Illinois Employment Law Update: New Laws and Ongoing Legislative Challenges

Illinois remains an active and complex legislative environment for SMACNA members, particularly regarding employment law, fringe benefit requirements, and prevailing wage policy. Several recently enacted laws and pending proposals will have direct implications for union mechanical contractors operating in the state.

While recent summaries of Illinois employment legislation have highlighted a range of worker-related initiatives, it is important to note that significant fringe benefit and prevailing wage issues affecting SMACNA members have received less attention, despite their substantial operational and compliance impacts.

Fringe Benefit Legislation

HB 2488 (Public Act 104-0017), signed into law on June 30, 2025, expands full fringe benefit requirements to apprentices working on public works projects. This legislation runs counter to existing collective bargaining agreements and longstanding industry practice. It advanced under the premise that it merely clarified existing law—an assertion that does not reflect how fringe benefits have historically been applied.

HB 1437 (Public Act 104-0434), signed on November 21, 2025, created a series of “sunset” extensions related to HB 2488, effectively extending its implementation until July 2026. While this extension does not resolve the underlying concerns, it provides critical time to:

• Continue efforts to correct the erroneous assumptions underlying HB 2488

• Assess compliance and enforcement challenges

• Address unresolved questions regarding fringe benefits accrued between June 30, 2025, and November 21, 2025

Pending Prevailing Wage Expansion

HB 3005 (Addendum #4) proposes to extend prevailing wage requirements to individuals transporting materials, raising significant concerns for contractors. If enacted, this proposal could introduce new compliance obligations and expand prevailing wage coverage well beyond traditional jobsite activity.

SMACNA is actively engaged on these issues alongside our Illinois partners and extends sincere thanks to the Illinois SMACNA team for their leadership and persistence in navigating this challenging legislative environment.

SMACNA State Government Relations will continue to provide updates as these matters evolve.