Bill Text: IL SB3416 | 2013-2014 | 98th General Assembly | Introduced


Bill Title: 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. Provides that the requirements apply to any prevailing wage classification not yet established as of January 1, 2013.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2015-01-13 - Session Sine Die [SB3416 Detail]

Download: Illinois-2013-SB3416-Introduced.html


98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
SB3416

Introduced 2/14/2014, by Sen. Jason A. Barickman

SYNOPSIS AS INTRODUCED:
820 ILCS 130/4 from Ch. 48, par. 39s-4

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. Provides that the requirements apply to any prevailing wage classification not yet established as of January 1, 2013.
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A BILL FOR

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1 AN ACT concerning employment.
2 WHEREAS, The Illinois Administrative Procedure Act
3conditions the authority of a State agency's implementation,
4application, interpretation, or prescription of law or policy
5on rules being adopted in accordance with all provisions of
6that Act; therefore,
7 Be it enacted by the People of the State of Illinois,
8represented in the General Assembly:
9 Section 5. The Prevailing Wage Act is amended by changing
10Section 4 as follows:
11 (820 ILCS 130/4) (from Ch. 48, par. 39s-4)
12 Sec. 4. Ascertaining prevailing wage.
13 (a) The public body awarding any contract for public work
14or otherwise undertaking any public works, shall ascertain the
15general prevailing rate of hourly wages in the locality in
16which the work is to be performed, for each craft or type of
17worker or mechanic needed to execute the contract, and where
18the public body performs the work without letting a contract
19therefor, shall ascertain the prevailing rate of wages on a per
20hour basis in the locality, and such public body shall specify
21in the resolution or ordinance and in the call for bids for the
22contract, that the general prevailing rate of wages in the

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1locality for each craft or type of worker or mechanic needed to
2execute the contract or perform such work, also the general
3prevailing rate for legal holiday and overtime work, as
4ascertained by the public body or by the Department of Labor
5shall be paid for each craft or type of worker needed to
6execute the contract or to perform such work, and it shall be
7mandatory upon the contractor to whom the contract is awarded
8and upon any subcontractor under him, and where the public body
9performs the work, upon the public body, to pay not less than
10the specified rates to all laborers, workers and mechanics
11employed by them in the execution of the contract or such work;
12provided, however, that if the public body desires that the
13Department of Labor ascertain the prevailing rate of wages, it
14shall notify the Department of Labor to ascertain the general
15prevailing rate of hourly wages for work under contract, or for
16work performed by a public body without letting a contract as
17required in the locality in which the work is to be performed,
18for each craft or type of worker or mechanic needed to execute
19the contract or project or work to be performed. Upon such
20notification the Department of Labor shall ascertain such
21general prevailing rate of wages, and certify the prevailing
22wage to such public body.
23 (a-1) The public body or other entity awarding the contract
24shall cause to be inserted in the project specifications and
25the contract a stipulation to the effect that not less than the
26prevailing rate of wages as found by the public body or

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1Department of Labor or determined by the court on review shall
2be paid to all laborers, workers and mechanics performing work
3under the contract.
4 (a-2) When a public body or other entity covered by this
5Act has awarded work to a contractor without a public bid,
6contract or project specification, such public body or other
7entity shall comply with subsection (a-1) by providing the
8contractor with written notice on the purchase order related to
9the work to be done or on a separate document indicating that
10not less than the prevailing rate of wages as found by the
11public body or Department of Labor or determined by the court
12on review shall be paid to all laborers, workers, and mechanics
13performing work on the project.
14 (a-3) Where a complaint is made and the Department of Labor
15determines that a violation occurred, the Department of Labor
16shall determine if proper written notice under this Section 4
17was given. If proper written notice was not provided to the
18contractor by the public body or other entity, the Department
19of Labor shall order the public body or other entity to pay any
20interest, penalties or fines that would have been owed by the
21contractor if proper written notice were provided. The failure
22by a public body or other entity to provide written notice does
23not relieve the contractor of the duty to comply with the
24prevailing wage rate, nor of the obligation to pay any back
25wages, as determined under this Act. For the purposes of this
26subsection, back wages shall be limited to the difference

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1between the actual amount paid and the prevailing rate of wages
2required to be paid for the project. The failure of a public
3body or other entity to provide written notice under this
4Section 4 does not diminish the right of a laborer, worker, or
5mechanic to the prevailing rate of wages as determined under
6this Act.
7 (b) It shall also be mandatory upon the contractor to whom
8the contract is awarded to insert into each subcontract and
9into the project specifications for each subcontract a written
10stipulation to the effect that not less than the prevailing
11rate of wages shall be paid to all laborers, workers, and
12mechanics performing work under the contract. It shall also be
13mandatory upon each subcontractor to cause to be inserted into
14each lower tiered subcontract and into the project
15specifications for each lower tiered subcontract a stipulation
16to the effect that not less than the prevailing rate of wages
17shall be paid to all laborers, workers, and mechanics
18performing work under the contract. A contractor or
19subcontractor who fails to comply with this subsection (b) is
20in violation of this Act.
21 (b-1) When a contractor has awarded work to a subcontractor
22without a contract or contract specification, the contractor
23shall comply with subsection (b) by providing a subcontractor
24with a written statement indicating that not less than the
25prevailing rate of wages shall be paid to all laborers,
26workers, and mechanics performing work on the project. A

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1contractor or subcontractor who fails to comply with this
2subsection (b-1) is in violation of this Act.
3 (b-2) Where a complaint is made and the Department of Labor
4determines that a violation has occurred, the Department of
5Labor shall determine if proper written notice under this
6Section 4 was given. If proper written notice was not provided
7to the subcontractor by the contractor, the Department of Labor
8shall order the contractor to pay any interest, penalties, or
9fines that would have been owed by the subcontractor if proper
10written notice were provided. The failure by a contractor to
11provide written notice to a subcontractor does not relieve the
12subcontractor of the duty to comply with the prevailing wage
13rate, nor of the obligation to pay any back wages, as
14determined under this Act. For the purposes of this subsection,
15back wages shall be limited to the difference between the
16actual amount paid and the prevailing rate of wages required
17for the project. However, if proper written notice was not
18provided to the contractor by the public body or other entity
19under this Section 4, the Department of Labor shall order the
20public body or other entity to pay any interest, penalties, or
21fines that would have been owed by the subcontractor if proper
22written notice were provided. The failure by a public body or
23other entity to provide written notice does not relieve the
24subcontractor of the duty to comply with the prevailing wage
25rate, nor of the obligation to pay any back wages, as
26determined under this Act. For the purposes of this subsection,

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1back wages shall be limited to the difference between the
2actual amount paid and the prevailing rate of wages required
3for the project. The failure to provide written notice by a
4public body, other entity, or contractor does not diminish the
5right of a laborer, worker, or mechanic to the prevailing rate
6of wages as determined under this Act.
7 (c) A public body or other entity shall also require in all
8contractor's and subcontractor's bonds that the contractor or
9subcontractor include such provision as will guarantee the
10faithful performance of such prevailing wage clause as provided
11by contract or other written instrument. All bid specifications
12shall list the specified rates to all laborers, workers and
13mechanics in the locality for each craft or type of worker or
14mechanic needed to execute the contract.
15 (d) If the Department of Labor revises the prevailing rate
16of hourly wages to be paid by the public body or other entity,
17the revised rate shall apply to such contract, and the public
18body or other entity shall be responsible to notify the
19contractor and each subcontractor, of the revised rate.
20 The public body or other entity shall discharge its duty to
21notify of the revised rates by inserting a written stipulation
22in all contracts or other written instruments that states the
23prevailing rate of wages are revised by the Department of Labor
24and are available on the Department's official website. This
25shall be deemed to be proper notification of any rate changes
26under this subsection.

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1 (e) (Blank) Two or more investigatory hearings under this
2Section on the issue of establishing a new prevailing wage
3classification for a particular craft or type of worker shall
4be consolidated in a single hearing before the Department. Such
5consolidation shall occur whether each separate investigatory
6hearing is conducted by a public body or the Department. The
7party requesting a consolidated investigatory hearing shall
8have the burden of establishing that there is no existing
9prevailing wage classification for the particular craft or type
10of worker in any of the localities under consideration.
11 (f) It shall be mandatory upon the contractor or
12construction manager to whom a contract for public works is
13awarded to post, at a location on the project site of the
14public works that is easily accessible to the workers engaged
15on the project, the prevailing wage rates for each craft or
16type of worker or mechanic needed to execute the contract or
17project or work to be performed. In lieu of posting on the
18project site of the public works, a contractor which has a
19business location where laborers, workers, and mechanics
20regularly visit may: (1) post in a conspicuous location at that
21business the current prevailing wage rates for each county in
22which the contractor is performing work; or (2) provide such
23laborer, worker, or mechanic engaged on the public works
24project a written notice indicating the prevailing wage rates
25for the public works project. A failure to post or provide a
26prevailing wage rate as required by this Section is a violation

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1of this Act.
2 (g) The creation of any new prevailing wage classification
3shall be promulgated by administrative rule by the Department
4of Labor in accordance with the Illinois Administrative
5Procedure Act. The requirements set forth in this subsection
6(g) by this amendatory Act of the 98th General Assembly apply
7to any prevailing wage classification not yet established as of
8January 1, 2013.
9(Source: P.A. 96-437, eff. 1-1-10; 97-964, eff. 1-1-13.)
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