102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5412

 

Introduced 1/31/2022, by Rep. Marcus C. Evans, Jr.

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 115/13.5 new

    Amends the Illinois Wage Payment and Collection Act. Provides that, 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, shall assume, and is liable for, any debt owed to a claimant incurred pursuant to the 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. Provides exemption from liability for a property owner who acts as a primary contractor related to the erection, construction, alteration, or repair of his or her primary residence. Defines terms. Provides that the primary contractor's liability under the new provisions 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. Provides that a primary contractor or any other person shall not evade or commit any act that negates the requirements of the new provisions. Provides that the obligations and remedies provided in the new provisions shall be in addition to any obligations and remedies otherwise provided by law, except that nothing in the new provisions shall be construed to impose liability on a primary contractor for anything other than unpaid wages, fringe or other benefit payment contributions, penalties assessed by the Department of Labor, interest owed, and reasonable attorney's fees. Provides that claims brought pursuant to the new provisions shall be done so in accordance with provisions concerning violations of the Act.


LRB102 25322 SPS 34596 b

 

 

A BILL FOR

 

HB5412LRB102 25322 SPS 34596 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 Wage Payment and Collection Act is
5amended by adding Section 13.5 as follows:
 
6    (820 ILCS 115/13.5 new)
7    Sec. 13.5. Primary contractor responsibility for wage
8claims in construction industry.
9    (a) For all contracts entered into on or after July 1,
102022, a primary contractor making or taking a contract in the
11State for the erection, construction, alteration, or repair of
12a building, structure, or other private work in the State,
13shall assume, and is liable for, any debt owed to a claimant
14under this Section or to a third party on a wage claimant's
15behalf incurred pursuant to this Act by a subcontractor at any
16tier acting under, by, or for the primary contractor for the
17wage claimant's performance of labor included in the subject
18of the contract between the primary contractor and the owner.
19This Section does not apply to work performed by a contractor
20of the State, a special district, a city, a county, or any
21political subdivision of the State.
22    (b) As used in this Section:
23    "Construction" means building, altering, repairing,

 

 

HB5412- 2 -LRB102 25322 SPS 34596 b

1improving, or demolishing any structure or building or making
2improvements of any kind to real property.
3    "Primary contractor" means a contractor that has a direct
4contractual relationship with a property owner. "Primary
5contractor" may have the same meaning as a "general
6contractor", "prime contractor", or "construction manager". A
7property owner who acts as a primary contractor related to the
8erection, construction, alteration, or repair of his or her
9primary residence shall be exempt from liability under this
10Section.
11    "Private work" means any erection, construction,
12alteration, or repair of a building, structure, or other work.
13    "Subcontractor" means a contractor that has a contractual
14relationship with the primary contractor or with another
15subcontractor at any tier, who furnishes any goods or services
16in connection with the contract between the primary contractor
17and the property owner, but does not include contractors who
18solely provide goods and transport of such goods related to
19the contract.
20    (c) The primary contractor's liability under this Section
21shall extend only to any unpaid wages or fringe or other
22benefit payments or contributions, including interest owed,
23penalties assessed by the Department, and reasonable
24attorney's fees, but shall not extend to liquidated damages.
25    (d) A primary contractor or any other person shall not
26evade or commit any act that negates the requirements of this

 

 

HB5412- 3 -LRB102 25322 SPS 34596 b

1Section. Except as otherwise provided in a contract between
2the primary contractor and the subcontractor, the
3subcontractor shall indemnify the primary contractor for any
4wages, fringe or other benefit payments or contributions,
5damages, interest, penalties, or attorney's fees owed as a
6result of the subcontractor's failure to pay wages or fringe
7or other benefit payments or contributions as provided in this
8Section, unless the subcontractor's failure to pay was due to
9the primary contractor's failure to pay moneys due to the
10subcontractor in accordance with the terms of their
11contractual relationship.
12    (e) The obligations and remedies provided in this Section
13shall be in addition to any obligations and remedies otherwise
14provided by law, except that nothing in this Section shall be
15construed to impose liability on a primary contractor for
16anything other than unpaid wages, fringe or other benefit
17payments or contributions, penalties assessed by the
18Department, interest owed, and reasonable attorney's fees.
19    (f) Claims brought pursuant to this Section shall be done
20so in accordance with Section 11 and 11.5 of this Act. Nothing
21in this Section shall be construed to provide a third party
22with the right to file a complaint with the Department
23alleging violation of this Section.