(650) 332-8623Prevailing Wage in Illinois: a Guide to Rules, Requirements, Rates, and More for 2025
Need to know prevailing wage rates for Illinois projects? This guide will help you find everything you need to stay compliant in 2025!
Among the U.S. federal labor laws, prevailing wage laws is an essential legislation anyone in Illinois’ construction and field service industries. These laws directly impact wages, project expenses, and the ability to meet state compliance standards.
This guide breaks down the basics of Illinois’ prevailing wage laws. You’ll get an overview of how these prevailing rates are determined, the role of the state in setting them, and why they matter to your business.
By reading this, you’ll gain insight into:
- What prevailing wage laws in Illinois cover
- The process for setting prevailing wages and their significance
- How the state enforces these regulations
What Is Prevailing Wage in Illinois?
A prevailing wage is the standard hourly rate paid to workers in a specific trade within a particular region. While the Illinois labor law governs employment in the state generally, the Illinois prevailing wage rates reflect the typical earnings, generally in public works or for similar work in that area to ensure fair compensation.
The Illinois Department of Labor (IDOL) manages the process of setting prevailing wage rates. These rates are often based on local wage data, including union agreements and industry norms. As a result, prevailing wages typically exceed the minimum wage to ensure workers receive appropriate pay for their skills.
Legal Background for Prevailing Wages in Illinois
Illinois’ prevailing wage laws are built upon state-specific legislation outlined in the Illinois Prevailing Wage Act (820 ILCS 130). This act mirrors the intent of the federal Davis-Bacon Act of 1931 by requiring that public works projects pay wages that match the local standard for a given job type and region.
Understanding Illinois’s Prevailing Wage Laws
Illinois Prevailing Wage Act (820 ILCS 130/)
Illinois's Primary Prevailing Wage Statutes
In Illinois, the primary law governing prevailing wages is the Prevailing Wage Act (820 ILCS 130/). This Act ensures laborers, workers, and mechanics working on public works projects are paid no less than the general prevailing rate of wages for similar work in the area where the project is taking place.
The prevailing wage under this Act includes not only the hourly cash wages but also fringe benefits such as health insurance, retirement contributions, and paid time off.
Another key statute is the State Employee Prevailing Wage Act (5 ILCS 370/). This law guarantees that state employees in roles comparable to those covered under the Prevailing Wage Act are also compensated at prevailing wage rates.
1941
When Did Illinois' Prevailing Wage Law Take Effect?
The Illinois Prevailing Wage Act was first enacted in 1941, marking an important step in establishing wage standards for public works projects within the state. Since its enactment, the Act has provided a framework to ensure fair pay aligned with local wage practices, supporting the livelihoods of workers and promoting equitable conditions on public projects.
IDOL
The Illinois Department of Labor (IDOL) Is Responsible for Enforcing Prevailing Wage in Illinois
The Illinois Department of Labor (IDOL) is the main agency tasked with enforcing the state’s prevailing wage laws.
IDOL ensures workers on public works projects, including laborers and mechanics, are paid no less than the prevailing wage rates set for their specific trades and locations.
IDOL updates the prevailing wage rates annually, with new rates typically posted by July 15th each year. For example, in 2024, updated rates were posted on July 15th. These rates are based on surveys conducted in June and reflect the wages paid on public works projects in each county.
None
What's the Minimum Value of Projects Covered by Prevailing Wage Laws in Illinois?
Illinois does not set a minimum project value threshold for its prevailing wage laws. This means all public works construction projects, regardless of their value, are covered under the Prevailing Wage Act.
Under this law, contractors and subcontractors must pay laborers, workers, and mechanics employed on these public works projects no less than the general prevailing rate of wages, which includes both hourly cash wages and fringe benefits.
Illinois Prevailing Wages for Common Roles
$34.00Ceramic Tile Finisher Base Wages
Ceramic tile finishers are often among the lowest-paid roles, with an average base wage of $34 per hour, with majority of the salaries ranging from $26.73 to $41.27.
Counties such as Pope and Wabash show wages around this state average. A ceramic tile finisher’s work, while skilled, is less technical compared to higher-paid roles, contributing to their pay level.
$23.55Ceramic Tile Finisher Fringe Benefits
Ceramic tile finishers receive total fringe benefits averaging $23.55 per hour, which consist of:
- Health/Welfare: $9.60 to $15.84 per hour
- Pension: $7.00 to $16.02 per hour
- Training: $0.50 to $1.16 per hour
Despite being on the lower end of the pay scale, ceramic tile finishers still receive substantial fringe benefits, particularly in counties with active construction projects.
$39.33Laborer Base Wages
Laborers, essential to public works projects, earn an average base wage of $39.33 per hour, with salaries in Illinois counties ranging from $28.50 to $50.15 per hour.
Counties like Will and Winnebago report some of the highest figures due to increased economic activity. Meanwhile, more rural areas like Pope and Wabash show lower figures closer to the state average.
$32.36Laborer Fringe Benefits
Laborers receive total fringe benefits averaging $32.36 per hour, made up of the following:
- Health/Welfare: $7.60 to $17.71 per hour
- Pension: $15.70 to $23.70 per hour
- Training: Up to $0.91 per hour
Fringe benefits for laborers generally include substantial pension contributions and comprehensive health plans, especially in industrial counties like Will. This ensures long-term financial and health support.
$44.31Carpenter Base Wages
Carpenters earn an average base wage of $44.31 per hour, with salaries typically ranging from $33.50 to $55.11 per hour.
Higher wages are observed in urbanized counties such as Will and Cook. This reflects the high demand for skilled carpentry in both commercial and residential construction projects.
$26.34Carpenter Fringe Benefits
Carpenters are entitled to total fringe benefits averaging $26.34 per hour, which include:
- Health/Welfare: $9.70 to $13.21 per hour
- Pension: $11.00 to $30.48 per hour
- Training: $0.80 to $0.93 per hour
Carpenters benefit from solid health and pension plans, with counties like Winnebago providing more generous fringe benefits due to higher local demand and economic activity.
$48.00Electrician Base Wages
Electricians are among the higher-paid trades, with an average base wage of $48.00 per hour. Salaries in Illinois counties range from about $38.00 to $58.00 per hour.
Counties like Cook and DuPage frequently report above-average wages, highlighting the technical expertise and demand for electrical work in urban centers.
$32.54Electrician Fringe Benefits
Electricians receive total fringe benefits averaging $32.54 per hour, broken down as follows:
- Health/Welfare: $8.60 to $17.79 per hour
- Pension: $10.44 to $23.53 per hour
- Training: Up to $1.68 per hour
The fringe benefits for electricians often include significant pension and health contributions, especially in counties with major urban development, ensuring a well-rounded compensation package.
$49.09Operating Engineer Base Wages
Operating engineers, who operate heavy machinery, receive strong wages that are often higher in counties with extensive infrastructure projects, such as Will and Cook.
The average hourly rate is $49.09, with majority of the salaries ranging from $37.38 to $60.80 per hour (depending on class).
Their critical role in construction justifies the higher base wage and comprehensive compensation.
$39.70Operating Engineer Fringe Benefits
Operating engineers receive total fringe benefits averaging $39.70 per hour, detailed as follows:
- Health/Welfare: $12.15 to $23.95 per hour
- Pension: $13.60 to $24.15 per hour
- Training: $1.40 to $3.60 per hour
Counties like Will and Winnebago report the most competitive fringe benefits, supporting the engineers’ specialized skills and contributions to large-scale projects.
$49.83Plumber/Pipefitter Base Wages
Plumbers and pipefitters receive an average base wage of $49.83 per hour, with salary range between $41.10 and $58.55 per hour.
The highest figures have been reported in counties with strong commercial and residential growth, such as Cook and DuPage. Their work is critical for complex piping systems, contributing to their high pay.
$30.57Plumber/Pipefitter Fringe Benefits
Plumbers and pipefitters receive total fringe benefits averaging $30.57 per hour, composed of:
- Health/Welfare: $8.15 to $17.75 per hour
- Pension: $8.10 to $22.85 per hour
- Training: Up to $3.12 per hour
High fringe benefits in urban and industrial counties ensure that plumbers and pipefitters receive comprehensive support in addition to their wages.
$60.89Elevator Constructor Base Wages
Elevator constructors receive the highest pay in Illinois, earning an average base wage of $60.89 per hour, with typical salaries ranging from $53.94 to $67.84 per hour.
Counties such as Cook and Will show rates well above the average due to the complex nature of their work and the demand in urban settings.
$43.31Elevator Constructor Fringe Benefits
Elevator constructors enjoy total fringe benefits averaging $43.31 per hour, which include:
- Health/Welfare: $16.17 to $16.18 per hour
- Pension: Up to $20.96 per hour
- Vacation: Up to $5.42 per hour
- Training: $0.75 to $2.05 per hour
Fringe benefits for this role are comprehensive, supporting their high wages and highlighting the importance of their specialized skill set.
Illinois Prevailing Wage Resources
If you’re looking to stay informed about prevailing wage laws and rates in Illinois, several reliable online resources are available to contractors, subcontractors, and workers:
1. Illinois Department of Labor (IDOL)
Visit the Illinois Department of Labor (IDOL) website for comprehensive information on prevailing wage rates and compliance tools. Key resources include:
- Current Prevailing Wage Rates: Access up-to-date wage rates for different counties and trades.
- Certified Transcript of Payroll Forms: Find required forms for reporting payrolls on public works projects.
- Prevailing Wage Portal: Submit collective bargaining agreements and view associated rates.
- Frequently Asked Questions: Get answers to common questions about the Prevailing Wage Act.
2. Illinois General Assembly
Review the full text of the Prevailing Wage Act (820 ILCS 130/) to understand the legal framework governing prevailing wages in Illinois.
3. Illinois Prevailing Wage Council
Access tools for compliance, such as complaint forms and debarred contractors lists, to ensure adherence to prevailing wage laws.
These resources provide essential guidance to help stakeholders navigate the requirements of the Illinois Prevailing Wage Act and stay updated on wage rates and compliance measures.
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Typical Fringe Benefits and Calculations in IL
Health and welfare benefits in Illinois cover a range of insurance options, including medical, dental, and vision plans. Often, this is one of the largest components of fringe benefits, providing workers with essential health coverage. These benefits can vary widely depending on the county and specific trade, with an average contribution of around $12.50 per hour.
Workers are typically eligible for health benefits based on their role and hours worked, although apprentices or helpers may have reduced eligibility depending on their level of experience and training.
Retirement benefits, including pension plans and 401(k) contributions, are a core component of the fringe benefits package. These benefits ensure long-term financial security and are often provided as a percentage of the base wage, averaging $17.00 per hour in Illinois.
Employers have flexibility in offering various retirement options; however, these must align with prevailing wage requirements. In cases where a pension plan is not provided, employers may offer an equivalent cash payment to meet the fringe benefit obligation.
Paid time off (PTO) may include vacation days, sick leave, and personal days, though not all counties in Illinois require PTO to be counted toward prevailing wages.
When included, PTO is calculated as part of the total fringe benefits, with an estimated contribution of $0.75 per hour.
PTO benefits can vary by locality and are more commonly found in urban counties like Cook, where labor agreements often mandate additional leave benefits.
Performance-based or discretionary bonuses, while potentially valuable, are not recognized toward fulfilling prevailing wage obligations.
Training benefits are an essential part of Illinois’ fringe benefits structure, averaging $1.25 per hour (based on analysis of prevailing wage rates of all Illinois counties).
These programs support professional development, offering opportunities for workers to enhance their skills and stay updated on industry standards.
Payments for commuting expenses to and from the job site are excluded, as they do not directly contribute to a worker’s overall earnings.
Life and disability insurance, while less common than health and retirement benefits, is provided in many prevailing wage packages. These benefits offer financial protection in case of injury, illness, or death, helping workers and their families manage unforeseen challenges.
Life and disability benefits are particularly valuable for high-risk trades, where the nature of the work may expose employees to a higher level of hazard.
Costs associated with work attire or maintenance are not included as fringe benefits.
Daily allowances for meals and lodging do not qualify as fringe benefits under the prevailing wage law.
Employer Responsibilities in Illinois
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Employers must pay laborers, workers, and mechanics no less than the prevailing wage rates established for their specific trades and localities.
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Maintain detailed records of all laborers employed on public works projects, including names, addresses, telephone numbers, social security numbers, job classifications, hourly wages, hours worked each day, and starting and ending times.
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Submit certified payroll records to the public body in charge of the project on a monthly basis, by the 15th of the following month in which the work was performed.
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Display the prevailing wage rates at the job site where workers can easily access them, or provide each worker with a written notice detailing the prevailing rates for the project.
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Inform all subcontractors in writing about the prevailing wage requirements applicable to the project, ensuring they are aware of their obligations under the law.
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Ensure that apprentices are enrolled in U.S. Department of Labor-certified apprenticeship programs to be paid at apprentice wage rates; otherwise, they must be paid the full prevailing wage rate for their classification.
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Upon seven business days’ notice, make all records available for inspection and copying by the Illinois Department of Labor, public bodies, or law enforcement agencies during reasonable hours.
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Oversee subcontractors to ensure they adhere to prevailing wage laws, including proper payment of wages and maintenance of accurate records.
Penalties for Prevailing Wage Noncompliance
Back Wages+Failure to Pay Prevailing Wage
Employers who fail to pay the prevailing wage face significant penalties, including the requirement to compensate affected workers for the difference between their paid wages and the prevailing wage rate.
In addition, employers are liable to pay an extra 2% of the owed amount for each month that the back wages remain unpaid. For repeat violations, this monthly interest increases to 5%.
20%Underpayment Penalty
Employers found in violation of Illinois’ prevailing wage laws must also pay the Illinois Department of Labor a penalty equal to 20% of the total underpaid amount. This penalty increases to 50% for second and subsequent violations, adding substantial costs for repeat offenders.
$5,000Discrimination Penalty
Employers who engage in discriminatory actions, such as firing or otherwise penalizing a worker for filing a claim, face an additional penalty of $5,000 per violation. Remedies for affected employees can include reinstatement and compensation for lost earnings.
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Certified Payroll and IL Prevailing Wages
Certified payroll reporting is essential for public works projects under Illinois’ prevailing wage laws, ensuring transparency and adherence to wage standards. These reports verify that employees are receiving the required wages and benefits for their roles, providing a clear record that demonstrates compliance.
Certified payroll reports document crucial details, including employees’ names, job classifications, hours worked, and wages paid, allowing stakeholders to confirm workers are compensated according to prevailing wage rates. This process helps maintain trust in wage practices and holds employers accountable for meeting legal requirements.
In Illinois, certified payroll records must be submitted monthly to the contracting agency, typically by the 15th of the following month. These records create an audit trail that simplifies tracking wage payments and addressing any discrepancies, protecting both workers and employers. In cases of wage theft claims or suspected noncompliance, certified payroll records serve as essential evidence, supporting investigations and enforcement.
To ensure compliance, employers are encouraged to regularly review payroll records and certified payroll submissions. Conducting internal audits can help identify and resolve any discrepancies early on. If employers face challenges or have questions, seeking advice from legal counsel or labor compliance experts can provide valuable guidance, helping businesses maintain full compliance with Illinois’ prevailing wage requirements.
Navigating Prevailing Wage Requirements in Illinois
Know Your Rights as a Worker
Understanding your rights is crucial for ensuring Illinois’ prevailing wage laws are followed.
First, familiarize yourself with the prevailing wage laws and specific rates that apply to your job role and location. As a worker on an Illinois public works project, you are entitled to the established prevailing wage rate, which includes both hourly wages and fringe benefits, for your trade or role.
Stay up-to-date on any changes to prevailing wage rates or new enforcement actions. Resources from the Illinois Department of Labor (IDOL) and local labor organizations are available to help you track any updates.
It’s also wise to keep detailed records of your hours on public projects, including overtime, breaks, and any additional pay. Timesheets or personal work logs can serve as proof if a dispute arises over your wages. If you suspect your employer is not following prevailing wage laws or is withholding your wages, report it to the Illinois Department of Labor or a relevant labor union.
If you need assistance asserting your rights or managing a wage dispute, consider seeking support from a labor attorney or a legal aid organization that specializes in employment issues. These professionals can provide guidance and help you pursue fair compensation if your wages have been wrongfully withheld.
Know What to Do as an Employer
As an employer in Illinois, understanding your responsibilities under prevailing wage laws is essential to staying compliant on public works projects. Familiarize yourself with wage rates, record-keeping requirements, and monthly reporting obligations set by the Illinois Department of Labor (IDOL).
Establish robust payroll practices to ensure wages are accurately calculated and documented. Use reliable payroll systems to track hours worked, wage rates, and any fringe benefits provided to employees. This system will help you maintain accurate records and streamline compliance with prevailing wage requirements.
Training is equally important. Make sure that all supervisors, payroll administrators, and project managers understand the basics of Illinois’ prevailing wage laws and know how to adhere to compliance procedures. Educating your team on these responsibilities ensures everyone is aligned and helps prevent errors that could lead to violations.
Regularly review payroll records, certified payroll reports, and other compliance documents. Conducting routine internal audits can catch discrepancies early, making it easier to address potential issues before they escalate. Staying proactive with audits is a practical step toward maintaining ongoing compliance.
If questions or challenges arise, consider consulting legal counsel or a labor compliance expert who specializes in Illinois prevailing wage requirements. These professionals can provide tailored advice and help you meet all regulatory standards efficiently.
Common Prevailing Wage Challenges for Employers in Illinois
- Complex Rules: Navigating Illinois’ prevailing wage laws can be complex, especially for small businesses without labor law expertise.
- Heavy Recordkeeping: Maintaining detailed payroll records and submitting monthly certified reports require significant time and resources.
- Risk of Penalties: Noncompliance risks fines, legal action, and potential debarment from public contracts.
- Wage Disputes: Payment discrepancies can lead to worker disputes and formal complaints, triggering investigations.
- Worker Shortages: Finding skilled workers for public projects is challenging, making it harder to meet wage requirements.
Prevailing Wage Solutions for Employers in Illinois
Here are practical steps to help Illinois employers navigate prevailing wage compliance:
- Education and Training: Train supervisors, payroll staff, and workers on Illinois wage laws, recordkeeping, and dispute resolution to prevent errors and ensure compliance.
- Leverage Technology: Use payroll software and compliance tools to streamline recordkeeping, automate payroll, and generate accurate certified payroll reports.
- Consult Experts: Seek guidance from legal counsel, labor specialists, or industry associations for assistance with complex wage requirements and regular compliance checks.
- Promote Transparency: Clearly communicate wage rates, hours, and benefits to workers, keeping communication open to quickly address any questions or concerns.
- Invest in Workforce Development: Address skilled labor shortages by partnering with unions, vocational schools, and community organizations to support workforce programs and apprenticeships.
Looking for other prevailing wage and state-specific labor law guides? Check out these articles:
Final Thoughts
This guide has covered the essentials of Illinois’ prevailing wage laws, common compliance challenges, and effective solutions to keep your business on track.
Navigating Illinois’ prevailing wage requirements is more than just meeting legal standards—it’s about fostering a fair, transparent work environment that benefits everyone.
For workers, compliance means fair pay and job satisfaction. For employers, it builds trust, strengthens credibility, and reduces risks, positioning your business as a reputable leader in the industry and community.
If you’re ready to make prevailing wage compliance easier, Workyard can help. With tools to simplify payroll, automate certified reporting, and track labor compliance, Workyard ensures you stay compliant without the stress.
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The prevailing wage in Illinois is the minimum wage rate required for workers on public works projects, ensuring fair pay based on the local industry standards for specific trades. This wage includes both an hourly base wage and additional fringe benefits.
The Illinois Prevailing Wage Act mandates these rates, which apply to all laborers, mechanics, and workers involved in construction or other public projects funded by state or local government. This law aims to maintain a competitive wage level for skilled labor while preventing undercutting on public contracts, ensuring both worker protection and fair market standards.
Illinois prevailing wage rates are set annually by the Illinois Department of Labor (IDOL) based on wage data from similar trades and local union agreements in each county. These rates reflect the typical pay for a specific trade within a county, ensuring consistency across public works projects.
Employers must adhere to the latest rates, usually posted each July 15, which cover both hourly wages and fringe benefits like health and retirement contributions. IDOL also accepts feedback from unions and contractors to ensure these rates accurately reflect local economic conditions and industry standards.
Yes, Illinois prevailing wage laws require employers to provide fringe benefits, such as health insurance, pension contributions, and training allowances, or compensate employees with equivalent cash payments if benefits aren’t offered.
These fringe benefits are part of the total prevailing wage rate and contribute significantly to worker compensation. Employers must document fringe benefits as part of certified payroll submissions, ensuring that workers receive full, fair compensation under Illinois’ prevailing wage requirements.
Employers who fail to comply with Illinois prevailing wage laws face penalties, including paying back wages to affected workers, a fine of 20% of the underpaid amount for first-time violations, and up to 50% for repeat offenses. Employers also owe 2% monthly interest on unpaid wages, increasing to 5% for subsequent violations. Further penalties include potential debarment from future public contracts and fines for retaliating against employees who report violations, which underscores the importance of compliance.
You can view the latest prevailing wage rates for each county in Illinois on the Illinois Department of Labor (IDOL) website. Rates are updated annually by July 15 and cover various trades and job classifications, ensuring fair compensation across the state. For each trade, IDOL provides both base wage rates and required fringe benefits. Employers and workers can search by county to ensure compliance with the specific prevailing wage rates in their project location.
