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  • Home
  • HBAI
    • By-Laws
    • Executive Officers
    • 2023 HBAI Board of Directors
    • HBAI Staff
    • Member Benefits
    • Reasons to Join
    • Join HBAI
    • Blog
    • Contact
  • Members
    • Local HBA’s
    • Locate Local HBA’s by County
    • Map of HBA’s
    • Member Benefits
    • Educational Opportunities
    • HBAI Talk
      • 2019 Talk
        • Healthcare Survey for Members
      • Talk 2018
        • Things Learned at the Builders Show
        • Board of Directors Meeting @ IBS 2018 Pictures
        • HBAI Reception at IBS
      • Talk 2017
        • Advocacy Leadership Award
        • HBAI on a Mission
        • Housing Hall of Fame Inductees 2017
        • Builder Member Rebates
  • Government Affairs
    • State Laws You Should Know
      • Introduction to State Laws You Should Know
      • Illinois Recreational Cannabis Law Effective January 1, 2020
      • Employee Business Expense Reimbursements 2019
      • Farmland Preservation
      • Home Repair & Remodeling Act
      • Illinois Building Code Freeze
      • Illinois Energy Conservation Code
      • Implied Warranty Law
      • Interest Paid on Certificates of Error
      • Model Home Act
      • Illinois Building Code Freeze
      • Passive Radon Systems
      • Proportionate Property Improvement Valuations – “Pro-Rata Valuations”
      • Public Construction Bonds
      • Septic System Turf Battle
      • Vacant Lot Act
    • HomePAC
    • HBAI Speaker
      • 2022 Speaker Topics
        • January Update
      • 2021 Speaker Topics
        • HBAI OPPOSES MANDATES FOR ELECTRIC CAR CHARGERS & THE STRETCH ENERGY CODE
        •   Home Builders Survive Union Ambush
        • HBAI OPPOSES SB2896 – CAR CHARGERS & STRETCH ENERGY CODE
        • 2021 State Energy Code Price Tag – $10,000 Per Home
      • 2020 Speaker Topics
        • ComEd Deadline to Grandfather Existing Subdivisions/Developments
        • Vote No on the Progressive Tax
        • End of Session Report
        • Session Update 5/20/2020
        • Home Builders Oppose Car Charger Mandate
        • WCC Repeals Work Comp for COVID-19
        • COVID-19 Added to Work Comp Claims
        • Pandemic Housing Issues
        • Home Construction Deemed Essential!
        • Sticker Shock!!!
      • 2019 Speaker Topics
        • Senate Holds Hearing on Subcontractor Failure-to-Pay Bill
        •  2019 Illinois General Assembly Highlights  —  Part II
        • 2019 Illinois General Assembly Highlights — Part I
        • Oppose HB2838 — General Contractors held liable for Subs’ Employee Wages
        • March Madness in Springfield
        • Legislative Committee Begins Its Work
      • 2018 Speaker Topics
        • End of Session Wrap UP
        • General Assembly Approaching Adjournment
        • HBAI to Oppose County Recorders Legislation
        • Lobby Day Harvest Housing Victories
        • HBAI Lobby Day a BIG Success!
        • More Labor Bills – More Anti-Business Legislation – More Regulation
        • Home Builders Prepare to Defend the Public Construction Bond Act
        • HBAI Spring Session Report
        • HELOCS Deductible for Capital Improvements, IRS Says
        • Home Building & Remodeling Once Again Under Attack in Springfield
        • Board Meeting, Installation Banquet & Veto Session
        • Election Night Projections 2018
        • Vote Now for a Home Builder Hero
        • Veto Session in Springfield
        • Four Favors
        • HBAI Takes on the Tasks at Hand
        • HomePAC – IBS – Associate Member Appreciation Month
        • Last Chance for the Century Ride Pledge Drive
        • HBAI Mid-Year Report
        • End of Session Wrap UP
        • Board Meeting, Installation Banquet & Veto Session
      • 2017 Speaker Topics
    • Voter Voice
  • Calendar of Events

Home Builders Oppose HB2838

General Contractors Held Liable for Subcontractor Employee Wages

The Home Builders Association of Illinois vehemently opposes the passage of HB2838, a bill holding General Contractors (GCs) liable for the payment of wages to employees of a subcontractor even when the GC has paid the subcontractor in full. HBAI is joined by the following associations in opposing this blow to the construction industry that is still suffering from the Great Recession:

Illinois Manufacturers’ Association           Illinois Chamber of Commerce

National Fed. of Independent Business     Illinois Construction Industry Committee

Associated Builders & Contractors              Ill. Road & Transport. Builders Assoc.

Ill. Mech. Specialty Contractors Assoc.      Ill. Landscape Contractors Association

HB2838 will leave GCs potentially liable to pay every construction worker twice – once thru payment to the subcontractor, then again directly to the employee if the subcontractor fails to pass payment and benefits along to their employees.

This legislation applies specifically to private construction projects and is taken from legislation passed last year in California and Maryland. Oregon also has a law, but with one very important difference; it only holds the GCs responsible if the subcontractor has not been paid in full for completed work.

This highly controversial measure is certain to increase the cost of construction even if no one ever files a claim:

  • Insurance – GCs will need liability insurance to protect themselves from wage protection lawsuits for years after every job is complete.

  • Labor – GCs will need to hire office personnel to protect themselves by reviewing subcontractor payroll records and ensuring compliance.

  • Bonding – Subcontractors will be required by GCs to obtain bonds to guarantee they can cover wages in order to protect the GC’s interest prior to beginning work.

These cost increases will eventually be passed on in the form of higher construction costs to the homeowner, customer, and the taxpayer. With already tight profit margins, GCs and subcontractors in Illinois are looking for ways to control costs wherever possible.

California and Maryland are not thriving because of wage protection laws, they are thriving in spite of them. Illinois’ economy, especially its construction sector, is much weaker and cannot take the weight of legislation like HB2838.

For these reasons and more, HBAI is asking every member of the Illinois House of Representatives to Vote NO on HB2838 (Gong-Gershowitz).

Please go to HBAI.org right now, scroll down to VoterVoice, click on it, and send a letter of opposition to your State Representative. The letter is already written for you to send and its content is approved by the Home Builders Association of Illinois. We need everyone in this association and this industry to take action now!

Please contact Bill Ward, at billward@hbai.org, or at (217) 494-8143 if you have any questions or concerns.

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About us

The HBAI is the watchdog for builders, contractors, developers and all those involved in home building across Illinois. We work hard to keep legislation and regulatory action favorable to the industry--and especially to how it affects our members' bottom lines. We keep you informed, connected, and aligned with the best the state has to offer - including ongoing certification and affinity programs, our annual Lobby Day, and opportunities to serve on our board or in other capacities. Let us know when and how you are ready to get involved.

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