Prevailing Wage Requirements

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(820 ILCS 130)

The Prevailing Wage Rate ordinance must be adopted annually in June.

Addresses where resolution must be sent:

Illinois Secretary of State                                    Illinois Department of Labor

Index Division                                                   Conciliation and Mediation Division

111 East Monroe                                                1 West Old State Capitol Plaza, 300

Springfield, Illinois 62756                                   Springfield, Illinois  62701

The Certified Payroll Requirements apply to all contractors and subcontractors that participate in public works projects.  All contractors and subcontractors are required to submit certified payroll records on a monthly basis to the public body in charge of the construction projects, along with a statement verifying that the records are true and accurate.  Individuals can be held personally responsible for failing to comply with the requirements of the law.  The following list is provided to assist with understanding the applicability of the law to projects that occur in your township.
The township undertaking the project shall obtain the prevailing rate of hourly rates, or accept the determination of the Illinois Department of Labor, in the county where the project is taking place and pass an ordinance or resolution indicating such.  Additionally, they shall promptly file a certified copy of the resolution with the Index Division of the Secretary of State’s office, and a copy to the Illinois Department of Labor.  The resolution can be sent to the following addresses:

The following bullet points outline steps in the process in order to be in compliance with the requirements of the law.

• The township must specify that the prevailing rate of hourly wages in the locality where the work is performed is to be paid to all persons employed on the project in the following:

• cause for the rates to be inserted in the contract; and
• require documentation in all contractors’ bonds.

Note:  this applies when accepting a contractor’s bid as the agreement for public works; the bid needs to contain a prevailing wage requirement)

• If the Department of Labor revises the Prevailing Rates of Hourly Wages, the current rates apply to all contracts.  The township is responsible for notifying the contractor and each subcontractor of revised rates.  Revised rates are available from the following website; www.state.il.us/agency/idol or by contacting the Illinois Department of Labor.

• No public works project shall be initiated unless full compliance with the Prevailing Wage Act is enforced.  Any contract for public works awarded at a time when the prerequisites of the Act have not met shall be void and the contractor is prohibited from recovering any damages for the contract.