HB3448 EngrossedLRB103 29664 SPS 56066 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 changing Section 13.5 as follows:
 
6    (820 ILCS 115/13.5)
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
13where the aggregate costs of the project exceed $20,000 shall
14assume, and is liable for, any debt owed to a claimant under
15this Section by a subcontractor at any tier acting under, by,
16or for the primary contractor for the wage claimant's
17performance of labor included in the subject of the contract
18between the primary contractor and the owner. This Section
19does not apply to work performed by a contractor of the federal
20government, the State, a special district, a city, a county,
21or any political subdivision of the State.
22    (b) As used in this Section:
23    "Construction" means building, altering, repairing,

 

 

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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

 

 

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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) Nothing in this Section shall supersede or modify the
13obligations and liability that any primary contractor,
14subcontractor, or property owner may bear as an employer under
15this Act or any other applicable law. The obligations and
16remedies provided in this Section shall be in addition to any
17obligations and remedies otherwise provided by law. Nothing in
18this Section shall be construed to impose liability on a
19primary contractor for anything other than unpaid wages,
20fringe or other benefit payments or contributions, penalties
21assessed by the Department, interest owed, and reasonable
22attorney's fees.
23    (f) Claims brought pursuant to this Section shall be done
24so in accordance with this Act. Nothing in this Section shall
25be construed to provide a third party with the right to file a
26complaint with the Department alleging violation of this

 

 

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1Section.
2    (g) The following shall be exempt from liability under
3this Section:
4        (1) primary contractors who are parties to a
5    collective bargaining agreement on the project where the
6    work is being performed; and
7        (2) primary contractors making or taking a contract in
8    the State for the alteration or repair of an existing
9    single-family dwelling or to a single residential unit in
10    an existing multi-unit structure.
11    (h) Prior to the commencement of any civil action, a
12claimant or a representative of a claimant shall provide
13written notice to the employer and to the primary contractor
14detailing the nature and basis for the claim. Failure of the
15employer or the primary contractor to resolve the claim within
1610 days after receipt of this notice, or during any agreed upon
17period extending this deadline, may result in the filing of a
18civil action to enforce the provisions of this Act.
19    (i) Claims brought pursuant to this Section shall be filed
20with the Department of Labor or filed with the circuit court
21within 3 years after the wages, final compensation, or wage
22supplements were due. This subsection does not apply to any
23other claims under this Act or any other applicable law
24against a primary contractor, subcontractor, or homeowner as
25an employer.
26    (j) Every primary contractor and subcontractor shall post

 

 

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1and keep posted, in one or more conspicuous places on the
2premises where work is being performed, a notice, to be made
3available by the Director of Labor, summarizing the
4requirements of this Section and information pertaining to the
5filing of a complaint. The Director of Labor shall provide
6copies of summaries and rules to primary contractors and
7subcontractors upon request without charge. Any primary
8contractor or subcontractor who fails to provide notice as
9required by this Section shall be subject to a civil penalty,
10not to exceed $250, payable to the Department of Labor.
11(Source: P.A. 102-1065, eff. 6-10-22; 102-1076, eff. 6-10-22.)
 
12    Section 99. Effective date. This Act takes effect July 1,
132023.