Illinois Prevailing Wage

What Government Contractors in Illinois Should Know

Illinois prevailing wage contractors and subcontractors are governed by the Illinois Prevailing Wage Act. It states that prevailing wage workers employed on public works construction projects shall be paid no less than the general prevailing wage hourly rate in the locality where the work is performed.

Illinois also adopted a rule stating that the fringe benefit amount shall meet or exceed the prevailing wage rate. Otherwise, the deficient amount should be added on the worker’s wages.

Important Facts on Illinois Prevailing Wage for Employers

Illinois is one of those states that have a minimum wage higher than the mandated federal rate which is $8.25 basic minimum rate per hour. In this article, we try to encapsulate some of the most important facts related to handling prevailing wage projects, decisions and management.

Here are the highlights of Illinois Prevailing Wage:

  • There is no threshold amount for Contract Coverage under the Illinois state prevailing wage laws.
  • Illinois prevailing wage rates are ascertained June of each year with revised rates published monthly. When the Illinois Department of Labor (IDOL) revises the prevailing wage rate, the revised rate applies to the public works project and the public body awarding the contract is responsible for notifying the contractor about the revised rate.
  • Prevailing wage contractors in Illinois may access Wage Decisions through
  • Accurate records must be kept by the contractor or subcontractor for at least 3 years. These records must contain all details pertaining to a worker employed on public works. Furthermore, a Certified Transcript of Payroll and Fringe Benefit Statement must be submitted to a public body in charge of the prevailing wage project.
  • All records shall be considered as public and should be available for inspection by the public body awarding the contract, and the Illinois Department of Labor (IDOL) under the Freedom of Information Act.

Entities that Govern Prevailing Wage Regulations in Illinois

  • Illinois Department of Labor (IDOL)

It is the central governing body in prevailing wage regulations. To be specific, it is the Conciliation and Mediation Department of IDOL who is responsible for the enforcement and compliance of prevailing wage in Illinois.

  • Department of Human Rights

It is the investigating body that handles discrimination complaints and other issues related to potential human rights violations.

  • Illinois Department of Employment Security (IDES)

It is the entity that provides assistance with unemployment claims and eligibility for unemployment insurance benefits.

  • Illinois Workers Compensation Commission (IWCC)

Aside from handling the workers’ compensation cases, this state agency serves as an avenue to resolve conflicts between employers and employees when it comes to work-related accident, insurance coverage and commission level compensation decisions.

Let ARCHER JORDAN Guide You towards Compliance with Prevailing Wage Laws

ARCHER JORDAN offers convenience so no regulation on Illinois prevailing wage compliance is missed. We guide you through with the Davis-Bacon Act and the Service Contract Act to ensure that you remain a lawful and responsible prevailing wage contractor by providing workers with fair prevailing wage hourly rates and fringe benefits. Contact us today.

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