Prevailing wage laws are in effect in 32 states, including Illinois. The Illinois Prevailing Wages Act governs preying wages in Illinois. Prevailing wage rules are those that govern public projects that, if they exist, establish a minimum wage that must be provided to the majority of workers.
Let’s see how this is carried out in the state of Illinois.
What Is the Prevailing Wage in Illinois?
The prevailing wage is essentially a minimum wage for various types of skilled construction workers on taxpayer-funded projects. The “prevailing” wage and benefit rates for comparable work in the local area where public projects are to be completed must be paid by construction contractors.
Contractors working on publicly-funded projects are required by prevailing wage regulations to pay skilled construction workers the hourly rates, benefits, and overtime levels for the region, as determined by the Illinois and U.S. Departments of Labor. By guaranteeing that public spending reflects local market norms of craftsmanship and compensation, prevailing wage aims to level the playing field for all contractors.
Basics of Illinois Prevailing Wage
Prevailing wage regulations do not apply in Illinois, as they do in other states unless a project is deemed to be a public job. A public job is “any projects financed in whole or in part, through bonds, grants, loans, or other funds made available by or through the state or any of its political subdivisions,” according to the Illinois Prevailing Wage Act. This indicates that many projects in Illinois are subject to prevailing wages.
In Illinois, the Department of Labor is in charge of both:
- Deciding on the prevailing rate for wages
- Implementing prevailing wage claims
- Prevailing wage rates
In Illinois, prevailing wage rates are subject to monthly schedules. Remember that while talking about prevailing salaries, these pay also vary from county to county. The Illinois Department of Labor provides good services to contractors, even if it might be overwhelming to keep up with.
Implementing a Prevailing Wage Claim in Illinois
The Illinois Department of Labor can also assist if you think you have not been paid, have had unauthorized deductions made from you, or have not received your benefits.
Obligations of Prevailing Wage in Illinois
Let us examine the many duties that contractors and governmental entities have.
For public bodies
The party making the bid request must get accurate wage rates and classify each employee correctly. The awarding authority shall incorporate provisions in their contract(s) mandating that all workers receive at least the prevailing wage after the contract is granted.
If no public offer comes in, the public entity shall notify its contractor in writing that all laborers will be paying at least the prevailing wage. The entity may be held accountable for interest, penalties, or fines that the contractor would have had to pay if the proper notice had been issued if they had neglected to deliver this information.
For Contractors
Contractors must include a provision in any subcontract that assures no worker will receive less than the going rate. All of subs’ contracts have to contain that condition. Additionally, contractors must display the prevailing wage rates on the project site in a location that is easily accessible. They have to be placed at the contractor’s place of business if that isn’t feasible. If not, you will need to give written notice to each project worker.
Apart from providing notice, a contractor has further duties to fulfill. The public body must receive official payrolls. Additionally, for a maximum of three years, contractors must keep all project-related records.
For Workers
In the construction industry, prevailing wage increases worker salaries and broadens health care coverage.
Blue-collar construction workers had a higher likelihood of becoming homeowners if they received prevailing wages.
Prevailing pay rules encourage apprenticeship programs, guaranteeing the skill level of construction workers in the sector.
Illinois Prevailing Wage Links
To learn more about prevailing wages, click on the links below to visit the website of the Illinois Department of Labor. You can reach them by phone at 217-782-1710.
- The Illinois Department of Labor’s current Prevailing Wage Rate information is available at https://www2.illinois.gov/idol/Laws-Rules/CONMED/Pages/2017-Rates.aspx.
- Illinois Department of Labor website: https://www2.illinois.gov/idol/laws-rules/conmed/pages/prevailing-wage-rates.aspx Prevailing Wages for DuPage County, Illinois: https://www2.illinois.gov/idol/Laws-Rules/CONMED/Documents/2017%20Rates/DuPage.pdf
- https://www2.illinois.gov/idol/Laws-Rules/CONMED/Documents/2017%20Rates/Cook.pdf is the Cook County, Illinois, prevailing wage.
Do Taxpayers Pay More Money as a Result of the Prevailing Wage Law?
No. Prevailing wage laws yield the best ultimate output, repaying the investment of the taxpayers. Actually, according to 83% of peer-reviewed research done after 2000, the prevailing salary has no bearing whatsoever on the overall cost of construction.
FAQs
Is there a prevailing wage in Illinois?
Prevailing wage laws are in effect in 32 states, including Illinois. The Illinois Prevailing Wages Act governs preying wages in Illinois. Prevailing wage rules are those that govern public projects that, if they exist, establish a minimum wage that must be provided to the majority of workers.
What is the Act Idol for Prevailing Wage in Illinois?
mandates that contractors and subcontractors pay laborers, workers, and mechanics working on public works projects at least the general prevailing rate of wages (which consists of hourly cash earnings + fringe benefits) for work of a comparable kind in the area of the work.
Does Texas have a prevailing wage?
Prevailing wages apply in Texas to a variety of construction tasks, such as constructing roads, highways, excavation projects, and other enhancement or development projects.
Conclusion
In Illinois, the contractor who violates prevailing wage for the first time must pay the worker the outstanding amount owed along with an extra twenty percent in fines to the Department of Labor. The employee will be owed 2% more of the outstanding payment each month until it is paid in full if the balance is not paid.
A second infraction raises the stakes. The penalty rises to 50% even though the contractor still owes that amount. There is a 5% monthly late fee increase. However, you are placed on the disbarment list if you receive two infractions in five years. For the following four years, this essentially prevents you from working on any public projects.
Finally, a brief word on not giving enough notice. Even if they are not the party underpaying, notice violations nonetheless apply to the person who neglected to provide notice. For instance, if a contractor neglects to notify the subcontractor and the subcontractor fails to pay prevailing wages, the subcontractor will be responsible for the outstanding balance, and the contractor will be responsible for the penalty percentage that the Department of Labor will take.
