Bill Text: IL HB2881 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Prevailing Wage Act. Provides that the provisions of the Act apply to the construction or demolition of public works performed by an employee of a public body engaged in the construction or demolition of public works on behalf of another public body. Makes conforming changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-10 - Rule 19(a) / Re-referred to Rules Committee [HB2881 Detail]

Download: Illinois-2023-HB2881-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2881 Introduced , by Rep. Gregg Johnson SYNOPSIS AS INTRODUCED:
820 ILCS 130/1 from Ch. 48, par. 39s-1
820 ILCS 130/2 from Ch. 48, par. 39s-2
820 ILCS 130/3 from Ch. 48, par. 39s-3
820 ILCS 130/5 from Ch. 48, par. 39s-5
820 ILCS 130/11 from Ch. 48, par. 39s-11
Amends the Prevailing Wage Act. Provides that the provisions of the Act apply to the construction or demolition of public works performed by an employee of a public body engaged in the construction or demolition of public works on behalf of another public body. Makes conforming changes.
LRB103 27136 SPS 53505 b
A BILL FOR
HB2881 LRB103 27136 SPS 53505 b
AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Prevailing Wage Act is amended by changing
Sections 1, 2, 3, 5, and 11 as follows:
(820 ILCS 130/1) (from Ch. 48, par. 39s-1)
Sec. 1. It is the policy of the State of Illinois that a
wage of no less than the general prevailing hourly rate as paid
for work of a similar character in the locality in which the
work is performed, shall be paid to all laborers, workers and
mechanics employed by or on behalf of any and all public bodies
engaged in public works. It is also the policy of the State of
Illinois that a wage of no less than the general prevailing
hourly rate as paid for work of a similar character in the
locality in which the work is performed shall be paid to all
employees of public bodies when engaged in public works on
behalf of other public bodies.
(Source: P.A. 83-443.)
(820 ILCS 130/2) (from Ch. 48, par. 39s-2)
Sec. 2. This Act applies to the wages of laborers,
mechanics and other workers employed in any public works, as
hereinafter defined, by any public body and to anyone under

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contracts for public works. This includes any maintenance,
repair, assembly, or disassembly work performed on equipment
whether owned, leased, or rented.
As used in this Act, unless the context indicates
otherwise:
"Public works" means all fixed works constructed or
demolished by any public body, or paid for wholly or in part
out of public funds, including fixed works constructed or
demolished by a public body on behalf of another public body.
"Public works" as defined herein includes all projects
financed in whole or in part with bonds, grants, loans, or
other funds made available by or through the State or any of
its political subdivisions, including but not limited to:
bonds issued under the Industrial Project Revenue Bond Act
(Article 11, Division 74 of the Illinois Municipal Code), the
Industrial Building Revenue Bond Act, the Illinois Finance
Authority Act, the Illinois Sports Facilities Authority Act,
or the Build Illinois Bond Act; loans or other funds made
available pursuant to the Build Illinois Act; loans or other
funds made available pursuant to the Riverfront Development
Fund under Section 10-15 of the River Edge Redevelopment Zone
Act; or funds from the Fund for Illinois' Future under Section
6z-47 of the State Finance Act, funds for school construction
under Section 5 of the General Obligation Bond Act, funds
authorized under Section 3 of the School Construction Bond
Act, funds for school infrastructure under Section 6z-45 of

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the State Finance Act, and funds for transportation purposes
under Section 4 of the General Obligation Bond Act. "Public
works" also includes (i) all projects financed in whole or in
part with funds from the Environmental Protection Agency under
the Illinois Renewable Fuels Development Program Act for which
there is no project labor agreement; (ii) all work performed
pursuant to a public private agreement under the Public
Private Agreements for the Illiana Expressway Act or the
Public-Private Agreements for the South Suburban Airport Act;
(iii) all projects undertaken under a public-private agreement
under the Public-Private Partnerships for Transportation Act;
and (iv) all transportation facilities undertaken under a
design-build contract or a Construction Manager/General
Contractor contract under the Innovations for Transportation
Infrastructure Act. "Public works" also includes all projects
at leased facility property used for airport purposes under
Section 35 of the Local Government Facility Lease Act. "Public
works" also includes the construction of a new wind power
facility by a business designated as a High Impact Business
under Section 5.5(a)(3)(E) and the construction of a new
utility-scale solar power facility by a business designated as
a High Impact Business under Section 5.5(a)(3)(E-5) of the
Illinois Enterprise Zone Act. "Public works" also includes
electric vehicle charging station projects financed pursuant
to the Electric Vehicle Act and renewable energy projects
required to pay the prevailing wage pursuant to the Illinois

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Power Agency Act. "Public works" does not include work done
directly by any public utility company, whether or not done
under public supervision or direction, or paid for wholly or
in part out of public funds. "Public works" also includes
construction projects performed by a third party contracted by
any public utility, as described in subsection (a) of Section
2.1, in public rights-of-way, as defined in Section 21-201 of
the Public Utilities Act, whether or not done under public
supervision or direction, or paid for wholly or in part out of
public funds. "Public works" also includes construction
projects that exceed 15 aggregate miles of new fiber optic
cable, performed by a third party contracted by any public
utility, as described in subsection (b) of Section 2.1, in
public rights-of-way, as defined in Section 21-201 of the
Public Utilities Act, whether or not done under public
supervision or direction, or paid for wholly or in part out of
public funds. "Public works" also includes any corrective
action performed pursuant to Title XVI of the Environmental
Protection Act for which payment from the Underground Storage
Tank Fund is requested. "Public works" does not include
projects undertaken by the owner at an owner-occupied
single-family residence or at an owner-occupied unit of a
multi-family residence. "Public works" does not include work
performed for soil and water conservation purposes on
agricultural lands, whether or not done under public
supervision or paid for wholly or in part out of public funds,

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done directly by an owner or person who has legal control of
those lands.
"Construction" means all work on public works involving
laborers, workers or mechanics. This includes any maintenance,
repair, assembly, or disassembly work performed on equipment
whether owned, leased, or rented.
"Locality" means the county where the physical work upon
public works is performed, except (1) that if there is not
available in the county a sufficient number of competent
skilled laborers, workers and mechanics to construct the
public works efficiently and properly, "locality" includes any
other county nearest the one in which the work or construction
is to be performed and from which such persons may be obtained
in sufficient numbers to perform the work and (2) that, with
respect to contracts for highway work with the Department of
Transportation of this State, "locality" may at the discretion
of the Secretary of the Department of Transportation be
construed to include two or more adjacent counties from which
workers may be accessible for work on such construction.
"Public body" means the State or any officer, board or
commission of the State or any political subdivision or
department thereof, or any institution supported in whole or
in part by public funds, and includes every county, city,
town, village, township, school district, irrigation, utility,
reclamation improvement or other district and every other
political subdivision, district or municipality of the state

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whether such political subdivision, municipality or district
operates under a special charter or not.
"Labor organization" means an organization that is the
exclusive representative of an employer's employees recognized
or certified pursuant to the National Labor Relations Act.
The terms "general prevailing rate of hourly wages",
"general prevailing rate of wages" or "prevailing rate of
wages" when used in this Act mean the hourly cash wages plus
annualized fringe benefits for training and apprenticeship
programs approved by the U.S. Department of Labor, Bureau of
Apprenticeship and Training, health and welfare, insurance,
vacations and pensions paid generally, in the locality in
which the work is being performed, to employees engaged in
work of a similar character on public works.
(Source: P.A. 102-9, eff. 1-1-22; 102-444, eff. 8-20-21;
102-673, eff. 11-30-21; 102-813, eff. 5-13-22; 102-1094, eff.
6-15-22.)
(820 ILCS 130/3) (from Ch. 48, par. 39s-3)
Sec. 3. Not less than the general prevailing rate of
hourly wages for work of a similar character on public works in
the locality in which the work is performed, and not less than
the general prevailing rate of hourly wages for legal holiday
and overtime work, shall be paid to all laborers, workers and
mechanics employed by or on behalf of any public body engaged
in the construction or demolition of public works. This

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includes any maintenance, repair, assembly, or disassembly
work performed on equipment whether owned, leased, or rented.
This also includes the construction or demolition of public
works performed by an employee of a public body engaged in the
construction or demolition of public works on behalf of
another public body. Only such laborers, workers and mechanics
as are directly employed by contractors or subcontractors in
actual construction work on the site of the building or
construction job, and laborers, workers and mechanics engaged
in the transportation of materials and equipment to or from
the site, but not including the transportation by the sellers
and suppliers or the manufacture or processing of materials or
equipment, in the execution of any contract or contracts for
public works with any public body shall be deemed to be
employed upon public works. The wage for a tradesman
performing maintenance is equivalent to that of a tradesman
engaged in construction or demolition.
(Source: P.A. 95-341, eff. 8-21-07; 96-186, eff. 1-1-10.)
(820 ILCS 130/5) (from Ch. 48, par. 39s-5)
Sec. 5. Certified payroll.
(a) Any contractor and each subcontractor who participates
in public works and any public body that participates in
public works on behalf of another public body shall:
(1) make and keep, for a period of not less than 3
years from the date of the last payment made before

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January 1, 2014 (the effective date of Public Act 98-328)
and for a period of 5 years from the date of the last
payment made on or after January 1, 2014 (the effective
date of Public Act 98-328) on a contract or subcontract
for public works, records of all laborers, mechanics, and
other workers employed by them on the project; the records
shall include (i) the worker's name, (ii) the worker's
address, (iii) the worker's telephone number when
available, (iv) the last 4 digits of the worker's social
security number, (v) the worker's gender, (vi) the
worker's race, (vii) the worker's ethnicity, (viii)
veteran status, (ix) the worker's classification or
classifications, (x) the worker's skill level, such as
apprentice or journeyman, (xi) the worker's gross and net
wages paid in each pay period, (xii) the worker's number
of hours worked each day, (xiii) the worker's starting and
ending times of work each day, (xiv) the worker's hourly
wage rate, (xv) the worker's hourly overtime wage rate,
(xvi) the worker's hourly fringe benefit rates, (xvii) the
name and address of each fringe benefit fund, (xviii) the
plan sponsor of each fringe benefit, if applicable, and
(xix) the plan administrator of each fringe benefit, if
applicable; and
(2) no later than the 15th day of each calendar month
file a certified payroll for the immediately preceding
month with the public body in charge of the project until

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the Department of Labor activates the database created
under Section 5.1 at which time certified payroll shall
only be submitted to that database, except for projects
done by State agencies that opt to have contractors submit
certified payrolls directly to that State agency. A State
agency that opts to directly receive certified payrolls
must submit the required information in a specified
electronic format to the Department of Labor no later than
10 days after the certified payroll was filed with the
State agency. A certified payroll must be filed for only
those calendar months during which construction on a
public works project has occurred. The certified payroll
shall consist of a complete copy of the records identified
in paragraph (1) of this subsection (a), but may exclude
the starting and ending times of work each day. The
certified payroll shall be accompanied by a statement
signed by the contractor or subcontractor or an officer,
employee, or agent of the contractor or subcontractor or
an officer, employee, or agent of a public body engaged in
the construction or demolition of public works on behalf
of another public body, which avers that: (i) he or she has
examined the certified payroll records required to be
submitted by the Act and such records are true and
accurate; (ii) the hourly rate paid to each worker is not
less than the general prevailing rate of hourly wages
required by this Act; and (iii) the public body engaged in

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the construction or demolition of public works on behalf
of another public body or the contractor or subcontractor
is aware that filing a certified payroll that he or she
knows to be false is a Class A misdemeanor. A general
contractor is not prohibited from relying on the
certification of a lower tier subcontractor, provided the
general contractor does not knowingly rely upon a
subcontractor's false certification. Any public body
engaged in the construction or demolition of public works
on behalf of another public body, any officer, employee,
or agent of a public body engaged in the construction or
demolition of public works on behalf of another public
body, any contractor or subcontractor subject to this Act,
and any officer, employee, or agent of such contractor or
subcontractor whose duty as such officer, employee, or
agent it is to file such certified payroll who willfully
fails to file such a certified payroll on or before the
date such certified payroll is required by this paragraph
to be filed and any person who willfully files a false
certified payroll that is false as to any material fact is
in violation of this Act and guilty of a Class A
misdemeanor. The public body in charge of the project
shall keep the records submitted in accordance with this
paragraph (2) of subsection (a) before January 1, 2014
(the effective date of Public Act 98-328) for a period of
not less than 3 years, and the records submitted in

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accordance with this paragraph (2) of subsection (a) on or
after January 1, 2014 (the effective date of Public Act
98-328) for a period of 5 years, from the date of the last
payment for work on a contract or subcontract for public
works or until the Department of Labor activates the
database created under Section 5.1, whichever is less.
After the activation of the database created under Section
5.1, the Department of Labor rather than the public body
in charge of the project shall keep the records and
maintain the database. The records submitted in accordance
with this paragraph (2) of subsection (a) shall be
considered public records, except an employee's address,
telephone number, social security number, race, ethnicity,
and gender, and made available in accordance with the
Freedom of Information Act. The public body shall accept
any reasonable submissions by the contractor that meet the
requirements of this Section.
A contractor, subcontractor, or public body may retain
records required under this Section in paper or electronic
format.
(b) Upon 7 business days' notice, the public body engaged
in the construction or demolition of public works on behalf of
another public body or the contractor and each subcontractor
shall make available for inspection and copying at a location
within this State during reasonable hours, the records
identified in paragraph (1) of subsection (a) of this Section

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to the public body in charge of the project, its officers and
agents, the Director of Labor and his deputies and agents, and
to federal, State, or local law enforcement agencies and
prosecutors.
(c) A contractor or subcontractor who remits contributions
to fringe benefit funds that are jointly maintained and
jointly governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act shall make and keep certified payroll records
that include the information required under items (i) through
(viii) of paragraph (1) of subsection (a) only. However, the
information required under items (ix) through (xv) of
paragraph (1) of subsection (a) shall be required for any
contractor or subcontractor who remits contributions to a
fringe benefit fund that is not jointly maintained and jointly
governed by one or more employers and one or more labor
organizations in accordance with the federal Labor Management
Relations Act.
(Source: P.A. 100-1177, eff. 6-1-19; 101-31, eff. 6-28-19.)
(820 ILCS 130/11) (from Ch. 48, par. 39s-11)
Sec. 11. No public works project shall be instituted
unless the provisions of this Act have been complied with. The
provisions of this Act shall not be applicable to Federal
construction projects which require a prevailing wage
determination by the United States Secretary of Labor. The

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Illinois Department of Labor represented by the Attorney
General is empowered to sue for injunctive relief against the
awarding of any contract or the continuation of work under any
contract for public works at a time when the prevailing wage
prerequisites have not been met. Any contract for public works
awarded at a time when the prevailing wage prerequisites had
not been met shall be void as against public policy and the
public body engaged in the construction or demolition of
public works on behalf of another public body or the
contractor is prohibited from recovering any damages for the
voiding of the contract or pursuant to the terms of the
contract. The public body engaged in the construction or
demolition of public works on behalf of another public body or
the contractor is limited to a claim for amounts actually paid
for labor and materials supplied to the public body. Where
objections to a determination of the prevailing rate of wages
or a court action relative thereto is pending, the public body
shall not continue work on the project unless sufficient funds
are available to pay increased wages if such are finally
determined or unless the Department of Labor certifies such
determination of the prevailing rate of wages as correct.
Any employee of a public body that engaged in the
construction or demolition of public works on behalf of
another public body and any laborer, worker or mechanic
employed by the contractor or by any sub-contractor under him
who is paid for his services in a sum less than the stipulated

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rates for work done under such contract, shall have a right of
action for whatever difference there may be between the amount
so paid, and the rates provided by the contract together with
costs and such reasonable attorney's fees as shall be allowed
by the court. Such contractor or subcontractor shall also be
liable to the Department of Labor for 20% of such
underpayments and shall be additionally liable to the laborer,
worker or mechanic for punitive damages in the amount of 2% of
the amount of any such penalty to the State for underpayments
for each month following the date of payment during which such
underpayments remain unpaid. Where a second or subsequent
action to recover underpayments is brought against a public
body that engaged in the construction or demolition of public
works on behalf of another public body or a contractor or
subcontractor and the public body or contractor or
subcontractor is found liable for underpayments to any
employee, laborer, worker, or mechanic, the public body or
contractor or subcontractor shall also be liable to the
Department of Labor for 50% of the underpayments payable as a
result of the second or subsequent action, and shall be
additionally liable for 5% of the amount of any such penalty to
the State for underpayments for each month following the date
of payment during which the underpayments remain unpaid. The
Department shall also have a right of action on behalf of any
individual who has a right of action under this Section. An
action brought to recover same shall be deemed to be a suit for

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wages, and any and all judgments entered therein shall have
the same force and effect as other judgments for wages. The
action shall be brought within 5 years from the date of the
failure to pay the wages or compensation. At the request of any
employee employed by a public body that engaged in the
construction or demolition of public works on behalf of
another public body or any laborer, workman or mechanic
employed by the contractor or by any subcontractor under him
who is paid less than the prevailing wage rate required by this
Act, the Department of Labor may take an assignment of such
wage claim in trust for the assigning laborer, workman or
mechanic and may bring any legal action necessary to collect
such claim, and the public body that engaged in the
construction or demolition of public works on behalf of
another public body or the contractor or subcontractor shall
be required to pay the costs incurred in collecting such
claim.
(Source: P.A. 98-328, eff. 1-1-14.)