Public Act 103-0350
 
HB3448 EnrolledLRB103 29664 SPS 56066 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 changing Section 13.5 as follows:
 
    (820 ILCS 115/13.5)
    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
where the aggregate costs of the project exceed $20,000 shall
assume, and is liable for, any debt owed to a claimant under
this Section 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 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) The following shall be exempt from liability under
this Section:
        (1) primary contractors who are parties to a
    collective bargaining agreement on the project where the
    work is being performed; and
        (2) primary contractors making or taking a contract in
    the State for the alteration or repair of an existing
    single-family dwelling or to a single residential unit in
    an existing multi-unit structure.
    (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.
    (i) Claims brought pursuant to this Section shall be filed
with the Department of Labor or filed with the circuit court
within 3 years after the wages, final compensation, or wage
supplements were due. This subsection does not apply to any
other claims under this Act or any other applicable law
against a primary contractor, subcontractor, or homeowner as
an employer.
    (j) Every primary contractor and subcontractor shall post
and keep posted, in one or more conspicuous places accessible
to all laborers, workers, and mechanics at a job site that is
subject to the requirements of this Section, a notice, to be
made available by the Director of Labor, summarizing the
requirements of this Section and information pertaining to the
filing of a complaint. The Director of Labor shall provide
copies of summaries and rules to primary contractors and
subcontractors upon request without charge. One copy of the
notice at a job site shall satisfy the notice requirement for
the primary contractor and all subcontractors. Any primary
contractor or subcontractor who fails to provide notice as
required by this Section shall be subject to a civil penalty,
not to exceed $250, payable to the Department of Labor.
(Source: P.A. 102-1065, eff. 6-10-22; 102-1076, eff. 6-10-22.)
 
    Section 99. Effective date. This Act takes effect July 1,
2023.