Each June, Townships, Road Districts, and all local governments in Illinois have been required to adopt prevailing wage ordinances “ascertaining” the applicable prevailing wages that the government must pay for public works projects. This requirement is contained in the Prevailing Wage Act, which also includes requirements for filing the ordinance with the state, publishing/posting the rates, and certain record-keeping requirements. This will all change with the enactment of Public Act 100-1177 in March, which becomes effective on June 1, 2019.
The new law does not eliminate the requirement that Townships and Road Districts pay prevailing wages. It did eliminate certain obligations Townships and Road Districts have under the Act and modified others, including the following:
- Townships and Road Districts no longer need to approve an annual prevailing wage ordinance each June. Instead, the prevailing wage schedule published on the Illinois Department of Labor’s website will automatically set the applicable wage rates for each local government.
- Townships and Road Districts no longer need to publish or file an ordinance since one is no longer required.
- The Illinois Department of Labor will be required to maintain an electronic database of certified payrolls, which must be in place by April 1, 2020. Once in place, contractors will submit certified payrolls directly online rather than filing them with the local government (Townships and Road Districts).
- The law did NOT modify existing requirements that all local governments, including Townships and Road Districts, include language in a call for bids, contract, or notice about prevailing wages where applicable.
Again, the new law eliminates certain administrative and record-keeping requirements of Townships and Road Districts, but does not change the underlying requirements of paying prevailing wages for projects subject to the Prevailing Wage Act.
This is good news for Townships and Road Districts. If you have any questions, please feel free to contact TOI. Toll Free 866-897-4688.