State of Illinois
2019 and 2020


Introduced 2/18/2020___________, by


820 ILCS 90/5
820 ILCS 90/10

    Amends the Illinois Freedom to Work Act. Expands the scope of the Act to apply to all employees (rather than only low-wage employees). Prohibits all covenants not to compete. Effective immediately.

LRB101 17182 JLS 66584 b





HB4699LRB101 17182 JLS 66584 b

1    AN ACT concerning employment.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Freedom to Work Act is amended by
5changing Sections 5 and 10 as follows:
6    (820 ILCS 90/5)
7    Sec. 5. Definitions. In this Act:
8    "Covenant not to compete" means an agreement:
9        (1) between an employer and an a low-wage employee that
10    restricts the such low-wage employee from performing:
11            (A) any work for another employer for a specified
12        period of time;
13            (B) any work in a specified geographical area; or
14            (C) work for another employer that is similar to
15        the such low-wage employee's work for the employer
16        included as a party to the agreement; and
17        (2) that is entered into after the effective date of
18    this amendatory Act of the 101st General Assembly.
19    "Employer" has the meaning given to such term in subsection
20(c) of Section 3 of the Minimum Wage Law. "Employer" does not
21include governmental or quasi-governmental bodies.
22    "Employee" "Low-wage employee" means any individual
23permitted to work by an employer an employee whose earnings do



HB4699- 2 -LRB101 17182 JLS 66584 b

1not exceed the greater of (1) the hourly rate equal to the
2minimum wage required by the applicable federal, State, or
3local minimum wage law or (2) $13.00 per hour.
4(Source: P.A. 99-860, eff. 1-1-17; 100-225, eff. 8-18-17.)
5    (820 ILCS 90/10)
6    Sec. 10. Prohibiting covenants not to compete for low-wage
8    (a) After the effective date of this amendatory Act of the
9101st General Assembly, no No employer shall enter into a
10covenant not to compete with any low-wage employee of the
12    (b) A covenant not to compete entered into between an
13employer and an a low-wage employee is illegal and void.
14(Source: P.A. 99-860, eff. 1-1-17.)
15    Section 99. Effective date. This Act takes effect upon
16becoming law.