McKinley Foundation at the University of Illinois v. Illinois Department of Labor

**What Happened** McKinley Foundation at the University of Illinois was involved in a construction project and disputed whether it had to follow Illinois's Prevailing Wage Act. This law requires that workers on public construction projects be paid prevailing wages (typically higher than minimum wage). McKinley Foundation argued the law didn't apply to their project because they claimed it wasn't truly a "public work." The Illinois Department of Labor disagreed and said the foundation had to follow prevailing wage requirements. **What the Court Decided** The appellate court sided with the Department of Labor. The court ruled that McKinley Foundation's construction project did qualify as a "public work" under the Prevailing Wage Act because the project was financed using tax-exempt bonds. Since taxpayers effectively subsidize these bonds through lost tax revenue, the court determined this made the foundation a "public body" for purposes of this construction project. **Why This Matters for Workers** This ruling protects construction workers' right to fair wages on projects that receive public financing benefits. It clarifies that even when private organizations like foundations undertake construction projects, workers are still entitled to prevailing wage protections if the project uses any form of public financial support, including tax-exempt bonds.