Illinois General Assembly - Full Text of HB2838
Illinois General Assembly

Previous General Assemblies

Full Text of HB2838  101st General Assembly


Sen. Laura Fine

Filed: 5/30/2019





10100HB2838sam001LRB101 07526 TAE 61437 a


2    AMENDMENT NO. ______. Amend House Bill 2838 by replacing
3everything after the enacting clause with the following:
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 for wage
8claims in construction industry.
9    (a) For all contracts entered into on or after July 1,
102019, a primary contractor making or taking a contract in the
11State for the erection, construction, alteration, or repair of
12a building, structure, or other private work in the State,
13shall assume, and is liable for, any debt owed to a wage
14claimant incurred pursuant to this Act by a subcontractor at
15any tier acting under, by, or for the primary contractor for
16the wage claimant's performance of labor included in the



10100HB2838sam001- 2 -LRB101 07526 TAE 61437 a

1subject of the contract between the primary contractor and the
2owner. This Section does not apply to work performed by a
3contractor of the State, a special district, a city, a county,
4or any political subdivision of the State.
5    (b) For the purposes of this Section:
6    "Primary contractor" means a contractor that has a direct
7contractual relationship with a property owner. "Primary
8contractor" may have the same meaning as a "general contractor"
9or "prime contractor". However, a property owner who acts as a
10primary contractor related to the erection, construction,
11alteration, or repair of his or her primary residence where the
12aggregate costs of the project amounts to less than $100,000
13shall be exempt from liability under this Section.
14    "Private work" means any erection, construction,
15alteration, or repair of a building, structure, or other work
16that is funded or financed wholly without public funds.
17    "Subcontractor" means a contractor that has a contractual
18relationship with the primary contractor or with another
19subcontractor at any tier, who furnishes any goods or services
20in connection with the contract between the primary contractor
21and the property owner, but does not include contractors who
22solely provide goods and transport of such goods related to the
24    (c) The primary contractor's liability under this Section
25shall extend only to any unpaid wages, including interest owed
26and reasonable attorney's fees, but shall not extend to wage



10100HB2838sam001- 3 -LRB101 07526 TAE 61437 a

1supplements, penalties, or liquidated damages.
2    (d) A primary contractor or any other person shall not
3evade or commit any act that negates the requirements of this
4Section. This Section does not prohibit a primary contractor or
5subcontractor at any tier from establishing by contract or
6enforcing any otherwise lawful remedies against a
7subcontractor it hires for liability created by the nonpayment
8of wages by the subcontractor or by a subcontractor at any tier
9working under that subcontractor.
10    (e) If the primary contractor complies with the following
11requirements, the primary contractor shall not be liable for
12payments to a subcontractors' employees of any tier for unpaid
13wages for the project identified and for the specific time
14period. The primary contractor must obtain from the
15subcontractor, for each project and for each specific time
16period the applicable payment is being made, the following
17prior 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



10100HB2838sam001- 4 -LRB101 07526 TAE 61437 a

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
11and affidavits required under this subsection is not required
12to conduct any additional verification as to the truthfulness
13of the statements set forth therein, but is entitled to rely on
14good faith on the statements and authorize payment to the
15subcontractor for the specified project and time period. Any
16primary contractor that complies with the requirements set
17forth in this Section, has a defense to any action brought by a
18subcontractor's employee or third party entitled to receive any
19unpaid wages under this Section on said employee's behalf,
20provided that the primary contractor did not know or should not
21have known that the statements and affidavits contained false
22or misleading information or material omissions.
23    (f) Any primary contractor receiving the statements and
24affidavits required under subsection (e) is required to
25maintain all statements and affidavits for a period of one year
26from the date of making the payment to the subcontractor for



10100HB2838sam001- 5 -LRB101 07526 TAE 61437 a

1the specific period.
2    (g) The obligations and remedies provided in this Section
3shall be in addition to any obligations and remedies otherwise
4provided by law, except that nothing in this Section shall be
5construed to impose liability on a primary contractor for
6anything other than unpaid wages, interest owed, and reasonable
7attorney's fees.
8    (h) Claims brought pursuant to this Section shall be done
9so in accordance with Section 11 of this Act.
10    Section 99. Effective date. This Act takes effect upon
11becoming law.".