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FAQ Application of Prevailing Wage on Certain Federal Projects (HB 1198)

1. What is HB 1189?

HB 1189 clarifies that public works projects covered under the Illinois Prevailing Wage Act (PWA) also include all federal construction projects administered or controlled by a public body if the prevailing rate of wages is equal to or greater that the prevailing wage determination by the United States Secretary of Labor for the same locality for the same type of construction used to classify the federal construction project. In essence, the Illinois prevailing wage rate must be paid when it is equal to or higher than the corresponding federal prevailing wage rate. 820 ILCS 130/2.

2. How will HB 1189 apply to projects that are already in progress?

In this initial implementation phase, IDOL will not focus enforcement resources on federally funded projects where the bid was previously formulated and selected based on Davis-Bacon Act (DBA) rates. The effective date of the HB 1189 is August 14, 2025.  Projects bid after that date should conform with the requirements of HB 1189.  

3. What will public bodies need to do to comply with HB 1189 moving forward?

Public bodies should review all federally funded contracts and grant agreements entered into after August 14, 2025, and include in those contracts and grant agreements notification that Illinois Prevailing Wage Act (PWA) rates may apply. The Illinois Prevailing Wage schedules are available on the IDOL website here: https://labor.illinois.gov/laws-rules/conmed/rates.html

4. What will contractors need to do to comply with HB 1189 moving forward?

Contractors should think about what trades will be needed on the project, determine if the Illinois prevailing wage rate or DBA rate will apply to each trade classification, and formulate their bids informed by the anticipated required wage rates.

If a contractor determines that PWA rates apply on their federally funded public works project, they should also maintain payroll records and upload certified transcripts of payroll to the online payroll portal as part of ongoing compliance with the Act. Where a contract may be subject to both the DBA and the PWA, the contract may refer to both federal prevailing wage rates and the most recent Illinois prevailing wage rates, noting that the Illinois rates are updated regularly.

Additional information about these reporting requirements is forthcoming.

5. There are some types of construction, such as residential construction, for which there are Davis-Bacon Act wage determinations, but no corresponding Illinois prevailing wage determination. Which law applies in that situation?

Where there is no corresponding Illinois prevailing wage determination for the type of construction, the DBA rate applies. However, there are other types of construction (for example, “building” or “heavy/highway”) for which there are DBA wage determinations and corresponding PWA determinations. 

6. There are some trade classification descriptions under the Davis-Bacon Act for which there is no corresponding Illinois prevailing wage trade classification. What rate needs to be paid in that situation?

HB 1189 requires that workers on federally funded projects administered by an Illinois public body must be paid the PWA rate for their trade classification description, if that rate is equal to or higher than the rate for the corresponding DBA classification description. If the DBA classification description does not correspond to a parallel or higher Illinois PWA rate, then the DBA rate applies.

7. If a project was not subject to the Illinois Prevailing Wage Act or Davis-Bacon Act prior to this legislation, does that change?

No.

8. Where can I find the federal and state prevailing rates?

a.      Federal:  https://sam.gov/wage-determinations

b.      State:  https://labor.illinois.gov/laws-rules/conmed/rates.html