HB3043 - Living Wage Act

• Requires the State of Illinois, its agencies, and political subdivisions to include minimum wage provisions in all new contracts and subcontracts effective January 1, 2018, setting the initial minimum wage at $16.36 per hour.

• Mandates annual adjustment of the minimum wage based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (Midwest Region), rounded to the nearest 10 cents, with the Department of Labor publishing rates at least 90 days before they take effect.

• Prohibits contractors from using fringe benefits to satisfy wage obligations and requires payment of all wages within one pay period (maximum semi-monthly intervals) free from deductions except for Social Security, unemployment insurance, and union dues.

• Establishes enforcement mechanisms including civil penalties (20% of underpayments for first violation, 50% for subsequent violations within 5 years), private right of action for workers, and automatic debarment for 4 years for contractors with two violations within 5 years or criminal convictions.

• Requires contractors to notify workers of applicable minimum wage rates and post notices at worksites, with no provision relieving contractors of obligations to pay higher prevailing wages under federal, state, or local law.