Who Must Post the Illinois Construction Contractor Wage Payment and Collection Act Poster?
The Illinois Wage Payment and Collection Act (IWPCA) requires certain primary (general) contractors and subcontractors on private construction projects to display the IWPCA Construction Contractor Poster at each job site informing workers that general contractors can be liable for underpayments to employees of that contractor’s subcontractors. (820 ILCS 115/13.5(j)).
- The poster, developed by the Illinois Department of Labor, must be posted in one or more conspicuous places accessible to all laborers, workers, and mechanics at a job site.
- One copy of the notice at a job site satisfies the notice requirement for the primary contractor and all subcontractors.
- Any primary contractor or subcontractor who fails to post the IWPCA Construction Contractor Poster is subject to a civil penalty, not to exceed $250.
- The posting requirement became effective on July 28, 2023.
What Construction Contracts are Covered?
The IWPCA’s contractor liability provisions apply to:
- Primary contractors making or taking a contract in the State for the erection, construction, alteration, repair, improvement, or demolition of a building, structure, or other private work in the State where the aggregate costs of the project exceed $20,000.
- Subcontractors, at any tier, furnishing goods or services in connection with the contract between the primary contractor and the property owner.
- Any debt owed to a wage claimant for the performance of labor included in the subject of the contract between the primary contractor and the owner.
The contractor liability provisions do not apply to:
- Work performed by a contractor of the federal government, the State, a special district, a city, a county, or any political subdivision of the State.
- Primary contractors who are parties to a collective bargaining agreement on the project where the work is being performed.
- Primary contractors making or taking a contract in the State for the alteration or repair of an existing single-family dwelling or to a single residential unit in an existing multi-unit structure.
- Contractors who solely provide goods and transport of such goods related to the contract.
What Information is Provided on the IWPCA Poster?
- Contractor liability notice.
- Covered debts:
- Back wages and fringe benefits owed.
- Costs related to recovery.
- Exclusion of liquidated damages.
- Covered construction projects and exceptions.
- How and when to file a claim:
- Claims must be filed within three years of the nonpayment or underpayment of wages.
- How to contact and file a claim with the Illinois Department Labor.
- Preconditions to filing a civil action.