103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB0249

 

Introduced 1/31/2023, by Sen. Michael W. Halpin

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 130/1  from Ch. 48, par. 39s-1
820 ILCS 130/2  from Ch. 48, par. 39s-2
820 ILCS 130/3  from Ch. 48, par. 39s-3
820 ILCS 130/5  from Ch. 48, par. 39s-5
820 ILCS 130/11  from Ch. 48, par. 39s-11

    Amends the Prevailing Wage Act. Provides that the provisions of the Act apply to the construction or demolition of public works performed by an employee of a public body engaged in the construction or demolition of public works on behalf of another public body. Makes conforming changes.


LRB103 27721 SPS 54098 b

 

 

A BILL FOR

 

SB0249LRB103 27721 SPS 54098 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 Prevailing Wage Act is amended by changing
5Sections 1, 2, 3, 5, and 11 as follows:
 
6    (820 ILCS 130/1)  (from Ch. 48, par. 39s-1)
7    Sec. 1. It is the policy of the State of Illinois that a
8wage of no less than the general prevailing hourly rate as paid
9for work of a similar character in the locality in which the
10work is performed, shall be paid to all laborers, workers and
11mechanics employed by or on behalf of any and all public bodies
12engaged in public works. It is also the policy of the State of
13Illinois that a wage of no less than the general prevailing
14hourly rate as paid for work of a similar character in the
15locality in which the work is performed shall be paid to all
16employees of public bodies when engaged in public works on
17behalf of other public bodies.
18(Source: P.A. 83-443.)
 
19    (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
20    Sec. 2. This Act applies to the wages of laborers,
21mechanics and other workers employed in any public works, as
22hereinafter defined, by any public body and to anyone under

 

 

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1contracts for public works. This includes any maintenance,
2repair, assembly, or disassembly work performed on equipment
3whether owned, leased, or rented.
4    As used in this Act, unless the context indicates
5otherwise:
6    "Public works" means all fixed works constructed or
7demolished by any public body, or paid for wholly or in part
8out of public funds, including fixed works constructed or
9demolished by a public body on behalf of another public body.
10"Public works" as defined herein includes all projects
11financed in whole or in part with bonds, grants, loans, or
12other funds made available by or through the State or any of
13its political subdivisions, including but not limited to:
14bonds issued under the Industrial Project Revenue Bond Act
15(Article 11, Division 74 of the Illinois Municipal Code), the
16Industrial Building Revenue Bond Act, the Illinois Finance
17Authority Act, the Illinois Sports Facilities Authority Act,
18or the Build Illinois Bond Act; loans or other funds made
19available pursuant to the Build Illinois Act; loans or other
20funds made available pursuant to the Riverfront Development
21Fund under Section 10-15 of the River Edge Redevelopment Zone
22Act; or funds from the Fund for Illinois' Future under Section
236z-47 of the State Finance Act, funds for school construction
24under Section 5 of the General Obligation Bond Act, funds
25authorized under Section 3 of the School Construction Bond
26Act, funds for school infrastructure under Section 6z-45 of

 

 

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1the State Finance Act, and funds for transportation purposes
2under Section 4 of the General Obligation Bond Act. "Public
3works" also includes (i) all projects financed in whole or in
4part with funds from the Environmental Protection Agency under
5the Illinois Renewable Fuels Development Program Act for which
6there is no project labor agreement; (ii) all work performed
7pursuant to a public private agreement under the Public
8Private Agreements for the Illiana Expressway Act or the
9Public-Private Agreements for the South Suburban Airport Act;
10(iii) all projects undertaken under a public-private agreement
11under the Public-Private Partnerships for Transportation Act;
12and (iv) all transportation facilities undertaken under a
13design-build contract or a Construction Manager/General
14Contractor contract under the Innovations for Transportation
15Infrastructure Act. "Public works" also includes all projects
16at leased facility property used for airport purposes under
17Section 35 of the Local Government Facility Lease Act. "Public
18works" also includes the construction of a new wind power
19facility by a business designated as a High Impact Business
20under Section 5.5(a)(3)(E) and the construction of a new
21utility-scale solar power facility by a business designated as
22a High Impact Business under Section 5.5(a)(3)(E-5) of the
23Illinois Enterprise Zone Act. "Public works" also includes
24electric vehicle charging station projects financed pursuant
25to the Electric Vehicle Act and renewable energy projects
26required to pay the prevailing wage pursuant to the Illinois

 

 

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1Power Agency Act. "Public works" does not include work done
2directly by any public utility company, whether or not done
3under public supervision or direction, or paid for wholly or
4in part out of public funds. "Public works" also includes
5construction projects performed by a third party contracted by
6any public utility, as described in subsection (a) of Section
72.1, in public rights-of-way, as defined in Section 21-201 of
8the Public Utilities Act, whether or not done under public
9supervision or direction, or paid for wholly or in part out of
10public funds. "Public works" also includes construction
11projects that exceed 15 aggregate miles of new fiber optic
12cable, performed by a third party contracted by any public
13utility, as described in subsection (b) of Section 2.1, in
14public rights-of-way, as defined in Section 21-201 of the
15Public Utilities Act, whether or not done under public
16supervision or direction, or paid for wholly or in part out of
17public funds. "Public works" also includes any corrective
18action performed pursuant to Title XVI of the Environmental
19Protection Act for which payment from the Underground Storage
20Tank Fund is requested. "Public works" does not include
21projects undertaken by the owner at an owner-occupied
22single-family residence or at an owner-occupied unit of a
23multi-family residence. "Public works" does not include work
24performed for soil and water conservation purposes on
25agricultural lands, whether or not done under public
26supervision or paid for wholly or in part out of public funds,

 

 

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1done directly by an owner or person who has legal control of
2those lands.
3    "Construction" means all work on public works involving
4laborers, workers or mechanics. This includes any maintenance,
5repair, assembly, or disassembly work performed on equipment
6whether owned, leased, or rented.
7    "Locality" means the county where the physical work upon
8public works is performed, except (1) that if there is not
9available in the county a sufficient number of competent
10skilled laborers, workers and mechanics to construct the
11public works efficiently and properly, "locality" includes any
12other county nearest the one in which the work or construction
13is to be performed and from which such persons may be obtained
14in sufficient numbers to perform the work and (2) that, with
15respect to contracts for highway work with the Department of
16Transportation of this State, "locality" may at the discretion
17of the Secretary of the Department of Transportation be
18construed to include two or more adjacent counties from which
19workers may be accessible for work on such construction.
20    "Public body" means the State or any officer, board or
21commission of the State or any political subdivision or
22department thereof, or any institution supported in whole or
23in part by public funds, and includes every county, city,
24town, village, township, school district, irrigation, utility,
25reclamation improvement or other district and every other
26political subdivision, district or municipality of the state

 

 

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1whether such political subdivision, municipality or district
2operates under a special charter or not.
3    "Labor organization" means an organization that is the
4exclusive representative of an employer's employees recognized
5or certified pursuant to the National Labor Relations Act.
6    The terms "general prevailing rate of hourly wages",
7"general prevailing rate of wages" or "prevailing rate of
8wages" when used in this Act mean the hourly cash wages plus
9annualized fringe benefits for training and apprenticeship
10programs approved by the U.S. Department of Labor, Bureau of
11Apprenticeship and Training, health and welfare, insurance,
12vacations and pensions paid generally, in the locality in
13which the work is being performed, to employees engaged in
14work of a similar character on public works.
15(Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21;
16102-673, eff. 11-30-21; 102-813, eff. 5-13-22; 102-1094, eff.
176-15-22.)
 
18    (820 ILCS 130/3)  (from Ch. 48, par. 39s-3)
19    Sec. 3. Not less than the general prevailing rate of
20hourly wages for work of a similar character on public works in
21the locality in which the work is performed, and not less than
22the general prevailing rate of hourly wages for legal holiday
23and overtime work, shall be paid to all laborers, workers and
24mechanics employed by or on behalf of any public body engaged
25in the construction or demolition of public works. This

 

 

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1includes any maintenance, repair, assembly, or disassembly
2work performed on equipment whether owned, leased, or rented.
3This also includes the construction or demolition of public
4works performed by an employee of a public body engaged in the
5construction or demolition of public works on behalf of
6another public body. Only such laborers, workers and mechanics
7as are directly employed by contractors or subcontractors in
8actual construction work on the site of the building or
9construction job, and laborers, workers and mechanics engaged
10in the transportation of materials and equipment to or from
11the site, but not including the transportation by the sellers
12and suppliers or the manufacture or processing of materials or
13equipment, in the execution of any contract or contracts for
14public works with any public body shall be deemed to be
15employed upon public works. The wage for a tradesman
16performing maintenance is equivalent to that of a tradesman
17engaged in construction or demolition.
18(Source: P.A. 95-341, eff. 8-21-07; 96-186, eff. 1-1-10.)
 
19    (820 ILCS 130/5)  (from Ch. 48, par. 39s-5)
20    Sec. 5. Certified payroll.
21    (a) Any contractor and each subcontractor who participates
22in public works and any public body that participates in
23public works on behalf of another public body shall:
24        (1) make and keep, for a period of not less than 3
25    years from the date of the last payment made before

 

 

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1    January 1, 2014 (the effective date of Public Act 98-328)
2    and for a period of 5 years from the date of the last
3    payment made on or after January 1, 2014 (the effective
4    date of Public Act 98-328) on a contract or subcontract
5    for public works, records of all laborers, mechanics, and
6    other workers employed by them on the project; the records
7    shall include (i) the worker's name, (ii) the worker's
8    address, (iii) the worker's telephone number when
9    available, (iv) the last 4 digits of the worker's social
10    security number, (v) the worker's gender, (vi) the
11    worker's race, (vii) the worker's ethnicity, (viii)
12    veteran status, (ix) the worker's classification or
13    classifications, (x) the worker's skill level, such as
14    apprentice or journeyman, (xi) the worker's gross and net
15    wages paid in each pay period, (xii) the worker's number
16    of hours worked each day, (xiii) the worker's starting and
17    ending times of work each day, (xiv) the worker's hourly
18    wage rate, (xv) the worker's hourly overtime wage rate,
19    (xvi) the worker's hourly fringe benefit rates, (xvii) the
20    name and address of each fringe benefit fund, (xviii) the
21    plan sponsor of each fringe benefit, if applicable, and
22    (xix) the plan administrator of each fringe benefit, if
23    applicable; and
24        (2) no later than the 15th day of each calendar month
25    file a certified payroll for the immediately preceding
26    month with the public body in charge of the project until

 

 

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1    the Department of Labor activates the database created
2    under Section 5.1 at which time certified payroll shall
3    only be submitted to that database, except for projects
4    done by State agencies that opt to have contractors submit
5    certified payrolls directly to that State agency. A State
6    agency that opts to directly receive certified payrolls
7    must submit the required information in a specified
8    electronic format to the Department of Labor no later than
9    10 days after the certified payroll was filed with the
10    State agency. A certified payroll must be filed for only
11    those calendar months during which construction on a
12    public works project has occurred. The certified payroll
13    shall consist of a complete copy of the records identified
14    in paragraph (1) of this subsection (a), but may exclude
15    the starting and ending times of work each day. The
16    certified payroll shall be accompanied by a statement
17    signed by the contractor or subcontractor or an officer,
18    employee, or agent of the contractor or subcontractor or
19    an officer, employee, or agent of a public body engaged in
20    the construction or demolition of public works on behalf
21    of another public body, which avers that: (i) he or she has
22    examined the certified payroll records required to be
23    submitted by the Act and such records are true and
24    accurate; (ii) the hourly rate paid to each worker is not
25    less than the general prevailing rate of hourly wages
26    required by this Act; and (iii) the public body engaged in

 

 

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1    the construction or demolition of public works on behalf
2    of another public body or the contractor or subcontractor
3    is aware that filing a certified payroll that he or she
4    knows to be false is a Class A misdemeanor. A general
5    contractor is not prohibited from relying on the
6    certification of a lower tier subcontractor, provided the
7    general contractor does not knowingly rely upon a
8    subcontractor's false certification. Any public body
9    engaged in the construction or demolition of public works
10    on behalf of another public body, any officer, employee,
11    or agent of a public body engaged in the construction or
12    demolition of public works on behalf of another public
13    body, any contractor or subcontractor subject to this Act,
14    and any officer, employee, or agent of such contractor or
15    subcontractor whose duty as such officer, employee, or
16    agent it is to file such certified payroll who willfully
17    fails to file such a certified payroll on or before the
18    date such certified payroll is required by this paragraph
19    to be filed and any person who willfully files a false
20    certified payroll that is false as to any material fact is
21    in violation of this Act and guilty of a Class A
22    misdemeanor. The public body in charge of the project
23    shall keep the records submitted in accordance with this
24    paragraph (2) of subsection (a) before January 1, 2014
25    (the effective date of Public Act 98-328) for a period of
26    not less than 3 years, and the records submitted in

 

 

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1    accordance with this paragraph (2) of subsection (a) on or
2    after January 1, 2014 (the effective date of Public Act
3    98-328) for a period of 5 years, from the date of the last
4    payment for work on a contract or subcontract for public
5    works or until the Department of Labor activates the
6    database created under Section 5.1, whichever is less.
7    After the activation of the database created under Section
8    5.1, the Department of Labor rather than the public body
9    in charge of the project shall keep the records and
10    maintain the database. The records submitted in accordance
11    with this paragraph (2) of subsection (a) shall be
12    considered public records, except an employee's address,
13    telephone number, social security number, race, ethnicity,
14    and gender, and made available in accordance with the
15    Freedom of Information Act. The public body shall accept
16    any reasonable submissions by the contractor that meet the
17    requirements of this Section.
18    A contractor, subcontractor, or public body may retain
19records required under this Section in paper or electronic
20format.
21    (b) Upon 7 business days' notice, the public body engaged
22in the construction or demolition of public works on behalf of
23another public body or the contractor and each subcontractor
24shall make available for inspection and copying at a location
25within this State during reasonable hours, the records
26identified in paragraph (1) of subsection (a) of this Section

 

 

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1to the public body in charge of the project, its officers and
2agents, the Director of Labor and his deputies and agents, and
3to federal, State, or local law enforcement agencies and
4prosecutors.
5    (c) A contractor or subcontractor who remits contributions
6to fringe benefit funds that are jointly maintained and
7jointly governed by one or more employers and one or more labor
8organizations in accordance with the federal Labor Management
9Relations Act shall make and keep certified payroll records
10that include the information required under items (i) through
11(viii) of paragraph (1) of subsection (a) only. However, the
12information required under items (ix) through (xv) of
13paragraph (1) of subsection (a) shall be required for any
14contractor or subcontractor who remits contributions to a
15fringe benefit fund that is not jointly maintained and jointly
16governed by one or more employers and one or more labor
17organizations in accordance with the federal Labor Management
18Relations Act.
19(Source: P.A. 100-1177, eff. 6-1-19; 101-31, eff. 6-28-19.)
 
20    (820 ILCS 130/11)  (from Ch. 48, par. 39s-11)
21    Sec. 11. No public works project shall be instituted
22unless the provisions of this Act have been complied with. The
23provisions of this Act shall not be applicable to Federal
24construction projects which require a prevailing wage
25determination by the United States Secretary of Labor. The

 

 

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1Illinois Department of Labor represented by the Attorney
2General is empowered to sue for injunctive relief against the
3awarding of any contract or the continuation of work under any
4contract for public works at a time when the prevailing wage
5prerequisites have not been met. Any contract for public works
6awarded at a time when the prevailing wage prerequisites had
7not been met shall be void as against public policy and the
8public body engaged in the construction or demolition of
9public works on behalf of another public body or the
10contractor is prohibited from recovering any damages for the
11voiding of the contract or pursuant to the terms of the
12contract. The public body engaged in the construction or
13demolition of public works on behalf of another public body or
14the contractor is limited to a claim for amounts actually paid
15for labor and materials supplied to the public body. Where
16objections to a determination of the prevailing rate of wages
17or a court action relative thereto is pending, the public body
18shall not continue work on the project unless sufficient funds
19are available to pay increased wages if such are finally
20determined or unless the Department of Labor certifies such
21determination of the prevailing rate of wages as correct.
22    Any employee of a public body that engaged in the
23construction or demolition of public works on behalf of
24another public body and any laborer, worker or mechanic
25employed by the contractor or by any sub-contractor under him
26who is paid for his services in a sum less than the stipulated

 

 

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1rates for work done under such contract, shall have a right of
2action for whatever difference there may be between the amount
3so paid, and the rates provided by the contract together with
4costs and such reasonable attorney's fees as shall be allowed
5by the court. Such contractor or subcontractor shall also be
6liable to the Department of Labor for 20% of such
7underpayments and shall be additionally liable to the laborer,
8worker or mechanic for punitive damages in the amount of 2% of
9the amount of any such penalty to the State for underpayments
10for each month following the date of payment during which such
11underpayments remain unpaid. Where a second or subsequent
12action to recover underpayments is brought against a public
13body that engaged in the construction or demolition of public
14works on behalf of another public body or a contractor or
15subcontractor and the public body or contractor or
16subcontractor is found liable for underpayments to any
17employee, laborer, worker, or mechanic, the public body or
18contractor or subcontractor shall also be liable to the
19Department of Labor for 50% of the underpayments payable as a
20result of the second or subsequent action, and shall be
21additionally liable for 5% of the amount of any such penalty to
22the State for underpayments for each month following the date
23of payment during which the underpayments remain unpaid. The
24Department shall also have a right of action on behalf of any
25individual who has a right of action under this Section. An
26action brought to recover same shall be deemed to be a suit for

 

 

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1wages, and any and all judgments entered therein shall have
2the same force and effect as other judgments for wages. The
3action shall be brought within 5 years from the date of the
4failure to pay the wages or compensation. At the request of any
5employee employed by a public body that engaged in the
6construction or demolition of public works on behalf of
7another public body or any laborer, workman or mechanic
8employed by the contractor or by any subcontractor under him
9who is paid less than the prevailing wage rate required by this
10Act, the Department of Labor may take an assignment of such
11wage claim in trust for the assigning laborer, workman or
12mechanic and may bring any legal action necessary to collect
13such claim, and the public body that engaged in the
14construction or demolition of public works on behalf of
15another public body or the contractor or subcontractor shall
16be required to pay the costs incurred in collecting such
17claim.
18(Source: P.A. 98-328, eff. 1-1-14.)