New Laws Better Define Prevailing Wage

Gov. Quinn Signs Three Bills Extending Public Works Projects

Gov. Pat Quinn signed three prevailing wage bills into law this summer, more clearly defining public works projects and improving contractor protection.

The legislative revisions, which will become effective January 1, 2010, are intended to remove doubt over the types of projects subject to prevailing wage regulation. Senate Bill 223, creating the most extensive impact on Illinois workers, will clarify “public works” to include all projects funded in whole or in part through bonds, grants, loans or other funds made available through the state.

“There was much speculation before the new prevailing wage law over what officially constituted a publicly funded project,” said Terrence J. Hancock, Teamsters Joint Council 25 Vice President and Construction Coordinator. “Such ambiguity resulted in millions of dollars in back wages and penalties for workers and contractors. By enacting this change with the Department of Labor, we have secured fair wages for our workers.”

House Bill 952 extends the definition of prevailing wage further still, amending the law to explicitly cover all demolition workers, regardless of whether or not work is being done in conjunction with a public works construction project.

Contractors overseeing construction will also receive a boost with the final prevailing wage bill, House Bill 163. The legislation will hold public bodies financially responsible for failure to provide proper notification to contractors that projects are subject to prevailing wage. Similarly, contractors will be held to the same standards to notify subcontractors.

“While the new legislation better protects those who are unaware of prevailing wage guidelines, contractors throughout the state will still be held responsible for failing to pay wages owed to our workers,” Hancock said.

Prevailing wage determines the average wage owed to workers in a given industry or geographical area for publicly funded projects.

Teamsters Joint Council 25 represents more than 6,000 hardworking men and women in the construction trades.

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