HB5412 EnrolledLRB102 25322 SPS 34596 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 Illinois Wage Payment and Collection Act is
5amended by adding Section 13.5 as follows:
6    (820 ILCS 115/13.5 new)
7    Sec. 13.5. Primary contractor responsibility for wage
8claims in construction industry.
9    (a) For all contracts entered into on or after July 1,
102022, a primary contractor making or taking a contract in the
11State for the erection, construction, alteration, or repair of
12a building, structure, or other private work in the State,
13shall assume, and is liable for, any debt owed to a claimant
14under this Section or to a third party on a wage claimant's
15behalf incurred pursuant to this Act by a subcontractor at any
16tier acting under, by, or for the primary contractor for the
17wage claimant's performance of labor included in the subject
18of the contract between the primary contractor and the owner.
19This Section does not apply to work performed by a contractor
20of the federal government, the State, a special district, a
21city, 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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1improving, or demolishing any structure or building or making
2improvements of any kind to real property.
3    "Primary contractor" means a contractor that has a direct
4contractual relationship with a property owner. "Primary
5contractor" may have the same meaning as a "general
6contractor", "prime contractor", or "construction manager". A
7property owner who acts as a primary contractor related to the
8erection, construction, alteration, or repair of his or her
9primary residence shall be exempt from liability under this
11    "Private work" means any erection, construction,
12alteration, or repair of a building, structure, or other work.
13    "Subcontractor" means a contractor that has a contractual
14relationship with the primary contractor or with another
15subcontractor at any tier, who furnishes any goods or services
16in connection with the contract between the primary contractor
17and the property owner, but does not include contractors who
18solely provide goods and transport of such goods related to
19the contract.
20    (c) The primary contractor's liability under this Section
21shall extend only to any unpaid wages or fringe or other
22benefit payments or contributions, including interest owed,
23penalties assessed by the Department, and reasonable
24attorney's fees, but shall not extend to liquidated damages.
25    (d) A primary contractor or any other person shall not
26evade or commit any act that negates the requirements of this



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1Section. Except as otherwise provided in a contract between
2the primary contractor and the subcontractor, the
3subcontractor shall indemnify the primary contractor for any
4wages, fringe or other benefit payments or contributions,
5damages, interest, penalties, or attorney's fees owed as a
6result of the subcontractor's failure to pay wages or fringe
7or other benefit payments or contributions as provided in this
8Section, unless the subcontractor's failure to pay was due to
9the primary contractor's failure to pay moneys due to the
10subcontractor in accordance with the terms of their
11contractual relationship.
12    (e) Nothing in this Section shall supersede or modify the
13obligations and liability that any primary contractor,
14subcontractor, or property owner may bear as an employer under
15this Act or any other applicable law. The obligations and
16remedies provided in this Section shall be in addition to any
17obligations and remedies otherwise provided by law. Nothing in
18this Section shall be construed to impose liability on a
19primary contractor for anything other than unpaid wages,
20fringe or other benefit payments or contributions, penalties
21assessed by the Department, interest owed, and reasonable
22attorney's fees.
23    (f) Claims brought pursuant to this Section shall be done
24so in accordance with Section 11 and 11.5 of this Act. Nothing
25in this Section shall be construed to provide a third party
26with the right to file a complaint with the Department



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1alleging violation of this Section.
2    (g) Primary contractors who are parties to a collective
3bargaining agreement on the project where the work is being
4performed shall be exempt from this Section.
5    (h) Prior to the commencement of any civil action, a
6claimant or a representative of a claimant shall provide
7written notice to the employer and to the primary contractor
8detailing the nature and basis for the claim. Failure of the
9employer or the primary contractor to resolve the claim within
1010 days after receipt of this notice, or during any agreed upon
11period extending this deadline, may result in the filing of a
12civil action to enforce the provisions of this Act.
13    Section 99. Effective date. This Act takes effect upon
14becoming law.