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Public Act 102-1076


 

Public Act 1076 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-1076
 
HB5412 EnrolledLRB102 25322 SPS 34596 b

    AN ACT concerning employment.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Wage Payment and Collection Act is
amended by adding Section 13.5 as follows:
 
    (820 ILCS 115/13.5 new)
    Sec. 13.5. Primary contractor responsibility for wage
claims in construction industry.
    (a) For all contracts entered into on or after July 1,
2022, a primary contractor making or taking a contract in the
State for the erection, construction, alteration, or repair of
a building, structure, or other private work in the State,
shall assume, and is liable for, any debt owed to a claimant
under this Section or to a third party on a wage claimant's
behalf incurred pursuant to this Act by a subcontractor at any
tier acting under, by, or for the primary contractor for the
wage claimant's performance of labor included in the subject
of the contract between the primary contractor and the owner.
This Section does not apply to work performed by a contractor
of the federal government, the State, a special district, a
city, a county, or any political subdivision of the State.
    (b) As used in this Section:
    "Construction" means building, altering, repairing,
improving, or demolishing any structure or building or making
improvements of any kind to real property.
    "Primary contractor" means a contractor that has a direct
contractual relationship with a property owner. "Primary
contractor" may have the same meaning as a "general
contractor", "prime contractor", or "construction manager". A
property owner who acts as a primary contractor related to the
erection, construction, alteration, or repair of his or her
primary residence shall be exempt from liability under this
Section.
    "Private work" means any erection, construction,
alteration, or repair of a building, structure, or other work.
    "Subcontractor" means a contractor that has a contractual
relationship with the primary contractor or with another
subcontractor at any tier, who furnishes any goods or services
in connection with the contract between the primary contractor
and the property owner, but does not include contractors who
solely provide goods and transport of such goods related to
the contract.
    (c) The primary contractor's liability under this Section
shall extend only to any unpaid wages or fringe or other
benefit payments or contributions, including interest owed,
penalties assessed by the Department, and reasonable
attorney's fees, but shall not extend to liquidated damages.
    (d) A primary contractor or any other person shall not
evade or commit any act that negates the requirements of this
Section. Except as otherwise provided in a contract between
the primary contractor and the subcontractor, the
subcontractor shall indemnify the primary contractor for any
wages, fringe or other benefit payments or contributions,
damages, interest, penalties, or attorney's fees owed as a
result of the subcontractor's failure to pay wages or fringe
or other benefit payments or contributions as provided in this
Section, unless the subcontractor's failure to pay was due to
the primary contractor's failure to pay moneys due to the
subcontractor in accordance with the terms of their
contractual relationship.
    (e) Nothing in this Section shall supersede or modify the
obligations and liability that any primary contractor,
subcontractor, or property owner may bear as an employer under
this Act or any other applicable law. The obligations and
remedies provided in this Section shall be in addition to any
obligations and remedies otherwise provided by law. Nothing in
this Section shall be construed to impose liability on a
primary contractor for anything other than unpaid wages,
fringe or other benefit payments or contributions, penalties
assessed by the Department, interest owed, and reasonable
attorney's fees.
    (f) Claims brought pursuant to this Section shall be done
so in accordance with Section 11 and 11.5 of this Act. Nothing
in this Section shall be construed to provide a third party
with the right to file a complaint with the Department
alleging violation of this Section.
    (g) Primary contractors who are parties to a collective
bargaining agreement on the project where the work is being
performed shall be exempt from this Section.
    (h) Prior to the commencement of any civil action, a
claimant or a representative of a claimant shall provide
written notice to the employer and to the primary contractor
detailing the nature and basis for the claim. Failure of the
employer or the primary contractor to resolve the claim within
10 days after receipt of this notice, or during any agreed upon
period extending this deadline, may result in the filing of a
civil action to enforce the provisions of this Act.
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 6/10/2022