Illinois Prevailing Wage Act: Basics, and Violations

Illinois is among the 32 states having prevailing wage laws on the books. The Illinois Prevailing Wages Act is used to regulate the prevailing wages in Illinois. All the workers working on a public project of the same nature should be paid by a general prevailing hourly rate. The prevailing wages are calculated and determined for every type of work, and each state has its rates.

Prevailing Wage Basics in Illinois

Just like other states, the prevailing wage laws in Illinois also come into play after considering the project as public work. According to the Prevailing Wage Act in Illusions:

“Any whole or partial project for which a state or its political subdivision allows bonds, grants, loans, or other funds is a public project.”

This short definition is broader in meanings. The prevailing wages law Act in Illinois applies to many projects. The Department of Labor in Illusions has both responsibilities: 

1. Setting Prevailing Wage Rates

Illusions issue schedules of prevailing wage rates every month. But not the whole state should necessarily have the same prevailing wages; these rates can vary from the county by county too. It seems pretty hard to keep up with all counties. But the Department of Labor in Illusions is doing a great job of helping contractors. 

2. Enforcing Prevailing Wage Rules

The Illinois Department of Labor covers the issues like unpaid workers, illegal deductions, or if worker’s benefits don’t come through. The department, along with setting prevailing wage rates, also enforces them. Workers can submit a form to claim for their rights in case of any problem. 

Prevailing Wage Obligations in Illinois

Under Illinois Prevailing Wages, obligations go beyond “Just pay every worker what they’re owed.” The obligations of entities and contractors include:

For Public Entities

Obligations of party soliciting bids include the appropriate categorization of workers and their prevailing wage rates. The terms of prevailing wages should also be included in the contract. In case if there is no public bid, the public entity must send written notice to their contractor. This notice must be stated that all laborers will be paid according to prevailing wage rates.

For Contractors

Contractors must insert a stipulation into each subcontract. This requirement should be stating that all workers will not be paid less than the prevailing wage. They should send a notice of work to the project site and every worker.

Prevailing Wage Violations

In case of violation, the contractors will have to send 20% of their salary as a penalty to the Department of Labor. Besides, they will have to pay the unpaid balance to the worker.

If the contractor keeps violating rules and doesn’t pay workers appropriately, the penalty will be increased to 50%. If they make two violations within five months, they will be added to the debarment list. 

Takeaway

Illinois Prevailing Wages Act is imposed to ensure that all workers, all laborers, and mechanics are paid properly. The Department of Labor in Illusions sets prevailing wage rates and ensures the enforcement of laws. In case of violation of the law, contractors have to pay workers and 20% to the department as a penalty. But if they keep on disobeying the law for five months, they’ll be fired.


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