Illinois General Assembly - Full Text of HB3448
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Full Text of HB3448  103rd General Assembly


Sen. Cristina Castro

Filed: 4/19/2023





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2    AMENDMENT NO. ______. Amend House Bill 3448 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Wage Payment and Collection Act
5is amended by changing Section 13.5 as follows:
6    (820 ILCS 115/13.5)
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
13where the aggregate costs of the project exceed $20,000 shall
14assume, and is liable for, any debt owed to a claimant under
15this Section by a subcontractor at any tier acting under, by,
16or for the primary contractor for the wage claimant's



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1performance of labor included in the subject of the contract
2between the primary contractor and the owner. This Section
3does not apply to work performed by a contractor of the federal
4government, the State, a special district, a city, a county,
5or any political subdivision of the State.
6    (b) As used in this Section:
7    "Construction" means building, altering, repairing,
8improving, or demolishing any structure or building or making
9improvements of any kind to real property.
10    "Primary contractor" means a contractor that has a direct
11contractual relationship with a property owner. "Primary
12contractor" may have the same meaning as a "general
13contractor", "prime contractor", or "construction manager". A
14property owner who acts as a primary contractor related to the
15erection, construction, alteration, or repair of his or her
16primary residence shall be exempt from liability under this
18    "Private work" means any erection, construction,
19alteration, or repair of a building, structure, or other work.
20    "Subcontractor" means a contractor that has a contractual
21relationship with the primary contractor or with another
22subcontractor at any tier, who furnishes any goods or services
23in connection with the contract between the primary contractor
24and the property owner, but does not include contractors who
25solely provide goods and transport of such goods related to
26the contract.



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1    (c) The primary contractor's liability under this Section
2shall extend only to any unpaid wages or fringe or other
3benefit payments or contributions, including interest owed,
4penalties assessed by the Department, and reasonable
5attorney's fees, but shall not extend to liquidated damages.
6    (d) A primary contractor or any other person shall not
7evade or commit any act that negates the requirements of this
8Section. Except as otherwise provided in a contract between
9the primary contractor and the subcontractor, the
10subcontractor shall indemnify the primary contractor for any
11wages, fringe or other benefit payments or contributions,
12damages, interest, penalties, or attorney's fees owed as a
13result of the subcontractor's failure to pay wages or fringe
14or other benefit payments or contributions as provided in this
15Section, unless the subcontractor's failure to pay was due to
16the primary contractor's failure to pay moneys due to the
17subcontractor in accordance with the terms of their
18contractual relationship.
19    (e) Nothing in this Section shall supersede or modify the
20obligations and liability that any primary contractor,
21subcontractor, or property owner may bear as an employer under
22this Act or any other applicable law. The obligations and
23remedies provided in this Section shall be in addition to any
24obligations and remedies otherwise provided by law. Nothing in
25this Section shall be construed to impose liability on a
26primary contractor for anything other than unpaid wages,



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1fringe or other benefit payments or contributions, penalties
2assessed by the Department, interest owed, and reasonable
3attorney's fees.
4    (f) Claims brought pursuant to this Section shall be done
5so in accordance with this Act. Nothing in this Section shall
6be construed to provide a third party with the right to file a
7complaint with the Department alleging violation of this
9    (g) The following shall be exempt from liability under
10this Section:
11        (1) primary contractors who are parties to a
12    collective bargaining agreement on the project where the
13    work is being performed; and
14        (2) primary contractors making or taking a contract in
15    the State for the alteration or repair of an existing
16    single-family dwelling or to a single residential unit in
17    an existing multi-unit structure.
18    (h) Prior to the commencement of any civil action, a
19claimant or a representative of a claimant shall provide
20written notice to the employer and to the primary contractor
21detailing the nature and basis for the claim. Failure of the
22employer or the primary contractor to resolve the claim within
2310 days after receipt of this notice, or during any agreed upon
24period extending this deadline, may result in the filing of a
25civil action to enforce the provisions of this Act.
26    (i) Claims brought pursuant to this Section shall be filed



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1with the Department of Labor or filed with the circuit court
2within 3 years after the wages, final compensation, or wage
3supplements were due. This subsection does not apply to any
4other claims under this Act or any other applicable law
5against a primary contractor, subcontractor, or homeowner as
6an employer.
7    (j) Every primary contractor and subcontractor shall post
8and keep posted, in one or more conspicuous places accessible
9to all laborers, workers, and mechanics at a job site that is
10subject to the requirements of this Section, a notice, to be
11made available by the Director of Labor, summarizing the
12requirements of this Section and information pertaining to the
13filing of a complaint. The Director of Labor shall provide
14copies of summaries and rules to primary contractors and
15subcontractors upon request without charge. One copy of the
16notice at a job site shall satisfy the notice requirement for
17the primary contractor and all subcontractors. Any primary
18contractor or subcontractor who fails to provide notice as
19required by this Section shall be subject to a civil penalty,
20not to exceed $250, payable to the Department of Labor.
21(Source: P.A. 102-1065, eff. 6-10-22; 102-1076, eff. 6-10-22.)
22    Section 99. Effective date. This Act takes effect July 1,