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* IDOL…
Due to the improving economy in Illinois and the statewide unemployment rate falling to 5%, the Employment of Illinois Workers on Public Works Act is no longer in effect as of March 14th. The law, which requires employees on all public works projects to be comprised of a minimum of 90% Illinois residents, took effect on July 1, 2020, when the jobless rate was above five percent for two consecutive months.
On March 14th, the U.S. Department of Labor announced the state’s jobless rate was five percent, triggering the suspension of enforcement of the Employment of Illinois Workers on Public Works Act.
“Following two challenging years due to the COVID-19 pandemic, Illinois’ economy is improving thanks to policies implemented by the Pritzker Administration,” said Illinois Department of Labor Acting Director Jane Flanagan. “The Illinois Department of Labor will continue enforcing the Illinois Prevailing Wage Act to ensure public tax dollars are granted to local contractors and workers.”
The Illinois Department of Labor (IDOL) administers the Employment of Illinois Workers on Public Works Act, which was enacted to alleviate unemployment in Illinois by ensuring that most workers on public works projects are residents of the state.
More information about the Employment of Illinois Workers on Public Works Act can be found here.
* The Question: Should the Employment of Illinois Workers on Public Works Act be altered to mandate that employees on all public works projects be comprised of a minimum of 90 percent Illinois residents at all times? Explain your answer.
posted by Rich Miller
Tuesday, Mar 15, 22 @ 1:38 pm
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No. The last thing we need is more Red-tape. There already is plenty of paperwork due to prevailing wage and certified payroll requirements on public work.
Comment by Donnie Elgin Tuesday, Mar 15, 22 @ 1:42 pm
Why not? Why should we spend tax dollars paying out of state contractors that don’t chip back into the pool (other than income tax)?
Labor has been taking a beating in this country for at least 40 years under conservative union busting efforts, and we’ve seen the price of everything go up while wages stayed largely the same. If people want to work here, then move here and get some skin in the game.
And before conservatives come in and pretend that they’re the free market advocates, I will preemptively counter that they have been pushing for an endless trough of corporate welfare that have given massive advantages to certain companies, which in turn allows them to gobble up what little competition remains. Gas prices are a great example, they’re exploiting headlines to jack up the rates because as long as they get the other 2 or 3 corps in their cartel to play along, they can send gas prices skyrocketing while being like “Hey, sure we posted record profits for the last 30 consecutive quarters, but it’s that Biden guy that’s causing inflation.”
I digress, but people are sick of it.
Comment by Commisar Gritty Tuesday, Mar 15, 22 @ 1:56 pm
Yes. Local labor should be hired when public funds are used for public projects. Public funds should stay local.
Comment by Huh? Tuesday, Mar 15, 22 @ 2:04 pm
No. Border areas might have a “local Illinois company” that may employ a number of across the border residents.
Comment by Interim Retiree Tuesday, Mar 15, 22 @ 2:09 pm
===… minimum of 90 percent Illinois residents at all times?===
I’d like to hear why a company feels the need to have on site less than 90% of the employees be from Illinois.
If either or both political parties are about Illinois jobs, how can one complain about Illinois unemployment and be against this idea?
I support it until reasonable and thoughtful arguments against it are made.
Comment by Oswego Willy Tuesday, Mar 15, 22 @ 2:10 pm
===Border areas might have a “local Illinois company” that may employ a number of across the border residents.===
Why are they not hiring Illinois residents?
Comment by Oswego Willy Tuesday, Mar 15, 22 @ 2:11 pm
based on all the crumbling parking garages and state owned office buildings, how has this law been beneficial to the State? maybe some out of state contractors and laborers can build a concrete parking garage that lasts more than 20 years
Comment by Merica Tuesday, Mar 15, 22 @ 2:14 pm
Merica- most of those are 20 years old.
To the question. Yes, whenever possible, SOI spending should go directly back into the state. This includes those doing the work
Comment by Union thug Tuesday, Mar 15, 22 @ 2:21 pm
Yes. If you’re paid from Illinois tax dollars, you should be an Illinois resident (international ports excluded).
Comment by Anyone Remember Tuesday, Mar 15, 22 @ 2:22 pm
No. I think employees should be brought in to work so they can see that Illinois is a great place to live and raise their families. Thus they’ll move here permanently.
Comment by In_The_Middle Tuesday, Mar 15, 22 @ 2:24 pm
Yes. Keep it on the books. Hey Indiana residents, come to Illinois if you want work.
Comment by PublicServant Tuesday, Mar 15, 22 @ 2:25 pm
===Why are they not hiring Illinois residents?
Skilled labor may be in short supply especially in some rural areas that border other states. We might offer some sort of incentive to train Illinois residents for those companies though.
Comment by ArchPundit Tuesday, Mar 15, 22 @ 2:27 pm
=== We might offer some sort of incentive to train Illinois residents for those companies though.===
Isn’t losing the opportunity to bud for business a good reason for businesses to seek out workers or engage in training Illinois residents, or reach out to organized labor for their Illinois members looking for work?
Comment by Oswego Willy Tuesday, Mar 15, 22 @ 2:28 pm
- ArchPundent -
===prevailing wage===
When one is against things like prevailing wage, your ask I do understand, but “there’s enough red tape against those protected by… prevailing wage… and also Illinois residents.
So, hope that clarifies, and with respect.
Comment by Oswego Willy Tuesday, Mar 15, 22 @ 2:31 pm
No, modern prosperity is built on openness, including to finding the best labor they can, not on having the law require circling the wagons.
Comment by Blake Tuesday, Mar 15, 22 @ 2:31 pm
- Blake -
Are you a right to work proponent too?
I ask because if, let’s say, prevailing wage is required for these contracts, isn’t that better for the worker too, getting work in Illinois?
Comment by Oswego Willy Tuesday, Mar 15, 22 @ 2:33 pm
Because every single type of talent needed is located in Illinois. Not. We haven’t invested in transit in years. Good luck finding decent local signal and traction power talent. And then there is that other aspect of learning from others. Laws like this backfire.
Comment by DMC Tuesday, Mar 15, 22 @ 2:34 pm
===Isn’t losing the opportunity to bud for business a good reason for businesses to seek out workers or engage in training Illinois residents
In a tight labor market it’s tough to find and retain workers and it might require resources beyond what the employer has. There aren’t necessarily the same organized labor organizations in at least some rural areas and even they may be hired out.
I’m thinking this is important for giving smaller contractors opportunities as well.
It’s also much harder to train folks in these jobs than you might think. Recruiting people in a strong economy is hard and then overcoming the barriers for those who are available is often beyond what a small company may be capable of. Unions are doing some great work in these areas, but it’s harder when there isn’t a critical mass of people in specific area.
Comment by ArchPundit Tuesday, Mar 15, 22 @ 2:36 pm
I’m all for prevailing wage
Comment by ArchPundit Tuesday, Mar 15, 22 @ 2:37 pm
As long as the State’s project managers have the power to wave such a requirement- for cause- then yes.
Comment by West Sider Tuesday, Mar 15, 22 @ 2:39 pm
===As long as the State’s project managers have the power to wave such a requirement- for cause- then yes.
And I’m probably fine with that as a way to encourage it, but still deal with labor shortages.
Comment by ArchPundit Tuesday, Mar 15, 22 @ 2:41 pm
Er, scratch that last post. I wasn’t thinking this through.
Comment by H-W Tuesday, Mar 15, 22 @ 3:07 pm
Yes. If illinois taxes are paying for a project, let the workers earn and pay the taxes in illinois.
There may be cases where there are no qualified workers in a certain field from illinois, then let the contractors hire from without, but with a penalty
Comment by Bruce( no not him) Tuesday, Mar 15, 22 @ 3:26 pm
Yes absolutely. We have a strong, competent workforce that can handle it. If not they can certainly be trained up by whatever company wants to do business with the state. Keep my money here.
Comment by Captain Obvious Tuesday, Mar 15, 22 @ 3:36 pm
Yes. There is no reason whatsoever to send tax dollars to out of state labor. If we do not have the expertise to do the work in the first place we absolutely need to develop that expertise. And if the expertise already exists in state then use it.
Comment by Odysseus Tuesday, Mar 15, 22 @ 3:37 pm
No. Although hiring local as much as possible should be the goal, requiring 90% on all jobs is not feasible. I live in an area where there are more people from other States driving here to work everyday than there are people out of work and looking for a job. Encourage Companies to hire residents as much as possible but that requirement will not work on every project.
Comment by SOIL M Tuesday, Mar 15, 22 @ 3:41 pm
As a teacher, when I was hired many years ago, the expectation was not only to live in Illinois, but within the school district. Teacher shortages have changed that….
There has to be some leeway as others have mentioned.
Comment by Corn Country Tuesday, Mar 15, 22 @ 3:50 pm
Yes. All surrounding states are lower income. People from Missouri and other states come here to work in state government for much higher pay than they would get at home. They didn’t do anything to fight for our state’s workers’ rights. Let them lobby their own governments. Let them go before the SPN, Koch and the rest who are influential in low-income states.
Comment by Grandson of Man Tuesday, Mar 15, 22 @ 3:56 pm
The prior versions of the Employment of Illinois Workers on Public Works Act were struck down as being unconstitutional. The General Assembly then made cosmetic, but nonsubstantive changes to the statute. During the 2008 recession, IDOL announced that it would not enforce the Act because it believed that it was still unconstitutional. It’s unclear why the state thought that 2021 was a good time to start enforcing it. It is almost impossible to see how this statute survives a commerce-clause or privileges-and-immunities challenge. Expanding it sure won’t make it’s odds any better.
Comment by duck duck goose Tuesday, Mar 15, 22 @ 4:04 pm
90% of those hired should be African American.
Comment by Frumpy White Guy Tuesday, Mar 15, 22 @ 4:11 pm
commonsense makess it right to have accountability for Illinois TAX dollars being spent in Illinois on Illinois workers as well as with Illinois contractors. Nothing inherently wrong with this unless an employer/contractor can show just cause.
Comment by truthteller Tuesday, Mar 15, 22 @ 4:13 pm
=== 90% of those hired should be African American.===
And living in Illinois?
Comment by Oswego Willy Tuesday, Mar 15, 22 @ 4:19 pm
I assume that, if this were the law, that we’d be ok with every other state doing this as well, meaning that Illinois workers would effectively be confined to Illinois?
Comment by duck duck goose Tuesday, Mar 15, 22 @ 5:51 pm
Not overly begrudging workers from other states coming here to work, actually. Can’t really feel bad about them for too long, just that we protect our own. But welcome also to those who come here from other states.
Actually, Missouri voters shredded RTWFL, overwhelmingly voting against it. If the voters can agree on other such issues, that state can increase pay for its workforce and other beneficial things.
Comment by Grandson of Man Tuesday, Mar 15, 22 @ 6:09 pm
Absolutely not. This requirement has decreased competition on public works projects, particularly specialized construction services like water tank maintenance. Right now, we simply don’t have the labor force in construction and construction services to restrict access to the Illinois public works market like this. COVID definitely hurt many segments of the State’s economy. Construction was not really one of them; particularly as we stand here today. Many of me and my fellow engineers cheered for this expiration today, for our public clients and their ratepayers benefit.
Comment by Downstate Engineer Tuesday, Mar 15, 22 @ 7:37 pm