Chicago Prevailing Wage Attorney

Expert Legal Guidance on Illinois Prevailing Wage Compliance

At Goodley McCarthy LLC, we are committed to helping employers, contractors, and workers navigate the complex landscape of prevailing wage laws in Illinois. As a trusted Chicago prevailing wage lawyer, we offer comprehensive legal services that ensure compliance with the Illinois Prevailing Wage Act and other related regulations. Whether you are an employer looking for guidance on proper wage rates or a worker seeking to resolve a wage dispute, our experienced legal team is here to protect your rights and help you achieve a fair and equitable resolution.

Contact us today at (215) 273-3491 to request an initial consultation.

What is the Prevailing Wage Act?

The Prevailing Wage Act is a law that ensures workers on public works projects are paid wages that are consistent with the wages typically paid to similar workers in the local community. The primary goal of this law is to prevent contractors from underbidding on government projects by paying below-market wages, thereby protecting both workers' rights and ensuring fair competition among contractors.

In Illinois, the Illinois Prevailing Wage Act (IPWA) applies to all public works projects that are funded by state or local governments, including roads, bridges, public buildings, and other infrastructure projects. It mandates that contractors and subcontractors on these projects pay their workers wages that reflect the "prevailing wage" rates established by the Illinois Department of Employment Security (IDES). These rates are determined based on the wages paid to workers in the same geographic area, taking into account various factors such as job classification, industry standards, and union agreements.

The prevailing wage law is crucial for maintaining fair pay standards in public works projects, ensuring that workers are compensated appropriately and employers do not exploit labor for financial gain.

Common Issues with Complying with Prevailing Wage

Despite the clear intent of the Prevailing Wage Act, complying with these regulations can often be more complicated than it may appear. Contractors, subcontractors, and employers frequently encounter a number of challenges when navigating these laws. Some of the most common issues include:

Incorrect Wage Classifications

One of the most common errors contractors make is classifying workers incorrectly. The Illinois Prevailing Wage Act has specific wage classifications for various job titles, and misclassifying an employee can lead to significant legal and financial consequences. For example, an employee performing carpentry work might be classified as a laborer, which would entitle them to a lower wage rate. It’s essential to ensure that every worker is classified accurately to avoid underpayment and potential legal disputes.

Failure to Pay the Correct Rate

Contractors must adhere to the wage rates specified in the latest prevailing wage determinations for each job classification. However, many contractors unknowingly pay workers below the required rate, leading to violations of the Prevailing Wage Act. This can happen due to an oversight, lack of understanding of the regulations, or simply due to cost-cutting measures. Ensuring that all workers are paid the correct prevailing wage is one of the most critical aspects of compliance.

Noncompliance with Recordkeeping Requirements

Employers are required to keep accurate records of workers' hours, wages, and job classifications on public works projects. This includes submitting certified payroll records to the relevant government agency. Failing to comply with recordkeeping requirements can result in penalties and legal action. Some employers may find themselves in trouble simply due to improper or incomplete documentation.

Fringe Benefits and Overtime

Prevailing wage rates often include not just base wages but also mandatory fringe benefits, such as health insurance, pension contributions, and other benefits. Failure to pay these benefits in addition to base wages can lead to violations. Additionally, workers on public works projects are entitled to overtime pay for hours worked beyond the standard workweek. Noncompliance with overtime regulations can result in significant penalties.

Union vs. Non-Union Disputes

In areas with strong union representation, disputes may arise regarding whether union employees should receive additional benefits or protections compared to non-union employees working on the same project. Understanding how union agreements affect the prevailing wage rates is crucial to ensuring compliance.

FAQs About Prevailing Wage Disputes in Illinois

What happens if a contractor violates the Prevailing Wage Act?

Violations of the Prevailing Wage Act can result in significant consequences, including fines, back pay for underpaid workers, and the suspension or debarment of the contractor from future public works projects. Contractors may also face legal action from workers, unions, or government agencies, which could lead to costly legal fees and damage to their business reputation.

How do I know the correct prevailing wage rate for my project?

The Illinois Department of Employment Security (IDES) publishes an updated list of prevailing wage rates each year. Contractors are required to refer to these rates to ensure they are paying the correct wages for workers on public works projects. If you are unsure of the wage rates for a specific project, it’s important to consult with a legal professional to ensure compliance.

Can a contractor challenge prevailing wage rates?

Yes, contractors have the right to challenge prevailing wage rates, but this must be done through the proper legal channels. Contractors can submit an appeal to the IDES if they believe the wage rates are incorrect or do not accurately reflect the prevailing wages in a given area.

Can employees file claims for unpaid prevailing wages?

Yes, employees have the right to file claims if they believe they have not been paid the correct prevailing wage rate. Workers can file complaints with the Illinois Department of Labor, which will investigate the claim and take appropriate action. If necessary, workers can pursue legal action to recover any unpaid wages.

Do prevailing wage laws apply to all public works projects?

In Illinois, the Prevailing Wage Act applies to nearly all public works projects funded by state and local government entities. However, there are some exceptions, such as projects under a certain cost threshold or certain private-sector jobs that are partially funded by government grants.

Why Hire Our Firm?

Navigating prevailing wage laws can be difficult, and failure to comply with these regulations can result in serious financial and legal consequences. At Goodley McCarthy LLC, we offer personalized legal counsel to help you comply with the Illinois Prevailing Wage Act. Our experienced attorneys can assist you with wage determinations, recordkeeping requirements, disputes, and any other challenges you face.

If you need help ensuring compliance or resolving a dispute, don't hesitate to contact our office at (215) 273-3491 for a consultation.