The Illinois Prevailng Wage Act (820 ILCS 130/0.01 et. seq.)("IPWA" or the "Act") requires contractors and subcontractors to pay laborers, workers and mechanics employed on "public works" projects in Illinois no less than the general prevailing rates of wages (consisting of hourly cash wages plus fringe benefits) for work of similar character in the locality (locality usually means the county ) where the work is performed.

As of August 21, 2007 , this work now includes any maintenance, repair, assembly, or disassembly work performed on equipment whether owned, leased, or rented.

What is a public work?

Public works are all fixed work construction by any public body, paid in whole or in part with public funds.  It also includes all projects funded in whole or in part by the Industrial Project Revenue Bond Act, the Illinois Development Finance Authority Act, the Build Illinois Bond Act, and the Build Illinois Act.  For more information, click here 820 ILCS 130/2.  The Illinois Attorney General issued an opinion regarding the term, "public works," warning that a narrow application of the prevision would "serve only to sanction schemes for circumventing the intent and purpose of the law..."  If you wish to review the Attorney General opinion, click here Op.Ill. Att'y Gen. No. 97-014, p.7 (July 7, 1997).

What does, "the locality in which the work is being performed" mean?

Generally, "locality" means the county where the physical work upon public works is performed.  For more information, click here 820 ILCS 130/2.

What type of work is covered?

Construction work on public works and the transportation of materials and equipment to or from the site.  Construction means all work on public works including laborers, workers or mechanics.  Transportation by the sellers and suppliers or the manufacture of processing of materials or equipment is not included.  For more information, click here 820 ILCS 130/2 and 3.

What is the penalty for a violation of the Act?

Anyone found to have violated the Act is guilty of a Class B misdemeanor.  A violation occurs when: (1) records are not kept, (2) records are not provided or access is denied; and (3) less than the prevailing wages are paid.  For more information, click here 820 ILCS 130/4

Who determines prevailing wage classifications and rates, and what is the process?

Section 9 of the Prevailing Wage Act charges a public body (or IDOL upon the public body's default of this right and duty) to investigate and ascertain the prevailing rate of wages on a countywide basis during June of each calendar year. Section 4 of the Act requires the public body (or IDOL, upon the public body's request) to apply the wage rates ascertained under Section 9 to each contract that the public body undertakes.  Section 2 of the Act defines the term, "public body," to include the State and all of its political subdivisions.  Section 4 further provides that IDOL may revise the rates and that the revisions shall apply to contracts of public bodies.  Public bodies are responsible for notifying contractors and subcontractors of the revised rates.  For more information, click here 820 ILCS 130/2, 4 and 9.  The Illinois Attorney General issued an opinion addressing the procedure for investigating, finding, announcing, defending, and adjusting prevailing wage classification and rate determinations.  If you wish to review the Attorney General opinion, click here Op. Ill. Att'y Gen. No. 99-010 (July 9, 1999).