A coalition of female and minority owned, as well as union and non-union construction organizations, have banded together in opposition to HB 5412, which would have an impact on their businesses, by requiring general contractors to pay the wages of a subcontractors’ employees, even if the prime contractor has already paid the subcontractor in full. HB 5412 is being pushed by Mid-America Carpenters Regional Council and opponents feel it would do nothing to prevent Wage Theft, but only encourage it by allowing subcontractors to get off the hook by not paying their workers, and instead push the responsibility onto the prime contractor, while allowing these bad apples to move onto the next job and underbid legitimate contractors, since they have no payroll costs, according to a representative from the coalition. Opponents are asking the bill’s sponsor, House Leader Marcus Evans (D-Chicago), to consider a better solution, which they have put together and they believe would get to the root of the problem. The amendment to HB 5412 the opponents put together the following provisions:   

• Creation of a new Wage Theft Act under the Criminal Code and increase penalties for 1st offense followed by a Felony and requires officers of a company found guilty of wage theft to pay restitution to unpaid worker.

• Requires the Dept. of Labor to post the employer and officers names of companies guilty of Wage theft on DOL website to: 1. Act as deterrent for companies to stay off it; and 2. Act as clearing house for legitimate companies to vet bad contractors.

• The Creation of the Wage Theft Reimbursement Fund, which will allow an employee of a company that is insolvent, and a victim of Wage Theft, to recover their wages.  The Wage Theft Reimbursement Fund would be funded with the addition of fines that companies who are not insolvent and have been ordered to pay back wages by the Department of Labor.