What are the penalties for violations of the Act?
If a contractor is found to have violated the Act, they shall be liable to the Department for a 20% penalty of any underpayment owed and to the worker for 2% of the amount of any such penalty for each month during which underpayments remain unpaid. For a second or subsequent violation, a contractor shall be liable to the Department for 50% of the underpayment owed and to the worker for an additional 5% of such penalty for each month during which underpayments remain unpaid. In addition, if a contractor receives two Notices of Violation within a five-year period, the contractor may be barred from contracting for public works for a period of four years. For more information, click here 820 ILCS 130/11 and 11a. Some examples of violations are: (1) records are not kept; (2) records are not provided or access is denied; (3) contractors are not notified that the project is subject to the prevailing wage; (4) the required prevailing wage rates (base + fringe benefits) are not paid.
