Full Text of HB5412 102nd General Assembly
HB5412ham002 102ND GENERAL ASSEMBLY | Rep. Marcus C. Evans, Jr. Filed: 2/28/2022
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| 1 | | AMENDMENT TO HOUSE BILL 5412
| 2 | | AMENDMENT NO. ______. Amend House Bill 5412, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Illinois Wage Payment and Collection Act | 6 | | is amended by adding Section 13.5 as follows: | 7 | | (820 ILCS 115/13.5 new) | 8 | | Sec. 13.5. Primary contractor responsibility for wage
| 9 | | claims in construction industry. | 10 | | (a) For all contracts entered into on or after July 1,
| 11 | | 2022, a primary contractor making or taking a contract in the
| 12 | | State for the erection, construction, alteration, or repair of
| 13 | | a building, structure, or other private work in the State,
| 14 | | shall assume, and is liable for, any debt owed to a
claimant | 15 | | under this Section or to a third party on a wage claimant's | 16 | | behalf incurred pursuant to this Act by a subcontractor at
any |
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| 1 | | tier acting under, by, or for the primary contractor for
the | 2 | | wage claimant's performance of labor included in the
subject | 3 | | of the contract between the primary contractor and the
owner. | 4 | | This Section does not apply to work performed by a
contractor | 5 | | of the State, a special district, a city, a county,
or any | 6 | | political subdivision of the State. | 7 | | (b) As used in this Section: | 8 | | "Construction" means building, altering, repairing, | 9 | | improving, or demolishing any structure or building or making | 10 | | improvements of any kind to real property. | 11 | | "Primary contractor" means a contractor that has a direct
| 12 | | contractual relationship with a property owner. "Primary
| 13 | | contractor" may have the same meaning as a "general
| 14 | | contractor", "prime contractor", or "construction manager". A | 15 | | property owner
who acts as a primary contractor related to the | 16 | | erection,
construction, alteration, or repair of his or her | 17 | | primary
residence
shall be exempt from liability under this
| 18 | | Section. | 19 | | "Private work" means any erection, construction,
| 20 | | alteration, or repair of a building, structure, or other work. | 21 | | "Subcontractor" means a contractor that has a contractual
| 22 | | relationship with the primary contractor or with another
| 23 | | subcontractor at any tier, who furnishes any goods or services
| 24 | | in connection with the contract between the primary contractor
| 25 | | and the property owner, but does not include contractors who
| 26 | | solely provide goods and transport of such goods related to
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| 1 | | the contract. | 2 | | (c) The primary contractor's liability under this Section
| 3 | | shall extend only to any unpaid wages or fringe or other | 4 | | benefit payments or contributions, including interest owed, | 5 | | penalties assessed by the Department,
and reasonable | 6 | | attorney's fees, but shall not extend to
liquidated damages. | 7 | | (d) A primary contractor or any other person shall not
| 8 | | evade or commit any act that negates the requirements of this
| 9 | | Section. Except as otherwise provided in a contract between
| 10 | | the primary contractor and the subcontractor, the
| 11 | | subcontractor shall indemnify the primary contractor for any
| 12 | | wages, fringe or other benefit payments or contributions, | 13 | | damages, interest, penalties, or attorney's fees owed
as a | 14 | | result of the subcontractor's failure to pay wages or fringe | 15 | | or other benefit payments or contributions
as provided in this | 16 | | Section, unless
the subcontractor's failure to pay was due to | 17 | | the
primary contractor's failure to pay moneys due to the
| 18 | | subcontractor in accordance with the terms of their
| 19 | | contractual relationship. | 20 | | (e) Nothing in this Section shall supersede or modify the | 21 | | obligations and liability that any primary contractor, | 22 | | subcontractor, or property owner may bear as an employer under | 23 | | this Act or any other applicable law. The obligations and | 24 | | remedies provided in this Section shall be in addition to any | 25 | | obligations and remedies otherwise provided by law. Nothing in | 26 | | this Section shall be construed to impose liability on a |
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| 1 | | primary contractor for anything other than unpaid wages, | 2 | | fringe or other benefit payments or contributions, penalties | 3 | | assessed by the Department, interest owed, and reasonable | 4 | | attorney's fees. | 5 | | (f) Claims brought pursuant to this Section shall be done
| 6 | | so in accordance with Section 11 and 11.5 of this Act. Nothing | 7 | | in this Section shall be construed to provide a third party | 8 | | with the right to file a complaint with the Department | 9 | | alleging violation of this Section. | 10 | | (g) Primary contractors who are parties to a collective | 11 | | bargaining agreement whose terms address subcontracting | 12 | | liability on the project where the work is being performed | 13 | | shall be exempt from this Act. | 14 | | (h) Prior to the commencement of any civil action, a | 15 | | claimant or a representative of a claimant shall provide | 16 | | written notice to the employer and to the primary contractor | 17 | | detailing the nature and basis for the claim. Failure of the | 18 | | employer or the primary contractor to resolve the claim within | 19 | | 10 days after receipt of this notice, or during any agreed upon | 20 | | period extending this deadline, may result in the filing of a | 21 | | civil action to enforce the provisions of this Act.
| 22 | | Section 99. Effective date. This Act takes effect upon | 23 | | becoming law.".
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