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| Public Act 102-1076 | ||||
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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 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
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claims in construction industry. | ||||
(a) For all contracts entered into on or after July 1,
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2022, a primary contractor making or taking a contract in the
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State for the erection, construction, alteration, or repair of
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a building, structure, or other private work in the State,
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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
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contractual relationship with a property owner. "Primary
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contractor" may have the same meaning as a "general
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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
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Section. | ||
"Private work" means any erection, construction,
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alteration, or repair of a building, structure, or other work. | ||
"Subcontractor" means a contractor that has a contractual
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relationship with the primary contractor or with another
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subcontractor at any tier, who furnishes any goods or services
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in connection with the contract between the primary contractor
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and the property owner, but does not include contractors who
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solely provide goods and transport of such goods related to
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the contract. | ||
(c) The primary contractor's liability under this Section
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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
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evade or commit any act that negates the requirements of this
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Section. Except as otherwise provided in a contract between
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the primary contractor and the subcontractor, the
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subcontractor shall indemnify the primary contractor for any
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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
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subcontractor in accordance with the terms of their
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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
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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.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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