Illinois General Assembly - Full Text of SB1347
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Full Text of SB1347  100th General Assembly


Sen. Daniel Biss

Filed: 3/29/2017





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2    AMENDMENT NO. ______. Amend Senate Bill 1347 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5Living Wage Act.
6    Section 5. Policy. It is the policy of the State of
7Illinois that in order to increase efficiency and cost savings
8in the work performed by parties who contract with the State of
9Illinois the hourly minimum wage to be paid by those
10contractors shall be $16.36, and shall be increased annually
11thereafter by an amount specified herein. It is further the
12policy of the State of Illinois that raising the pay of
13low-wage workers increases the productivity and quality of
14their work, lowers turnover, and reduces supervisory costs.
15These savings and quality improvements will lead to an improved
16economy in Illinois and more efficient State procurement.



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1    Section 10. Definitions. As used in this Act:
2    "Concessions contract" means a contract under which the
3State grants a right to use State property, including land or
4facilities, for furnishing services. "Concessions contract"
5includes, but is not limited to, a contract the principal
6purpose of which is to furnish food, lodging, automobile fuel,
7souvenirs, newspaper stands, or recreational equipment, or any
8combination thereof, regardless of whether the services are of
9direct benefit to the State, its personnel, or the general
11    "Contractor" means any individual or other legal entity
12that is awarded a contract or subcontract by the State.
13"Contractor" refers to both a prime contractor and all of its
14subcontractors of any tier on a contract with the State.
15    "Contract" means all types of State agreements, regardless
16of what they may be called, for the procurement, use, or
17disposal of supplies, services, professional or artistic
18services; construction or for leases of real property where the
19State is the lessee; and capital improvements, including
20renewals, and includes master contracts; contracts for
21financing through use of installment or lease-purchase
22arrangements; renegotiated contracts; amendments to contracts;
23and change orders, as defined in Section 1-15.30 of the
24Illinois Procurement Code. "Contract" includes all contracts
25and any subcontracts of any tier thereunder, whether negotiated



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1or advertised, including any procurement actions, lease
2agreements, cooperative agreements, provider agreements,
3intergovernmental service agreements, service agreements,
4licenses, permits, or any other type of agreement, regardless
5of nomenclature, type, or particular form, and whether entered
6into verbally or in writing. The term "contract" shall be
7interpreted broadly as to include, but not be limited to, any
8contract that may be consistent with the definition provided in
9the Illinois Procurement Code or any other applicable Illinois
10law. Contracts may be the result of competitive bidding or
11awarded to a single source under applicable authority to do so.
12In addition to bilateral instruments, "contract" includes, but
13is not limited to, awards and notices of awards; job orders or
14task letters issued under basic ordering agreements; letter
15contracts; orders, such as purchase orders, under which the
16contract becomes effective by written acceptance or
17performance; bilateral contract modifications; and concessions
19    "Minimum wage" means, for purposes of this Act, a wage that
20is at least:
21        (1) $16.36 per hour beginning January 1, 2018; and
22        (2) Beginning January 1, 2019, and annually
23    thereafter, an amount determined by the Department of Labor
24    pursuant to Section 15 of this Act.
25    "New contract" means a contract that results from a
26solicitation issued on or after January 1, 2018, or a contract



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1that is awarded outside the solicitation process on or after
2January 1, 2018. "New contract" includes both new contracts and
3replacements for expiring contracts. For purposes of this Act,
4a contract that is entered into prior to January 1, 2018 will
5constitute a new contract if, through bilateral negotiation, on
6or after January 1, 2018:
7        (1) the contract is renewed;
8        (2) the contract is extended, unless the extension is
9    made pursuant to a term in the contract as of December 31,
10    2016 providing for a short-term limited extension; or
11        (3) the contract is amended pursuant to a modification
12    that is outside the scope of the contract.
13    "State" means the State of Illinois, including executive
14departments and State agencies.
15    "Worker" means any person engaged in performing work on or
16in connection with a contract covered by this Act, other than
17individuals employed in a bona fide executive, administrative,
18or professional capacity, regardless of the contractual
19relationship alleged to exist between the individual and the
21    Section 15. Establishing a minimum wage for State
22contractors and subcontractors.
23    (a) The State shall ensure that new contracts include a
24provision, which the contractor and any subcontractors shall
25incorporate directly into lower-tier subcontracts, specifying



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1that, as a condition of payment of the contract, the minimum
2wage to be paid to workers in the performance of the contract
3or subcontract shall be at least:
4        (1) $16.36 per hour; and
5        (2) beginning January 1, 2019, and annually
6    thereafter, the amount of the hourly minimum wage required
7    by new contracts shall be published by the Department of
8    Labor.
9        The minimum wage after adjustment under this
10    subsection (a) shall be:
11            (A) no less than the amount published as the
12        minimum wage effective at the date of determination;
13            (B) increased from the existing amount by the
14        annual percentage increase in the Consumer Price Index
15        for Urban Wage Earners and Clerical Workers (Midwest
16        Region, all items);
17            (C) and rounded to the nearest multiple of 10
18        cents.
19        (3) The minimum wage rates shall be calculated on an
20    annual basis, as described herein, and take effect January
21    1 of each year. The Department of Labor shall publish the
22    minimum wage rates for the upcoming year at least 90 days
23    before the new rates take effect.
24    (b) When calculating the annual percentage increase in the
25Consumer Price Index for purposes of item (B) of paragraph (2)
26of subsection (a) of this Section, the Director of Labor shall



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1compare the Consumer Price Index for the most recent month
2available with the Consumer Price Index for the same month in
3the preceding year.
4    (c) Each worker engaged in the performance of a covered
5contract by the prime contractor or any subcontractor,
6regardless of any contractual relationship which may be alleged
7to exist between the contractor and worker, shall be paid not
8less than the applicable minimum wage under this Act.
9    (d) The contractor may not discharge any part of its
10minimum wage obligation under this Act by furnishing fringe
11benefits or the cash equivalent thereof.
12    (e) The contractor shall pay unconditionally to each worker
13all wages due free and clear and without subsequent deduction
14rebate, or kickback on any account, except that the provisions
15of this Act shall not apply as to any deduction made by
16employers under any title of the federal Social Security Act or
17the federal Unemployment Insurance Tax Act, or as to any
18deductions made for union dues pursuant to any bona fide
19collective bargaining agreement. The payments shall be made no
20later than one pay period following the end of the regular pay
21period in which such wages were earned or accrued. A pay period
22under this Act may not be of any duration longer than
24    (f) Nothing in this Act shall be construed as relieving a
25contractor of any other obligation under federal, State or
26local law, or under contract or collective bargaining



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1agreement, for the payment of a higher wage to any worker, nor
2shall a lower prevailing wage under any federal, State, or
3local law, or under contract, entitle a contractor to pay any
4worker less than the minimum wage established annually under
5this Act.
6    Section 20. Application of wage standards to collective
7bargaining agreements. Nothing in this Act shall be construed
8as to interfere with, impede, or in any way diminish the right
9of employees to bargain collectively with their employers
10through representatives of their own choosing in order to
11establish wages or other conditions of employment in excess of
12the applicable minimum wage standards in this Act.
13    Section 25. Enforcement, penalties, and private right of
15    (a) Any officer, agent, or representative of any public
16body who willfully violates, or willfully fails to comply with,
17any of the provisions of this Act, and any contractor or
18subcontractor, and any officer, employee, or agent thereof, who
19as such officer, employee, who willfully violates, or willfully
20fails to comply with, any of the provisions of this Act, is
21guilty of a Class A misdemeanor.
22    (b) The Department of Labor shall inquire diligently as to
23any violation of this Act, shall institute actions for
24penalties herein prescribed, and shall enforce generally the



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1provisions of this Act. The Attorney General shall prosecute
2such violations upon complaint by the Department or any
3interested person.
4    (c) Failure to comply with the minimum wage requirement as
5stated in this Act shall be considered evidence bearing on a
6contractor's qualification for award of future contracts.
7    (d) The prime contractor and any upper-tier subcontractor
8shall be responsible for the compliance by any subcontractor or
9lower-tier subcontractor with the minimum wage requirements
10set forth in this Act. In the event of any violation of the
11minimum wage obligation of this subsection (d), the contractor
12and subcontractor, if any, responsible for the violation shall
13be liable for the unpaid wages.
14    (e) Under this Act, any worker engaged in the performance
15of a covered contract by the prime contractor or any
16subcontractor under it who is paid for his services in a sum
17less than the stipulated rates for work done under the contract
18shall have a right of action for whatever difference there may
19be between the amount so paid and the rates provided by the
20contract, together with costs and any reasonable attorney's
21fees as shall be allowed by the court. The contractor or
22subcontractor shall also be liable to the Department of Labor
23for 20% of the underpayments and shall be additionally liable
24to the individual employed by the contractor or subcontractor
25for punitive damages in the amount of 2% of the amount of any
26penalty to the State for underpayments for each month following



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1the date of payment during which the underpayments remain
3    Where a second or subsequent action to recover
4underpayments is brought against a contractor or subcontractor
5and the contractor or subcontractor is found liable for
6underpayments to any individual working for the contractor or
7subcontractor, the contractor or subcontractor shall also be
8liable to the Department of Labor for 50% of the underpayments
9payable as a result of the second or subsequent action and
10shall be additionally liable for 5% of the amount of any
11penalty to the State for underpayments for each month following
12the date of payment during which the underpayments remain
14    The Department shall also have a right of action on behalf
15of any worker who has a right of action under this Section. An
16action brought to recover under this Act shall be deemed to be
17a suit for wages, and any and all judgments entered therein
18shall have the same force and effect as other judgments for
19wages. At the request of any worker engaged in the performance
20of a covered contract by the prime contractor or by any
21subcontractor under it who is paid less than the minimum wage
22rate required by this Act, the Department of Labor may take an
23assignment of the wage claim in trust for the assigning worker
24and may bring any legal action necessary to collect the claim,
25and the contractor or subcontractor shall be required to pay
26the costs incurred in collecting such claim.



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1    (f) In the event of a failure to pay any worker all or part
2of the wages due under this Act, the contracting agency may on
3its own action or after authorization or by direction of the
4Department of Labor or the Attorney General acting on behalf
5the Department of Labor and written notification to the
6contractor, take action to cause suspension of any further
7payment, advance, or guarantee of funds until the violations
8have ceased. Additionally, any failure to comply with the
9requirements of this Act may be grounds for termination of the
10right to proceed with the contract work. In that event, the
11State may enter into other contracts or arrangements for
12completion of the work, charging the contractor in default with
13any additional cost. A breach of the contract clause may be
14grounds for debarment as a contractor and subcontractor as
15provided in Section 30 of this Act.
16    Section 30. Debarment. The Director of the Department of
17Labor shall publish in the Illinois Register no less often than
18once each calendar quarter a list of contractors or
19subcontractors found to have disregarded their obligations to
20workers under this Act. The Department of Labor shall determine
21the contractors or subcontractors who, on 2 separate occasions
22within 5 years, have been determined to have violated the
23provisions of this Act. Upon that determination, the Department
24shall notify the violating contractor or subcontractor. The
25contractor or subcontractor shall then have 10 working days to



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1request a hearing by the Department on the alleged violations.
2Failure to respond within the 10 working day period shall
3result in automatic and immediate placement and publication on
4the list. If the contractor or subcontractor requests a hearing
5within the 10 working day period, the Director shall set a
6hearing on the alleged violations. The hearing shall take place
7no later than 45 calendar days after the receipt by the
8Department of Labor of the request for a hearing. The
9Department of Labor is empowered to adopt rules to govern the
10hearing procedure. No contract shall be awarded to a contractor
11or subcontractor appearing on the list, or to any firm,
12corporation, partnership or association in which such
13contractor or subcontractor has an interest until 4 years have
14elapsed from the date of publication of the list containing the
15name of such contractor or subcontractor.
16    A contractor or subcontractor convicted or found guilty
17under Section 25 of this Act shall be subject to an automatic
18and immediate debarment, thereafter prohibited from
19participating in any public works project for 4 years, with no
20right to a hearing.
21    Section 35. Notice requirement. The contractor or
22subcontractor must notify all workers performing work on or in
23connection with a covered contract of the applicable minimum
24wage rate under this Act. With respect workers performing work
25under contracts subject to prevailing wage requirements where



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1the prevailing wage rate is in excess of the minimum wage rate
2established under this Act, the contractor may meet this
3requirement by posting, in a prominent and accessible place at
4the worksite, the applicable wage determination under those
5laws. With respect to workers performing work under contracts
6whose wages are not subject to prevailing wage requirements, or
7workers performing work under contracts whose wages are subject
8to prevailing wage requirements where the prevailing rate is
9less than the minimum wage established under this Act, the
10contractor must post a notice provided by the Department of
11Labor in a prominent and accessible place at the worksite so it
12may be readily seen by workers.
13    Section 97. Severability. The provisions of this Act are
14severable under Section 1.31 of the Statute on Statutes.
15    Section 99. Effective date. This Act takes effect January
161, 2018.".