Full Text of HB5412 102nd General Assembly
HB5412enr 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 Illinois Wage Payment and Collection Act is | 5 | | amended by adding Section 13.5 as follows: | 6 | | (820 ILCS 115/13.5 new) | 7 | | Sec. 13.5. Primary contractor responsibility for wage
| 8 | | claims in construction industry. | 9 | | (a) For all contracts entered into on or after July 1,
| 10 | | 2022, a primary contractor making or taking a contract in the
| 11 | | State for the erection, construction, alteration, or repair of
| 12 | | a building, structure, or other private work in the State,
| 13 | | shall assume, and is liable for, any debt owed to a
claimant | 14 | | under this Section or to a third party on a wage claimant's | 15 | | behalf incurred pursuant to this Act by a subcontractor at
any | 16 | | tier acting under, by, or for the primary contractor for
the | 17 | | wage claimant's performance of labor included in the
subject | 18 | | of the contract between the primary contractor and the
owner. | 19 | | This Section does not apply to work performed by a
contractor | 20 | | of the federal government, the State, a special district, a | 21 | | city, a county,
or any political subdivision of the State. | 22 | | (b) As used in this Section: | 23 | | "Construction" means building, altering, repairing, |
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| 1 | | improving, or demolishing any structure or building or making | 2 | | improvements of any kind to real property. | 3 | | "Primary contractor" means a contractor that has a direct
| 4 | | contractual relationship with a property owner. "Primary
| 5 | | contractor" may have the same meaning as a "general
| 6 | | contractor", "prime contractor", or "construction manager". A | 7 | | property owner
who acts as a primary contractor related to the | 8 | | erection,
construction, alteration, or repair of his or her | 9 | | primary
residence
shall be exempt from liability under this
| 10 | | Section. | 11 | | "Private work" means any erection, construction,
| 12 | | alteration, or repair of a building, structure, or other work. | 13 | | "Subcontractor" means a contractor that has a contractual
| 14 | | relationship with the primary contractor or with another
| 15 | | subcontractor at any tier, who furnishes any goods or services
| 16 | | in connection with the contract between the primary contractor
| 17 | | and the property owner, but does not include contractors who
| 18 | | solely provide goods and transport of such goods related to
| 19 | | the contract. | 20 | | (c) The primary contractor's liability under this Section
| 21 | | shall extend only to any unpaid wages or fringe or other | 22 | | benefit payments or contributions, including interest owed, | 23 | | penalties assessed by the Department,
and reasonable | 24 | | attorney's fees, but shall not extend to
liquidated damages. | 25 | | (d) A primary contractor or any other person shall not
| 26 | | evade or commit any act that negates the requirements of this
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| 1 | | Section. Except as otherwise provided in a contract between
| 2 | | the primary contractor and the subcontractor, the
| 3 | | subcontractor shall indemnify the primary contractor for any
| 4 | | wages, fringe or other benefit payments or contributions, | 5 | | damages, interest, penalties, or attorney's fees owed
as a | 6 | | result of the subcontractor's failure to pay wages or fringe | 7 | | or other benefit payments or contributions
as provided in this | 8 | | Section, unless
the subcontractor's failure to pay was due to | 9 | | the
primary contractor's failure to pay moneys due to the
| 10 | | subcontractor in accordance with the terms of their
| 11 | | contractual relationship. | 12 | | (e) Nothing in this Section shall supersede or modify the | 13 | | obligations and liability that any primary contractor, | 14 | | subcontractor, or property owner may bear as an employer under | 15 | | this Act or any other applicable law. The obligations and | 16 | | remedies provided in this Section shall be in addition to any | 17 | | obligations and remedies otherwise provided by law. Nothing in | 18 | | this Section shall be construed to impose liability on a | 19 | | primary contractor for anything other than unpaid wages, | 20 | | fringe or other benefit payments or contributions, penalties | 21 | | assessed by the Department, interest owed, and reasonable | 22 | | attorney's fees. | 23 | | (f) Claims brought pursuant to this Section shall be done
| 24 | | so in accordance with Section 11 and 11.5 of this Act. Nothing | 25 | | in this Section shall be construed to provide a third party | 26 | | with the right to file a complaint with the Department |
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| 1 | | alleging violation of this Section. | 2 | | (g) Primary contractors who are parties to a collective | 3 | | bargaining agreement on the project where the work is being | 4 | | performed shall be exempt from this Section. | 5 | | (h) Prior to the commencement of any civil action, a | 6 | | claimant or a representative of a claimant shall provide | 7 | | written notice to the employer and to the primary contractor | 8 | | detailing the nature and basis for the claim. Failure of the | 9 | | employer or the primary contractor to resolve the claim within | 10 | | 10 days after receipt of this notice, or during any agreed upon | 11 | | period extending this deadline, may result in the filing of a | 12 | | civil action to enforce the provisions of this Act.
| 13 | | Section 99. Effective date. This Act takes effect upon | 14 | | becoming law.
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