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| Public Act 103-0048 | ||||
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AN ACT concerning employment.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Prevailing Wage Act is amended by changing | ||||
Sections 4 and 11 as follows:
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(820 ILCS 130/4) (from Ch. 48, par. 39s-4)
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Sec. 4. Ascertaining prevailing wage. | ||||
(a) The prevailing rate of wages paid to individuals | ||||
covered under this Act shall not be less than the
rate that | ||||
prevails for work of a similar character on public works in the | ||||
locality in which the
work is performed under collective | ||||
bargaining agreements or understandings between employers
or | ||||
employer associations and bona fide labor organizations | ||||
relating to each craft or type of
worker or mechanic needed to | ||||
execute the contract or perform such work, and collective
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bargaining agreements or understandings successor thereto, | ||||
provided that said employers or
members of said employer | ||||
associations employ at least 30% of the laborers, workers, or
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mechanics in the same trade or occupation in the locality | ||||
where the work is being performed. | ||||
(b) If the prevailing rates of wages and fringe benefits | ||||
cannot reasonably and fairly be applied
in any locality | ||||
because no such agreements or understandings exist, the | ||||
Department of Labor
shall determine the rates and fringe | ||
benefits for the same or most similar work in the nearest and
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most similar neighboring locality in which such agreements or | ||
understandings exist. The
Department of Labor shall keep a | ||
record of its findings available for inspection by any | ||
interested
party in the office of the Department of Labor. | ||
(c) In the event it is determined, after a written | ||
objection is filed and hearing is held in
accordance with | ||
Section 9 of this Act, that less than 30% of the laborers, | ||
workers, or
mechanics in a particular trade or occupation in | ||
the locality where the work is performed receive
a | ||
collectively bargained rate of wage, then the average wage | ||
paid to such laborers, workers, or
mechanics in the same trade | ||
or occupation in the locality for the 12-month period | ||
preceding
the Department of Labor's annual determination shall | ||
be the prevailing rate of wage. | ||
(d) The public body awarding any contract for public work | ||
or
otherwise undertaking any public works shall
specify in the | ||
call for bids for the
contract, or where the public body | ||
performs the work without letting the contract in a written | ||
instrument provided to the contractor, that the general | ||
prevailing rate of wages in the locality for
each craft or type | ||
of worker or mechanic needed to execute the contract
or | ||
perform such work, also the general prevailing rate for legal | ||
holiday
and overtime work, as ascertained by the
Department of | ||
Labor shall be paid for each craft or type of worker
needed to | ||
execute the contract or to perform such work, and it shall be
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mandatory upon the contractor to whom the contract is awarded | ||
and upon
any subcontractor under him, and where the public | ||
body performs the
work, upon the public body, to pay not less | ||
than the specified rates to
all laborers, workers and | ||
mechanics employed by them in the execution of
the contract or | ||
such work. Compliance with this Act is a matter of statewide | ||
concern, and a public body may not opt out of any provisions | ||
herein. | ||
(e) The public body or other entity awarding the
contract | ||
shall cause to be inserted in the project specifications and | ||
the
contract a stipulation to the
effect that not less than the | ||
prevailing rate of wages as found by the
Department of Labor or | ||
determined by the court on review
shall be paid to all | ||
laborers, workers and mechanics performing work
under the | ||
contract.
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(f) When a public body or other entity covered by this Act | ||
has awarded work to a contractor without a public bid, | ||
contract or project specification, such public body or other | ||
entity shall comply with subsection (e) by providing the | ||
contractor with written notice on the purchase order related | ||
to the work to be done or on a separate document indicating | ||
that not less than the prevailing rate of wages ascertained by | ||
the Department of Labor or determined by the court on review | ||
shall be paid to all laborers, workers, and mechanics | ||
performing work on the project. | ||
(g) Where a complaint is made and the Department of Labor | ||
determines that a violation occurred, the Department of Labor | ||
shall determine if proper written notice under this Section 4 | ||
was given. If proper written notice was not provided to the | ||
contractor by the public body or other entity, the Department | ||
of Labor shall order the public body or other entity to pay any | ||
interest, penalties or fines that would have been owed by the | ||
contractor if proper written notice were provided. The failure | ||
by a public body or other entity to provide written notice does | ||
not relieve the contractor of the duty to comply with the | ||
prevailing wage rate, nor of the obligation to pay any back | ||
wages, as determined under this Act. For the purposes of this | ||
subsection, back wages shall be limited to the difference | ||
between the actual amount paid and the prevailing rate of | ||
wages required to be paid for the project. The failure of a | ||
public body or other entity to provide written notice under | ||
this Section 4 does not diminish the right of a laborer, | ||
worker, or mechanic to the prevailing rate of wages as | ||
determined under this Act. | ||
Any laborer, worker, or mechanic who is employed by the | ||
contractor or by any sub-contractor and is paid for services | ||
in a sum less than the prevailing wage rates for work performed | ||
on a project shall have a right of action for whatever | ||
difference there may be between (i) the amount so paid and (ii) | ||
the prevailing rates required to be paid for work performed on | ||
the project. | ||
(h) It shall also be mandatory upon the contractor to whom | ||
the contract is
awarded
to insert into each subcontract and | ||
into the project specifications for each
subcontract a written | ||
stipulation to the effect that not less than the
prevailing
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rate of wages shall be paid to all laborers, workers, and | ||
mechanics performing
work under the contract. It shall also be | ||
mandatory upon each subcontractor to
cause to be inserted into | ||
each lower tiered subcontract
and into the project | ||
specifications for each lower tiered subcontract a
stipulation | ||
to the effect that not less
than the prevailing rate of wages | ||
shall be paid to all laborers, workers, and
mechanics | ||
performing work under the contract. A contractor or | ||
subcontractor who
fails to comply with this subsection is in | ||
violation of this Act.
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(i) When a contractor has awarded work to a subcontractor | ||
without a contract or contract specification, the contractor | ||
shall comply with subsection (h) by providing a subcontractor | ||
with a written statement indicating that not less than the | ||
prevailing rate of wages shall be paid to all laborers, | ||
workers, and mechanics performing work on the project. A | ||
contractor or subcontractor who fails to comply with this | ||
subsection is in violation of this Act. | ||
(j) Where a complaint is made and the Department of Labor | ||
determines that a violation has occurred, the Department of | ||
Labor shall determine if proper written notice under this | ||
Section 4 was given. If proper written notice was not provided | ||
to the subcontractor by the contractor, the Department of | ||
Labor shall order the contractor to pay any interest, | ||
penalties, or fines that would have been owed by the | ||
subcontractor if proper written notice were provided. The | ||
failure by a contractor to provide written notice to a | ||
subcontractor does not relieve the subcontractor of the duty | ||
to comply with the prevailing wage rate, nor of the obligation | ||
to pay any back wages, as determined under this Act. For the | ||
purposes of this subsection, back wages shall be limited to | ||
the difference between the actual amount paid and the | ||
prevailing rate of wages required for the project. However, if | ||
proper written notice was not provided to the contractor by | ||
the public body or other entity under this Section 4, the | ||
Department of Labor shall order the public body or other | ||
entity to pay any interest, penalties, or fines that would | ||
have been owed by the subcontractor if proper written notice | ||
were provided. The failure by a public body or other entity to | ||
provide written notice does not relieve the subcontractor of | ||
the duty to comply with the prevailing wage rate, nor of the | ||
obligation to pay any back wages, as determined under this | ||
Act. For the purposes of this subsection, back wages shall be | ||
limited to the difference between the actual amount paid and | ||
the prevailing rate of wages required for the project. The | ||
failure to provide written notice by a public body, other | ||
entity, or contractor does not diminish the right of a | ||
laborer, worker, or mechanic to the prevailing rate of wages | ||
as determined under this Act. | ||
(k) A public body or other entity shall also require in all | ||
contractor's and subcontractor's bonds
that the contractor or | ||
subcontractor include such provision as will guarantee the
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faithful performance of such prevailing wage clause as | ||
provided by
contract or other written instrument. All bid | ||
specifications shall list the specified rates to all
laborers, | ||
workers and mechanics in the locality for each craft or type of
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worker or mechanic needed to execute the contract.
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(l) If the Department of Labor
revises the prevailing rate | ||
of hourly wages to be paid by the public body or other entity, | ||
the
revised rate shall apply to such contract, and the public | ||
body or other entity shall be
responsible to notify the | ||
contractor and each subcontractor, of the revised
rate.
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The public body or other entity shall discharge its duty | ||
to notify of the revised rates by inserting a written | ||
stipulation in all contracts or other written instruments that | ||
states the prevailing rate of wages are revised by the | ||
Department of Labor and are available on the Department's | ||
official website. This shall be deemed to be proper | ||
notification of any rate changes under this subsection. | ||
(m) Two or more investigatory hearings under this Section | ||
on the issue
of establishing a new prevailing wage | ||
classification for a particular craft
or type of worker shall | ||
be consolidated in a single hearing before the
Department. The | ||
party requesting
a consolidated investigatory hearing shall | ||
have the burden of establishing that
there is no existing | ||
prevailing wage classification for the particular craft or
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type of worker in any of the localities under consideration.
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(n) It shall be mandatory upon the contractor or | ||
construction manager
to whom a contract for public works is | ||
awarded to post, at a
location on the project site of the | ||
public works that is
easily accessible to the workers engaged | ||
on the project,
the prevailing wage rates for each craft or | ||
type of worker
or mechanic needed to execute the contract or | ||
project or
work to be performed. In lieu of posting on the | ||
project site of the public works, a contractor which has a | ||
business location where laborers, workers, and mechanics | ||
regularly visit may: (1) post in a conspicuous location at | ||
that business the current prevailing wage rates for each | ||
county in which the contractor is performing work; or (2) | ||
provide such laborer, worker, or mechanic engaged on the | ||
public works project a written notice indicating the | ||
prevailing wage rates for the public works project. A failure | ||
to post or provide a prevailing wage
rate as required by this | ||
Section is a violation of this Act.
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(Source: P.A. 100-1177, eff. 6-1-19.)
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(820 ILCS 130/11) (from Ch. 48, par. 39s-11)
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Sec. 11. No public works project shall be instituted | ||
unless the
provisions of this Act have been complied with. The | ||
provisions of this
Act shall not be applicable to Federal | ||
construction projects which
require a prevailing wage | ||
determination by the United States Secretary
of Labor. The | ||
Illinois Department of Labor represented by the Attorney
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General is empowered to sue for injunctive relief against the | ||
awarding of
any contract or the continuation of work under any | ||
contract for public works
at a time when the prevailing wage | ||
prerequisites have not been met. Any
contract for public works | ||
awarded at a time when the prevailing wage prerequisites
had | ||
not been met shall be void as against public policy and the | ||
contractor
is prohibited from recovering any damages
for the | ||
voiding of the contract or pursuant to the terms of the | ||
contract.
The contractor is limited to a claim for amounts | ||
actually paid for labor
and materials supplied to the public | ||
body. Where objections to a determination
of the prevailing | ||
rate of
wages or a court action relative thereto is pending, | ||
the public body
shall not continue work on the project unless | ||
sufficient funds are
available to pay increased wages if such | ||
are finally determined or
unless the Department of Labor | ||
certifies such determination of the
prevailing rate of wages | ||
as correct.
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Any laborer, worker or mechanic employed by the contractor | ||
or by any sub-contractor
under him who is paid for his services | ||
in a sum less than the prevailing stipulated
rates for work | ||
done under such contract, shall
have a right of action for | ||
whatever difference there may be between the
amount so paid, | ||
and the rates provided by the contract together with
costs and | ||
such reasonable attorney's fees as
shall be allowed by the | ||
court. Such contractor or subcontractor shall also
be liable | ||
to the
Department of Labor for
20% of
such underpayments and | ||
shall be additionally liable to the laborer, worker
or | ||
mechanic for punitive damages in the amount of
2% of the amount | ||
of any
such penalty to the
State for underpayments for each | ||
month following the date of payment during
which such | ||
underpayments
remain unpaid. Where a second or subsequent | ||
action to recover underpayments is brought against a | ||
contractor or subcontractor and the contractor or | ||
subcontractor is found liable for underpayments to any | ||
laborer, worker, or mechanic, the contractor or subcontractor | ||
shall also be liable to the Department of Labor for 50% of the | ||
underpayments payable as a result of the second or subsequent | ||
action, and shall be additionally liable for 5% of the amount | ||
of any such penalty to the State for underpayments for each | ||
month following the date of payment during which the | ||
underpayments remain unpaid. The Department shall also have a | ||
right of action on behalf
of any individual who has a right of | ||
action under this Section. An action brought
to recover same | ||
shall be deemed to be a suit for wages, and any and all
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judgments entered therein shall have the same force and effect | ||
as other
judgments for wages.
The action shall be brought | ||
within 5 years from the date of the failure to pay the wages or | ||
compensation. At the request of any laborer, workman or | ||
mechanic
employed by the contractor or by any subcontractor | ||
under him who is paid
less than the prevailing wage rate | ||
required by this Act, the Department
of Labor may take an | ||
assignment of such wage claim in trust for the assigning
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laborer, workman or mechanic and may bring any legal action | ||
necessary to
collect such claim, and the contractor or | ||
subcontractor shall be required
to pay the costs incurred in | ||
collecting such claim.
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(Source: P.A. 98-328, eff. 1-1-14.)
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