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91_HB0554ham001
LRB9102803WHpram
1 AMENDMENT TO HOUSE BILL 554
2 AMENDMENT NO. . Amend House Bill 554 by replacing
3 the title with the following:
4 "AN ACT to amend the Prevailing Wage Act by changing
5 Sections 2, 4, 8, 9, 10, and 11."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Prevailing Wage Act is amended by
9 changing Sections 2, 4, 8, 9, 10, and 11 as follows:
10 (820 ILCS 130/2) (from Ch. 48, par. 39s-2)
11 Sec. 2. This Act applies to the wages of laborers,
12 mechanics and other workers employed in any public works, as
13 hereinafter defined, by any public body and to anyone under
14 contracts for public works.
15 As used in this Act, unless the context indicates
16 otherwise:
17 "Public works" means all fixed works constructed for
18 public use by any public body, other than work done directly
19 by any public utility company, whether or not done under
20 public supervision or direction, or paid for wholly or in
21 part out of public funds. "Public works" as defined herein
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1 includes all projects financed in whole or in part with bonds
2 issued under the Industrial Project Revenue Bond Act (Article
3 11, Division 74 of the Illinois Municipal Code), as now or
4 hereafter amended, the Industrial Building Revenue Bond Act,
5 as now or hereafter amended, the Illinois Development Finance
6 Authority Act, as now or hereafter amended, or the Build
7 Illinois Bond Act, as now or hereafter amended, and all
8 projects financed in whole or in part with loans or other
9 funds made available pursuant to The Build Illinois Act, as
10 now or hereafter amended.
11 "Construction" means all new construction, alteration,
12 repair, installation, painting, decorating, completion,
13 demolition, conditioning, reconditioning, or improvement of
14 work on public works involving laborers, workers or
15 mechanics.
16 "Locality" means the county where the physical work upon
17 public works is performed, except (1) that if there is not
18 available in the county a sufficient number of competent
19 skilled laborers, workers and mechanics to construct the
20 public works efficiently and properly, "locality" includes
21 any other county nearest the one in which the work or
22 construction is to be performed and from which such persons
23 may be obtained in sufficient numbers to perform the work and
24 (2) that, with respect to contracts for highway work with the
25 Department of Transportation of this State, "locality" may at
26 the discretion of the Secretary of the Department of
27 Transportation be construed to include two or more adjacent
28 counties from which workers may be accessible for work on
29 such construction.
30 "Public body" means the State or any officer, board or
31 commission of the State or any political subdivision or
32 department thereof, or any institution supported in whole or
33 in part by public funds, authorized by law to construct
34 public works or to enter into any contract for the
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1 construction of public works, and includes every county,
2 city, town, village, township, school district, irrigation,
3 utility, reclamation improvement or other district and every
4 other political subdivision, district or municipality of the
5 state whether such political subdivision, municipality or
6 district operates under a special charter or not.
7 The terms "general prevailing rate of hourly wages",
8 "general prevailing rate of wages" or "prevailing rate of
9 wages" when used in this Act mean the hourly cash wages plus
10 fringe benefits for health and welfare, insurance, vacations
11 and pensions paid generally, in the locality in which the
12 work is being performed, to employees engaged in work of a
13 similar character on public works.
14 (Source: P.A. 86-799; 86-1028.)
15 (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
16 Sec. 4. (a) The public body awarding any contract for
17 public work or otherwise undertaking any public works, shall
18 request that the Department of Labor ascertain the general
19 prevailing rate of hourly wages in the locality in which the
20 work is to be performed, for each craft or type of worker or
21 mechanic needed to execute the contract, and where the public
22 body performs the work without letting a contract therefor,
23 that the Department of Labor shall ascertain the prevailing
24 rate of wages on a per hour basis in the locality, and such
25 public body shall specify in the resolution or ordinance and
26 in the call for bids for the contract, that the general
27 prevailing rate of wages in the locality for each craft or
28 type of worker or mechanic needed to execute the contract or
29 perform such work, also the general prevailing rate for legal
30 holiday and overtime work, as ascertained by the public body
31 or by the Department of Labor shall be paid for each craft or
32 type of worker needed to execute the contract or to perform
33 such work. It, and it shall be mandatory upon the
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1 contractor to whom the contract is awarded and upon any
2 subcontractor under him, and where the public body performs
3 the work, upon the public body, to pay not less than the
4 specified rates to all laborers, workers and mechanics
5 employed by them in the execution of the contract or such
6 work; provided, however, that if the public body desires that
7 the Department of Labor ascertain the prevailing rate of
8 wages, it shall notify the Department of Labor to ascertain
9 the general prevailing rate of hourly wages for work under
10 contract, or for work performed by a public body without
11 letting a contract as required in the locality in which the
12 work is to be performed, for each craft or type of worker or
13 mechanic needed to execute the contract or project or work to
14 be performed. Upon such notification the Department of Labor
15 shall ascertain such general prevailing rate of wages, and
16 certify the prevailing wage to such public body. The public
17 body awarding the contract shall cause to be inserted in the
18 contract a stipulation to the effect that not less than the
19 prevailing rate of wages as found by the public body or
20 Department of Labor or determined by the court on review
21 shall be paid to all laborers, workers and mechanics
22 performing work under the contract and it shall cause to be
23 inserted in the contract or attached to the contract a
24 schedule of the prevailing rate of wages for each craft or
25 type of worker or mechanic needed to execute the contract. It
26 shall also require in all such contractor's bonds that the
27 contractor include such provision as will guarantee the
28 faithful performance of such prevailing wage clause as
29 provided by contract. All bid specifications shall list the
30 specified rates to all laborers, workers and mechanics in the
31 locality for each craft or type of worker or mechanic needed
32 to execute the contract.
33 (b) If the Department of Labor revises the prevailing
34 rate of hourly wages to be paid by the public body, the
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1 revised rate shall apply to such contract, and the public
2 body shall be responsible to notify the contractor and each
3 subcontractor, of the revised rate. Should any rate be
4 increased from that contained in the original contract, the
5 contractor may recover from the public body any additional
6 sums of money that the contractor may be required to pay as
7 the result of the increase.
8 (c) Contracts for public works that contain provisions
9 requiring the payment of prevailing wages as determined by
10 the United States Secretary of Labor pursuant to the federal
11 Davis-Bacon Act (United States Code, Title 40, Section 276a
12 et seq.) or related Acts or that contain minimum wage and
13 fringe benefits schedules that are the same as prevailing
14 wages in the locality as determined by collective bargaining
15 agreements or understandings between bona fide organizations
16 of construction laborers, workers, or mechanics and their
17 employers are exempt from the provisions of this Section.
18 (Source: P.A. 86-799.)
19 (820 ILCS 130/8) (from Ch. 48, par. 39s-8)
20 Sec. 8. In the event the public body authorizing the work
21 or the Department of Labor is unable to ascertain the
22 prevailing rate of wage of any class of work required to be
23 performed under the proposed contract, it is the duty of the
24 Department of Labor where the determination of said
25 prevailing rate has been referred to it to so notify the
26 public body authorizing the proposed work, and it is the duty
27 of the public body in either case to state the fact of
28 inability to ascertain said prevailing rate in its
29 resolution, ordinance or notice for bids in which event the
30 clause specifying the prevailing wage as to such class of
31 work may be excluded from the contract unless such wage may
32 be determined by the court on appeal as provided by this Act.
33 (Source: Laws 1957, p. 2662.)
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1 (820 ILCS 130/9) (from Ch. 48, par. 39s-9)
2 Sec. 9. (a) Beginning June 1, 1999, the Department of
3 Labor shall establish prevailing wages and fringe benefits at
4 the same rate that prevails on projects of a similar
5 character in the locality under collective agreements or
6 understandings between bona fide organizations of
7 construction laborers, workers, or mechanics and their
8 employers. Such agreements and understandings, to meet the
9 requirements of this Section, shall not be controlled in any
10 way by either an employee or employer organization. If the
11 prevailing rates of wages and fringe benefits cannot
12 reasonably and fairly be determined in any locality because
13 no such agreements or understandings exist, the Department of
14 Labor shall determine the rates and fringe benefits for the
15 same or most similar employment in the nearest and most
16 similar neighboring locality in which such agreements or
17 understandings do exist. The Department of Labor may hold
18 public hearings in the locality in which the work is to be
19 performed to determine the prevailing wage and fringe benefit
20 rates. All prevailing wage and fringe benefit rates
21 determined under this Section shall be filed in the office of
22 the Secretary of State at Springfield and made available to
23 the public by the Department of Labor.
24 (b) Beginning June 1, 1999, the Department of Labor
25 shall require all bona fide organizations of construction
26 laborers, workers, or mechanics, in this State to file with
27 the Department of Labor all collective agreements or
28 understandings between the organizations and employers or
29 associations of employers. The agreements shall be filed
30 within 10 days after they are signed by the parties to the
31 agreements. The Department of Labor may rely upon any bona
32 fide collective agreement, regardless of the manner in which
33 it was filed or obtained by the Department of Labor.
34 Whenever the Department of Labor determines, pursuant to
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1 subsection (a), that the prevailing rate of wages is the rate
2 set forth in any such collective agreement, then the
3 Department of Labor's determination of the rate shall be
4 retroactive to the effective date of the collective agreement
5 and shall supersede any rate previously determined by the
6 Department, regardless of the date on which the collective
7 agreement was received or obtained by the Department of
8 Labor.
9 (c) Whenever a bona fide labor organization is a party
10 to a collective agreement with an association of employers
11 covering a geographic area, the labor organization may
12 satisfy the requirements of this Section by filing the area
13 agreement, and it need not file participation agreements or
14 other agreements with individual employers within the
15 geographic area containing provisions regarding wages and
16 fringe benefits identical to those in the area agreement.
17 (d) Any bona fide labor organization that fails to file
18 collective agreements in accordance with this Section shall
19 be denied status as a party in any proceeding held to
20 determine or to challenge the determination of the prevailing
21 rate of wages for work within the jurisdiction of the labor
22 organization.
23 (e) Once the Department of Labor determines that a
24 collective agreement is one upon which it may rely pursuant
25 to subsection (a), then all provisions of the agreement
26 relating to the wages and fringe benefits to be paid to
27 construction laborers, workers, or mechanics under the
28 agreement shall constitute the prevailing rate of wages. The
29 Department of Labor may respond to a request for its
30 determination regarding the prevailing rate of wages for a
31 particular classification by providing the requesting party
32 with a copy of the relevant terms of the collective agreement
33 on which it has relied in making its determination, or it may
34 publish a schedule or summary of the agreement's relevant
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1 terms. In the event of any conflict between any such
2 schedule or summary and the actual terms of the agreement
3 upon which the Department of Labor has relied, the terms of
4 the actual agreement shall control.
5 To effectuate the purpose and policy of this Act each
6 public body shall, during the month of June of each calendar
7 year, investigate and ascertain the prevailing rate of wages
8 as defined in this Act and publicly post or keep available
9 for inspection by any interested party in the main office of
10 such public body its determination of such prevailing rate of
11 wage and shall promptly file a certified copy thereof in the
12 office of the Secretary of State at Springfield.
13 The Department of Labor shall during the month of June of
14 each calendar year, investigate and ascertain the prevailing
15 rate of wages for each county in the State. If a public body
16 does not investigate and ascertain the prevailing rate of
17 wages during the month of June as required by the previous
18 paragraph, then the prevailing rate of wages for that public
19 body shall be the rate as determined by the Department under
20 this paragraph for the county in which such public body is
21 located.
22 Where the Department of Labor ascertains the prevailing
23 rate of wages, it is the duty of the Department of Labor
24 within 30 days after receiving a notice from the public body
25 authorizing the proposed work, to conduct an investigation to
26 ascertain the prevailing rate of wages as defined in this Act
27 and such investigation shall be conducted in the locality in
28 which the work is to be performed. The Department of Labor
29 shall send a certified copy of its findings to the public
30 body authorizing the work and keep a record of its findings
31 available for inspection by any interested party in the
32 office of the Department of Labor at Springfield.
33 The public body except for the Department of
34 Transportation with respect to highway contracts shall within
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1 30 days after filing with the Secretary of State, or the
2 Department of Labor shall within 30 days after filing with
3 such public body, publish in a newspaper of general
4 circulation within the area that the determination is
5 effective, a notice of its determination and shall promptly
6 mail a copy of its determination to any employer, and to any
7 association of employers and to any person or association of
8 employees who have filed their names and addresses,
9 requesting copies of any determination stating the particular
10 rates and the particular class of workers whose wages will be
11 affected by such rates.
12 (f) At any time within 30 days after a public body has
13 received a prevailing wage determination from the Department
14 of Labor or within 30 days after a public body has published
15 a prevailing wage determination in connection with a
16 particular public works project 15 days after a certified
17 copy of the determination has been published as herein
18 provided, the public body or any interested person any person
19 affected thereby may object in writing to the determination
20 or such part thereof as they may deem objectionable by filing
21 a written notice with the public body or Department of Labor,
22 whichever has made such determination, stating the specified
23 grounds of the objection. It shall thereafter be the duty of
24 the public body or Department of Labor to set a date for a
25 hearing on the objection after giving written notice to the
26 objectors at least 10 days before the date of the hearing and
27 said notice shall state the time and place of such hearing.
28 Such hearing by a public body shall be held within 20 days
29 after the objection is filed, and shall not be postponed or
30 reset for a later date except upon the consent, in writing,
31 of all the objectors and the public body involved. If such
32 hearing is not held by the public body within the time herein
33 specified, the Department of Labor may, upon request of the
34 objectors, conduct the hearing on behalf of the public body.
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1 The public body or Department of Labor, whichever has
2 made such determination, is authorized in its discretion to
3 hear each written objection filed separately or consolidate
4 for hearing any one or more written objections filed with
5 them. At such hearing the public body or Department of Labor
6 shall introduce in evidence the collective agreement that
7 investigation it instituted which formed the basis of its
8 determination, and the public body or Department of Labor, or
9 any interested objectors may thereafter introduce such
10 evidence as is material to the issue. Thereafter, the public
11 body or Department of Labor, must rule upon the written
12 objection and make such final determination as it believes
13 the evidence warrants, and promptly file a certified copy of
14 its final determination with the such public body involved
15 and the Secretary of State, and serve a copy by personal
16 service or registered mail on all parties to the proceedings.
17 The final determination by the Department of Labor a public
18 body shall be rendered within 10 days after the conclusion of
19 the hearing.
20 (g) If proceedings to review judicially the final
21 determination of the public body or Department of Labor are
22 not instituted as hereafter provided, such determination
23 shall be final and binding.
24 The provisions of the Administrative Review Law, and all
25 amendments and modifications thereof, and the rules adopted
26 pursuant thereto, shall apply to and govern all proceedings
27 for the judicial review of final administrative decisions of
28 any public body or the Department of Labor hereunder. The
29 term "administrative decision" is defined as in Section 3-101
30 of the Code of Civil Procedure.
31 Appeals from all final orders and judgments entered by
32 the court in review of the final administrative decision of
33 the public body or Department of Labor, may be taken by any
34 party to the action.
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1 Any proceeding in any court affecting a determination of
2 the Department of Labor or public body shall have priority in
3 hearing and determination over all other civil proceedings
4 pending in said court, except election contests.
5 In all reviews or appeals under this Act, it shall be the
6 duty of the Attorney General to represent the Department of
7 Labor, and defend its determination. The Attorney General
8 shall not represent any public body, except the State, in any
9 such review or appeal.
10 (h) The Department of Labor shall promulgate rules
11 necessary to carry out the provisions and purposes of this
12 Section and to prevent their circumvention or evasion.
13 (Source: P.A. 83-201.)
14 (820 ILCS 130/10) (from Ch. 48, par. 39s-10)
15 Sec. 10. The presiding officer of the public body, or
16 his or her authorized representative and the Director of the
17 Department of Labor, or his or her authorized representative
18 may administer oaths, take or cause to be taken the
19 depositions of witnesses, and require by subpoena the
20 attendance and testimony of witnesses, and the production of
21 all books, records, and other evidence relative to the matter
22 under investigation or hearing. Such subpoena shall be signed
23 and issued by such presiding officer or his or her authorized
24 representative, or the Director or his or her authorized
25 representative.
26 In case of failure of any person to comply with any
27 subpoena lawfully issued under this section or on the refusal
28 of any witness to produce evidence or to testify to any
29 matter regarding which he or she may be lawfully
30 interrogated, it is the duty of any circuit court, upon
31 application of such presiding officer or his or her
32 authorized representative, or the Director or his or her
33 authorized representative, to compel obedience by proceedings
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1 for contempt, as in the case of disobedience of the
2 requirements of a subpoena issued by such court or a refusal
3 to testify therein. The Such presiding officer and the
4 Director may certify to official acts.
5 (Source: P.A. 83-334.)
6 (820 ILCS 130/11) (from Ch. 48, par. 39s-11)
7 Sec. 11. No public works project shall be instituted
8 unless the provisions of this Act have been complied with.
9 The provisions of this Act shall not be applicable to Federal
10 construction projects which require a prevailing wage
11 determination by the United States Secretary of Labor. The
12 Illinois Department of Labor represented by the Attorney
13 General is empowered to sue for injunctive relief against the
14 awarding of any contract or the continuation of work under
15 any contract for public works at a time when the prevailing
16 wage prerequisites have not been met. Any contract for
17 public works awarded at a time when the prevailing wage
18 prerequisites had not been met shall be void as against
19 public policy and the contractor is prohibited from
20 recovering any damages for the voiding of the contract or
21 pursuant to the terms of the contract. The contractor is
22 limited to a claim for amounts actually paid for labor and
23 materials supplied to the public body. Where objections to a
24 determination of the prevailing rate of wages or a court
25 action relative thereto is pending, the public body shall not
26 continue work on the project unless sufficient funds are
27 available to pay increased wages if such are finally
28 determined or unless the Department of Labor certifies such
29 determination of the prevailing rate of wages as correct.
30 Any laborer, worker or mechanic employed by the
31 contractor or by any sub-contractor under him who is paid for
32 his services in a sum less than the stipulated rates for work
33 done under such contract, shall have a right of action for
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1 whatever difference there may be between the amount so paid,
2 and the rates provided by the contract together with costs
3 and such reasonable attorney's fees as shall be allowed by
4 the court. Such contractor or subcontractor shall also be
5 liable to the Department of Labor for 20% of such
6 underpayments and shall be additionally liable to the
7 laborer, worker or mechanic for punitive damages in the
8 amount of 2% of the amount of any such penalty to the State
9 for underpayments for each month following the date of
10 payment during which such underpayments remain unpaid. The
11 Department shall also have a right of action on behalf of any
12 individual who has a right of action under this Section. An
13 action brought to recover same shall be deemed to be a suit
14 for wages, and any and all judgments entered therein shall
15 have the same force and effect as other judgments for wages.
16 At the request of any laborer, workman or mechanic employed
17 by the contractor or by any subcontractor under him who is
18 paid less than the prevailing wage rate required by this Act,
19 the Department of Labor may take an assignment of such wage
20 claim in trust for the assigning laborer, workman or mechanic
21 and may bring any legal action necessary to collect such
22 claim, and the contractor or subcontractor shall be required
23 to pay the costs incurred in collecting such claim.
24 In any action or proceeding against a contractor or
25 subcontractor under this Act that is pending on June 1, 1999,
26 or commenced after that date, it shall be an absolute defense
27 that the contractor or subcontractor paid its employees wages
28 and fringe benefits at the rates set forth in a valid
29 collective agreement covering the work in question between a
30 bona fide labor organization and the contractor or
31 subcontractor or between a bona fide labor organization and
32 an association of employers in the locality in which the work
33 was performed, and the contractor or subcontractor shall not
34 be liable for payment of any amount in excess of that
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1 required by the agreement, unless the plaintiff or
2 complainant in any such action or proceeding shows, by a
3 preponderance of the evidence, that the rates set forth in
4 the agreement were not the rates that prevailed in the
5 relevant locality at the time the work was performed.
6 (Source: P.A. 86-799.)
7 Section 99. Effective date. This Act takes effect June
8 1, 1999.".