State of Illinois
92nd General Assembly

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 1        AN ACT concerning wages.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 1.  Short title.  This Act may be  cited  as  the
 5    Illinois Living Wage Act.

 6        Section 5.  Definitions. In this Act:
 7        "Director" means the Director of Labor.
 8        "Employer" means either:
 9             (1)  a  for-profit or not-for-profit entity that (i)
10        has a State contract, subject to the Illinois Procurement
11        Code, for services valued at $100,000 or more, (ii) has a
12        subcontract for services valued at $25,000 or more  under
13        a contract covered by item (i), or (iii) is a health care
14        facility,  as  defined in this Section, that receives 50%
15        or more of its annual gross revenues from Medicaid; or
16             (2)  the State when  it  compensates  personal  care
17        attendants  providing  services  under  Section  3 of the
18        Disabled Persons Rehabilitation Act.
19        "Health  care  facility"  means  an   intermediate   care
20    facility   for  the  mentally  retarded,  a  long  term  care
21    facility, a hospital, a recipient of a  Department  of  Human
22    Services  grant  for services provided to the developmentally
23    disabled or mentally ill, or  a  community-integrated  living
24    arrangement.
25        "Index"  means the most recent available figure published
26    in the Federal Register by the United  States  Department  of
27    Health  and  Human  Services  and updated on an annual basis,
28    which defines the poverty guidelines for a family of 4 in the
29    48 contiguous states and the District of Colombia.
30        "Living wage" means  an  hourly  wage  rate  set  by  the
31    Director  that,  based  on a 40-hour week and a 52-week year,
                            -2-                LRB9204128WHcs
 1    would provide an employee with an annual income that is  100%
 2    of  the  index.   If  the  published poverty guidelines for a
 3    family of 4 are reduced, the living wage set by the  Director
 4    may  not  be  less  than the hourly wage in effect during the
 5    previous year.
 6        "Unit" means an officer or entity of the executive branch
 7    that  administers  a  contract  for  services  requiring  the
 8    payment of living wage rates.

 9        Section  10.  Application.   This  Act  applies   to   an
10    employee  of  an  employer  and  to a personal care attendant
11    compensated by the State:
12             (1)  for the duration of a contract subject to  this
13        Act,  if  the employee's time during any workweek relates
14        to a State contract for services subject to the  Illinois
15        Procurement  Code  or  a subcontract for services under a
16        State contract subject to the Illinois Procurement  Code;
17        or
18             (2)  if  the  employer  is  a  health  care provider
19        subject to this Act.

20        Section 15.  Payment of living wage.
21        (a)  Subject to subsections (b), (c),  and  (d)  of  this
22    Section,  an  employer  subject  to  this  Act  must pay each
23    employee covered under this Act at an hourly rate that is  at
24    least the living wage as set by the Director.
25        (b)  If  a  contract  is subject to the provisions of the
26    Prevailing Wage Act, an employer must  pay  an  employee  the
27    wage  rate  required under that Act or the wage rate required
28    by this Act, whichever is higher.
29        (c)  If a contract for services  covers  work  previously
30    performed  by  State  employees,  an  employer  must  pay  an
31    employee  (i) a wage rate that is not less than the wage that
32    would be paid to a State employee if the work continued to be
                            -3-                LRB9204128WHcs
 1    performed by State employees plus either benefits or the cash
 2    equivalent of benefits or (ii)  the wage rate under this Act,
 3    whichever is higher.
 4        (d)  If  the  State  provides  grants,  funds,  or  other
 5    benefits to a social service agency delegated by the State to
 6    perform social service functions, the State  shall  calculate
 7    employment  costs for those agencies at a level sufficient to
 8    pay the living wage.
 9        (e)  If the application of this Act to any State contract
10    would result in a loss to the State  of  federal  funds,  the
11    unit  responsible  for  the contract or program may waive the
12    application of this Act to the extent  necessary  to  protect
13    federal funding.

14        Section 20.  Determination of living wage rate; rules.
15        (a)  The  Director  shall  annually  determine the living
16    wage rate applicable under this Act.
17        (b)  The Director shall require that an employer:
18             (1)  keep records, including  records  of  employees
19        subject  to this Act and the wages paid to the employees;
20        and
21             (2)  submit  to  the  Director  reports   that   the
22        Director   determines   necessary   for   the   effective
23        administration and enforcement of this Act.

24        Section 25.  Employee's rights.
25        (a)  An  employee covered by this Act has a right of free
26    speech and association.
27        (b) (1)  Subject to paragraph (2) of this subsection,  an
28        agreement  by  an  employee to commute, release, or waive
29        the employee's rights under this Act is void.
30             (2)  Wage rates  required  under  this  Act  may  be
31        modified   through  a  bona  fide  collective  bargaining
32        agreement.
                            -4-                LRB9204128WHcs
 1        Section 30.  Employee retention requirements.
 2        (a)  If any contract provides for the continuation  of  a
 3    service   currently   provided  by  another  contractor,  the
 4    selected contractor, or subcontractor,  is  subject  to  this
 5    Section.
 6        (b)  This  Section  applies to any person employed by the
 7    predecessor  contractor   or   any   subcontractor   to   the
 8    predecessor  contractor  who  (i)  provides  direct  labor or
 9    service on the State contract  and  (ii)  is  not  an  exempt
10    employee under the Fair Labor Standards Act.
11        (c)  Employment   shall   be  offered  to  all  qualified
12    retention employees.  A "qualified retention employee" is one
13    who has been employed for at least the 6-month period  before
14    the  date  of  the  new  contract  by the predecessor service
15    contractor or subcontractor. The new  service  contractor  or
16    subcontractor  may  deem  a  retention  employee  not  to  be
17    qualified only if:
18             (1)  the employee has been convicted of a crime that
19        is  related  to the job or to his or her job performance;
20        or
21             (2)  the  contractor  can   demonstrate   that   the
22        employee  presents  a  significant  danger  to customers,
23        co-workers, or State staff.
24        The new service contractor or subcontractor may treat any
25    of its current employees as retention employees for  purposes
26    of  this  Section  who,  based  on  payroll  records or other
27    reliable evidence, can be shown to the  satisfaction  of  the
28    Director  to  have  been  employed  for  at least the 6-month
29    period before the date of the new contract by the  contractor
30    or   subcontractor   and  who  would  otherwise  need  to  be
31    terminated as a result of the employee retention requirements
32    of this Section.
33        In the event that the service contractor or subcontractor
34    does not have enough positions available  for  all  qualified
                            -5-                LRB9204128WHcs
 1    retention   employees  and  its  current  eligible  retention
 2    employees, the service contractor or subcontractor shall hire
 3    the predecessor contractor's  qualified  retention  employees
 4    and  retain  its  current  employees  who  are  eligible  for
 5    retention   under  this  Section  by  seniority  within  each
 6    employment classification.  For  any  positions  that  become
 7    available  during  the  initial  90-day  period  of  the  new
 8    contract,  the service contractor or subcontractor shall hire
 9    qualified  retention  employees  and   rehire   its   current
10    employees  who  are eligible for retention under this Section
11    by seniority within each employment classification.
12        (c) (1)  Qualified   employees   of    the    predecessor
13        contractor may not be discharged without cause during the
14        initial 90-day period of their employment.
15             (2)  Each  qualified retention employee who receives
16        a satisfactory performance evaluation at the end  of  the
17        initial  90-day  period  of  employment  must  be offered
18        continued employment under the terms  and  conditions  of
19        employment established by the contractor or subcontractor
20        for its employees.

21        Section 35.  Posting of notice.
22        (a)  Each  employer  subject  to  this Act must post in a
23    prominent and easily accessible place at the work site during
24    any period in which an employee is entitled to a living  wage
25    under this Act, a notice of:
26             (1)  the living wage rate;
27             (2)  employee rights under this Act; and
28             (3)  the  name, address, and telephone number of the
29        Director.
30        The notice required by this Section shall  be  posted  in
31    English,  Spanish,  and  any  other language commonly used by
32    employees at the work site.
33        (b)  The Director may impose on a  person  that  violates
                            -6-                LRB9204128WHcs
 1    this  Section  a  civil  penalty  not  exceeding  $1,000  per
 2    violation.

 3        Section 40.  Investigations.
 4        (a)  The  Director  shall  investigate violations of this
 5    Act.
 6        (b)  A written or oral complaint or statement made by  an
 7    employee  to  the  Director  is  confidential  and may not be
 8    disclosed  to  the  employer  without  the  consent  of   the
 9    employee.
10        (c)  An  employer  subject  to  this  Act shall allow the
11    Director, or the Director's designee, access to a work  site,
12    access  to  payroll  records, and an opportunity to interview
13    employees for purposes of enforcing this Act.
14        (d) (1)  Within   30    days    after    completing    an
15        investigation,  the  Director  shall issue an order for a
16        hearing.
17             (2)  At  least  10  days  before  the  hearing,  the
18        Director shall serve,  personally  or  by  mail,  written
19        notice  of  the  hearing  on  all interested parties. The
20        notice shall include (i) a statement of  facts  disclosed
21        in  the  investigation and (ii) the time and place of the
22        hearing.
23             (3)  In  conducting  a  hearing,  the  Director  may
24        subpoena witnesses,  administer  oaths,  and  compel  the
25        production of records, books, papers, and other evidence.
26        (e)  After  the  conclusion  of the hearing, the Director
27    shall (i) issue a determination and (ii) serve, personally or
28    by  mail,  each  interested  party  with  a   copy   of   the
29    determination.
30        (f)  If  the  Director finds a violation of this Act, the
31    Director  shall  determine  the  amount  of  restitution  and
32    liquidated damages to be  assessed  under  Section  45.    On
33    receipt  of  the  determination,  the  employer shall pay the
                            -7-                LRB9204128WHcs
 1    affected employees the amount  due  in  accordance  with  the
 2    Director's determination.

 3        Section  45.  Restitution  and  damages.  If the Director
 4    determines that an employer violated a provision of this  Act
 5    or rules adopted under this Act, the employer shall:
 6             (1)  pay restitution to each affected employee; and
 7             (2)  pay  to the State liquidated damages of $20 per
 8        day for each employee who is paid less  than  the  hourly
 9        rate required by this Act.

10        Section 50.  Recovery by employee.
11        (a)  If  an  employee  is  paid  less  than the wage rate
12    required by this Act or if an employer retaliates against the
13    employee solely because the employee exercised rights granted
14    by this Act, the employee is entitled to sue to recover:
15             (1)  for  lost  wages,  treble  the  amount  of  the
16        difference between the wage rate required by this Act and
17        the amount received by the employee; and
18             (2)  for  retaliation,  compensation  and   punitive
19        damages.
20        (b)  A  determination by the Director that an employer is
21    required to make restitution does not  preclude  an  employee
22    from filing an action under this Section.
23        (c)  An action under subsection (a) is considered to be a
24    suit  for  wages  and  a judgement and has the same force and
25    effect as any other judgement for wages.
26        (d)  The failure of an employee to protest orally  or  in
27    writing  about  the  payment  of a wage that is less than the
28    wage rate required by this Act or about  retaliatory  actions
29    by  an  employer  is not a bar to recovery in an action under
30    this Section.
31        (e)  In addition to damages  under  subsection  (a),  the
32    court  may  award an employee who successfully collects wages
                            -8-                LRB9204128WHcs
 1    or damages under this Section the reasonable costs of  filing
 2    the lawsuit, including reasonable attorney's fees.

 3        Section  55.  Retaliation prohibited. An employer may not
 4    retaliate against an employee  solely  because  the  employee
 5    exercises the employee's rights under this Act.
 6        A person who violates this Section is guilty of a Class A
 7    misdemeanor.

 8        Section 800.  The Illinois Procurement Code is amended by
 9    adding Section 20-17 as follows:

10        (30 ILCS 500/20-17 new)
11        Sec. 20-17.  Labor disputes; living wage.
12        (a)  Before  issuing invitations for bids or requests for
13    proposals for contracts for services, the procurement officer
14    shall determine the level of vulnerability  of  the  proposed
15    contract to service or labor disputes and the degree to which
16    labor  peace is essential to the proprietary interests of the
17    State.  The determination shall be based on consideration  of
18    factors that include, but are not limited to, the following:
19             (1)  whether  the  service or labor is provided on a
20        State site or a site that is important to the proprietary
21        interests of the State;
22             (2)  whether the contractor relies on a  significant
23        amount of public patronage;
24             (3)  the  economic effect of any disruption on State
25        expenditures or revenues; and
26             (4)  the effect of any disruption on  the  citizens,
27        tourists, and businesses of the State.
28        (b)  The   procurement   officer   shall   consider   the
29    relationship  between  (i)  the  extent to which the State is
30    vulnerable from the effects of labor unrest and (ii) the type
31    of assurance of protection against  labor  discord  that  the
                            -9-                LRB9204128WHcs
 1    contractor needs to provide.
 2        (c)  Each  bid  and  proposal  for contracts for services
 3    must contain provisions that (i) include adequate  assurances
 4    of  protection  against labor discord in light of the State's
 5    vulnerability  to  the  effects  of  labor  unrest  and  (ii)
 6    certifies that the contractor will comply with the provisions
 7    of the Illinois Living Wage Act.
 8        (d)  If at any time during the duration of the  contract,
 9    the  contractor fails to comply with the Illinois Living Wage
10    Act, the contract is voidable under Section 50-60.

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