General Contractors, and Trade Contractors who have subcontracts with others, should know that for private projects a new amendment to the Illinois Wage Payment And Collection Act (IWPCA) creates the potential for liability for the wages of their subcontractors’ employees beginning January 2025.
The Illinois legislature, with pressure from a variety of groups, adopted a new ‘wage protection act’ that is included as a new section of the IWPCA.
While there is an exclusion for union signatory contracts (confirm with your attorney to ensure that the exclusion is applicable for you), all other contractors remain exposed.
Why is there a concern? There is now a potential that the Contractor will be held liable for wages and benefits of the employees of a subcontractor, or sub-subcontractor, even where the Contractor is not the employer and even where the Contractor paid the sub in full. Enforcement will be by the Illinois Dept. of Labor, rather than private action by employees. But the exposure is still a concern.
