At a Glance
Quick Answer
Illinois has an active prevailing wage law (Illinois Prevailing Wage Act (820 ILCS 130)). Administered by Illinois Department of Labor. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Illinois has no minimum dollar threshold for prevailing wage coverage. The law applies to all public works projects regardless of contract value. Public bodies must obtain prevailing wage rates from the Illinois Department of Labor and include them in all bid specifications.
Context
Prevailing Wage & Bidding in Illinois
Illinois enforces one of the most demanding prevailing wage regimes in the country through the Illinois Prevailing Wage Act (820 ILCS 130), administered by the Illinois Department of Labor. Critically for estimators, there is no minimum dollar threshold: every public works project is covered regardless of contract value. When you bid public work in Illinois, you must price labor to the Department's published prevailing rates for the project's county and trade, and you cannot assume a small job escapes coverage. Public bodies are required to include the rates in bid specifications and to post them at the job site.
Compliance carries real teeth. Underpayment penalties run 20% of the underpaid amount on a first offense and 50% on subsequent violations, with certified-payroll filing failures drawing up to $1,000 (first) and $2,000 (repeat). A 2025 law adds penalties specifically for failing to file certified payrolls on time, so timely electronic reporting is no longer optional housekeeping. Two violations within five years trigger a four-year debarment from public work.
When estimating, pull the current rate sheet for every classification you intend to use, include fringe benefits, and budget administrative hours for weekly certified payroll. The biggest pitfalls are misclassifying workers into lower-paid trades, omitting fringe obligations, and treating low-dollar jobs as exempt. Because debarment can remove you from the public market entirely, treat wage accuracy and payroll filing discipline as bid-protecting investments, not overhead to trim.
Details
Coverage Details
State Law Details
- Law
- Illinois Prevailing Wage Act (820 ILCS 130)
- Agency
- Illinois Department of Labor
- Thresholds
- No minimum project value threshold — applies to all public works regardless of amount
- Certified Payroll
- Required
Federal Davis-Bacon Coverage
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Illinois. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
No minimum dollar threshold — all public works projects covered
Penalties of 20% (first) to 50% (subsequent) of underpaid amounts
Debarment for 4 years after two violations in 5 years
New 2025 law adds penalties for failing to file certified payrolls on time
Public bodies must post prevailing wage rates at the job site
Enforcement
Penalties
First offense: penalty equal to 20% of total underpaid amount. Second and subsequent violations: 50% penalty. Certified payroll filing failures: up to $1,000 first offense, $2,000 for repeat offenses. Debarment for 4 years after two violations within 5 years. Discrimination penalty: $5,000 per violation.
Updates
Recent Changes
Effective June 30, 2025 (SB1344): new civil penalties for failure to file certified payrolls — up to $1,000 first offense and $2,000 for repeat offenses within 5 years, plus individual liability.
Resources
Related Tools & Templates
Turn wage rules into bid-ready alerts
Use ConstructionBids.ai to track matching public projects, save bid searches, and move wage-sensitive scopes into your estimating workflow.
FAQ
Questions Contractors Ask
Does Illinois have a prevailing wage law?
Yes. Illinois has an active state prevailing wage law: Illinois Prevailing Wage Act (820 ILCS 130). Illinois has no minimum dollar threshold for prevailing wage coverage. The law applies to all public works projects regardless of contract value. Public bodies must obtain prevailing wage rates from the Illinois Department of Labor and include them in all bid specifications.
Does Davis-Bacon apply in Illinois?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Illinois, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Illinois?
Yes. Illinois requires certified payroll on state prevailing wage projects. Additionally, certified payroll is always required on federal Davis-Bacon projects using form WH-347.
What are the penalties for prevailing wage violations in Illinois?
First offense: penalty equal to 20% of total underpaid amount. Second and subsequent violations: 50% penalty. Certified payroll filing failures: up to $1,000 first offense, $2,000 for repeat offenses. Debarment for 4 years after two violations within 5 years. Discrimination penalty: $5,000 per violation.
Is there a dollar threshold for prevailing wage in Illinois?
No. The Illinois Prevailing Wage Act applies to all public works projects regardless of contract value, so even small jobs are covered. Estimators cannot exempt low-dollar work and must price labor to the Illinois Department of Labor rates for the project's county and trade.
What are the penalties for underpaying prevailing wages in Illinois?
First offenses carry a penalty of 20% of the underpaid amount; subsequent violations rise to 50%. Certified-payroll filing failures draw up to $1,000, then $2,000. Two violations within five years trigger a four-year debarment from public contracts, plus required back wages.
How does the 2025 Illinois certified payroll law affect bidders?
A 2025 amendment adds specific penalties for failing to file certified payrolls on time. Contractors should budget administrative hours for timely weekly electronic submissions, because late filing now carries its own financial penalty separate from any underpayment of wages itself.