Full Text of HB5538 102nd General Assembly
HB5538eng 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning employment.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Prevailing Wage Act is amended by changing | 5 | | Sections 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 | 8 | | wage of no
less than the general prevailing hourly rate as paid | 9 | | for work of a
similar character in the locality in which the | 10 | | work is performed, shall
be paid to all laborers, workers and | 11 | | mechanics employed by or on behalf
of any and all public bodies | 12 | | engaged in public works. It is also the policy of the State of | 13 | | Illinois that a wage of no less than the general prevailing | 14 | | hourly rate as paid for work of a similar character in the | 15 | | locality in which the work is performed shall be paid to all | 16 | | employees of public bodies when engaged in public works on | 17 | | behalf 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, | 21 | | mechanics and
other workers employed in any public works, as | 22 | | hereinafter defined, by
any public body and to anyone under |
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| 1 | | contracts for public works. This includes any maintenance, | 2 | | repair, assembly, or disassembly work performed on equipment | 3 | | whether owned, leased, or rented.
| 4 | | As used in this Act, unless the context indicates | 5 | | otherwise:
| 6 | | "Public works" means all fixed works constructed or | 7 | | demolished by
any public body,
or paid for wholly or in part | 8 | | out of public funds , including fixed works constructed or | 9 | | demolished by a public body on behalf of another public body . | 10 | | "Public works" as
defined herein includes all projects | 11 | | financed in whole
or in part with bonds, grants, loans, or | 12 | | other funds made available by or through the State or any of | 13 | | its political subdivisions, including but not limited to: | 14 | | bonds issued under the Industrial Project Revenue Bond
Act | 15 | | (Article 11, Division 74 of the Illinois Municipal Code), the | 16 | | Industrial
Building Revenue Bond Act, the Illinois Finance | 17 | | Authority Act,
the Illinois Sports Facilities Authority Act, | 18 | | or the Build Illinois Bond Act; loans or other funds made
| 19 | | available pursuant to the Build Illinois Act; loans or other | 20 | | funds made available pursuant to the Riverfront Development | 21 | | Fund under Section 10-15 of the River Edge Redevelopment Zone | 22 | | Act; or funds from the Fund for
Illinois' Future under Section | 23 | | 6z-47 of the State Finance Act, funds for school
construction | 24 | | under Section 5 of the General Obligation Bond Act, funds
| 25 | | authorized under Section 3 of the School Construction Bond | 26 | | Act, funds for
school infrastructure under Section 6z-45 of |
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| 1 | | the State Finance Act, and funds
for transportation purposes | 2 | | under Section 4 of the General Obligation Bond
Act. "Public | 3 | | works" also includes (i) all projects financed in whole or in | 4 | | part
with funds from the Environmental Protection Agency under | 5 | | the Illinois Renewable Fuels Development Program
Act for which | 6 | | there is no project labor agreement; (ii) all work performed | 7 | | pursuant to a public private agreement under the Public | 8 | | Private Agreements for the Illiana Expressway Act or the | 9 | | Public-Private Agreements for the South Suburban Airport Act; | 10 | | and (iii) all projects undertaken under a public-private | 11 | | agreement under the Public-Private Partnerships for | 12 | | Transportation Act. "Public works" also includes all projects | 13 | | at leased facility property used for airport purposes under | 14 | | Section 35 of the Local Government Facility Lease Act. "Public | 15 | | works" also includes the construction of a new wind power | 16 | | facility by a business designated as a High Impact Business | 17 | | under Section 5.5(a)(3)(E) and the construction of a new | 18 | | utility-scale solar power facility by a business designated as | 19 | | a High Impact Business under Section 5.5(a)(3)(E-5) of the | 20 | | Illinois Enterprise Zone Act.
"Public works" also includes | 21 | | electric vehicle charging station projects financed pursuant | 22 | | to the Electric Vehicle Act and renewable energy projects | 23 | | required to pay the prevailing wage pursuant to the Illinois | 24 | | Power Agency Act. "Public works" does not include work done | 25 | | directly by any public utility company, whether or not done | 26 | | under public supervision or direction, or paid for wholly or |
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| 1 | | in part out of public funds. "Public works" also includes | 2 | | construction projects performed by a third party contracted by | 3 | | any public utility, as described in subsection (a) of Section | 4 | | 2.1, in public rights-of-way, as defined in Section 21-201 of | 5 | | the Public Utilities Act, whether or not done under public | 6 | | supervision or direction, or paid for wholly or in part out of | 7 | | public funds. "Public works" also includes construction | 8 | | projects that exceed 15 aggregate miles of new fiber optic | 9 | | cable, performed by a third party contracted by any public | 10 | | utility, as described in subsection (b) of Section 2.1, in | 11 | | public rights-of-way, as defined in Section 21-201 of the | 12 | | Public Utilities Act, whether or not done under public | 13 | | supervision or direction, or paid for wholly or in part out of | 14 | | public funds. "Public works" also includes any corrective | 15 | | action performed pursuant to Title XVI of the Environmental | 16 | | Protection Act for which payment from the Underground Storage | 17 | | Tank Fund is requested. "Public works" does not include | 18 | | projects undertaken by the owner at an owner-occupied | 19 | | single-family residence or at an owner-occupied unit of a | 20 | | multi-family residence. "Public works" does not include work | 21 | | performed for soil and water conservation purposes on | 22 | | agricultural lands, whether or not done under public | 23 | | supervision or paid for wholly or in part out of public funds, | 24 | | done directly by an owner or person who has legal control of | 25 | | those lands.
| 26 | | "Construction" means all work on public works involving |
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| 1 | | laborers,
workers or mechanics. This includes any maintenance, | 2 | | repair, assembly, or disassembly work performed on equipment | 3 | | whether owned, leased, or rented.
| 4 | | "Locality" means the county where the physical work upon | 5 | | public works
is performed, except (1) that if there is not | 6 | | available in the county a
sufficient number of competent | 7 | | skilled laborers, workers and mechanics
to construct the | 8 | | public works efficiently and properly, "locality"
includes any | 9 | | other county nearest the one in which the work or
construction | 10 | | is to be performed and from which such persons may be
obtained | 11 | | in sufficient numbers to perform the work and (2) that, with
| 12 | | respect to contracts for highway work with the Department of
| 13 | | Transportation of this State, "locality" may at the discretion | 14 | | of the
Secretary of the Department of Transportation be | 15 | | construed to include
two or more adjacent counties from which | 16 | | workers may be accessible for
work on such construction.
| 17 | | "Public body" means the State or any officer, board or | 18 | | commission of
the State or any political subdivision or | 19 | | department thereof, or any
institution supported in whole or | 20 | | in part by public funds,
and includes every county, city, | 21 | | town,
village, township, school district, irrigation, utility, | 22 | | reclamation
improvement or other district and every other | 23 | | political subdivision,
district or municipality of the state | 24 | | whether such political
subdivision, municipality or district | 25 | | operates under a special charter
or not.
| 26 | | "Labor organization" means an organization that is the |
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| 1 | | exclusive representative of an
employer's employees recognized | 2 | | or certified pursuant to the National Labor Relations Act. | 3 | | The terms "general prevailing rate of hourly wages", | 4 | | "general
prevailing rate of wages" or "prevailing rate of | 5 | | wages" when used in
this Act mean the hourly cash wages plus | 6 | | annualized fringe benefits for training and
apprenticeship | 7 | | programs approved by the U.S. Department of Labor, Bureau of
| 8 | | Apprenticeship and Training, health and welfare, insurance, | 9 | | vacations and
pensions paid generally, in the
locality in | 10 | | which the work is being performed, to employees engaged in
| 11 | | work of a similar character on public works.
| 12 | | (Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21; | 13 | | 102-673, eff. 11-30-21; revised 12-9-21.)
| 14 | | (820 ILCS 130/3) (from Ch. 48, par. 39s-3)
| 15 | | Sec. 3. Not less than the general prevailing rate of | 16 | | hourly wages for
work of a similar character on public works in | 17 | | the locality in which the
work is performed, and not less than | 18 | | the general prevailing rate of
hourly wages for legal holiday | 19 | | and overtime work, shall be paid to all
laborers, workers and | 20 | | mechanics employed by or on behalf of any public
body engaged | 21 | | in the construction or demolition of public works.
This | 22 | | includes any maintenance, repair, assembly, or disassembly | 23 | | work performed on equipment whether owned, leased, or rented. | 24 | | This also includes the construction or demolition of public | 25 | | works performed by an employee of a public body engaged in the |
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| 1 | | construction or demolition of public works on behalf of | 2 | | another public body. Only such laborers, workers and mechanics | 3 | | as are
directly employed by contractors or subcontractors in | 4 | | actual
construction work on the site of the building or | 5 | | construction job, and
laborers, workers and mechanics engaged | 6 | | in the transportation of
materials and equipment to or from | 7 | | the site, but not including the
transportation by the sellers | 8 | | and suppliers or the manufacture or
processing of materials or | 9 | | equipment, in the execution of any contract
or contracts for | 10 | | public works with any public body shall be deemed to be
| 11 | | employed upon public works. The wage for a tradesman | 12 | | performing maintenance
is equivalent to that of a tradesman | 13 | | engaged in construction or demolition.
| 14 | | (Source: P.A. 95-341, eff. 8-21-07; 96-186, eff. 1-1-10.)
| 15 | | (820 ILCS 130/5) (from Ch. 48, par. 39s-5)
| 16 | | Sec. 5. Certified payroll.
| 17 | | (a) Any contractor and each subcontractor who participates | 18 | | in public works and any public body that participates in | 19 | | public works on behalf of another public body shall: | 20 | | (1) make and keep, for a period of not less
than 3 | 21 | | years from the date of the last payment made before | 22 | | January 1, 2014 (the effective date of Public Act 98-328) | 23 | | and for a period of 5 years from the date of the last | 24 | | payment made on or after January 1, 2014 (the effective | 25 | | date of Public Act 98-328) on a contract or subcontract |
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| 1 | | for public works, records of all laborers, mechanics, and | 2 | | other workers employed by them on the project; the records | 3 | | shall include (i) the worker's name, (ii) the worker's | 4 | | address, (iii) the worker's telephone number
when | 5 | | available, (iv) the last 4 digits of the worker's social | 6 | | security number, (v) the worker's gender, (vi) the | 7 | | worker's race, (vii) the
worker's ethnicity, (viii) | 8 | | veteran status, (ix) the worker's classification or | 9 | | classifications, (x) the worker's skill level, such as | 10 | | apprentice or journeyman, (xi) the worker's gross and net | 11 | | wages paid in each pay period, (xii) the worker's number | 12 | | of hours worked each day, (xiii) the worker's starting and | 13 | | ending times of work each day, (xiv) the worker's hourly | 14 | | wage rate, (xv) the worker's hourly overtime wage rate, | 15 | | (xvi) the worker's hourly fringe benefit rates, (xvii) the | 16 | | name and address of each fringe benefit fund, (xviii) the | 17 | | plan sponsor of each fringe benefit, if applicable, and | 18 | | (xix) the plan administrator of each fringe benefit, if | 19 | | applicable; and | 20 | | (2) no later than the 15th day of each calendar month | 21 | | file a certified payroll for the immediately preceding | 22 | | month with the public body in charge of the project until | 23 | | the Department of Labor activates the database created | 24 | | under Section 5.1 at which time certified payroll shall | 25 | | only be submitted to that database, except for projects | 26 | | done by State agencies that opt to have contractors submit |
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| 1 | | certified payrolls directly to that State agency. A State | 2 | | agency that opts to directly receive certified payrolls | 3 | | must submit the required information in a specified | 4 | | electronic format to the Department of Labor no later than | 5 | | 10 days after the certified payroll was filed with the | 6 | | State agency. A certified payroll must be filed for only | 7 | | those calendar months during which construction on a | 8 | | public works project has occurred. The certified payroll | 9 | | shall consist of a complete copy of the records identified | 10 | | in paragraph (1) of this subsection (a), but may exclude | 11 | | the starting and ending times of work each day. The | 12 | | certified payroll shall be accompanied by a statement | 13 | | signed by the contractor or subcontractor or an officer, | 14 | | employee, or agent of the contractor or subcontractor or | 15 | | an officer, employee, or agent of a public body engaged in | 16 | | the construction or demolition of public works on behalf | 17 | | of another public body, which avers that: (i) he or she has | 18 | | examined the certified payroll records required to be | 19 | | submitted by the Act and such records are true and | 20 | | accurate; (ii) the hourly rate paid to each worker is not | 21 | | less than the general prevailing rate of hourly wages | 22 | | required by this Act; and (iii) the public body engaged in | 23 | | the construction or demolition of public works on behalf | 24 | | of another public body or the contractor or subcontractor | 25 | | is aware that filing a certified payroll that he or she | 26 | | knows to be false is a Class A misdemeanor. A general |
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| 1 | | contractor is not prohibited from relying on the | 2 | | certification of a lower tier subcontractor, provided the | 3 | | general contractor does not knowingly rely upon a | 4 | | subcontractor's false certification. Any public body | 5 | | engaged in the construction or demolition of public works | 6 | | on behalf of another public body, any officer, employee, | 7 | | or agent of a public body engaged in the construction or | 8 | | demolition of public works on behalf of another public | 9 | | body, any contractor or subcontractor subject to this Act , | 10 | | and any officer, employee, or agent of such contractor or | 11 | | subcontractor whose duty as such officer, employee, or | 12 | | agent it is to file such certified payroll who willfully | 13 | | fails to file such a certified payroll on or before the | 14 | | date such certified payroll is required by this paragraph | 15 | | to be filed and any person who willfully files a false | 16 | | certified payroll that is false as to any material fact is | 17 | | in violation of this Act and guilty of a Class A | 18 | | misdemeanor. The public body in charge of the project | 19 | | shall keep the records submitted in accordance with this | 20 | | paragraph (2) of subsection (a) before January 1, 2014 | 21 | | (the effective date of Public Act 98-328) for a period of | 22 | | not less than 3 years, and the records submitted in | 23 | | accordance with this paragraph (2) of subsection (a) on or | 24 | | after January 1, 2014 (the effective date of Public Act | 25 | | 98-328) for a period of 5 years, from the date of the last | 26 | | payment for work on a contract or subcontract for public |
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| 1 | | works or until the Department of Labor activates the | 2 | | database created under Section 5.1, whichever is less. | 3 | | After the activation of the database created under Section | 4 | | 5.1, the Department of Labor rather than the public body | 5 | | in charge of the project shall keep the records and | 6 | | maintain the database. The records submitted in accordance | 7 | | with this paragraph (2) of subsection (a) shall be | 8 | | considered public records, except an employee's address, | 9 | | telephone number, social security number, race, ethnicity, | 10 | | and gender, and made available in accordance with the | 11 | | Freedom of Information Act. The public body shall accept | 12 | | any reasonable submissions by the contractor that meet the | 13 | | requirements of this Section.
| 14 | | A contractor, subcontractor, or public body may retain | 15 | | records required under this Section in paper or electronic | 16 | | format. | 17 | | (b) Upon 7 business days' notice, the public body engaged | 18 | | in the construction or demolition of public works on behalf of | 19 | | another public body or the contractor and each subcontractor | 20 | | shall make available for inspection and copying at a location | 21 | | within this State during reasonable hours, the records | 22 | | identified in paragraph (1) of subsection (a) of this Section | 23 | | to the public body
in charge of the project, its officers and | 24 | | agents, the Director of Labor
and his deputies and agents, and | 25 | | to federal, State, or local law enforcement agencies and | 26 | | prosecutors. |
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| 1 | | (c) A contractor or subcontractor who remits contributions | 2 | | to fringe benefit funds that are jointly maintained and | 3 | | jointly governed by one or more employers and one or more labor | 4 | | organizations in accordance with the federal Labor Management | 5 | | Relations Act shall make and keep certified payroll records | 6 | | that include the information required under items (i) through | 7 | | (viii) of paragraph (1) of subsection (a) only. However, the | 8 | | information required under items (ix) through (xv) of | 9 | | paragraph (1) of subsection (a) shall be required for any | 10 | | contractor or subcontractor who remits contributions to a | 11 | | fringe benefit fund that is not jointly maintained and jointly | 12 | | governed by one or more employers and one or more labor | 13 | | organizations in accordance with the federal Labor Management | 14 | | Relations Act. | 15 | | (Source: P.A. 100-1177, eff. 6-1-19; 101-31, eff. 6-28-19.)
| 16 | | (820 ILCS 130/11) (from Ch. 48, par. 39s-11)
| 17 | | Sec. 11. No public works project shall be instituted | 18 | | unless the
provisions of this Act have been complied with. The | 19 | | provisions of this
Act shall not be applicable to Federal | 20 | | construction projects which
require a prevailing wage | 21 | | determination by the United States Secretary
of Labor. The | 22 | | Illinois Department of Labor represented by the Attorney
| 23 | | General is empowered to sue for injunctive relief against the | 24 | | awarding of
any contract or the continuation of work under any | 25 | | contract for public works
at a time when the prevailing wage |
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| 1 | | prerequisites have not been met. Any
contract for public works | 2 | | awarded at a time when the prevailing wage prerequisites
had | 3 | | not been met shall be void as against public policy and the | 4 | | public body engaged in the construction or demolition of | 5 | | public works on behalf of another public body or the | 6 | | contractor
is prohibited from recovering any damages
for the | 7 | | voiding of the contract or pursuant to the terms of the | 8 | | contract.
The public body engaged in the construction or | 9 | | demolition of public works on behalf of another public body or | 10 | | the contractor is limited to a claim for amounts actually paid | 11 | | for labor
and materials supplied to the public body. Where | 12 | | objections to a determination
of the prevailing rate of
wages | 13 | | or a court action relative thereto is pending, the public body
| 14 | | shall not continue work on the project unless sufficient funds | 15 | | are
available to pay increased wages if such are finally | 16 | | determined or
unless the Department of Labor certifies such | 17 | | determination of the
prevailing rate of wages as correct.
| 18 | | Any employee of a public body that engaged in the | 19 | | construction or demolition of public works on behalf of | 20 | | another public body and any laborer, worker or mechanic | 21 | | employed by the contractor or by any sub-contractor
under him | 22 | | who is paid for his services in a sum less than the stipulated
| 23 | | rates for work done under such contract, shall
have a right of | 24 | | action for whatever difference there may be between the
amount | 25 | | so paid, and the rates provided by the contract together with
| 26 | | costs and such reasonable attorney's fees as
shall be allowed |
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| 1 | | by the court. Such contractor or subcontractor shall also
be | 2 | | liable to the
Department of Labor for
20% of
such | 3 | | underpayments and shall be additionally liable to the laborer, | 4 | | worker
or mechanic for punitive damages in the amount of
2% of | 5 | | the amount of any
such penalty to the
State for underpayments | 6 | | for each month following the date of payment during
which such | 7 | | underpayments
remain unpaid. Where a second or subsequent | 8 | | action to recover underpayments is brought against a public | 9 | | body that engaged in the construction or demolition of public | 10 | | works on behalf of another public body or a contractor or | 11 | | subcontractor and the public body or contractor or | 12 | | subcontractor is found liable for underpayments to any | 13 | | employee, laborer, worker, or mechanic, the public body or | 14 | | contractor or subcontractor shall also be liable to the | 15 | | Department of Labor for 50% of the underpayments payable as a | 16 | | result of the second or subsequent action, and shall be | 17 | | additionally liable for 5% of the amount of any such penalty to | 18 | | the State for underpayments for each month following the date | 19 | | of payment during which the underpayments remain unpaid. The | 20 | | Department shall also have a right of action on behalf
of any | 21 | | individual who has a right of action under this Section. An | 22 | | action brought
to recover same shall be deemed to be a suit for | 23 | | wages, and any and all
judgments entered therein shall have | 24 | | the same force and effect as other
judgments for wages.
The | 25 | | action shall be brought within 5 years from the date of the | 26 | | failure to pay the wages or compensation. At the request of any |
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| 1 | | employee employed by a public body that engaged in the | 2 | | construction or demolition of public works on behalf of | 3 | | another public body or any laborer, workman or mechanic
| 4 | | employed by the contractor or by any subcontractor under him | 5 | | who is paid
less than the prevailing wage rate required by this | 6 | | Act, the Department
of Labor may take an assignment of such | 7 | | wage claim in trust for the assigning
laborer, workman or | 8 | | mechanic and may bring any legal action necessary to
collect | 9 | | such claim, and the public body that engaged in the | 10 | | construction or demolition of public works on behalf of | 11 | | another public body or the contractor or subcontractor shall | 12 | | be required
to pay the costs incurred in collecting such | 13 | | claim.
| 14 | | (Source: P.A. 98-328, eff. 1-1-14.)
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