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Issues Executive Order to Stop Payments to Violators
(Springfield) -- Seeking to assure that all recipients of state construction contracts and grants comply with the Illinois Prevailing Wage Act, State Comptroller Daniel W. Hynes today issued an Executive Order imposing tough new standards on contracts and grants filed by state agencies. In that order, Hynes also established the post of Prevailing Wage Enforcement Officer within the Comptroller's office to oversee implementation of the new provisions and to monitor compliance with prevailing wage requirements.
Hynes also announced his plan to publish applicable contract and grant information on the Comptroller's website to permit greater public oversight and to aid enforcement of the Act.
Over the course of the last several months, Hynes has met with members of numerous labor organizations across the state, many of which have expressed widespread dissatisfaction with the enforcement of prevailing wage laws. Accusations were made that the laws have been evaded or ignored by recipients of public funds.
"The working men and women of Illinois are among the most productive workers in this world. We must make every effort to ensure that they receive the level of compensation that they are entitled to under Illinois law," said Hynes.
The details of Hynes' Executive Order include new language requirements in state grant agreements for the construction of public works that mandate recipients to comply with the Prevailing Wage Act. As many as 4000 grants per year could be affected.
Also, Hynes acted to clarify contract-filing requirements for other types of construction agreements. That change could impact an additional 11,000 filings per year. Grants or contracts executed after September 1, 2002, must contain the new language, or they will not be accepted for filing nor will payments against them be honored.
"This action represents not just a commitment to following existing law but to the greater interest of working Illinoisans. Studies have indicated that prevailing wage stimulates overall growth in wage rates in other sectors," said Hynes. "In addition, under this Executive Order, state grant recipients and state contractors will be receiving notice before any work has begun that the transaction is subject to prevailing wage requisites. This avoids confusion, surprise, and potential delays.
"The availability of contract and grant information to the public will serve to increase vigilance over the disposition of tax dollars for public works as well as enhance scrutiny over the application of prevailing wage," said Hynes.
Hynes stated that he intends to work with legislative and other leaders to address needed changes to the Prevailing Wage Act, including issues relating to application and enforcement.
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