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Prevailing Wage Public Body FAQ
The Frequently Asked Questions (FAQs) provided below highlight topics and specific questions that are often asked of the Illinois Department of Labor (IDOL). The information provided in the FAQs is intended to enhance public access and understanding of IDOL laws, regulations and compliance information.
The FAQs should not be considered a substitute for the appropriate official documents (i.e. statute and/or administrative rules.) Individuals are urged to consult legal counsel of their choice. Court decisions may affect the interpretation and constitutionality of statutes. The Department cannot offer individuals legal advice or offer advisory opinions. If you need a legal opinion, we suggest you consult your own legal counsel. These FAQs are not to be considered complete and do not relieve employers from complying with applicable IDOL laws and regulations.
- 1. What are the notification requirements of a municipality regarding a project that falls within the scope of the Prevailing Wage Act?
- 2. What if a Public body fails to properly notify a contractor regarding a public works project subject to the Prevailing Wage Act?
- 3. What makes a project subject to the Act?
1. What are the notification requirements of a municipality regarding a project that falls within the scope of the Prevailing Wage Act?
Section 4. (a-1) of the Act sets forth the requirement that the Public Body or other entity awarding the contract shall cause to be inserted into the project specification and the contract a stipulation that not less than the prevailing rate shall be paid to all laborers, workers and mechanics performing work under the contract. Section 4. (a-2) provides for the same requirements where the contract is awarded without public bid. Section 4. (c) sets forth the bonding requirements under the Act, and Section 4. (d) requires the Public Body to notify the contractor of a revised rate established by the Department.
A Public Body does not comply with the requirements of the Act by providing a general statement to the effect that the contractor must comply with all applicable laws or stating that the project is subject to the Prevailing Wage Act if applicable. The statement required by the Public Body under the Act must be a statement that states specifically the project is or is not subject to the provisions of the Prevailing Wage Act.
See sample language for proper written notifications.
2. What if a Public body fails to properly notify a contractor regarding a public works project subject to the Prevailing Wage Act?
If a Public Body fails to provide proper written notification to a contractor that is subject to the Prevailing Wage Act, Section 4. (a-3) holds a Public Body financially responsible for any interest, penalties or fines assessed by the Department.
3. What makes a project subject to the Act?
All fixed works constructed by any public body or paid in whole or in part with public funds, including all projects funded or financed in whole or in part with bonds, grants, loans or other funds made available by or through the State or any of its political subdivisions, or undertaken by an institution supported in whole or in part by public funds. Landscape or modifications to real estate are included within the definition of fixed work. A public works does not have to have a final use for the public.