Full Text of SB0957 100th General Assembly
SB0957 100TH GENERAL ASSEMBLY |
| | 100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018 SB0957 Introduced 2/7/2017, by Sen. Jason A. Barickman SYNOPSIS AS INTRODUCED: |
| 820 ILCS 130/4 | from Ch. 48, par. 39s-4 | 820 ILCS 130/9 | from Ch. 48, par. 39s-9 |
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Amends the Prevailing Wage Act. Provides that a prevailing wage determined at the time of bid submission shall continue for the duration of the contract.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning employment.
| 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 4 and 9 as follows:
| 6 | | (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
| 7 | | Sec. 4. Ascertaining prevailing wage. | 8 | | (a) The public body awarding any contract for public work | 9 | | or
otherwise undertaking any public works, shall ascertain the | 10 | | general
prevailing rate of hourly wages in the locality in | 11 | | which the work is to
be performed, for each craft or type of | 12 | | worker or mechanic needed to
execute the contract, and where | 13 | | the public body performs the work
without letting a contract | 14 | | therefor, shall ascertain the prevailing rate
of wages on a per | 15 | | hour basis in the locality, and such public body shall
specify | 16 | | in the resolution or ordinance and in the call for bids for the
| 17 | | contract, that the general prevailing rate of wages in the | 18 | | locality for
each craft or type of worker or mechanic needed to | 19 | | execute the contract
or perform such work, also the general | 20 | | prevailing rate for legal holiday
and overtime work, as | 21 | | ascertained by the public body or by the
Department of Labor | 22 | | shall be paid for each craft or type of worker
needed to | 23 | | execute the contract or to perform such work, and it shall be
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| 1 | | mandatory upon the contractor to whom the contract is awarded | 2 | | and upon
any subcontractor under him, and where the public body | 3 | | performs the
work, upon the public body, to pay not less than | 4 | | the specified rates to
all laborers, workers and mechanics | 5 | | employed by them in the execution of
the contract or such work; | 6 | | provided, however, that if the public body
desires that the | 7 | | Department of Labor ascertain the prevailing rate of
wages, it | 8 | | shall notify the Department of Labor to ascertain the general
| 9 | | prevailing rate of hourly wages for work under contract, or for | 10 | | work
performed by a public body without letting a contract as | 11 | | required in the
locality in which the work is to be performed, | 12 | | for each craft or type of
worker or mechanic needed to execute | 13 | | the contract or project or work to
be performed. Upon such | 14 | | notification the Department of Labor shall
ascertain such | 15 | | general prevailing rate of wages, and certify the
prevailing | 16 | | wage to such public body. | 17 | | (a-1) The public body or other entity awarding the
contract | 18 | | shall cause to be inserted in the project specifications and | 19 | | the
contract a stipulation to the
effect that not less than the | 20 | | prevailing rate of wages as found by the
public body or | 21 | | Department of Labor or determined by the court on review
shall | 22 | | be paid to all laborers, workers and mechanics performing work
| 23 | | under the contract.
| 24 | | (a-2) When a public body or other entity covered by this | 25 | | Act has awarded work to a contractor without a public bid, | 26 | | contract or project specification, such public body or other |
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| 1 | | entity shall comply with subsection (a-1) by providing the | 2 | | contractor with written notice on the purchase order related to | 3 | | the work to be done or on a separate document indicating that | 4 | | not less than the prevailing rate of wages as found by the | 5 | | public body or Department of Labor or determined by the court | 6 | | on review shall be paid to all laborers, workers, and mechanics | 7 | | performing work on the project. | 8 | | (a-3) Where a complaint is made and the Department of Labor | 9 | | determines that a violation occurred, the Department of Labor | 10 | | shall determine if proper written notice under this Section 4 | 11 | | was given. If proper written notice was not provided to the | 12 | | contractor by the public body or other entity, the Department | 13 | | of Labor shall order the public body or other entity to pay any | 14 | | interest, penalties or fines that would have been owed by the | 15 | | contractor if proper written notice were provided. The failure | 16 | | by a public body or other entity to provide written notice does | 17 | | not relieve the contractor of the duty to comply with the | 18 | | prevailing wage rate, nor of the obligation to pay any back | 19 | | wages, as determined under this Act. For the purposes of this | 20 | | subsection, back wages shall be limited to the difference | 21 | | between the actual amount paid and the prevailing rate of wages | 22 | | required to be paid for the project. The failure of a public | 23 | | body or other entity to provide written notice under this | 24 | | Section 4 does not diminish the right of a laborer, worker, or | 25 | | mechanic to the prevailing rate of wages as determined under | 26 | | this Act. |
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| 1 | | (b) It shall also be mandatory upon the contractor to whom | 2 | | the contract is
awarded
to insert into each subcontract and | 3 | | into the project specifications for each
subcontract a written | 4 | | stipulation to the effect that not less than the
prevailing
| 5 | | rate of wages shall be paid to all laborers, workers, and | 6 | | mechanics performing
work under the contract. It shall also be | 7 | | mandatory upon each subcontractor to
cause to be inserted into | 8 | | each lower tiered subcontract
and into the project | 9 | | specifications for each lower tiered subcontract a
stipulation | 10 | | to the effect that not less
than the prevailing rate of wages | 11 | | shall be paid to all laborers, workers, and
mechanics | 12 | | performing work under the contract. A contractor or | 13 | | subcontractor who
fails to comply with this subsection (b) is | 14 | | in violation of this Act.
| 15 | | (b-1) When a contractor has awarded work to a subcontractor | 16 | | without a contract or contract specification, the contractor | 17 | | shall comply with subsection (b) by providing a subcontractor | 18 | | with a written statement indicating that not less than the | 19 | | prevailing rate of wages shall be paid to all laborers, | 20 | | workers, and mechanics performing work on the project. A | 21 | | contractor or subcontractor who fails to comply with this | 22 | | subsection (b-1) is in violation of this Act. | 23 | | (b-2) Where a complaint is made and the Department of Labor | 24 | | determines that a violation has occurred, the Department of | 25 | | Labor shall determine if proper written notice under this | 26 | | Section 4 was given. If proper written notice was not provided |
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| 1 | | to the subcontractor by the contractor, the Department of Labor | 2 | | shall order the contractor to pay any interest, penalties, or | 3 | | fines that would have been owed by the subcontractor if proper | 4 | | written notice were provided. The failure by a contractor to | 5 | | provide written notice to a subcontractor does not relieve the | 6 | | subcontractor of the duty to comply with the prevailing wage | 7 | | rate, nor of the obligation to pay any back wages, as | 8 | | determined under this Act. For the purposes of this subsection, | 9 | | back wages shall be limited to the difference between the | 10 | | actual amount paid and the prevailing rate of wages required | 11 | | for the project. However, if proper written notice was not | 12 | | provided to the contractor by the public body or other entity | 13 | | under this Section 4, the Department of Labor shall order the | 14 | | public body or other entity to pay any interest, penalties, or | 15 | | fines that would have been owed by the subcontractor if proper | 16 | | written notice were provided. The failure by a public body or | 17 | | other entity to provide written notice does not relieve the | 18 | | subcontractor of the duty to comply with the prevailing wage | 19 | | rate, nor of the obligation to pay any back wages, as | 20 | | determined under this Act. For the purposes of this subsection, | 21 | | back wages shall be limited to the difference between the | 22 | | actual amount paid and the prevailing rate of wages required | 23 | | for the project. The failure to provide written notice by a | 24 | | public body, other entity, or contractor does not diminish the | 25 | | right of a laborer, worker, or mechanic to the prevailing rate | 26 | | of wages as determined under this Act. |
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| 1 | | (c) A public body or other entity shall also require in all | 2 | | contractor's and subcontractor's bonds
that the contractor or | 3 | | subcontractor include such provision as will guarantee the
| 4 | | faithful performance of such prevailing wage clause as provided | 5 | | by
contract or other written instrument. All bid specifications | 6 | | shall list the specified rates to all
laborers, workers and | 7 | | mechanics in the locality for each craft or type of
worker or | 8 | | mechanic needed to execute the contract.
| 9 | | (d) Any prevailing rate determined by a public body or the | 10 | | Department at the time of bid submission shall be the rate | 11 | | applicable for the duration of the contract awarded by the | 12 | | public body. If the Department of Labor
revises the prevailing | 13 | | rate of hourly wages to be paid by the public body or other | 14 | | entity, the
revised rate shall apply to such contract, and the | 15 | | public body or other entity shall be
responsible to notify the | 16 | | contractor and each subcontractor, of the revised
rate.
| 17 | | The public body or other entity shall discharge its duty to | 18 | | notify of the revised rates by inserting a written stipulation | 19 | | in all contracts or other written instruments that states the | 20 | | prevailing rate of wages are revised by the Department of Labor | 21 | | and are available on the Department's official website. This | 22 | | shall be deemed to be proper notification of any rate changes | 23 | | under this subsection. | 24 | | (e) Two or more investigatory hearings under this Section | 25 | | on the issue
of establishing a new prevailing wage | 26 | | classification for a particular craft
or type of worker shall |
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| 1 | | be consolidated in a single hearing before the
Department. Such | 2 | | consolidation shall occur whether each separate investigatory
| 3 | | hearing is conducted by a public body or the Department. The | 4 | | party requesting
a consolidated investigatory hearing shall | 5 | | have the burden of establishing that
there is no existing | 6 | | prevailing wage classification for the particular craft or
type | 7 | | of worker in any of the localities under consideration.
| 8 | | (f) It shall be mandatory upon the contractor or | 9 | | construction manager
to whom a contract for public works is | 10 | | awarded to post, at a
location on the project site of the | 11 | | public works that is
easily accessible to the workers engaged | 12 | | on the project,
the prevailing wage rates for each craft or | 13 | | type of worker
or mechanic needed to execute the contract or | 14 | | project or
work to be performed. In lieu of posting on the | 15 | | project site of the public works, a contractor which has a | 16 | | business location where laborers, workers, and mechanics | 17 | | regularly visit may: (1) post in a conspicuous location at that | 18 | | business the current prevailing wage rates for each county in | 19 | | which the contractor is performing work; or (2) provide such | 20 | | laborer, worker, or mechanic engaged on the public works | 21 | | project a written notice indicating the prevailing wage rates | 22 | | for the public works project. A failure to post or provide a | 23 | | prevailing wage
rate as required by this Section is a violation | 24 | | of this Act.
| 25 | | (Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)
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| 1 | | (820 ILCS 130/9) (from Ch. 48, par. 39s-9)
| 2 | | Sec. 9.
To effectuate the purpose and policy of this Act | 3 | | each public
body shall, during the month of June of each | 4 | | calendar year, investigate
and ascertain the prevailing rate of | 5 | | wages as defined in this Act and
publicly post or keep | 6 | | available for inspection by any interested party
in the main | 7 | | office of such public body its determination of such
prevailing | 8 | | rate of wage and shall promptly file, no later than July 15 of
| 9 | | each year, a certified copy thereof
in the office of the
| 10 | | Illinois Department of Labor.
| 11 | | The Department of Labor shall during the month of June of | 12 | | each calendar
year, investigate and ascertain the prevailing | 13 | | rate of wages for each county
in the State. If a public body | 14 | | does not investigate and ascertain the
prevailing
rate of wages | 15 | | during the month of June as required by the previous paragraph,
| 16 | | then the prevailing rate of wages for that public body shall be | 17 | | the rate
as determined by the Department under this paragraph | 18 | | for the county in which
such public body is located.
| 19 | | Where the Department of Labor ascertains the prevailing | 20 | | rate of
wages, it is the duty of the Department of Labor within | 21 | | 30 days after
receiving a notice from the public body | 22 | | authorizing the proposed work,
to conduct an investigation to | 23 | | ascertain the prevailing rate of wages as
defined in this Act | 24 | | and such investigation shall be conducted in the
locality in | 25 | | which the work is to be performed. The Department of Labor
| 26 | | shall send a certified copy of its findings to the public body
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| 1 | | authorizing the work and keep a record of its findings | 2 | | available for
inspection by any interested party in the office | 3 | | of the Department of
Labor at Springfield.
| 4 | | The public body except for the Department of Transportation | 5 | | with
respect to highway contracts shall within 30 days after | 6 | | filing with the Department of Labor, or the Department of Labor | 7 | | shall within 30 days
after filing with such public body, | 8 | | publish in a newspaper of general
circulation within the area | 9 | | that the determination is effective, a
notice of its | 10 | | determination and shall promptly mail a copy of its
| 11 | | determination to any employer, and to any association of | 12 | | employers and
to any person or association of employees who | 13 | | have filed their names and
addresses, requesting copies of any | 14 | | determination stating the particular
rates and the particular | 15 | | class of workers whose wages will be affected
by such rates.
| 16 | | At any time within 30 days after the Department of Labor | 17 | | has published
on its official web site a prevailing wage | 18 | | schedule, any person affected
thereby may object in writing to | 19 | | the determination or such part thereof
as they may deem | 20 | | objectionable by filing a written notice with the
public body | 21 | | or Department of Labor, whichever has made such
determination, | 22 | | stating the specified grounds of the objection. It shall
| 23 | | thereafter be the duty of the public body or Department of | 24 | | Labor to set
a date for a hearing on the objection after giving | 25 | | written notice to the
objectors at least 10 days before the | 26 | | date of the hearing and said
notice shall state the time and |
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| 1 | | place of such hearing. Such hearing by a
public body shall be | 2 | | held within 45 days after the objection is filed,
and shall not | 3 | | be postponed or reset for a later date except upon the
consent, | 4 | | in writing, of all the objectors and the public body. If such
| 5 | | hearing is not held by the public body within the time herein | 6 | | specified,
the Department of Labor may, upon request of the | 7 | | objectors, conduct the
hearing on behalf of the public body.
| 8 | | The public body or Department of Labor, whichever has made | 9 | | such
determination, is authorized in its discretion to hear | 10 | | each written
objection filed separately or consolidate for | 11 | | hearing any one or more
written objections filed with them. At | 12 | | such hearing the public body or
Department of Labor shall | 13 | | introduce in evidence the investigation it
instituted which | 14 | | formed the basis of its determination, and the public
body or | 15 | | Department of Labor, or any interested objectors may thereafter
| 16 | | introduce such evidence as is material to the issue. | 17 | | Thereafter, the
public body or Department of Labor, must rule | 18 | | upon the written objection
and make such final determination as | 19 | | it believes the evidence warrants,
and promptly file a | 20 | | certified copy of its final determination with such
public | 21 | | body, and serve a copy by personal
service or registered mail | 22 | | on all parties to the proceedings. The final
determination by | 23 | | the Department of Labor or a public body shall be rendered
| 24 | | within 30 days after the conclusion of the hearing.
| 25 | | If proceedings to review judicially the final | 26 | | determination of the
public body or Department of Labor are not |
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| 1 | | instituted as hereafter
provided, such determination shall be | 2 | | final and binding.
| 3 | | The provisions of the Administrative Review Law, and all | 4 | | amendments
and modifications thereof, and the rules
adopted | 5 | | pursuant thereto, shall apply to and govern all proceedings for
| 6 | | the judicial review of final administrative decisions of any | 7 | | public body
or the Department of Labor hereunder. The term | 8 | | "administrative decision"
is defined as in Section 3-101 of the | 9 | | Code of Civil Procedure.
| 10 | | Appeals from all final orders and judgments entered by the | 11 | | court in
review of the final administrative decision of the | 12 | | public body or
Department of Labor, may be taken by any party | 13 | | to the action.
| 14 | | Any proceeding in any court affecting a determination of | 15 | | the
Department of Labor or public body shall have priority in | 16 | | hearing and
determination over all other civil proceedings | 17 | | pending in said court,
except election contests.
| 18 | | In all reviews or appeals under this Act, it shall be the | 19 | | duty of the
Attorney General to represent the Department of | 20 | | Labor, and defend its
determination. The Attorney General shall | 21 | | not represent any public body,
except the State, in any such | 22 | | review or appeal.
| 23 | | Notwithstanding the provisions of this Section, any | 24 | | prevailing rate determined by a public body or the Department | 25 | | at the time of bid submission shall be the rate applicable for | 26 | | the duration of the contract awarded by the public body. |
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| 1 | | (Source: P.A. 98-173, eff. 1-1-14.)
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