SB2643 EngrossedLRB097 16236 AEK 61389 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
5Sections 2 and 4 as follows:
 
6    (820 ILCS 130/2)  (from Ch. 48, par. 39s-2)
7    Sec. 2. This Act applies to the wages of laborers,
8mechanics and other workers employed in any public works, as
9hereinafter defined, by any public body and to anyone under
10contracts for public works. This includes any maintenance,
11repair, assembly, or disassembly work performed on equipment
12whether owned, leased, or rented.
13    As used in this Act, unless the context indicates
14otherwise:
15    "Public works" means all fixed works constructed or
16demolished by any public body, or paid for wholly or in part
17out of public funds. "Public works" as defined herein includes
18all projects financed in whole or in part with bonds, grants,
19loans, or other funds made available by or through the State or
20any of its political subdivisions, including but not limited
21to: bonds issued under the Industrial Project Revenue Bond Act
22(Article 11, Division 74 of the Illinois Municipal Code), the
23Industrial Building Revenue Bond Act, the Illinois Finance

 

 

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1Authority Act, the Illinois Sports Facilities Authority Act, or
2the Build Illinois Bond Act; loans or other funds made
3available pursuant to the Build Illinois Act; or funds from the
4Fund for Illinois' Future under Section 6z-47 of the State
5Finance Act, funds for school construction under Section 5 of
6the General Obligation Bond Act, funds authorized under Section
73 of the School Construction Bond Act, funds for school
8infrastructure under Section 6z-45 of the State Finance Act,
9and funds for transportation purposes under Section 4 of the
10General Obligation Bond Act. "Public works" also includes (i)
11all projects financed in whole or in part with funds from the
12Department of Commerce and Economic Opportunity under the
13Illinois Renewable Fuels Development Program Act for which
14there is no project labor agreement; (ii) all work performed
15pursuant to a public private agreement under the Public Private
16Agreements for the Illiana Expressway Act; and (iii) all
17projects undertaken under a public-private agreement under the
18Public-Private Partnerships for Transportation Act. "Public
19works" also includes all projects at leased facility property
20used for airport purposes under Section 35 of the Local
21Government Facility Lease Act. "Public works" also includes the
22construction of a new wind power facility by a business
23designated as a High Impact Business under Section 5.5(a)(3)(E)
24of the Illinois Enterprise Zone Act. "Public works" does not
25include work done directly by any public utility company,
26whether or not done under public supervision or direction, or

 

 

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1paid for wholly or in part out of public funds. "Public works"
2does not include projects undertaken by the owner at an
3owner-occupied single-family residence or at an owner-occupied
4unit of a multi-family residence.
5    "Construction" means all work on public works involving
6laborers, workers or mechanics. This includes any maintenance,
7repair, assembly, or disassembly work performed on equipment
8whether owned, leased, or rented.
9    "Locality" means the county where the physical work upon
10public works is performed, except (1) that if there is not
11available in the county a sufficient number of competent
12skilled laborers, workers and mechanics to construct the public
13works efficiently and properly, "locality" includes any other
14county nearest the one in which the work or construction is to
15be performed and from which such persons may be obtained in
16sufficient numbers to perform the work and (2) that, with
17respect to contracts for highway work with the Department of
18Transportation of this State, "locality" may at the discretion
19of the Secretary of the Department of Transportation be
20construed to include two or more adjacent counties from which
21workers may be accessible for work on such construction.
22    "Public body" means the State or any officer, board or
23commission of the State or any political subdivision or
24department thereof, or any institution supported in whole or in
25part by public funds, and includes every county, city, town,
26village, township, school district, irrigation, utility,

 

 

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1reclamation improvement or other district and every other
2political subdivision, district or municipality of the state
3whether such political subdivision, municipality or district
4operates under a special charter or not.
5    The terms "general prevailing rate of hourly wages",
6"general prevailing rate of wages" or "prevailing rate of
7wages" when used in this Act mean the hourly cash wages plus
8fringe benefits for training and apprenticeship programs
9approved by the U.S. Department of Labor, Bureau of
10Apprenticeship and Training, health and welfare, insurance,
11vacations and pensions paid generally, in the locality in which
12the work is being performed, to employees engaged in work of a
13similar character on public works.
14    "Responsible bidder" means those individuals or firms
15meeting the requirements of Section 30-22 of the Illinois
16Procurement Code.
17(Source: P.A. 96-28, eff. 7-1-09; 96-58, eff. 1-1-10; 96-186,
18eff. 1-1-10; 96-913, eff. 6-9-10; 96-1000, eff. 7-2-10; 97-502,
19eff. 8-23-11.)
 
20    (820 ILCS 130/4)  (from Ch. 48, par. 39s-4)
21    Sec. 4. Ascertaining prevailing wage.
22    (a) The public body awarding any contract for public work
23or otherwise undertaking any public works, shall ascertain the
24general prevailing rate of hourly wages in the locality in
25which the work is to be performed, for each craft or type of

 

 

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1worker or mechanic needed to execute the contract, and where
2the public body performs the work without letting a contract
3therefor, shall ascertain the prevailing rate of wages on a per
4hour basis in the locality, and such public body shall specify
5in the resolution or ordinance and in the call for bids for the
6contract, that the general prevailing rate of wages in the
7locality for each craft or type of worker or mechanic needed to
8execute the contract or perform such work, also the general
9prevailing rate for legal holiday and overtime work, as
10ascertained by the public body or by the Department of Labor
11shall be paid for each craft or type of worker needed to
12execute the contract or to perform such work, and it shall be
13mandatory upon the contractor to whom the contract is awarded
14and upon any subcontractor under him, and where the public body
15performs the work, upon the public body, to pay not less than
16the specified rates to all laborers, workers and mechanics
17employed by them in the execution of the contract or such work;
18provided, however, that if the public body desires that the
19Department of Labor ascertain the prevailing rate of wages, it
20shall notify the Department of Labor to ascertain the general
21prevailing rate of hourly wages for work under contract, or for
22work performed by a public body without letting a contract as
23required in the locality in which the work is to be performed,
24for each craft or type of worker or mechanic needed to execute
25the contract or project or work to be performed. Upon such
26notification the Department of Labor shall ascertain such

 

 

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1general prevailing rate of wages, and certify the prevailing
2wage to such public body.
3    (a-0.5) To effectuate the purpose and policy of this Act, a
4public body awarding a contract for public work or otherwise
5undertaking any public works shall specify in the call for bids
6and shall require that each contractor and each subcontractor
7be a responsible bidder.
8    (a-0.7) A public body awarding a contract for public work
9or otherwise undertaking any public works shall require that
10each contractor and each subcontractor include in each bid a
11total number of straight-time work hours, identified as either
12"journeyperson" or "apprentice", for each craft or type of
13worker or mechanic needed to execute the contract.
14    (a-1) The public body or other entity awarding the contract
15shall cause to be inserted in the project specifications and
16the contract a stipulation to the effect that not less than the
17prevailing rate of wages as found by the public body or
18Department of Labor or determined by the court on review shall
19be paid to all laborers, workers and mechanics performing work
20under the contract.
21    (a-2) When a public body or other entity covered by this
22Act has awarded work to a contractor without a public bid,
23contract or project specification, such public body or other
24entity shall comply with subsection (a-1) by providing the
25contractor with written notice on the purchase order related to
26the work to be done or on a separate document indicating that

 

 

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

 

 

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

 

 

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

 

 

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1faithful performance of such prevailing wage clause as provided
2by contract or other written instrument. All bid specifications
3shall list the specified rates to all laborers, workers and
4mechanics in the locality for each craft or type of worker or
5mechanic needed to execute the contract.
6    (d) If the Department of Labor revises the prevailing rate
7of hourly wages to be paid by the public body, the revised rate
8shall apply to such contract, and the public body shall be
9responsible to notify the contractor and each subcontractor, of
10the revised rate.
11    (e) Two or more investigatory hearings under this Section
12on the issue of establishing a new prevailing wage
13classification for a particular craft or type of worker shall
14be consolidated in a single hearing before the Department. Such
15consolidation shall occur whether each separate investigatory
16hearing is conducted by a public body or the Department. The
17party requesting a consolidated investigatory hearing shall
18have the burden of establishing that there is no existing
19prevailing wage classification for the particular craft or type
20of worker in any of the localities under consideration.
21    (f) It shall be mandatory upon the contractor or
22construction manager to whom a contract for public works is
23awarded to post, at a location on the project site of the
24public works that is easily accessible to the workers engaged
25on the project, the prevailing wage rates for each craft or
26type of worker or mechanic needed to execute the contract or

 

 

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1project or work to be performed. In lieu of posting on the
2project site of the public works, a contractor which has a
3business location where laborers, workers, and mechanics
4regularly visit may: (1) post in a conspicuous location at that
5business the current prevailing wage rates for each county in
6which the contractor is performing work; or (2) provide such
7laborer, worker, or mechanic engaged on the public works
8project a written notice indicating the prevailing wage rates
9for the public works project. A failure to post or provide a
10prevailing wage rate as required by this Section is a violation
11of this Act.
12(Source: P.A. 95-331, eff. 8-21-07; 96-437, eff. 1-1-10.)