GENERAL CONTRACTOR LIABILITY FOR SUBCONTRACTOR PAYROLL HB2838 Thru the direction and efforts of HBA of Illinois to amend the bill that would make GC’s responsible to pay subcontractor employees if the subcontract didn’t pay them directly we have a slight victory! After this bill was sent to Senate it was assigned to the Judiciary committee that agreed to work with us to draft amendments for Safe Harbor language. Our HBAI team decided this route could be the best impact for our industry over asking for Residential Industry exemption that could be open to future changes in the definition of residential type properties. The Safe Harbor drafts included a slew of new documentation that would be necessary for the subcontractors to comply with along with giving up their proprietary knowledge, in part, of how their pricing breaks down as it relates to material/labor ratios. Not to mention employee names, partial SS#’s and the potential of exposing the subcontractor to potential “poaching” of good help. HBAI leadership agreed that this record keeping and distribution would cause an unneeded and costly burden to subcontractors. Back to the drawing board with talks to stall the bill and even go back to opposing on principal. Working towards the delay was best received with the possibility of gutting the bill as the Senate staff drafts were weakening our revisions. The Union sent a draft as well that included 3rd party ability to make a claim against a general contractor that was very concerning. In the final days of the Spring Session the decision to flight HB2838 with everything we had paid off, we can now take more time to draft a bill we should be able to live with later this summer. This victory was made possible through many efforts: phone calls, emails, in-district visits, lobby day meetings and participation in HBAI legislative conference calls. There is still a place in Illinois politics for good old fashioned grass roots campaigning. Page 11 Bill Ward shared “ Take ownership in this victory and know that it was the Home Builders Association of Illinois who led the charge with 14 other state business groups and associations backing out efforts. ”
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