Full Text of HB2838 101st General Assembly
HB2838sam001 101ST GENERAL ASSEMBLY | Sen. Laura Fine Filed: 5/30/2019
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| 1 | | AMENDMENT TO HOUSE BILL 2838
| 2 | | AMENDMENT NO. ______. Amend House Bill 2838 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Wage Payment and Collection Act is | 5 | | amended by adding Section 13.5 as follows: | 6 | | (820 ILCS 115/13.5 new) | 7 | | Sec. 13.5. Primary contractor responsibility for wage | 8 | | claims in construction industry. | 9 | | (a) For all contracts entered into on or after July 1, | 10 | | 2019, a primary contractor making or taking a contract in the | 11 | | State for the erection, construction, alteration, or repair of | 12 | | a building, structure, or other private work in the State, | 13 | | shall assume, and is liable for, any debt owed to a wage | 14 | | claimant incurred pursuant to this Act by a subcontractor at | 15 | | any tier acting under, by, or for the primary contractor for | 16 | | the wage claimant's performance of labor included in the |
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| 1 | | subject of the contract between the primary contractor and the | 2 | | owner. This Section does not apply to work performed by a | 3 | | contractor of the State, a special district, a city, a county, | 4 | | or any political subdivision of the State. | 5 | | (b) For the purposes of this Section: | 6 | | "Primary contractor" means a contractor that has a direct | 7 | | contractual relationship with a property owner. "Primary | 8 | | contractor" may have the same meaning as a "general contractor" | 9 | | or "prime contractor". However, a property owner who acts as a | 10 | | primary contractor related to the erection, construction, | 11 | | alteration, or repair of his or her primary residence where the | 12 | | aggregate costs of the project amounts to less than $100,000 | 13 | | shall be exempt from liability under this Section. | 14 | | "Private work" means any erection, construction, | 15 | | alteration, or repair of a building, structure, or other work | 16 | | that is funded or financed wholly without public funds. | 17 | | "Subcontractor" means a contractor that has a contractual | 18 | | relationship with the primary contractor or with another | 19 | | subcontractor at any tier, who furnishes any goods or services | 20 | | in connection with the contract between the primary contractor | 21 | | and the property owner, but does not include contractors who | 22 | | solely provide goods and transport of such goods related to the | 23 | | contract. | 24 | | (c) The primary contractor's liability under this Section | 25 | | shall extend only to any unpaid wages, including interest owed | 26 | | and reasonable attorney's fees, but shall not extend to wage |
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| 1 | | supplements, penalties, or liquidated damages. | 2 | | (d) A primary contractor or any other person shall not | 3 | | evade or commit any act that negates the requirements of this | 4 | | Section. This Section does not prohibit a primary contractor or | 5 | | subcontractor at any tier from establishing by contract or | 6 | | enforcing any otherwise lawful remedies against a | 7 | | subcontractor it hires for liability created by the nonpayment | 8 | | of wages by the subcontractor or by a subcontractor at any tier | 9 | | working under that subcontractor. | 10 | | (e) If the primary contractor complies with the following | 11 | | requirements, the primary contractor shall not be liable for | 12 | | payments to a subcontractors' employees of any tier for unpaid | 13 | | wages for the project identified and for the specific time | 14 | | period. The primary contractor must obtain from the | 15 | | subcontractor, for each project and for each specific time | 16 | | period the applicable payment is being made, the following | 17 | | prior to making any payment to the subcontractor: | 18 | | (1) An affidavit from the subcontractor that all wages | 19 | | have been paid for each of the employees for the specific | 20 | | period of time of the applicable payment on the specific | 21 | | project. The affidavit shall identify the project's | 22 | | address, and list all of the subcontractor's employees by | 23 | | name, address, and the last four digits of the employee's | 24 | | social security number. | 25 | | (2) A copy of the subcontractor's payroll records | 26 | | identifying each employee and redacting the employee's |
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| 1 | | social security number, except for the last four digits, | 2 | | the payroll period, the amount of wages paid, hours worked, | 3 | | withholdings, and other deductions made. | 4 | | (3) If the subcontractor has any lower tiered | 5 | | subcontractors on the project, the subcontractor shall | 6 | | supply similar affidavits, statements, and notices as | 7 | | required in this Section. If the subcontractor does not | 8 | | have any lower tiered subcontractors, the subcontractor | 9 | | shall state that it did not utilize any. | 10 | | Any primary contractor that receives the statements | 11 | | and affidavits required under this subsection is not required | 12 | | to conduct any additional verification as to the truthfulness | 13 | | of the statements set forth therein, but is entitled to rely on | 14 | | good faith on the statements and authorize payment to the | 15 | | subcontractor for the specified project and time period. Any | 16 | | primary contractor that complies with the requirements set | 17 | | forth in this Section, has a defense to any action brought by a | 18 | | subcontractor's employee or third party entitled to receive any | 19 | | unpaid wages under this Section on said employee's behalf, | 20 | | provided that the primary contractor did not know or should not | 21 | | have known that the statements and affidavits contained false | 22 | | or misleading information or material omissions. | 23 | | (f) Any primary contractor receiving the statements and | 24 | | affidavits required under subsection (e) is required to | 25 | | maintain all statements and affidavits for a period of one year | 26 | | from the date of making the payment to the subcontractor for |
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| 1 | | the specific period. | 2 | | (g) The obligations and remedies provided in this Section | 3 | | shall be in addition to any obligations and remedies otherwise | 4 | | provided by law, except that nothing in this Section shall be | 5 | | construed to impose liability on a primary contractor for | 6 | | anything other than unpaid wages, interest owed, and reasonable | 7 | | attorney's fees. | 8 | | (h) Claims brought pursuant to this Section shall be done | 9 | | so in accordance with Section 11 of this Act.
| 10 | | Section 99. Effective date. This Act takes effect upon | 11 | | becoming law.".
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