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 |
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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.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning employment.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Prevailing Wage Act is amended by changing | 5 | | Section 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 | 10 | | or
otherwise undertaking any public works, shall ascertain the | 11 | | general
prevailing rate of hourly wages in the locality in | 12 | | which the work is to
be performed, for each craft or type of | 13 | | worker or mechanic needed to
execute the contract, and where | 14 | | the public body performs the work
without letting a contract | 15 | | therefor, shall ascertain the prevailing rate
of wages on a per | 16 | | hour basis in the locality, and such public body shall
specify | 17 | | in the resolution or ordinance and in the call for bids for the
| 18 | | contract, that the general prevailing rate of wages in the | 19 | | locality for
each craft or type of worker or mechanic needed to | 20 | | execute the contract
or perform such work, also the general | 21 | | prevailing rate for legal holiday
and overtime work, as | 22 | | ascertained by the public body or by the
Department of Labor | 23 | | shall be paid for each craft or type of worker
needed to |
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| 1 | | execute the contract or to perform such work, and it shall be
| 2 | | mandatory upon the contractor to whom the contract is awarded | 3 | | and upon
any subcontractor under him, and where the public body | 4 | | performs the
work, upon the public body, to pay not less than | 5 | | the specified rates to
all laborers, workers and mechanics | 6 | | employed by them in the execution of
the contract or such work; | 7 | | provided, however, that if the public body
desires that the | 8 | | Department of Labor ascertain the prevailing rate of
wages, it | 9 | | shall notify the Department of Labor to ascertain the general
| 10 | | prevailing rate of hourly wages for work under contract, or for | 11 | | work
performed by a public body without letting a contract as | 12 | | required in the
locality in which the work is to be performed, | 13 | | for each craft or type of
worker or mechanic needed to execute | 14 | | the contract or project or work to
be performed. Upon such | 15 | | notification the Department of Labor shall
ascertain such | 16 | | general prevailing rate of wages, and certify the
prevailing | 17 | | wage to such public body. | 18 | | (a-1) The public body or other entity awarding the
contract | 19 | | shall cause to be inserted in the project specifications and | 20 | | the
contract a stipulation to the
effect that not less than the | 21 | | prevailing rate of wages as found by the
public body or | 22 | | Department of Labor or determined by the court on review
shall | 23 | | be paid to all laborers, workers and mechanics performing work
| 24 | | under the contract.
| 25 | | (a-2) When a public body or other entity covered by this | 26 | | Act has awarded work to a contractor without a public bid, |
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| 1 | | contract or project specification, such public body or other | 2 | | entity shall comply with subsection (a-1) by providing the | 3 | | contractor with written notice on the purchase order related to | 4 | | the work to be done or on a separate document indicating that | 5 | | not less than the prevailing rate of wages as found by the | 6 | | public body or Department of Labor or determined by the court | 7 | | on review shall be paid to all laborers, workers, and mechanics | 8 | | performing work on the project. | 9 | | (a-3) Where a complaint is made and the Department of Labor | 10 | | determines that a violation occurred, the Department of Labor | 11 | | shall determine if proper written notice under this Section 4 | 12 | | was given. If proper written notice was not provided to the | 13 | | contractor by the public body or other entity, the Department | 14 | | of Labor shall order the public body or other entity to pay any | 15 | | interest, penalties or fines that would have been owed by the | 16 | | contractor if proper written notice were provided. The failure | 17 | | by a public body or other entity to provide written notice does | 18 | | not relieve the contractor of the duty to comply with the | 19 | | prevailing wage rate, nor of the obligation to pay any back | 20 | | wages, as determined under this Act. For the purposes of this | 21 | | subsection, back wages shall be limited to the difference | 22 | | between the actual amount paid and the prevailing rate of wages | 23 | | required to be paid for the project. The failure of a public | 24 | | body or other entity to provide written notice under this | 25 | | Section 4 does not diminish the right of a laborer, worker, or | 26 | | mechanic to the prevailing rate of wages as determined under |
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| 1 | | this Act. | 2 | | (b) It shall also be mandatory upon the contractor to whom | 3 | | the contract is
awarded
to insert into each subcontract and | 4 | | into the project specifications for each
subcontract a written | 5 | | stipulation to the effect that not less than the
prevailing
| 6 | | rate of wages shall be paid to all laborers, workers, and | 7 | | mechanics performing
work under the contract. It shall also be | 8 | | mandatory upon each subcontractor to
cause to be inserted into | 9 | | each lower tiered subcontract
and into the project | 10 | | specifications for each lower tiered subcontract a
stipulation | 11 | | to the effect that not less
than the prevailing rate of wages | 12 | | shall be paid to all laborers, workers, and
mechanics | 13 | | performing work under the contract. A contractor or | 14 | | subcontractor who
fails to comply with this subsection (b) is | 15 | | in violation of this Act.
| 16 | | (b-1) When a contractor has awarded work to a subcontractor | 17 | | without a contract or contract specification, the contractor | 18 | | shall comply with subsection (b) by providing a subcontractor | 19 | | with a written statement indicating that not less than the | 20 | | prevailing rate of wages shall be paid to all laborers, | 21 | | workers, and mechanics performing work on the project. A | 22 | | contractor or subcontractor who fails to comply with this | 23 | | subsection (b-1) is in violation of this Act. | 24 | | (b-2) Where a complaint is made and the Department of Labor | 25 | | determines that a violation has occurred, the Department of | 26 | | Labor shall determine if proper written notice under this |
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| 1 | | Section 4 was given. If proper written notice was not provided | 2 | | to the subcontractor by the contractor, the Department of Labor | 3 | | shall order the contractor to pay any interest, penalties, or | 4 | | fines that would have been owed by the subcontractor if proper | 5 | | written notice were provided. The failure by a contractor to | 6 | | provide written notice to a subcontractor does not relieve the | 7 | | subcontractor of the duty to comply with the prevailing wage | 8 | | rate, nor of the obligation to pay any back wages, as | 9 | | determined under this Act. For the purposes of this subsection, | 10 | | back wages shall be limited to the difference between the | 11 | | actual amount paid and the prevailing rate of wages required | 12 | | for the project. However, if proper written notice was not | 13 | | provided to the contractor by the public body or other entity | 14 | | under this Section 4, the Department of Labor shall order the | 15 | | public body or other entity to pay any interest, penalties, or | 16 | | fines that would have been owed by the subcontractor if proper | 17 | | written notice were provided. The failure by a public body or | 18 | | other entity to provide written notice does not relieve the | 19 | | subcontractor of the duty to comply with the prevailing wage | 20 | | rate, nor of the obligation to pay any back wages, as | 21 | | determined under this Act. For the purposes of this subsection, | 22 | | back wages shall be limited to the difference between the | 23 | | actual amount paid and the prevailing rate of wages required | 24 | | for the project. The failure to provide written notice by a | 25 | | public body, other entity, or contractor does not diminish the | 26 | | right of a laborer, worker, or mechanic to the prevailing rate |
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| 1 | | of wages as determined under this Act. | 2 | | (c) A public body or other entity shall also require in all | 3 | | contractor's and subcontractor's bonds
that the contractor or | 4 | | subcontractor include such provision as will guarantee the
| 5 | | faithful performance of such prevailing wage clause as provided | 6 | | by
contract or other written instrument. All bid specifications | 7 | | shall list the specified rates to all
laborers, workers and | 8 | | mechanics in the locality for each craft or type of
worker or | 9 | | mechanic needed to execute the contract.
| 10 | | (d) If the Department of Labor
revises the prevailing rate | 11 | | of hourly wages to be paid by the public body or other entity, | 12 | | the
revised rate shall apply to such contract, and the public | 13 | | body or other entity shall be
responsible to notify the | 14 | | contractor and each subcontractor, of the revised
rate.
| 15 | | The public body or other entity shall discharge its duty to | 16 | | notify of the revised rates by inserting a written stipulation | 17 | | in all contracts or other written instruments that states the | 18 | | prevailing rate of wages are revised by the Department of Labor | 19 | | and are available on the Department's official website. This | 20 | | shall be deemed to be proper notification of any rate changes | 21 | | under this subsection. | 22 | | (e) Two or more investigatory hearings under this Section | 23 | | on the issue
of establishing a new prevailing wage | 24 | | classification for a particular craft
or type of worker shall | 25 | | be consolidated in a single hearing before the
Department. Such | 26 | | consolidation shall occur whether each separate investigatory
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| 1 | | hearing is conducted by a public body or the Department. The | 2 | | party requesting
a consolidated investigatory hearing shall | 3 | | have the burden of establishing that
there is no existing | 4 | | prevailing wage classification for the particular craft or
type | 5 | | of worker in any of the localities under consideration.
| 6 | | (f) It shall be mandatory upon the contractor or | 7 | | construction manager
to whom a contract for public works is | 8 | | awarded to post, at a
location on the project site of the | 9 | | public works that is
easily accessible to the workers engaged | 10 | | on the project,
the prevailing wage rates for each craft or | 11 | | type of worker
or mechanic needed to execute the contract or | 12 | | project or
work to be performed. In lieu of posting on the | 13 | | project site of the public works, a contractor which has a | 14 | | business location where laborers, workers, and mechanics | 15 | | regularly visit may: (1) post in a conspicuous location at that | 16 | | business the current prevailing wage rates for each county in | 17 | | which the contractor is performing work; or (2) provide such | 18 | | laborer, worker, or mechanic engaged on the public works | 19 | | project a written notice indicating the prevailing wage rates | 20 | | for the public works project. A failure to post or provide a | 21 | | prevailing wage
rate as required by this Section is a violation | 22 | | of 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. |
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| 1 | | (a) The prevailing rate of wages paid to individuals | 2 | | covered under this Act shall not be less than the
rate that | 3 | | prevails for work of a similar character on public works in the | 4 | | locality in which the
work is performed under collective | 5 | | bargaining agreements or understandings between employers
or | 6 | | employer associations and bona fide labor organizations | 7 | | relating to each craft or type of
worker or mechanic needed to | 8 | | execute the contract or perform such work, and collective
| 9 | | bargaining agreements or understandings successor thereto, | 10 | | provided that said employers or
members of said employer | 11 | | associations employ at least 30% of the laborers, workers, or
| 12 | | mechanics in the same trade or occupation in the locality where | 13 | | the work is being performed. | 14 | | (b) If the prevailing rates of wages and fringe benefits | 15 | | cannot reasonably and fairly be applied
in any locality because | 16 | | no such agreements or understandings exist, the Department of | 17 | | Labor
shall determine the rates and fringe benefits for the | 18 | | same or most similar work in the nearest and
most similar | 19 | | neighboring locality in which such agreements or | 20 | | understandings exist. The
Department of Labor shall keep a | 21 | | record of its findings available for inspection by any | 22 | | interested
party in the office of the Department of Labor. | 23 | | (c) In the event it is determined, after a written | 24 | | objection is filed and hearing is held in
accordance with | 25 | | Section 9 of this Act, that less than 30% of the laborers, | 26 | | workers, or
mechanics in a particular trade or occupation in |
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| 1 | | the locality where the work is performed receive
a collectively | 2 | | bargained rate of wage, then the average wage paid to such | 3 | | laborers, workers, or
mechanics in the same trade or occupation | 4 | | in the locality for the 12-month period preceding
the | 5 | | Department of Labor's annual determination shall be the | 6 | | prevailing rate of wage. | 7 | | (d) The public body awarding any contract for public work | 8 | | or
otherwise undertaking any public works shall
specify in the | 9 | | call for bids for the
contract, or where the public body | 10 | | performs the work without letting the contract in a written | 11 | | instrument provided to the contractor, that the general | 12 | | prevailing rate of wages in the locality for
each craft or type | 13 | | of worker or mechanic needed to execute the contract
or perform | 14 | | such work, also the general prevailing rate for legal holiday
| 15 | | and overtime work, as ascertained by the
Department of Labor | 16 | | shall be paid for each craft or type of worker
needed to | 17 | | execute the contract or to perform such work, and it shall be
| 18 | | mandatory upon the contractor to whom the contract is awarded | 19 | | and upon
any subcontractor under him, and where the public body | 20 | | performs the
work, upon the public body, to pay not less than | 21 | | the specified rates to
all laborers, workers and mechanics | 22 | | employed by them in the execution of
the contract or such work. | 23 | | Compliance with this Act is a matter of statewide concern, and | 24 | | a public body may not opt out of any provisions herein. | 25 | | (e) The public body or other entity awarding the
contract | 26 | | shall cause to be inserted in the project specifications and |
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| 1 | | the
contract a stipulation to the
effect that not less than the | 2 | | prevailing rate of wages as found by the
Department of Labor or | 3 | | determined by the court on review
shall be paid to all | 4 | | laborers, workers and mechanics performing work
under the | 5 | | contract.
| 6 | | (f) When a public body or other entity covered by this Act | 7 | | has awarded work to a contractor without a public bid, contract | 8 | | or project specification, such public body or other entity | 9 | | shall comply with subsection (e) by providing the contractor | 10 | | with written notice on the purchase order related to the work | 11 | | to be done or on a separate document indicating that not less | 12 | | than the prevailing rate of wages ascertained by the Department | 13 | | of Labor or determined by the court on review shall be paid to | 14 | | all laborers, workers, and mechanics performing work on the | 15 | | project. | 16 | | (g) Where a complaint is made and the Department of Labor | 17 | | determines that a violation occurred, the Department of Labor | 18 | | shall determine if proper written notice under this Section 4 | 19 | | was given. If proper written notice was not provided to the | 20 | | contractor by the public body or other entity, the Department | 21 | | of Labor shall order the public body or other entity to pay any | 22 | | interest, penalties or fines that would have been owed by the | 23 | | contractor if proper written notice were provided. The failure | 24 | | by a public body or other entity to provide written notice does | 25 | | not relieve the contractor of the duty to comply with the | 26 | | prevailing wage rate, nor of the obligation to pay any back |
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| 1 | | wages, as determined under this Act. For the purposes of this | 2 | | subsection, back wages shall be limited to the difference | 3 | | between the actual amount paid and the prevailing rate of wages | 4 | | required to be paid for the project. The failure of a public | 5 | | body or other entity to provide written notice under this | 6 | | Section 4 does not diminish the right of a laborer, worker, or | 7 | | mechanic to the prevailing rate of wages as determined under | 8 | | this Act. | 9 | | (h) It shall also be mandatory upon the contractor to whom | 10 | | the contract is
awarded
to insert into each subcontract and | 11 | | into the project specifications for each
subcontract a written | 12 | | stipulation to the effect that not less than the
prevailing
| 13 | | rate of wages shall be paid to all laborers, workers, and | 14 | | mechanics performing
work under the contract. It shall also be | 15 | | mandatory upon each subcontractor to
cause to be inserted into | 16 | | each lower tiered subcontract
and into the project | 17 | | specifications for each lower tiered subcontract a
stipulation | 18 | | to the effect that not less
than the prevailing rate of wages | 19 | | shall be paid to all laborers, workers, and
mechanics | 20 | | performing work under the contract. A contractor or | 21 | | subcontractor who
fails to comply with this subsection is in | 22 | | violation of this Act.
| 23 | | (i) When a contractor has awarded work to a subcontractor | 24 | | without a contract or contract specification, the contractor | 25 | | shall comply with subsection (h) by providing a subcontractor | 26 | | with a written statement indicating that not less than the |
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| 1 | | prevailing rate of wages shall be paid to all laborers, | 2 | | workers, and mechanics performing work on the project. A | 3 | | contractor or subcontractor who fails to comply with this | 4 | | subsection is in violation of this Act. | 5 | | (j) Where a complaint is made and the Department of Labor | 6 | | determines that a violation has occurred, the Department of | 7 | | Labor shall determine if proper written notice under this | 8 | | Section 4 was given. If proper written notice was not provided | 9 | | to the subcontractor by the contractor, the Department of Labor | 10 | | shall order the contractor to pay any interest, penalties, or | 11 | | fines that would have been owed by the subcontractor if proper | 12 | | written notice were provided. The failure by a contractor to | 13 | | provide written notice to a subcontractor does not relieve the | 14 | | subcontractor of the duty to comply with the prevailing wage | 15 | | rate, nor of the obligation to pay any back wages, as | 16 | | determined under this Act. For the purposes of this subsection, | 17 | | back wages shall be limited to the difference between the | 18 | | actual amount paid and the prevailing rate of wages required | 19 | | for the project. However, if proper written notice was not | 20 | | provided to the contractor by the public body or other entity | 21 | | under this Section 4, the Department of Labor shall order the | 22 | | public body or other entity to pay any interest, penalties, or | 23 | | fines that would have been owed by the subcontractor if proper | 24 | | written notice were provided. The failure by a public body or | 25 | | other entity to provide written notice does not relieve the | 26 | | subcontractor of the duty to comply with the prevailing wage |
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| 1 | | rate, nor of the obligation to pay any back wages, as | 2 | | determined under this Act. For the purposes of this subsection, | 3 | | back wages shall be limited to the difference between the | 4 | | actual amount paid and the prevailing rate of wages required | 5 | | for the project. The failure to provide written notice by a | 6 | | public body, other entity, or contractor does not diminish the | 7 | | right of a laborer, worker, or mechanic to the prevailing rate | 8 | | of wages as determined under this Act. | 9 | | (k) A public body or other entity shall also require in all | 10 | | contractor's and subcontractor's bonds
that the contractor or | 11 | | subcontractor include such provision as will guarantee the
| 12 | | faithful performance of such prevailing wage clause as provided | 13 | | by
contract or other written instrument. All bid specifications | 14 | | shall list the specified rates to all
laborers, workers and | 15 | | mechanics in the locality for each craft or type of
worker or | 16 | | mechanic needed to execute the contract.
| 17 | | (l) If the Department of Labor
revises the prevailing rate | 18 | | of hourly wages to be paid by the public body or other entity, | 19 | | the
revised rate shall apply to such contract, and the public | 20 | | body or other entity shall be
responsible to notify the | 21 | | contractor and each subcontractor, of the revised
rate.
| 22 | | The public body or other entity shall discharge its duty to | 23 | | notify of the revised rates by inserting a written stipulation | 24 | | in all contracts or other written instruments that states the | 25 | | prevailing rate of wages are revised by the Department of Labor | 26 | | and are available on the Department's official website. This |
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| 1 | | shall be deemed to be proper notification of any rate changes | 2 | | under this subsection. | 3 | | (m) (Blank). Two or more investigatory hearings under this | 4 | | Section on the issue
of establishing a new prevailing wage | 5 | | classification for a particular craft
or type of worker shall | 6 | | be consolidated in a single hearing before the
Department. The | 7 | | party requesting
a consolidated investigatory hearing shall | 8 | | have the burden of establishing that
there is no existing | 9 | | prevailing wage classification for the particular craft or
type | 10 | | of worker in any of the localities under consideration.
| 11 | | (n) It shall be mandatory upon the contractor or | 12 | | construction manager
to whom a contract for public works is | 13 | | awarded to post, at a
location on the project site of the | 14 | | public works that is
easily accessible to the workers engaged | 15 | | on the project,
the prevailing wage rates for each craft or | 16 | | type of worker
or mechanic needed to execute the contract or | 17 | | project or
work to be performed. In lieu of posting on the | 18 | | project site of the public works, a contractor which has a | 19 | | business location where laborers, workers, and mechanics | 20 | | regularly visit may: (1) post in a conspicuous location at that | 21 | | business the current prevailing wage rates for each county in | 22 | | which the contractor is performing work; or (2) provide such | 23 | | laborer, worker, or mechanic engaged on the public works | 24 | | project a written notice indicating the prevailing wage rates | 25 | | for the public works project. A failure to post or provide a | 26 | | prevailing wage
rate as required by this Section is a violation |
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| 1 | | of this Act.
| 2 | | (o) The creation of any new prevailing wage classification | 3 | | shall be promulgated by administrative rule by the Department | 4 | | of Labor in accordance with the Illinois Administrative | 5 | | Procedure Act. | 6 | | (Source: P.A. 100-1177, eff. 6-1-19.)
| 7 | | Section 95. No acceleration or delay. Where this Act makes | 8 | | changes in a statute that is represented in this Act by text | 9 | | that is not yet or no longer in effect (for example, a Section | 10 | | represented by multiple versions), the use of that text does | 11 | | not accelerate or delay the taking effect of (i) the changes | 12 | | made by this Act or (ii) provisions derived from any other | 13 | | Public Act.
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