Full Text of HB3448 103rd General Assembly
HB3448sam001 103RD GENERAL ASSEMBLY | Sen. Cristina Castro Filed: 4/19/2023
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| 1 | | AMENDMENT TO HOUSE BILL 3448
| 2 | | AMENDMENT NO. ______. Amend House Bill 3448 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Wage Payment and Collection Act | 5 | | is amended by changing Section 13.5 as follows: | 6 | | (820 ILCS 115/13.5) | 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 | | 2022, 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 | | where the aggregate costs of the project exceed $20,000
shall | 14 | | assume, and is liable for, any debt owed to a
claimant under | 15 | | this Section by a subcontractor at
any tier acting under, by, | 16 | | or for the primary contractor for
the wage claimant's |
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| 1 | | performance of labor included in the
subject of the contract | 2 | | between the primary contractor and the
owner. This Section | 3 | | does not apply to work performed by a
contractor of the federal | 4 | | government, the State, a special district, a city, a county,
| 5 | | or any political subdivision of the State. | 6 | | (b) As used in this Section: | 7 | | "Construction" means building, altering, repairing, | 8 | | improving, or demolishing any structure or building or making | 9 | | improvements of any kind to real property. | 10 | | "Primary contractor" means a contractor that has a direct
| 11 | | contractual relationship with a property owner. "Primary
| 12 | | contractor" may have the same meaning as a "general
| 13 | | contractor", "prime contractor", or "construction manager". A | 14 | | property owner
who acts as a primary contractor related to the | 15 | | erection,
construction, alteration, or repair of his or her | 16 | | primary
residence
shall be exempt from liability under this
| 17 | | Section. | 18 | | "Private work" means any erection, construction,
| 19 | | alteration, or repair of a building, structure, or other work. | 20 | | "Subcontractor" means a contractor that has a contractual
| 21 | | relationship with the primary contractor or with another
| 22 | | subcontractor at any tier, who furnishes any goods or services
| 23 | | in connection with the contract between the primary contractor
| 24 | | and the property owner, but does not include contractors who
| 25 | | solely provide goods and transport of such goods related to
| 26 | | the contract. |
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| 1 | | (c) The primary contractor's liability under this Section
| 2 | | shall extend only to any unpaid wages or fringe or other | 3 | | benefit payments or contributions, including interest owed, | 4 | | penalties assessed by the Department,
and reasonable | 5 | | attorney's fees, but shall not extend to
liquidated damages. | 6 | | (d) A primary contractor or any other person shall not
| 7 | | evade or commit any act that negates the requirements of this
| 8 | | Section. Except as otherwise provided in a contract between
| 9 | | the primary contractor and the subcontractor, the
| 10 | | subcontractor shall indemnify the primary contractor for any
| 11 | | wages, fringe or other benefit payments or contributions, | 12 | | damages, interest, penalties, or attorney's fees owed
as a | 13 | | result of the subcontractor's failure to pay wages or fringe | 14 | | or other benefit payments or contributions
as provided in this | 15 | | Section, unless
the subcontractor's failure to pay was due to | 16 | | the
primary contractor's failure to pay moneys due to the
| 17 | | subcontractor in accordance with the terms of their
| 18 | | contractual relationship. | 19 | | (e) Nothing in this Section shall supersede or modify the | 20 | | obligations and liability that any primary contractor, | 21 | | subcontractor, or property owner may bear as an employer under | 22 | | this Act or any other applicable law. The obligations and | 23 | | remedies provided in this Section shall be in addition to any | 24 | | obligations and remedies otherwise provided by law. Nothing in | 25 | | this Section shall be construed to impose liability on a | 26 | | primary contractor for anything other than unpaid wages, |
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| 1 | | fringe or other benefit payments or contributions, penalties | 2 | | assessed by the Department, interest owed, and reasonable | 3 | | attorney's fees. | 4 | | (f) Claims brought pursuant to this Section shall be done
| 5 | | so in accordance with this Act. Nothing in this Section shall | 6 | | be construed to provide a third party with the right to file a | 7 | | complaint with the Department alleging violation of this | 8 | | Section. | 9 | | (g) The following shall be exempt from liability under | 10 | | this Section: | 11 | | (1) primary contractors who are parties to a | 12 | | collective bargaining agreement on the project where the | 13 | | work is being performed; and | 14 | | (2) primary contractors making or taking a contract in | 15 | | the State for the alteration or repair of an existing | 16 | | single-family dwelling or to a single residential unit in | 17 | | an existing multi-unit structure. | 18 | | (h) Prior to the commencement of any civil action, a | 19 | | claimant or a representative of a claimant shall provide | 20 | | written notice to the employer and to the primary contractor | 21 | | detailing the nature and basis for the claim. Failure of the | 22 | | employer or the primary contractor to resolve the claim within | 23 | | 10 days after receipt of this notice, or during any agreed upon | 24 | | period extending this deadline, may result in the filing of a | 25 | | civil action to enforce the provisions of this Act. | 26 | | (i) Claims brought pursuant to this Section shall be filed |
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| 1 | | with the Department of Labor or filed with the circuit court | 2 | | within 3 years after the wages, final compensation, or wage | 3 | | supplements were due. This subsection does not apply to any | 4 | | other claims under this Act or any other applicable law | 5 | | against a primary contractor, subcontractor, or homeowner as | 6 | | an employer. | 7 | | (j) Every primary contractor and subcontractor shall post | 8 | | and keep posted, in one or more conspicuous places accessible | 9 | | to all laborers, workers, and mechanics at a job site that is | 10 | | subject to the requirements of this Section, a notice, to be | 11 | | made available by the Director of Labor, summarizing the | 12 | | requirements of this Section and information pertaining to the | 13 | | filing of a complaint. The Director of Labor shall provide | 14 | | copies of summaries and rules to primary contractors and | 15 | | subcontractors upon request without charge. One copy of the | 16 | | notice at a job site shall satisfy the notice requirement for | 17 | | the primary contractor and all subcontractors. Any primary | 18 | | contractor or subcontractor who fails to provide notice as | 19 | | required by this Section shall be subject to a civil penalty, | 20 | | not to exceed $250, payable to the Department of Labor.
| 21 | | (Source: P.A. 102-1065, eff. 6-10-22; 102-1076, eff. 6-10-22.)
| 22 | | Section 99. Effective date. This Act takes effect July 1, | 23 | | 2023.".
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