Changes to the Prevailing Wage Act Lessen Burdens on Public Bodies
Jan 25, 2019
On January 15, 2019, Governor Pritzker signed Public Act 100-1177 amending the Prevailing Wage Act, 820 ILCS 130/1 et. seq. The bill will take effect on June 1, 2019. Key changes include the following:
- Public bodies will no longer be required to determine the prevailing wage rate. Instead, the applicable wage rates for each locality will be set by the prevailing wage schedule that is published on the Illinois Department of Labor’s (IDOL) website. As a result, public bodies will no longer be required to approve an annual prevailing wage ordinance or resolution each June, or publish the annual notice of approval in the newspaper or on its website.
- Public bodies will no longer receive objections to the prevailing wage schedule or be obligated to participate in hearings. The IDOL will hear all objections.
- Public bodies are currently required to have contractors submit certified payroll records and to keep such records for a period of 5 years from the date of the last payment for work. By April 1, 2020, IDOL is required to develop and maintain an electronic database capable of accepting certified payrolls. Once the database is created, contractors must directly submit certified payrolls to the online database. This new process will eliminate the record keeping requirements for the public body.
- By February 1st of each year, IDOL will be required to report to the General Assembly and the Governor the number of people employed on public works in the preceding calendar year.
- IDOL will be required to prepare reports on the participation of female and minorities on public works projects, and by December 31, 2020, IDOL will be required to create recommendations to increase female and minority participation on public work projects.
- Public Act 100-1177 provides additional information IDOL must consider when ascertaining the prevailing wage rates.
If any questions arise regarding this legislative change or if assistance is needed, please contact any Robbins Schwartz attorney.