The Illinois Department of Labor is responsible for the enforcement of the Prevailing Wage Act, which requires contractors or subcontractors to pay not less than the prevailing wage to all laborers, workers, and mechanics engaged in the construction or demolition of public works. The Act also outlines the record-keeping requirements for contractors and subcontractors and requires that municipalities and other public bodies advise all contractors and subcontractors in writing of the Prevailing Wage Act when soliciting bids, awarding contracts, and issuing work orders.

Compliance tips:

  • Public works include all fixed works constructed by any public body or paid for entirely or partially with public funds, including all projects financed entirely or partially with bonds, grants, loans, or other funds provided by or through the State or any of its political subdivisions, or carried out by an institution supported entirely or partially by public funds. The notion of fixed work includes changes to the landscape or to real estate. It is not necessary for a project to be for public use to be covered.
  • Contractors are still responsible for paying the prevailing wage even if a public body fails to inform them that the project is subject to the Prevailing Wage Act. However, the public body maybe liable for any interest, penalties and fines the Department might assess.