What is a “Public Works Project?”
The term “public works” encompasses all permanent structures intended for public use, funded either entirely or partially with public funds. This includes projects financed through bonds issued under acts such as the Industrial Project Revenue Act, the Industrial Building Revenue Bond Act, the Illinois Development Finance Authority Act, or the Build Illinois Bond Act. Additionally, it covers projects financed, in whole or part, through loans or other funds provided under the Build Illinois Act.

Any public works project awarded without meeting prevailing wage prerequisites is considered void against public policy. In such cases, the contractor is prohibited from recovering any damages according to the contract terms and is limited to a claim for amounts paid for labor and materials supplied to the public body.

Furthermore, any officer, agent, or representative of a public body who willfully violates or fails to comply with any provision of the Act is deemed guilty of a Class B misdemeanor.

Any contract over $2,000 that is entered into for the actual construction, alteration and/or repair, painting and decorating, financed in whole or in part from federal funds.

How does prevailing wage affect me?
For non-union construction workers, prevailing wage laws offer crucial workplace protections regardless of union membership. Understanding your work classification is key to determining the prevailing wages and benefits applicable to your trade. Each craft classification mandates specific wage rates and fringe benefits, emphasizing the importance of the type of work performed over the initial job title. Misclassifications may lead to lower pay, making it vital for workers to be aware of and insist on accurate classifications to prevent potential violations and ensure fair compensation. Remember, the type of work you perform is more significant than your job title when it comes to prevailing wage considerations.

Prevailing Wage Law Requirements:
In adherence to Illinois Prevailing Wage laws, the following requirements are mandated:

• Inclusion of wage rates as part of contract documents.
• Obligation for contractors to maintain payroll records.
• Requirement for contractors to make payroll records accessible to the Illinois Department of Labor and the contracting agency.
• Each public body must adopt a Prevailing Wage Determination annually in June.

On federal projects, wages are categorized into basic wage and fringe benefits. The contract documents outline the base wage rate and a separate amount for fringe benefits, with variations across craft classifications. Employers can legally provide fringe benefits by either including the full amount on the paycheck or allocating it to health insurance and/or retirement plans. If the latter, employees must be informed in writing about their entitlement to benefits from these plans, which also require approval from the U.S. Department of Labor. Despite potentially covering multiple programs, fringe benefits on federal projects are consolidated into a single rate.

On federal projects, workers are eligible for overtime pay for hours worked beyond forty in a workweek. Overtime compensation must be at a rate not less than one and a half times the basic wage rate specified for the performed work classification(s). It is unlawful for employers to accumulate or carry over hours from one week to the next. Importantly, overtime pay is not mandated on the portion corresponding to fringe benefits.

For federal projects, employers are required to prominently display a copy of wages and fringe benefits in an easily accessible area at the project site. The posted wage sheet must detail the basic wage rate and fringe benefits for each distinct craft classification.

On federal projects, employers are mandated to submit Certified Payroll Records weekly to the contracting agency, disclosing each employee’s name, work classification(s), and the actual wages and benefits paid. Workers should maintain accurate records, including pay stubs, for each project and classification worked to validate any underpayment claims.

Keeping meticulous daily records, specifying the tasks and time spent on each, is crucial. Comparing these records to the employer’s certified payroll enables the contracting agency or the U.S. Department of Labor to identify underpayments. Reporting any underpayment is essential before project completion, as recovery afterward may prove challenging.

To recover wage underpayments on federal contracts, employees can potentially file against the project’s bond. The Miller Act stipulates that for federal contracts exceeding $25,000 for construction, alteration, or repair of public buildings or works, the awarded party must furnish a bond with surety. The Act outlines procedures and limitations for recovery under such bonds.

Federal False Claims Act: Contractors found submitting falsified payroll records for payment under government contracts may face consequences under the Federal False Claims Act. Individuals engaged in the following actions are subject to liability:

• Knowingly presenting a false or fraudulent claim for payment or approval to a U.S. Government officer, employee, or Armed Forces member.
• Knowingly making, using, or causing the use of a false record or statement to secure payment or approval of a false or fraudulent claim by the Government.
• Conspiring to defraud the Government by securing allowance or payment of a false or fraudulent claim.

Those found liable are subject to a civil penalty ranging from $5,000 to $10,000 for each separate false claim, in addition to three times the amount of damages sustained by the Government. Successful plaintiffs may receive a portion (typically between 15% to 30%) of the recovered amount, along with reasonable attorneys’ fees and costs from the defendants.