Illinois 2023-2024 Regular Session

Illinois House Bill HB3448 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Public Act 103-0350
2	1		HB3448 EnrolledLRB103 29664 SPS 56066 b HB3448 Enrolled LRB103 29664 SPS 56066 b
3	2		HB3448 Enrolled LRB103 29664 SPS 56066 b
4		-	AN ACT concerning employment.
5		-	Be it enacted by the People of the State of Illinois,
6		-	represented in the General Assembly:
7		-	Section 5. The Illinois Wage Payment and Collection Act is
8		-	amended by changing Section 13.5 as follows:
9		-	(820 ILCS 115/13.5)
10		-	Sec. 13.5. Primary contractor responsibility for wage
11		-	claims in construction industry.
12		-	(a) For all contracts entered into on or after July 1,
13		-	2022, a primary contractor making or taking a contract in the
14		-	State for the erection, construction, alteration, or repair of
15		-	a building, structure, or other private work in the State
16		-	where the aggregate costs of the project exceed $20,000 shall
17		-	assume, and is liable for, any debt owed to a claimant under
18		-	this Section by a subcontractor at any tier acting under, by,
19		-	or for the primary contractor for the wage claimant's
20		-	performance of labor included in the subject of the contract
21		-	between the primary contractor and the owner. This Section
22		-	does not apply to work performed by a contractor of the federal
23		-	government, the State, a special district, a city, a county,
24		-	or any political subdivision of the State.
25		-	(b) As used in this Section:
26		-	"Construction" means building, altering, repairing,
	3	+	1 AN ACT concerning employment.
	4	+	2 Be it enacted by the People of the State of Illinois,
	5	+	3 represented in the General Assembly:
	6	+	4 Section 5. The Illinois Wage Payment and Collection Act is
	7	+	5 amended by changing Section 13.5 as follows:
	8	+	6 (820 ILCS 115/13.5)
	9	+	7 Sec. 13.5. Primary contractor responsibility for wage
	10	+	8 claims in construction industry.
	11	+	9 (a) For all contracts entered into on or after July 1,
	12	+	10 2022, a primary contractor making or taking a contract in the
	13	+	11 State for the erection, construction, alteration, or repair of
	14	+	12 a building, structure, or other private work in the State
	15	+	13 where the aggregate costs of the project exceed $20,000 shall
	16	+	14 assume, and is liable for, any debt owed to a claimant under
	17	+	15 this Section by a subcontractor at any tier acting under, by,
	18	+	16 or for the primary contractor for the wage claimant's
	19	+	17 performance of labor included in the subject of the contract
	20	+	18 between the primary contractor and the owner. This Section
	21	+	19 does not apply to work performed by a contractor of the federal
	22	+	20 government, the State, a special district, a city, a county,
	23	+	21 or any political subdivision of the State.
	24	+	22 (b) As used in this Section:
	25	+	23 "Construction" means building, altering, repairing,
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33		-	improving, or demolishing any structure or building or making
34		-	improvements of any kind to real property.
35		-	"Primary contractor" means a contractor that has a direct
36		-	contractual relationship with a property owner. "Primary
37		-	contractor" may have the same meaning as a "general
38		-	contractor", "prime contractor", or "construction manager". A
39		-	property owner who acts as a primary contractor related to the
40		-	erection, construction, alteration, or repair of his or her
41		-	primary residence shall be exempt from liability under this
42		-	Section.
43		-	"Private work" means any erection, construction,
44		-	alteration, or repair of a building, structure, or other work.
45		-	"Subcontractor" means a contractor that has a contractual
46		-	relationship with the primary contractor or with another
47		-	subcontractor at any tier, who furnishes any goods or services
48		-	in connection with the contract between the primary contractor
49		-	and the property owner, but does not include contractors who
50		-	solely provide goods and transport of such goods related to
51		-	the contract.
52		-	(c) The primary contractor's liability under this Section
53		-	shall extend only to any unpaid wages or fringe or other
54		-	benefit payments or contributions, including interest owed,
55		-	penalties assessed by the Department, and reasonable
56		-	attorney's fees, but shall not extend to liquidated damages.
57		-	(d) A primary contractor or any other person shall not
58		-	evade or commit any act that negates the requirements of this
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	33	+	HB3448 Enrolled - 2 - LRB103 29664 SPS 56066 b
	34	+	1 improving, or demolishing any structure or building or making
	35	+	2 improvements of any kind to real property.
	36	+	3 "Primary contractor" means a contractor that has a direct
	37	+	4 contractual relationship with a property owner. "Primary
	38	+	5 contractor" may have the same meaning as a "general
	39	+	6 contractor", "prime contractor", or "construction manager". A
	40	+	7 property owner who acts as a primary contractor related to the
	41	+	8 erection, construction, alteration, or repair of his or her
	42	+	9 primary residence shall be exempt from liability under this
	43	+	10 Section.
	44	+	11 "Private work" means any erection, construction,
	45	+	12 alteration, or repair of a building, structure, or other work.
	46	+	13 "Subcontractor" means a contractor that has a contractual
	47	+	14 relationship with the primary contractor or with another
	48	+	15 subcontractor at any tier, who furnishes any goods or services
	49	+	16 in connection with the contract between the primary contractor
	50	+	17 and the property owner, but does not include contractors who
	51	+	18 solely provide goods and transport of such goods related to
	52	+	19 the contract.
	53	+	20 (c) The primary contractor's liability under this Section
	54	+	21 shall extend only to any unpaid wages or fringe or other
	55	+	22 benefit payments or contributions, including interest owed,
	56	+	23 penalties assessed by the Department, and reasonable
	57	+	24 attorney's fees, but shall not extend to liquidated damages.
	58	+	25 (d) A primary contractor or any other person shall not
	59	+	26 evade or commit any act that negates the requirements of this
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61		-	Section. Except as otherwise provided in a contract between
62		-	the primary contractor and the subcontractor, the
63		-	subcontractor shall indemnify the primary contractor for any
64		-	wages, fringe or other benefit payments or contributions,
65		-	damages, interest, penalties, or attorney's fees owed as a
66		-	result of the subcontractor's failure to pay wages or fringe
67		-	or other benefit payments or contributions as provided in this
68		-	Section, unless the subcontractor's failure to pay was due to
69		-	the primary contractor's failure to pay moneys due to the
70		-	subcontractor in accordance with the terms of their
71		-	contractual relationship.
72		-	(e) Nothing in this Section shall supersede or modify the
73		-	obligations and liability that any primary contractor,
74		-	subcontractor, or property owner may bear as an employer under
75		-	this Act or any other applicable law. The obligations and
76		-	remedies provided in this Section shall be in addition to any
77		-	obligations and remedies otherwise provided by law. Nothing in
78		-	this Section shall be construed to impose liability on a
79		-	primary contractor for anything other than unpaid wages,
80		-	fringe or other benefit payments or contributions, penalties
81		-	assessed by the Department, interest owed, and reasonable
82		-	attorney's fees.
83		-	(f) Claims brought pursuant to this Section shall be done
84		-	so in accordance with this Act. Nothing in this Section shall
85		-	be construed to provide a third party with the right to file a
86		-	complaint with the Department alleging violation of this
87	62
88	63
89		-	Section.
90		-	(g) The following shall be exempt from liability under
91		-	this Section:
92		-	(1) primary contractors who are parties to a
93		-	collective bargaining agreement on the project where the
94		-	work is being performed; and
95		-	(2) primary contractors making or taking a contract in
96		-	the State for the alteration or repair of an existing
97		-	single-family dwelling or to a single residential unit in
98		-	an existing multi-unit structure.
99		-	(h) Prior to the commencement of any civil action, a
100		-	claimant or a representative of a claimant shall provide
101		-	written notice to the employer and to the primary contractor
102		-	detailing the nature and basis for the claim. Failure of the
103		-	employer or the primary contractor to resolve the claim within
104		-	10 days after receipt of this notice, or during any agreed upon
105		-	period extending this deadline, may result in the filing of a
106		-	civil action to enforce the provisions of this Act.
107		-	(i) Claims brought pursuant to this Section shall be filed
108		-	with the Department of Labor or filed with the circuit court
109		-	within 3 years after the wages, final compensation, or wage
110		-	supplements were due. This subsection does not apply to any
111		-	other claims under this Act or any other applicable law
112		-	against a primary contractor, subcontractor, or homeowner as
113		-	an employer.
114		-	(j) Every primary contractor and subcontractor shall post
	64	+
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117		-	and keep posted, in one or more conspicuous places accessible
118		-	to all laborers, workers, and mechanics at a job site that is
119		-	subject to the requirements of this Section, a notice, to be
120		-	made available by the Director of Labor, summarizing the
121		-	requirements of this Section and information pertaining to the
122		-	filing of a complaint. The Director of Labor shall provide
123		-	copies of summaries and rules to primary contractors and
124		-	subcontractors upon request without charge. One copy of the
125		-	notice at a job site shall satisfy the notice requirement for
126		-	the primary contractor and all subcontractors. Any primary
127		-	contractor or subcontractor who fails to provide notice as
128		-	required by this Section shall be subject to a civil penalty,
129		-	not to exceed $250, payable to the Department of Labor.
130		-	(Source: P.A. 102-1065, eff. 6-10-22; 102-1076, eff. 6-10-22.)
131		-	Section 99. Effective date. This Act takes effect July 1,
132		-	2023.
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	69	+	HB3448 Enrolled - 3 - LRB103 29664 SPS 56066 b
	70	+	1 Section. Except as otherwise provided in a contract between
	71	+	2 the primary contractor and the subcontractor, the
	72	+	3 subcontractor shall indemnify the primary contractor for any
	73	+	4 wages, fringe or other benefit payments or contributions,
	74	+	5 damages, interest, penalties, or attorney's fees owed as a
	75	+	6 result of the subcontractor's failure to pay wages or fringe
	76	+	7 or other benefit payments or contributions as provided in this
	77	+	8 Section, unless the subcontractor's failure to pay was due to
	78	+	9 the primary contractor's failure to pay moneys due to the
	79	+	10 subcontractor in accordance with the terms of their
	80	+	11 contractual relationship.
	81	+	12 (e) Nothing in this Section shall supersede or modify the
	82	+	13 obligations and liability that any primary contractor,
	83	+	14 subcontractor, or property owner may bear as an employer under
	84	+	15 this Act or any other applicable law. The obligations and
	85	+	16 remedies provided in this Section shall be in addition to any
	86	+	17 obligations and remedies otherwise provided by law. Nothing in
	87	+	18 this Section shall be construed to impose liability on a
	88	+	19 primary contractor for anything other than unpaid wages,
	89	+	20 fringe or other benefit payments or contributions, penalties
	90	+	21 assessed by the Department, interest owed, and reasonable
	91	+	22 attorney's fees.
	92	+	23 (f) Claims brought pursuant to this Section shall be done
	93	+	24 so in accordance with this Act. Nothing in this Section shall
	94	+	25 be construed to provide a third party with the right to file a
	95	+	26 complaint with the Department alleging violation of this
	96	+
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	99	+
	100	+
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	106	+	1 Section.
	107	+	2 (g) The following shall be exempt from liability under
	108	+	3 this Section:
	109	+	4 (1) primary contractors who are parties to a
	110	+	5 collective bargaining agreement on the project where the
	111	+	6 work is being performed; and
	112	+	7 (2) primary contractors making or taking a contract in
	113	+	8 the State for the alteration or repair of an existing
	114	+	9 single-family dwelling or to a single residential unit in
	115	+	10 an existing multi-unit structure.
	116	+	11 (h) Prior to the commencement of any civil action, a
	117	+	12 claimant or a representative of a claimant shall provide
	118	+	13 written notice to the employer and to the primary contractor
	119	+	14 detailing the nature and basis for the claim. Failure of the
	120	+	15 employer or the primary contractor to resolve the claim within
	121	+	16 10 days after receipt of this notice, or during any agreed upon
	122	+	17 period extending this deadline, may result in the filing of a
	123	+	18 civil action to enforce the provisions of this Act.
	124	+	19 (i) Claims brought pursuant to this Section shall be filed
	125	+	20 with the Department of Labor or filed with the circuit court
	126	+	21 within 3 years after the wages, final compensation, or wage
	127	+	22 supplements were due. This subsection does not apply to any
	128	+	23 other claims under this Act or any other applicable law
	129	+	24 against a primary contractor, subcontractor, or homeowner as
	130	+	25 an employer.
	131	+	26 (j) Every primary contractor and subcontractor shall post
	132	+
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	134	+
	135	+
	136	+
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	138	+
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	142	+	1 and keep posted, in one or more conspicuous places accessible
	143	+	2 to all laborers, workers, and mechanics at a job site that is
	144	+	3 subject to the requirements of this Section, a notice, to be
	145	+	4 made available by the Director of Labor, summarizing the
	146	+	5 requirements of this Section and information pertaining to the
	147	+	6 filing of a complaint. The Director of Labor shall provide
	148	+	7 copies of summaries and rules to primary contractors and
	149	+	8 subcontractors upon request without charge. One copy of the
	150	+	9 notice at a job site shall satisfy the notice requirement for
	151	+	10 the primary contractor and all subcontractors. Any primary
	152	+	11 contractor or subcontractor who fails to provide notice as
	153	+	12 required by this Section shall be subject to a civil penalty,
	154	+	13 not to exceed $250, payable to the Department of Labor.
	155	+	14 (Source: P.A. 102-1065, eff. 6-10-22; 102-1076, eff. 6-10-22.)
	156	+	15 Section 99. Effective date. This Act takes effect July 1,
	157	+	16 2023.
	158	+
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