Published date: 09/17/2025
Effective June 30, 2025, Illinois has amended its Prevailing Wage Act (IPWA) via HB2488, requiring all contractors, including union signatories, to pay full journeyworker fringe benefits to apprentices, regardless of what their union contracts or U.S. Department of Labor apprenticeship programs previously allowed.
Historically, contractors could pay apprentices reduced fringe benefits based on union agreements and federal apprenticeship guidelines. While discounted hourly wages are still permitted, fringe benefit discounts are no longer allowed under IPWA-covered projects.
This change creates a new compliance burden for union contractors, who must now reconcile their collective bargaining agreements with the updated law. Contractors may need to either increase fringe contributions or pay the shortfall directly to workers, which could affect overtime calculations.
Learn More: Illinois Prevailing Wage Trumps Area-Wide Union Contracts & Underlying U.S. DOL Apprenticeship Programs re: Fringe Benefits for Apprentices: Amundsen Davis
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