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Illinois Prevailing Wage Act Not Preempted by Federal Law

Dec. 3, 2019, 6:20 PM

An Illinois law requiring employers to pay fringe benefits to workers on public projects isn’t preempted by the federal Employee Retirement Income Security Act, an Illinois appellate court ruled.

The Illinois Prevailing Wage Act, which sets minimum wage and benefit levels for workers on public works projects, doesn’t have a sufficient connection with an ERISA benefit plan, the Appellate Court of Illinois, Third District, ruled.

“Setting prevailing wages on public works projects has long been regulated by the states and is ‘quite remote’ from the areas with which ERISA is expressly concerned,” the court said.

The decision is a victory...

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