Illinois General Assembly - Full Text of HB5412
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Full Text of HB5412  102nd General Assembly

HB5412ham003 102ND GENERAL ASSEMBLY

Rep. Marcus C. Evans, Jr.

Filed: 3/1/2022

 

 


 

 


 
10200HB5412ham003LRB102 25322 SPS 37191 a

1
AMENDMENT TO HOUSE BILL 5412

2    AMENDMENT NO. ______. Amend House Bill 5412, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Wage Payment and Collection Act
6is amended by adding Section 13.5 as follows:
 
7    (820 ILCS 115/13.5 new)
8    Sec. 13.5. Primary contractor responsibility for wage
9claims in construction industry.
10    (a) For all contracts entered into on or after July 1,
112022, a primary contractor making or taking a contract in the
12State for the erection, construction, alteration, or repair of
13a building, structure, or other private work in the State,
14shall assume, and is liable for, any debt owed to a claimant
15under this Section or to a third party on a wage claimant's
16behalf incurred pursuant to this Act by a subcontractor at any

 

 

10200HB5412ham003- 2 -LRB102 25322 SPS 37191 a

1tier acting under, by, or for the primary contractor for the
2wage claimant's performance of labor included in the subject
3of the contract between the primary contractor and the owner.
4This Section does not apply to work performed by a contractor
5of the federal government, the State, a special district, a
6city, a county, or any political subdivision of the State.
7    (b) As used in this Section:
8    "Construction" means building, altering, repairing,
9improving, or demolishing any structure or building or making
10improvements of any kind to real property.
11    "Primary contractor" means a contractor that has a direct
12contractual relationship with a property owner. "Primary
13contractor" may have the same meaning as a "general
14contractor", "prime contractor", or "construction manager". A
15property owner who acts as a primary contractor related to the
16erection, construction, alteration, or repair of his or her
17primary residence shall be exempt from liability under this
18Section.
19    "Private work" means any erection, construction,
20alteration, or repair of a building, structure, or other work.
21    "Subcontractor" means a contractor that has a contractual
22relationship with the primary contractor or with another
23subcontractor at any tier, who furnishes any goods or services
24in connection with the contract between the primary contractor
25and the property owner, but does not include contractors who
26solely provide goods and transport of such goods related to

 

 

10200HB5412ham003- 3 -LRB102 25322 SPS 37191 a

1the contract.
2    (c) The primary contractor's liability under this Section
3shall extend only to any unpaid wages or fringe or other
4benefit payments or contributions, including interest owed,
5penalties assessed by the Department, and reasonable
6attorney's fees, but shall not extend to liquidated damages.
7    (d) A primary contractor or any other person shall not
8evade or commit any act that negates the requirements of this
9Section. Except as otherwise provided in a contract between
10the primary contractor and the subcontractor, the
11subcontractor shall indemnify the primary contractor for any
12wages, fringe or other benefit payments or contributions,
13damages, interest, penalties, or attorney's fees owed as a
14result of the subcontractor's failure to pay wages or fringe
15or other benefit payments or contributions as provided in this
16Section, unless the subcontractor's failure to pay was due to
17the primary contractor's failure to pay moneys due to the
18subcontractor in accordance with the terms of their
19contractual relationship.
20    (e) Nothing in this Section shall supersede or modify the
21obligations and liability that any primary contractor,
22subcontractor, or property owner may bear as an employer under
23this Act or any other applicable law. The obligations and
24remedies provided in this Section shall be in addition to any
25obligations and remedies otherwise provided by law. Nothing in
26this Section shall be construed to impose liability on a

 

 

10200HB5412ham003- 4 -LRB102 25322 SPS 37191 a

1primary contractor for anything other than unpaid wages,
2fringe or other benefit payments or contributions, penalties
3assessed by the Department, interest owed, and reasonable
4attorney's fees.
5    (f) Claims brought pursuant to this Section shall be done
6so in accordance with Section 11 and 11.5 of this Act. Nothing
7in this Section shall be construed to provide a third party
8with the right to file a complaint with the Department
9alleging violation of this Section.
10    (g) Primary contractors who are parties to a collective
11bargaining agreement on the project where the work is being
12performed shall be exempt from this Section.
13    (h) Prior to the commencement of any civil action, a
14claimant or a representative of a claimant shall provide
15written notice to the employer and to the primary contractor
16detailing the nature and basis for the claim. Failure of the
17employer or the primary contractor to resolve the claim within
1810 days after receipt of this notice, or during any agreed upon
19period extending this deadline, may result in the filing of a
20civil action to enforce the provisions of this Act.
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.".