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1 | AN ACT concerning employment.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Wage Payment and Collection Act is | ||||||
5 | amended by changing Section 13.5 as follows: | ||||||
6 | (820 ILCS 115/13.5) | ||||||
7 | Sec. 13.5. Primary contractor responsibility for wage
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8 | claims in construction industry. | ||||||
9 | (a) For all contracts entered into on or after July 1,
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10 | 2022, a primary contractor making or taking a contract in the
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11 | State for the erection, construction, alteration, or repair of
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12 | a building, structure, or other private work in the State | ||||||
13 | where the aggregate costs of the project exceed $20,000
shall | ||||||
14 | assume, and is liable for, any debt owed to a
claimant under | ||||||
15 | this Section by a subcontractor at
any tier acting under, by, | ||||||
16 | or for the primary contractor for
the wage claimant's | ||||||
17 | performance of labor included in the
subject of the contract | ||||||
18 | between the primary contractor and the
owner. This Section | ||||||
19 | does not apply to work performed by a
contractor of the federal | ||||||
20 | government, the State, a special district, a city, a county,
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21 | 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
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4 | contractual relationship with a property owner. "Primary
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5 | contractor" may have the same meaning as a "general
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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
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10 | Section. | ||||||
11 | "Private work" means any erection, construction,
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12 | alteration, or repair of a building, structure, or other work. | ||||||
13 | "Subcontractor" means a contractor that has a contractual
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14 | relationship with the primary contractor or with another
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15 | subcontractor at any tier, who furnishes any goods or services
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16 | in connection with the contract between the primary contractor
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17 | and the property owner, but does not include contractors who
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18 | solely provide goods and transport of such goods related to
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19 | the contract. | ||||||
20 | (c) The primary contractor's liability under this Section
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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
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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
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2 | the primary contractor and the subcontractor, the
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3 | subcontractor shall indemnify the primary contractor for any
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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
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10 | subcontractor in accordance with the terms of their
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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
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24 | so in accordance with this Act. Nothing in this Section shall | ||||||
25 | be construed to provide a third party with the right to file a | ||||||
26 | complaint with the Department alleging violation of this |
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1 | Section. | ||||||
2 | (g) The following shall be exempt from liability under | ||||||
3 | this 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 | ||||||
12 | claimant or a representative of a claimant shall provide | ||||||
13 | written notice to the employer and to the primary contractor | ||||||
14 | detailing the nature and basis for the claim. Failure of the | ||||||
15 | employer or the primary contractor to resolve the claim within | ||||||
16 | 10 days after receipt of this notice, or during any agreed upon | ||||||
17 | period extending this deadline, may result in the filing of a | ||||||
18 | civil action to enforce the provisions of this Act. | ||||||
19 | (i) Claims brought pursuant to this Section shall be filed | ||||||
20 | with the Department of Labor or filed with the circuit court | ||||||
21 | within 3 years after the wages, final compensation, or wage | ||||||
22 | supplements were due. This subsection does not apply to any | ||||||
23 | other claims under this Act or any other applicable law | ||||||
24 | against a primary contractor, subcontractor, or homeowner as | ||||||
25 | an employer. | ||||||
26 | (j) Every primary contractor and subcontractor shall post |
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1 | and keep posted, in one or more conspicuous places on the | ||||||
2 | premises where work is being performed, a notice, to be made | ||||||
3 | available by the Director of Labor, summarizing the | ||||||
4 | requirements of this Section and information pertaining to the | ||||||
5 | filing of a complaint. The Director of Labor shall provide | ||||||
6 | copies of summaries and rules to primary contractors and | ||||||
7 | subcontractors upon request without charge. Any primary | ||||||
8 | contractor or subcontractor who fails to provide notice as | ||||||
9 | required by this Section shall be subject to a civil penalty, | ||||||
10 | not to exceed $250, payable to the Department of Labor.
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11 | (Source: P.A. 102-1065, eff. 6-10-22; 102-1076, eff. 6-10-22.)
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12 | Section 99. Effective date. This Act takes effect July 1, | ||||||
13 | 2023.
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