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State Law Requiring Hiring of Illinois Workers Takes Effect

9/27/2024

The Employment of Illinois Workers on Public Works Act (the Act) comes into effect following two consecutive calendar months of the State’s unemployment rate exceeding 5 percent. The Act requires that the workforce on all public works projects be composed of a minimum of 90% Illinois resident laborers.

According to the U.S. Bureau of Labor Statistics, Illinois’ unemployment rate was 5.2% for the month of July and 5.3% for the month of August. As such, the Illinois Department of Labor seeks to notify public bodies that the Act is in effect and that they may want to review their standard contracts for compliance. Additional resources can be found on IDOL’s website.

Intended to ensure that projects funded using public dollars employ Illinois residents, the Act applies to projects that are funded in whole or in part with state funds or funds administered by the State. Any public works project financed in whole or in part by federal funds administered by the State is also covered under the provisions of this Act to the extent permitted by applicable federal law or regulation. 

Civil penalties may be imposed on employers who hire non-Illinois workers on State public works projects  

More information about the Employment of Illinois Workers on Public Works Act can be found here.