Illinois General Assembly - Full Text of SB1646
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Full Text of SB1646  101st General Assembly

SB1646 101ST GENERAL ASSEMBLY

  
  

 


 
101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1646

 

Introduced 2/15/2019, by Sen. Jason A. Barickman

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 130/4  from Ch. 48, par. 39s-4

    Amends the Prevailing Wage Act. Deletes provisions regarding investigatory hearings by the Department of Labor regarding new wage classifications. Requires the creation of any new prevailing wage classification to be promulgated by administrative rule by the Department of Labor in accordance with the Illinois Administrative Procedure Act.


LRB101 09149 JLS 54243 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1646LRB101 09149 JLS 54243 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
5Section 4 as follows:
 
6    (820 ILCS 130/4)  (from Ch. 48, par. 39s-4)
7    (Text of Section before amendment by P.A. 100-1177)
8    Sec. 4. Ascertaining prevailing wage.
9    (a) The public body awarding any contract for public work
10or otherwise undertaking any public works, shall ascertain the
11general prevailing rate of hourly wages in the locality in
12which the work is to be performed, for each craft or type of
13worker or mechanic needed to execute the contract, and where
14the public body performs the work without letting a contract
15therefor, shall ascertain the prevailing rate of wages on a per
16hour basis in the locality, and such public body shall specify
17in the resolution or ordinance and in the call for bids for the
18contract, that the general prevailing rate of wages in the
19locality for each craft or type of worker or mechanic needed to
20execute the contract or perform such work, also the general
21prevailing rate for legal holiday and overtime work, as
22ascertained by the public body or by the Department of Labor
23shall be paid for each craft or type of worker needed to

 

 

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1execute the contract or to perform such work, and it shall be
2mandatory upon the contractor to whom the contract is awarded
3and upon any subcontractor under him, and where the public body
4performs the work, upon the public body, to pay not less than
5the specified rates to all laborers, workers and mechanics
6employed by them in the execution of the contract or such work;
7provided, however, that if the public body desires that the
8Department of Labor ascertain the prevailing rate of wages, it
9shall notify the Department of Labor to ascertain the general
10prevailing rate of hourly wages for work under contract, or for
11work performed by a public body without letting a contract as
12required in the locality in which the work is to be performed,
13for each craft or type of worker or mechanic needed to execute
14the contract or project or work to be performed. Upon such
15notification the Department of Labor shall ascertain such
16general prevailing rate of wages, and certify the prevailing
17wage to such public body.
18    (a-1) The public body or other entity awarding the contract
19shall cause to be inserted in the project specifications and
20the contract a stipulation to the effect that not less than the
21prevailing rate of wages as found by the public body or
22Department of Labor or determined by the court on review shall
23be paid to all laborers, workers and mechanics performing work
24under the contract.
25    (a-2) When a public body or other entity covered by this
26Act has awarded work to a contractor without a public bid,

 

 

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1contract or project specification, such public body or other
2entity shall comply with subsection (a-1) by providing the
3contractor with written notice on the purchase order related to
4the work to be done or on a separate document indicating that
5not less than the prevailing rate of wages as found by the
6public body or Department of Labor or determined by the court
7on review shall be paid to all laborers, workers, and mechanics
8performing work on the project.
9    (a-3) Where a complaint is made and the Department of Labor
10determines that a violation occurred, the Department of Labor
11shall determine if proper written notice under this Section 4
12was given. If proper written notice was not provided to the
13contractor by the public body or other entity, the Department
14of Labor shall order the public body or other entity to pay any
15interest, penalties or fines that would have been owed by the
16contractor if proper written notice were provided. The failure
17by a public body or other entity to provide written notice does
18not relieve the contractor of the duty to comply with the
19prevailing wage rate, nor of the obligation to pay any back
20wages, as determined under this Act. For the purposes of this
21subsection, back wages shall be limited to the difference
22between the actual amount paid and the prevailing rate of wages
23required to be paid for the project. The failure of a public
24body or other entity to provide written notice under this
25Section 4 does not diminish the right of a laborer, worker, or
26mechanic to the prevailing rate of wages as determined under

 

 

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1this Act.
2    (b) It shall also be mandatory upon the contractor to whom
3the contract is awarded to insert into each subcontract and
4into the project specifications for each subcontract a written
5stipulation to the effect that not less than the prevailing
6rate of wages shall be paid to all laborers, workers, and
7mechanics performing work under the contract. It shall also be
8mandatory upon each subcontractor to cause to be inserted into
9each lower tiered subcontract and into the project
10specifications for each lower tiered subcontract a stipulation
11to the effect that not less than the prevailing rate of wages
12shall be paid to all laborers, workers, and mechanics
13performing work under the contract. A contractor or
14subcontractor who fails to comply with this subsection (b) is
15in violation of this Act.
16    (b-1) When a contractor has awarded work to a subcontractor
17without a contract or contract specification, the contractor
18shall comply with subsection (b) by providing a subcontractor
19with a written statement indicating that not less than the
20prevailing rate of wages shall be paid to all laborers,
21workers, and mechanics performing work on the project. A
22contractor or subcontractor who fails to comply with this
23subsection (b-1) is in violation of this Act.
24    (b-2) Where a complaint is made and the Department of Labor
25determines that a violation has occurred, the Department of
26Labor shall determine if proper written notice under this

 

 

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1Section 4 was given. If proper written notice was not provided
2to the subcontractor by the contractor, the Department of Labor
3shall order the contractor to pay any interest, penalties, or
4fines that would have been owed by the subcontractor if proper
5written notice were provided. The failure by a contractor to
6provide written notice to a subcontractor does not relieve the
7subcontractor of the duty to comply with the prevailing wage
8rate, nor of the obligation to pay any back wages, as
9determined under this Act. For the purposes of this subsection,
10back wages shall be limited to the difference between the
11actual amount paid and the prevailing rate of wages required
12for the project. However, if proper written notice was not
13provided to the contractor by the public body or other entity
14under this Section 4, the Department of Labor shall order the
15public body or other entity to pay any interest, penalties, or
16fines that would have been owed by the subcontractor if proper
17written notice were provided. The failure by a public body or
18other entity to provide written notice does not relieve the
19subcontractor of the duty to comply with the prevailing wage
20rate, nor of the obligation to pay any back wages, as
21determined under this Act. For the purposes of this subsection,
22back wages shall be limited to the difference between the
23actual amount paid and the prevailing rate of wages required
24for the project. The failure to provide written notice by a
25public body, other entity, or contractor does not diminish the
26right of a laborer, worker, or mechanic to the prevailing rate

 

 

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1of wages as determined under this Act.
2    (c) A public body or other entity shall also require in all
3contractor's and subcontractor's bonds that the contractor or
4subcontractor include such provision as will guarantee the
5faithful performance of such prevailing wage clause as provided
6by contract or other written instrument. All bid specifications
7shall list the specified rates to all laborers, workers and
8mechanics in the locality for each craft or type of worker or
9mechanic needed to execute the contract.
10    (d) If the Department of Labor revises the prevailing rate
11of hourly wages to be paid by the public body or other entity,
12the revised rate shall apply to such contract, and the public
13body or other entity shall be responsible to notify the
14contractor and each subcontractor, of the revised rate.
15    The public body or other entity shall discharge its duty to
16notify of the revised rates by inserting a written stipulation
17in all contracts or other written instruments that states the
18prevailing rate of wages are revised by the Department of Labor
19and are available on the Department's official website. This
20shall be deemed to be proper notification of any rate changes
21under this subsection.
22    (e) Two or more investigatory hearings under this Section
23on the issue of establishing a new prevailing wage
24classification for a particular craft or type of worker shall
25be consolidated in a single hearing before the Department. Such
26consolidation shall occur whether each separate investigatory

 

 

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1hearing is conducted by a public body or the Department. The
2party requesting a consolidated investigatory hearing shall
3have the burden of establishing that there is no existing
4prevailing wage classification for the particular craft or type
5of worker in any of the localities under consideration.
6    (f) It shall be mandatory upon the contractor or
7construction manager to whom a contract for public works is
8awarded to post, at a location on the project site of the
9public works that is easily accessible to the workers engaged
10on the project, the prevailing wage rates for each craft or
11type of worker or mechanic needed to execute the contract or
12project or work to be performed. In lieu of posting on the
13project site of the public works, a contractor which has a
14business location where laborers, workers, and mechanics
15regularly visit may: (1) post in a conspicuous location at that
16business the current prevailing wage rates for each county in
17which the contractor is performing work; or (2) provide such
18laborer, worker, or mechanic engaged on the public works
19project a written notice indicating the prevailing wage rates
20for the public works project. A failure to post or provide a
21prevailing wage rate as required by this Section is a violation
22of this Act.
23(Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)
 
24    (Text of Section after amendment by P.A. 100-1177)
25    Sec. 4. Ascertaining prevailing wage.

 

 

SB1646- 8 -LRB101 09149 JLS 54243 b

1    (a) The prevailing rate of wages paid to individuals
2covered under this Act shall not be less than the rate that
3prevails for work of a similar character on public works in the
4locality in which the work is performed under collective
5bargaining agreements or understandings between employers or
6employer associations and bona fide labor organizations
7relating to each craft or type of worker or mechanic needed to
8execute the contract or perform such work, and collective
9bargaining agreements or understandings successor thereto,
10provided that said employers or members of said employer
11associations employ at least 30% of the laborers, workers, or
12mechanics in the same trade or occupation in the locality where
13the work is being performed.
14    (b) If the prevailing rates of wages and fringe benefits
15cannot reasonably and fairly be applied in any locality because
16no such agreements or understandings exist, the Department of
17Labor shall determine the rates and fringe benefits for the
18same or most similar work in the nearest and most similar
19neighboring locality in which such agreements or
20understandings exist. The Department of Labor shall keep a
21record of its findings available for inspection by any
22interested party in the office of the Department of Labor.
23    (c) In the event it is determined, after a written
24objection is filed and hearing is held in accordance with
25Section 9 of this Act, that less than 30% of the laborers,
26workers, or mechanics in a particular trade or occupation in

 

 

SB1646- 9 -LRB101 09149 JLS 54243 b

1the locality where the work is performed receive a collectively
2bargained rate of wage, then the average wage paid to such
3laborers, workers, or mechanics in the same trade or occupation
4in the locality for the 12-month period preceding the
5Department of Labor's annual determination shall be the
6prevailing rate of wage.
7    (d) The public body awarding any contract for public work
8or otherwise undertaking any public works shall specify in the
9call for bids for the contract, or where the public body
10performs the work without letting the contract in a written
11instrument provided to the contractor, that the general
12prevailing rate of wages in the locality for each craft or type
13of worker or mechanic needed to execute the contract or perform
14such work, also the general prevailing rate for legal holiday
15and overtime work, as ascertained by the Department of Labor
16shall be paid for each craft or type of worker needed to
17execute the contract or to perform such work, and it shall be
18mandatory upon the contractor to whom the contract is awarded
19and upon any subcontractor under him, and where the public body
20performs the work, upon the public body, to pay not less than
21the specified rates to all laborers, workers and mechanics
22employed by them in the execution of the contract or such work.
23Compliance with this Act is a matter of statewide concern, and
24a public body may not opt out of any provisions herein.
25    (e) The public body or other entity awarding the contract
26shall cause to be inserted in the project specifications and

 

 

SB1646- 10 -LRB101 09149 JLS 54243 b

1the contract a stipulation to the effect that not less than the
2prevailing rate of wages as found by the Department of Labor or
3determined by the court on review shall be paid to all
4laborers, workers and mechanics performing work under the
5contract.
6    (f) When a public body or other entity covered by this Act
7has awarded work to a contractor without a public bid, contract
8or project specification, such public body or other entity
9shall comply with subsection (e) by providing the contractor
10with written notice on the purchase order related to the work
11to be done or on a separate document indicating that not less
12than the prevailing rate of wages ascertained by the Department
13of Labor or determined by the court on review shall be paid to
14all laborers, workers, and mechanics performing work on the
15project.
16    (g) Where a complaint is made and the Department of Labor
17determines that a violation occurred, the Department of Labor
18shall determine if proper written notice under this Section 4
19was given. If proper written notice was not provided to the
20contractor by the public body or other entity, the Department
21of Labor shall order the public body or other entity to pay any
22interest, penalties or fines that would have been owed by the
23contractor if proper written notice were provided. The failure
24by a public body or other entity to provide written notice does
25not relieve the contractor of the duty to comply with the
26prevailing wage rate, nor of the obligation to pay any back

 

 

SB1646- 11 -LRB101 09149 JLS 54243 b

1wages, as determined under this Act. For the purposes of this
2subsection, back wages shall be limited to the difference
3between the actual amount paid and the prevailing rate of wages
4required to be paid for the project. The failure of a public
5body or other entity to provide written notice under this
6Section 4 does not diminish the right of a laborer, worker, or
7mechanic to the prevailing rate of wages as determined under
8this Act.
9    (h) It shall also be mandatory upon the contractor to whom
10the contract is awarded to insert into each subcontract and
11into the project specifications for each subcontract a written
12stipulation to the effect that not less than the prevailing
13rate of wages shall be paid to all laborers, workers, and
14mechanics performing work under the contract. It shall also be
15mandatory upon each subcontractor to cause to be inserted into
16each lower tiered subcontract and into the project
17specifications for each lower tiered subcontract a stipulation
18to the effect that not less than the prevailing rate of wages
19shall be paid to all laborers, workers, and mechanics
20performing work under the contract. A contractor or
21subcontractor who fails to comply with this subsection is in
22violation of this Act.
23    (i) When a contractor has awarded work to a subcontractor
24without a contract or contract specification, the contractor
25shall comply with subsection (h) by providing a subcontractor
26with a written statement indicating that not less than the

 

 

SB1646- 12 -LRB101 09149 JLS 54243 b

1prevailing rate of wages shall be paid to all laborers,
2workers, and mechanics performing work on the project. A
3contractor or subcontractor who fails to comply with this
4subsection is in violation of this Act.
5    (j) Where a complaint is made and the Department of Labor
6determines that a violation has occurred, the Department of
7Labor shall determine if proper written notice under this
8Section 4 was given. If proper written notice was not provided
9to the subcontractor by the contractor, the Department of Labor
10shall order the contractor to pay any interest, penalties, or
11fines that would have been owed by the subcontractor if proper
12written notice were provided. The failure by a contractor to
13provide written notice to a subcontractor does not relieve the
14subcontractor of the duty to comply with the prevailing wage
15rate, nor of the obligation to pay any back wages, as
16determined under this Act. For the purposes of this subsection,
17back wages shall be limited to the difference between the
18actual amount paid and the prevailing rate of wages required
19for the project. However, if proper written notice was not
20provided to the contractor by the public body or other entity
21under this Section 4, the Department of Labor shall order the
22public body or other entity to pay any interest, penalties, or
23fines that would have been owed by the subcontractor if proper
24written notice were provided. The failure by a public body or
25other entity to provide written notice does not relieve the
26subcontractor of the duty to comply with the prevailing wage

 

 

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1rate, nor of the obligation to pay any back wages, as
2determined under this Act. For the purposes of this subsection,
3back wages shall be limited to the difference between the
4actual amount paid and the prevailing rate of wages required
5for the project. The failure to provide written notice by a
6public body, other entity, or contractor does not diminish the
7right of a laborer, worker, or mechanic to the prevailing rate
8of wages as determined under this Act.
9    (k) A public body or other entity shall also require in all
10contractor's and subcontractor's bonds that the contractor or
11subcontractor include such provision as will guarantee the
12faithful performance of such prevailing wage clause as provided
13by contract or other written instrument. All bid specifications
14shall list the specified rates to all laborers, workers and
15mechanics in the locality for each craft or type of worker or
16mechanic needed to execute the contract.
17    (l) If the Department of Labor revises the prevailing rate
18of hourly wages to be paid by the public body or other entity,
19the revised rate shall apply to such contract, and the public
20body or other entity shall be responsible to notify the
21contractor and each subcontractor, of the revised rate.
22    The public body or other entity shall discharge its duty to
23notify of the revised rates by inserting a written stipulation
24in all contracts or other written instruments that states the
25prevailing rate of wages are revised by the Department of Labor
26and are available on the Department's official website. This

 

 

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1shall be deemed to be proper notification of any rate changes
2under this subsection.
3    (m) (Blank). Two or more investigatory hearings under this
4Section on the issue of establishing a new prevailing wage
5classification for a particular craft or type of worker shall
6be consolidated in a single hearing before the Department. The
7party requesting a consolidated investigatory hearing shall
8have the burden of establishing that there is no existing
9prevailing wage classification for the particular craft or type
10of worker in any of the localities under consideration.
11    (n) It shall be mandatory upon the contractor or
12construction manager to whom a contract for public works is
13awarded to post, at a location on the project site of the
14public works that is easily accessible to the workers engaged
15on the project, the prevailing wage rates for each craft or
16type of worker or mechanic needed to execute the contract or
17project or work to be performed. In lieu of posting on the
18project site of the public works, a contractor which has a
19business location where laborers, workers, and mechanics
20regularly visit may: (1) post in a conspicuous location at that
21business the current prevailing wage rates for each county in
22which the contractor is performing work; or (2) provide such
23laborer, worker, or mechanic engaged on the public works
24project a written notice indicating the prevailing wage rates
25for the public works project. A failure to post or provide a
26prevailing wage rate as required by this Section is a violation

 

 

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1of this Act.
2    (o) The creation of any new prevailing wage classification
3shall be promulgated by administrative rule by the Department
4of Labor in accordance with the Illinois Administrative
5Procedure Act.
6(Source: P.A. 100-1177, eff. 6-1-19.)
 
7    Section 95. No acceleration or delay. Where this Act makes
8changes in a statute that is represented in this Act by text
9that is not yet or no longer in effect (for example, a Section
10represented by multiple versions), the use of that text does
11not accelerate or delay the taking effect of (i) the changes
12made by this Act or (ii) provisions derived from any other
13Public Act.