HB2488 Prevailing Wage Fringe Benefits
Earlier this year, the Illinois General Assembly passed HB 2488 (P.A. 104-0017), effective June 30, 2025, which requires that the fringe benefits package for an apprentice be the same as a journeyman on prevailing wage projects. The Illinois Department of Labor (IDOL), who lobbied for the amendment, notes that this has been the Department’s “longstanding interpretation, and enforcement practice of the Prevailing Wage Act. HB 2488 merely codifies this understanding into law for maximum clarity.”
Many employers likely are complying with this provision currently but if not already in compliance, employers have options to satisfy this requirement:
- First, the simplest way that employers can comply with these changes is by adding the difference between (a) the journeyman total fringe benefits package and (b) the apprentice total fringe benefits package as cash wages on an employee’s paycheck. As an example, if the fringe benefits package for an apprentice totals $50.53, and the fringe benefits package for journeyman totals $52.83, then $2.30 must be added to the apprentice’s hourly wage rate in order to comply with HB 2488.
- Another option employers have is to ensure that apprentices receive the full journeyman fringe benefit package that is provided for in the collective bargaining agreement. However, to avoid an “annualization” problem, apprentices should receive the full journeyman fringe benefit package for all hours worked for that employer for the year. For further clarity on this point please see Prevailing Wage Contractor FAQ or contact the Illinois Department of Labor. Therefore, if an apprentice already has worked non-prevailing wage hours and then works on a prevailing wage project, the employer can contact the Midwest Operating Engineers Fringe Benefit Funds Office at (708) 579-6620 and request that its contribution reports be corrected for the previous months those apprentices worked and did not receive the full journeyman fringe benefit package.
Please call the Midwest Operating Engineers Benefit Fund with questions at (708) 482-7300.