101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB0163

 

Introduced 1/30/2019, by Sen. Cristina Castro

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/50-14.6 new
30 ILCS 500/50-60
820 ILCS 115/14  from Ch. 48, par. 39m-14

    Amends the Illinois Procurement Code. Prohibits any person or business that violates the Illinois Wage Payment and Collection Act, the Minimum Wage Law, the Illinois Worker Adjustment and Retraining Notification Act, the Employee Classification Act, the Day and Temporary Labor Services Act, the Fair Labor Standards Act of 1938, or any comparable statute or regulation of any state that governs the payment of wages to do business with the State or any State agency or enter into a subcontract that is subject to the Code for a period of 5 years. Amends the Illinois Wage Payment and Collection Act. Provides that every offer submitted to the State, every contract and subcontract executed by the State, and every submission to a vendor portal shall contain a certification that the certifying party is not barred from being awarded a contract or subcontract, and acknowledgment that the chief procurement officer may declare void the bid, offer, or contract on the basis that any of the certifications are false. Provides that any employee not timely paid wages, final compensation, or wage supplements by his or her employer shall be entitled to recover treble the amount of any such underpayments plus damages of 2% of the amount of any such underpayments for each month following the date of payment during which such underpayments remain unpaid. Provides that a subsequent failure to pay within 5 years (rather than 2 years) of a prior conviction is a Class 4 felony.


LRB101 04555 TAE 50903 b

 

 

A BILL FOR

 

SB0163LRB101 04555 TAE 50903 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Section 50-60 and by adding Section 50-14.6 as
6follows:
 
7    (30 ILCS 500/50-14.6 new)
8    Sec. 50-14.6. Wage payment violations.
9    (a) No person or business that has admitted guilt or
10liability or has been adjudicated guilty or liable in a
11judicial or administrative proceeding of committing a repeated
12or willful violation of the Illinois Wage Payment and
13Collection Act, the Minimum Wage Law, the Illinois Worker
14Adjustment and Retraining Notification Act, the Employee
15Classification Act, the Day and Temporary Labor Services Act,
16the Fair Labor Standards Act of 1938, any other State law
17relating to wages and payments of wages, or any comparable
18statute, law, or regulation of any state that governs wages or
19the payment of wages shall do business with the State of
20Illinois or any State agency or enter into a subcontract that
21is subject to this Code for a period of 5 years from the date of
22entry of an adverse civil judgment, conviction, entry of a
23plea, administrative finding, or admission of guilt. A repeated

 

 

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1violation is more than one admission of guilt or liability or
2adjudication of guilt or liability. A violation is willful if
3the employer either knew or showed reckless disregard for the
4matter of whether its conduct was prohibited by the statute,
5law, or regulation.
6    (b) Every bid or offer submitted to the State, every
7contract executed by the State, every submission to a vendor
8portal, and every subcontract subject to Section 20-120 of this
9Code shall contain a certification by the bidder, offeror,
10potential contractor, contractor, or subcontractor,
11respectively, that the bidder, offeror, potential contractor,
12contractor, or subcontractor is not barred from being awarded a
13contract or subcontract under this Section and acknowledges
14that the chief procurement officer at a contracting State
15agency may declare the related contract void if any of the
16certifications completed pursuant to this subsection are
17false. If the false certification is made by a subcontractor,
18then the contractor's submitted bid or offer and the executed
19contract may not be declared void unless the contractor refuses
20to terminate the subcontract upon the State's request after a
21finding that the subcontract's certification was false.
 
22    (30 ILCS 500/50-60)
23    Sec. 50-60. Voidable contracts.
24    (a) If any contract or amendment thereto is entered into or
25purchase or expenditure of funds is made at any time in

 

 

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1violation of this Code or any other law, the contract or
2amendment thereto may be declared void by the chief procurement
3officer or may be ratified and affirmed, provided the chief
4procurement officer determines that ratification is in the best
5interests of the State. If the contract is ratified and
6affirmed, it shall be without prejudice to the State's rights
7to any appropriate damages.
8    (b) If, during the term of a contract, the chief
9procurement officer determines that the contractor is
10delinquent in the payment of debt as set forth in Section 50-11
11of this Code, the chief procurement officer may declare the
12contract void if it determines that voiding the contract is in
13the best interests of the State. The Debt Collection Bureau
14shall adopt rules for the implementation of this subsection
15(b).
16    (c) If, during the term of a contract, the chief
17procurement officer determines that the contractor is in
18violation of Section 50-10.5 of this Code, the chief
19procurement officer shall declare the contract void.
20    (d) If, during the term of a contract, the contracting
21agency learns from an annual certification or otherwise
22determines that the contractor no longer qualifies to enter
23into State contracts by reason of Section 50-5, 50-10, 50-12,
2450-14, or 50-14.5, or 50-14.6 of this Article, the chief
25procurement officer may declare the contract void if it
26determines that voiding the contract is in the best interests

 

 

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1of the State.
2    (e) If, during the term of a contract, the chief
3procurement officer learns from an annual certification or
4otherwise determines that a subcontractor subject to Section
520-120 no longer qualifies to enter into State contracts by
6reason of Section 50-5, 50-10, 50-10.5, 50-11, 50-12, 50-14, or
750-14.5, or 50-14.6 of this Article, the chief procurement
8officer may declare the related contract void if it determines
9that voiding the contract is in the best interests of the
10State. However, the related contract shall not be declared void
11unless the contractor refuses to terminate the subcontract upon
12the State's request after a finding that the subcontractor no
13longer qualifies to enter into State contracts by reason of one
14of the Sections listed in this subsection.
15    (f) The changes to this Section made by Public Act 96-795
16apply to actions taken by the chief procurement officer on or
17after July 1, 2010.
18    (g) The changes to this Section made by this amendatory Act
19of the 101st General Assembly apply to actions taken by the
20chief procurement officer on or after its effective date.
21(Source: P.A. 96-493, eff. 1-1-10; 96-795, eff. 7-1-10 (see
22Section 5 of P.A. 96-793 for the effective date of changes made
23by P.A. 96-795); 96-1000, eff. 7-2-10; 97-895, eff. 8-3-12.)
 
24    Section 10. The Illinois Wage Payment and Collection Act is
25amended by changing Section 14 as follows:
 

 

 

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1    (820 ILCS 115/14)  (from Ch. 48, par. 39m-14)
2    Sec. 14. (a) Any employee not timely paid wages, final
3compensation, or wage supplements by his or her employer as
4required by this Act shall be entitled to recover through a
5claim filed with the Department of Labor or in a civil action,
6but not both, treble the amount of any such underpayments and
7damages of 2% of the amount of any such underpayments for each
8month following the date of payment during which such
9underpayments remain unpaid. In a civil action, such employee
10shall also recover costs and all reasonable attorney's fees.
11    (a-5) In addition to the remedies provided in subsections
12(a), (b), and (c) of this Section, any employer or any agent of
13an employer, who, being able to pay wages, final compensation,
14or wage supplements and being under a duty to pay, wilfully
15refuses to pay as provided in this Act, or falsely denies the
16amount or validity thereof or that the same is due, with intent
17to secure for himself or other person any underpayment of such
18indebtedness or with intent to annoy, harass, oppress, hinder,
19delay or defraud the person to whom such indebtedness is due,
20upon conviction, is guilty of:
21        (1) for unpaid wages, final compensation or wage
22    supplements in the amount of $5,000 or less, a Class B
23    misdemeanor; or
24        (2) for unpaid wages, final compensation or wage
25    supplements in the amount of more than $5,000, a Class A

 

 

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1    misdemeanor.
2    Each day during which any violation of this Act continues
3shall constitute a separate and distinct offense.
4    Any employer or any agent of an employer who violates this
5Section of the Act a subsequent time within 5 2 years of a
6prior criminal conviction under this Section is guilty, upon
7conviction, of a Class 4 felony.
8    (b) Any employer who has been demanded or ordered by the
9Department or ordered by the court to pay wages, final
10compensation, or wage supplements due an employee shall be
11required to pay a non-waivable administrative fee to the
12Department of Labor in the amount of $250 if the amount ordered
13by the Department as wages owed is $3,000 or less; $500 if the
14amount ordered by the Department as wages owed is more than
15$3,000, but less than $10,000; and $1,000 if the amount ordered
16by the Department as wages owed is $10,000 or more. Any
17employer who has been so demanded or ordered by the Department
18or ordered by a court to pay such wages, final compensation, or
19wage supplements and who fails to seek timely review of such a
20demand or order as provided for under this Act and who fails to
21comply within 15 calendar days after such demand or within 35
22days of an administrative or court order is entered shall also
23be liable to pay a penalty to the Department of Labor of 20% of
24the amount found owing and a penalty to the employee of 1% per
25calendar day of the amount found owing for each day of delay in
26paying such wages to the employee. All moneys recovered as fees

 

 

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1and civil penalties under this Act, except those owing to the
2affected employee, shall be deposited into the Wage Theft
3Enforcement Fund, a special fund which is hereby created in the
4State treasury. Moneys in the Fund may be used only for
5enforcement of this Act.
6    (b-5) Penalties and fees under this Section may be assessed
7by the Department and recovered in a civil action brought by
8the Department in any circuit court or in any administrative
9adjudicative proceeding under this Act. In any such civil
10action or administrative adjudicative proceeding under this
11Act, the Department shall be represented by the Attorney
12General.
13    (c) Any employer, or any agent of an employer, who
14discharges or in any other manner discriminates against any
15employee because that employee has made a complaint to his
16employer, to the Director of Labor or his authorized
17representative, in a public hearing, or to a community
18organization that he or she has not been paid in accordance
19with the provisions of this Act, or because that employee has
20caused to be instituted any proceeding under or related to this
21Act, or because that employee has testified or is about to
22testify in an investigation or proceeding under this Act, is
23guilty, upon conviction, of a Class C misdemeanor. An employee
24who has been unlawfully retaliated against shall be entitled to
25recover through a claim filed with the Department of Labor or
26in a civil action, but not both, all legal and equitable relief

 

 

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1as may be appropriate. In a civil action, such employee shall
2also recover costs and all reasonable attorney's fees.
3(Source: P.A. 98-527, eff. 1-1-14.)