Worker protection unit formed in attorney general’s office (IL)

Posted by National Alliance for Fair Contracting on

Journal-Courier
Published 12:48 pm CDT
Monday, August 26, 2019

A new unit in the Illinois Attorney General’s Office will be charged with protecting Illinois workers from unlawful employment practices such as wage theft.

Gov. J.B. Pritzker signed legislation on Friday that created a Worker Protection Unit.

The law gives the attorney general’s office express authority to investigate and file suit against employers who violate the Prevailing Wage Act, the Employee Classification Act, the Minimum Wage Law, the Day and Temporary Labor Services Act and the Wage Payment and Collection Act.

The new unit will collaborate with the Illinois Department of Labor to detect unlawful conduct. The unit can also take direct legal action against widespread wage payment violations and unfair labor practices.

A Worker Protection Unit Task Force will be created to facilitate information sharing and collaboration between state and local prosecutors and regulators. The task force will also promote a statewide outreach and enforcement effort to target businesses that violate state worker protection laws. The task force will report on its work to the governor and the General Assembly by December 2020.

The bill takes effect Jan. 1.

(See Article)

In Illinois, GCs could be on the hook for subs’ unpaid wages (IL)

Posted by National Alliance for Fair Contracting on

AUTHOR – Kim Slowey
PUBLISHED – April 2, 2019

Dive Brief:

  • The Illinois House of Representatives this month passed an amendment to the state’s Wage Payment and Collection Act that could make general contractors responsible for the wages of their subcontractors’ employees. The state Senate will now take up the bill.
  • The liability for a subcontractor’s unpaid wages would lie with the direct contractor – the company in contract with the owner – even if the direct contractor has paid the subcontractor in full.
  • The law as proposed would also apply to lower-tier subcontractors and cover fringe and benefit payments owed to third parties on behalf of employees. Just as in most other civil actions, the direct contractor’s property could be seized in order to raise the money necessary to pay back wages and benefits.

Dive Insight:

In addition to wages and benefits, the direct contractor would be responsible for interest on those payments, but not fines and penalties. The proposed regulation would give direct contractors the right to examine the records of subcontractors and lower-tier subcontractors in the course of the project to ensure that they are paying their employees.

…

Such legislation can give state officials extra teeth in pursuing payment for those workers left in the lurch by unscrupulous contractors. In California, where GC’s liability for subs’ unpaid wages was enacted for contracts signed on or after Jan. 1, 2018, officials have been aggressive in addressing wage theft violations.

(Read More)