18State Prompt Payment Act, except that if a subcontractor does
19not timely provide the information requested under paragraphs
20(1) and (2) of subsection (f), the director contractor may
21withhold as "disputed" all sums owed until that information is
22provided.
23    (j) The provisions of this Section are severable. If any
24provision of this Section or its application is held invalid,
25that invalidity shall not affect other provisions or
26applications that can be given effect without the invalid

 

 

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1provision or application.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.