WAGE PAYMENT & COLLECTION

Amends the Illinois Wage Payment and Collection Act. Provides that, for all contracts entered into on or after July 1, 2022, a primary contractor making or taking a contract in the State for the erection, construction, alteration, or repair of a building, structure, or other private work in the State, shall assume, and is liable for, any debt owed to a claimant incurred pursuant to the Act by a subcontractor at any tier acting under, by, or for the primary contractor for the wage claimant's performance of labor included in the subject of the contract between the primary contractor and the owner. Exempts from liability a property owner who acts as a primary contractor related to the erection, construction, alteration, or repair of his or her primary residence. Defines terms. Provides that the primary contractor's liability under the new provisions shall extend only to any unpaid wages or fringe or other benefit payments or contributions, including interest owed, penalties assessed by the Department, and reasonable attorney's fees, but shall not extend to liquidated damages. Provides that a primary contractor or any other person shall not evade or commit any act that negates the requirements of the new provisions. Provides that the obligations and remedies provided in the new provisions shall be in addition to any obligations and remedies otherwise provided by law, except that nothing in the new provisions shall be construed to impose liability on a primary contractor for anything other than unpaid wages, fringe or other benefit payment contributions, penalties assessed by the Department of Labor, interest owed, and reasonable attorney's fees. Provides that claims brought pursuant to the new provisions shall be done so in accordance with provisions concerning violations of the Act. House Committee Amendment No. 1 In provisions concerning primary contractor responsibility for wage claims in the construction industry, provides that nothing shall supersede or modify the express terms contained in any collective bargaining agreement relating to the primary contractor's liability to pay the wages of its subcontractor's employees. Provides that prior to the commencement of any civil action, a claimant or a representative of a claimant shall provide written notice to the employer and to the primary contractor detailing the nature and basis for the claim. Provides that failure of the employer or the primary contractor to resolve the claim within 10 days after receipt of this notice, or during any agreed upon period extending this deadline, may result in the filing of a civil action to enforce the provisions of the Act. House Floor Amendment No. 3 Replaces everything after the enacting clause. Reinserts the contents of the bill as amended by House Amendment No. 1 with the following changes: Provides that specified provisions do not apply to work performed by a contractor of the federal government, the State, a special district, a city, a county, or any political subdivision of the State (rather than the State, a special district, a city, a county, or any political subdivision of the State). Provides that nothing shall supersede or modify the obligations and liability that any primary contractor, subcontractor, or property owner may bear as an employer under the Act or any other applicable law. Provides that primary contractors who are parties to a collective bargaining agreement on the project where the work is being performed shall be exempt from specified provisions. Effective immediately. Pension Note, House Floor Amendment No. 2 (Government Forecasting & Accountability) HB 5412, (H-AM 2) will not impact any public pension fund or retirement system in the State of Illinois. Pension Note, House Floor Amendment No. 3 (Government Forecasting & Accountability) HB 5412, (H-AM 3) will not impact any public pension fund or retirement system in the State of Illinois. State Debt Impact Note, House Floor Amendment No. 2 (Dept. of Commerce & Economic Opportunity) HB 5412 (H-AM 2) would not change the amount of authorization for any type of State-issued bond, and, therefore, would not affect the level of State indebtedness. State Debt Impact Note, House Floor Amendment No. 3 (Dept. of Commerce & Economic Opportunity) HB 5412 (H-AM 3) would not change the amount of authorization for any type of State-issued bond, and, therefore, would not affect the level of State indebtedness. Judicial Note, House Floor Amendment No. 2 (Admin Office of the Illinois Courts) The legislation will not increase or decrease the number of judges needed in the State of Illinois. Judicial Note, House Floor Amendment No. 3 (Admin Office of the Illinois Courts) The legislation will not increase or decrease the number of judges needed in the State of Illinois. Land Conveyance Appraisal Note, House Floor Amendment No. 2 (Dept. of Transportation) No land conveyances are included in this bill, therefore, there are no appraisals to be filed. Land Conveyance Appraisal Note, House Floor Amendment No. 3 (Dept. of Transportation) No land conveyances are included in this bill, therefore, there are no appraisals to be filed. Balanced Budget Note, House Floor Amendment No. 2 (Office of Management and Budget) Please be advised that the Balanced Budget Note Act does not apply to House Bill 5412, as amended by House Amendment 2 as it is not a supplemental appropriation that increases or decreases appropriations. Under the Act, a balanced budget note must be prepared only for bills that change a general funds appropriation for the fiscal year in which the new bill is enacted. Balanced Budget Note, House Floor Amendment No. 3 (Office of Management and Budget) Please be advised that the Balanced Budget Note Act does not apply to House Bill 5412, as amended by House Amendment 3 as it is not a supplemental appropriation that increases or decreases appropriations. Under the Act, a balanced budget note must be prepared only for bills that change a general funds appropriation for the fiscal year in which the new bill is enacted. Housing Affordability Impact Note, House Floor Amendment No. 2 (Housing Development Authority) This legislation is anticipated to have no effect on the cost of constructing, purchasing, owning, or selling a single-family residence. Housing Affordability Impact Note, House Floor Amendment No. 3 (Housing Development Authority) This legislation is anticipated to have no effect on the cost of constructing, purchasing, owning, or selling a single-family residence.