Full Text of HB5690 97th General Assembly
HB5690 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB5690 Introduced 2/16/2012, by Rep. Elizabeth Hernandez SYNOPSIS AS INTRODUCED: |
| 820 ILCS 130/2 | from Ch. 48, par. 39s-2 | 820 ILCS 130/5 | from Ch. 48, par. 39s-5 | 820 ILCS 130/5.1 new | | 820 ILCS 130/11 | from Ch. 48, par. 39s-11 |
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Amends the Prevailing Wage Act. Requires contractors to include in recording keeping the gross and net wage, hourly overtime rate, fringe benefit rates, and the sponsor and administrator of fringe benefit plans. Provides for filing of the records with the Department of Labor. Authorizes that Department to require electronic filing. Requires that Department to create and provide a form for the filing of certified payrolls. Allows any interested party to bring an action under the Act. Defines terms.
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| | A BILL FOR |
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| 1 | | AN ACT concerning wages.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Prevailing Wage Act is amended by changing | 5 | | Sections 2, 5, and 11 and by adding Section 5.1 as follows:
| 6 | | (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
| 7 | | Sec. 2. This Act applies to the wages of laborers, | 8 | | mechanics and
other workers employed in any public works, as | 9 | | hereinafter defined, by
any public body and to anyone under | 10 | | contracts for public works. This includes any maintenance, | 11 | | repair, assembly, or disassembly work performed on equipment | 12 | | whether owned, leased, or rented.
| 13 | | As used in this Act, unless the context indicates | 14 | | otherwise:
| 15 | | "Public works" means all fixed works constructed or | 16 | | demolished by
any public body,
or paid for wholly or in part | 17 | | out of public funds. "Public works" as
defined herein includes | 18 | | all projects financed in whole
or in part with bonds, grants, | 19 | | loans, or other funds made available by or through the State or | 20 | | any of its political subdivisions, including but not limited | 21 | | to: bonds issued under the Industrial Project Revenue Bond
Act | 22 | | (Article 11, Division 74 of the Illinois Municipal Code), the | 23 | | Industrial
Building Revenue Bond Act, the Illinois Finance |
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| 1 | | Authority Act,
the Illinois Sports Facilities Authority Act, or | 2 | | the Build Illinois Bond Act; loans or other funds made
| 3 | | available pursuant to the Build Illinois Act; or funds from the | 4 | | Fund for
Illinois' Future under Section 6z-47 of the State | 5 | | Finance Act, funds for school
construction under Section 5 of | 6 | | the General Obligation Bond Act, funds
authorized under Section | 7 | | 3 of the School Construction Bond Act, funds for
school | 8 | | infrastructure under Section 6z-45 of the State Finance Act, | 9 | | and funds
for transportation purposes under Section 4 of the | 10 | | General Obligation Bond
Act. "Public works" also includes (i) | 11 | | all projects financed in whole or in part
with funds from the | 12 | | Department of Commerce and Economic Opportunity under the | 13 | | Illinois Renewable Fuels Development Program
Act for which | 14 | | there is no project labor agreement; (ii) all work performed | 15 | | pursuant to a public private agreement under the Public Private | 16 | | Agreements for the Illiana Expressway Act; and (iii) all | 17 | | projects undertaken under a public-private agreement under the | 18 | | Public-Private Partnerships for Transportation Act. "Public | 19 | | works" also includes all projects at leased facility property | 20 | | used for airport purposes under Section 35 of the Local | 21 | | Government Facility Lease Act. "Public works" also includes the | 22 | | construction of a new wind power facility by a business | 23 | | designated as a High Impact Business under Section 5.5(a)(3)(E) | 24 | | of the Illinois Enterprise Zone Act.
"Public works" does not | 25 | | include work done directly by any public utility company, | 26 | | whether or not done under public supervision or direction, or |
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| 1 | | paid for wholly or in part out of public funds. "Public works" | 2 | | does not include projects undertaken by the owner at an | 3 | | owner-occupied single-family residence or at an owner-occupied | 4 | | unit of a multi-family residence.
| 5 | | "Construction" means all work on public works involving | 6 | | laborers,
workers or mechanics. This includes any maintenance, | 7 | | repair, assembly, or disassembly work performed on equipment | 8 | | whether owned, leased, or rented.
| 9 | | "Contractor" and "subcontractor" include an individual, | 10 | | partnership, association, corporation, limited liability | 11 | | company, business trust, and a person or group of persons | 12 | | acting directly or indirectly in the interest of a contractor | 13 | | or subcontractor in relation to any laborer, worker, or | 14 | | mechanic employed. | 15 | | "Entity" means a sole proprietor, partnership, firm, | 16 | | corporation, limited liability company, association, or other | 17 | | business enterprise, but does not include (i) the State of | 18 | | Illinois or its officers, agencies, or political subdivisions | 19 | | or (ii) the federal government. | 20 | | "Interested party" means a person or entity with an | 21 | | interest in compliance with this Act. | 22 | | "Locality" means the county where the physical work upon | 23 | | public works
is performed, except (1) that if there is not | 24 | | available in the county a
sufficient number of competent | 25 | | skilled laborers, workers and mechanics
to construct the public | 26 | | works efficiently and properly, "locality"
includes any other |
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| 1 | | county nearest the one in which the work or
construction is to | 2 | | be performed and from which such persons may be
obtained in | 3 | | sufficient numbers to perform the work and (2) that, with
| 4 | | respect to contracts for highway work with the Department of
| 5 | | Transportation of this State, "locality" may at the discretion | 6 | | of the
Secretary of the Department of Transportation be | 7 | | construed to include
two or more adjacent counties from which | 8 | | workers may be accessible for
work on such construction.
| 9 | | "Public body" means the State or any officer, board or | 10 | | commission of
the State or any political subdivision or | 11 | | department thereof, or any
institution supported in whole or in | 12 | | part by public funds,
and includes every county, city, town,
| 13 | | village, township, school district, irrigation, utility, | 14 | | reclamation
improvement or other district and every other | 15 | | political subdivision,
district or municipality of the state | 16 | | whether such political
subdivision, municipality or district | 17 | | operates under a special charter
or not.
| 18 | | The terms "general prevailing rate of hourly wages", | 19 | | "general
prevailing rate of wages" or "prevailing rate of | 20 | | wages" when used in
this Act mean the hourly cash wages plus | 21 | | annualized fringe benefits for training and
apprenticeship | 22 | | programs approved by the U.S. Department of Labor, Bureau of
| 23 | | Apprenticeship and Training, health and welfare, insurance, | 24 | | vacations and
pensions paid generally, in the
locality in which | 25 | | the work is being performed, to employees engaged in
work of a | 26 | | similar character on public works.
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| 1 | | (Source: P.A. 96-28, eff. 7-1-09; 96-58, eff. 1-1-10; 96-186, | 2 | | eff. 1-1-10; 96-913, eff. 6-9-10; 96-1000, eff. 7-2-10; 97-502, | 3 | | eff. 8-23-11.)
| 4 | | (820 ILCS 130/5) (from Ch. 48, par. 39s-5)
| 5 | | Sec. 5. Certified payroll.
| 6 | | (a) Any contractor and each subcontractor who participates | 7 | | in public works shall: | 8 | | (1) make and keep, for a period of not less
than 3 | 9 | | years from the date of the last payment on a contract or | 10 | | subcontract for public works, records of all laborers, | 11 | | mechanics, and other workers employed by them on the | 12 | | project; the records shall include each worker's name, | 13 | | address, telephone number
when available, social security | 14 | | number, classification or classifications, gross and net | 15 | | the hourly wages paid in each pay period, the number of | 16 | | hours worked each day, the hourly wage rate, the hourly | 17 | | overtime wage rate, hourly fringe benefit rates, the plan | 18 | | sponsor of each fringe benefit, if applicable, the plan | 19 | | administrator of each fringe benefit, if applicable, and | 20 | | the starting and ending times of work each day; and | 21 | | (2) no later than the tenth day of each calendar month | 22 | | file a certified payroll for the immediately preceding | 23 | | month with the public body in charge of the project. A | 24 | | certified payroll must be filed on a form created and | 25 | | provided by the Department of Labor. A certified payroll |
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| 1 | | must be filed for only those calendar months during which | 2 | | construction on a public works project has occurred. The | 3 | | certified payroll shall consist of a complete copy of the | 4 | | records identified in paragraph (1) of this subsection (a), | 5 | | but may exclude the starting and ending times of work each | 6 | | day. The certified payroll shall be accompanied by a | 7 | | statement signed by the contractor or subcontractor or an | 8 | | officer, employee, or agent of the contractor or | 9 | | subcontractor which avers that: (i) he or she has examined | 10 | | the certified payroll records required to be submitted by | 11 | | the Act and such records are true and accurate; (ii) the | 12 | | hourly rate paid to each worker is not less than the | 13 | | general prevailing rate of hourly wages required by this | 14 | | Act; and (iii) the contractor or subcontractor is aware | 15 | | that filing a certified payroll that he or she knows to be | 16 | | false is a Class A misdemeanor. A general contractor is not | 17 | | prohibited from relying on the certification of a lower | 18 | | tier subcontractor, provided the general contractor does | 19 | | not knowingly rely upon a subcontractor's false | 20 | | certification. Any contractor or subcontractor subject to | 21 | | this Act and any officer, employee, or agent of such | 22 | | contractor or subcontractor whose duty as such officer, | 23 | | employee, or agent it is to file such certified payroll who | 24 | | willfully fails to file such a certified payroll on or | 25 | | before the date such certified payroll is required by this | 26 | | paragraph to be filed and any person who willfully files a |
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| 1 | | false certified payroll that is false as to any material | 2 | | fact is in violation of this Act and guilty of a Class A | 3 | | misdemeanor. The public body in charge of the project shall | 4 | | keep the records submitted in accordance with this | 5 | | paragraph (2) of subsection (a) for a period of not less | 6 | | than 3 years from the date of the last payment for work on | 7 | | a contract or subcontract for public works. The records | 8 | | submitted in accordance with this paragraph (2) of | 9 | | subsection (a) shall be considered public records, except | 10 | | an employee's address, telephone number, and social | 11 | | security number, and made available in accordance with the | 12 | | Freedom of Information Act. The public body shall accept | 13 | | any reasonable submissions by the contractor that meet the | 14 | | requirements of this Section.
| 15 | | (b) Upon 7 business days' notice, the contractor and each | 16 | | subcontractor shall make available for inspection and copying | 17 | | at a location within this State during reasonable hours, the | 18 | | records identified in paragraph (1) of subsection (a) of this | 19 | | Section to the public body
in charge of the project, its | 20 | | officers and agents, the Director of Labor
and his deputies and | 21 | | agents, and to federal, State, or local law enforcement | 22 | | agencies and prosecutors. | 23 | | (Source: P.A. 97-571, eff. 1-1-12.)
| 24 | | (820 ILCS 130/5.1 new) | 25 | | Sec. 5.1. Electronic database. Subject to appropriation, |
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| 1 | | the Department shall develop and maintain an electronic | 2 | | database capable of accepting and retaining certified payrolls | 3 | | submitted under this Act. The database shall accept certified | 4 | | payroll forms provided by the Department that are fillable and | 5 | | designed to accept electronic signatures.
| 6 | | (820 ILCS 130/11) (from Ch. 48, par. 39s-11)
| 7 | | Sec. 11. No public works project shall be instituted unless | 8 | | the
provisions of this Act have been complied with. The | 9 | | provisions of this
Act shall not be applicable to Federal | 10 | | construction projects which
require a prevailing wage | 11 | | determination by the United States Secretary
of Labor. The | 12 | | Illinois Department of Labor represented by the Attorney
| 13 | | General is empowered to sue for injunctive relief against the | 14 | | awarding of
any contract or the continuation of work under any | 15 | | contract for public works
at a time when the prevailing wage | 16 | | prerequisites have not been met. Any
contract for public works | 17 | | awarded at a time when the prevailing wage prerequisites
had | 18 | | not been met shall be void as against public policy and the | 19 | | contractor
is prohibited from recovering any damages
for the | 20 | | voiding of the contract or pursuant to the terms of the | 21 | | contract.
The contractor is limited to a claim for amounts | 22 | | actually paid for labor
and materials supplied to the public | 23 | | body. Where objections to a determination
of the prevailing | 24 | | rate of
wages or a court action relative thereto is pending, | 25 | | the public body
shall not continue work on the project unless |
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| 1 | | sufficient funds are
available to pay increased wages if such | 2 | | are finally determined or
unless the Department of Labor | 3 | | certifies such determination of the
prevailing rate of wages as | 4 | | correct.
| 5 | | Any interested party laborer, worker or mechanic employed | 6 | | by the contractor or by any sub-contractor
under him who is | 7 | | paid for his services in a sum less than the stipulated
rates | 8 | | for work done under such contract, shall
have a right of action | 9 | | for whatever difference there may be between the
amount so | 10 | | paid, and the rates provided by the contract together with
| 11 | | costs and such reasonable attorney's fees as
shall be allowed | 12 | | by the court. Such contractor or subcontractor shall also
be | 13 | | liable to the
Department of Labor for
20% of
such underpayments | 14 | | and shall be additionally liable to the laborer, worker
or | 15 | | mechanic for punitive damages in the amount of
2% of the amount | 16 | | of any
such penalty to the
State for underpayments for each | 17 | | month following the date of payment during
which such | 18 | | underpayments
remain unpaid. Where a second or subsequent | 19 | | action to recover underpayments is brought against a contractor | 20 | | or subcontractor and the contractor or subcontractor is found | 21 | | liable for underpayments to any laborer, worker, or mechanic, | 22 | | the contractor or subcontractor shall also be liable to the | 23 | | Department of Labor for 50% of the underpayments payable as a | 24 | | result of the second or subsequent action, and shall be | 25 | | additionally liable for 5% of the amount of any such penalty to | 26 | | the State for underpayments for each month following the date |
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| 1 | | of payment during which the underpayments remain unpaid. The | 2 | | Department shall also have a right of action on behalf
of any | 3 | | individual who has a right of action under this Section. An | 4 | | action brought
to recover same shall be deemed to be a suit for | 5 | | wages, and any and all
judgments entered therein shall have the | 6 | | same force and effect as other
judgments for wages.
At the | 7 | | request of any laborer, workman or mechanic
employed by the | 8 | | contractor or by any subcontractor under him who is paid
less | 9 | | than the prevailing wage rate required by this Act, the | 10 | | Department
of Labor may take an assignment of such wage claim | 11 | | in trust for the assigning
laborer, workman or mechanic and may | 12 | | bring any legal action necessary to
collect such claim, and the | 13 | | contractor or subcontractor shall be required
to pay the costs | 14 | | incurred in collecting such claim.
| 15 | | (Source: P.A. 94-488, eff. 1-1-06.)
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