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| Public Act 097-0964 | ||||
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AN ACT concerning wages.
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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 | ||||
Section 4 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 public body awarding any contract for public work | ||||
or
otherwise undertaking any public works, shall ascertain the | ||||
general
prevailing rate of hourly wages in the locality in | ||||
which the work is to
be performed, for each craft or type of | ||||
worker or mechanic needed to
execute the contract, and where | ||||
the public body performs the work
without letting a contract | ||||
therefor, shall ascertain the prevailing rate
of wages on a per | ||||
hour basis in the locality, and such public body shall
specify | ||||
in the resolution or ordinance and in the call for bids for the
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contract, 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 public body or 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; | ||
provided, however, that if the public body
desires that the | ||
Department of Labor ascertain the prevailing rate of
wages, it | ||
shall notify the Department of Labor to ascertain the general
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prevailing rate of hourly wages for work under contract, or for | ||
work
performed by a public body without letting a contract as | ||
required in the
locality in which the work is to be performed, | ||
for each craft or type of
worker or mechanic needed to execute | ||
the contract or project or work to
be performed. Upon such | ||
notification the Department of Labor shall
ascertain such | ||
general prevailing rate of wages, and certify the
prevailing | ||
wage to such public body. | ||
(a-1) 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
public body or | ||
Department of Labor or determined by the court on review
shall | ||
be paid to all laborers, workers and mechanics performing work
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under the contract.
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(a-2) 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 (a-1) 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 as found by the | ||
public body or Department of Labor or determined by the court | ||
on review shall be paid to all laborers, workers, and mechanics | ||
performing work on the project. | ||
(a-3) 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. | ||
(b) 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 (b) is | ||
in violation of this Act.
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(b-1) When a contractor has awarded work to a subcontractor | ||
without a contract or contract specification, the contractor | ||
shall comply with subsection (b) 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 (b-1) is in violation of this Act. | ||
(b-2) 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. | ||
(c) 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
worker or | ||
mechanic needed to execute the contract.
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(d) 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. | ||
(e) 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. Such | ||
consolidation shall occur whether each separate investigatory
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hearing is conducted by a public body or 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
type | ||
of worker in any of the localities under consideration.
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(f) 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. 95-331, eff. 8-21-07; 96-437, eff. 1-1-10.)
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