North Cook News

The Technology & Manufacturing Association (TMA) has spoken out against HB 5412, stating that it will harm small contracting businesses.

“Manufacturers are concerned what this could mean for our industry moving forward because this bill incentivizes large contractors to offer a full umbrella of in-house services which means small business sub-contractors are left holding the bag. In the end, it’s the customers and end users who will be asked to pay more. This is yet another tax on small businesses and Illinois consumers,” said Dennis LaComb, TMA executive vice president.

Rep. Marcus C. Evans Jr. (D-Chicago) introduced HB 5412 in January, according to the Illinois General Assembly website. The legislation would amend the Illinois Wage Payment and Collection Act to provide that primary contractors will assume and be held liable for any debt owed to a claimant by a subcontractor.

The Black Contractors Owners & Executives group opposes HB 5412, writing on Facebook, "BCOE is hard at work at the Capital in Springfield, IL to OPPOSE bill HB5412! This bill will affect small and minority businesses in a negative impactful way! Working closely with HACIA and our lobbyist, we are striving not to let this happen. Contact your Senators NOT to vote for this bill."

The Home Builders Association of Greater Chicago (HBAGC) reported that opponents of HB 5412 "feel it would do nothing to prevent wage theft, but only encourage it by allowing rogue subcontractors to get off the hook by not paying their workers, and instead push the responsibility onto the prime contractor, while allowing these bad apples to onto the next job and underbid legitimate contractors, since they have no payroll costs."