State of Illinois
2021 and 2022


Introduced 2/22/2021, by Rep. Edgar Gonzalez, Jr.


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.

LRB102 11732 JLS 17066 b





HB3449LRB102 11732 JLS 17066 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
10    that 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 102nd General Assembly.
19    "Employer" has the meaning given to such term in
20subsection (c) of Section 3 of the Minimum Wage Law.
21"Employer" does not include governmental or quasi-governmental
23    "Employee" "Low-wage employee" means any individual



HB3449- 2 -LRB102 11732 JLS 17066 b

1permitted to work by an employer an employee whose earnings do
2not exceed the greater of (1) the hourly rate equal to the
3minimum wage required by the applicable federal, State, or
4local minimum wage law or (2) $13.00 per hour.
5(Source: P.A. 99-860, eff. 1-1-17; 100-225, eff. 8-18-17.)
6    (820 ILCS 90/10)
7    Sec. 10. Prohibiting covenants not to compete for low-wage
9    (a) After the effective date of this amendatory Act of the
10102nd General Assembly, no No employer shall enter into a
11covenant not to compete with any low-wage employee of the
13    (b) A covenant not to compete entered into between an
14employer and an a low-wage employee is illegal and void.
15(Source: P.A. 99-860, eff. 1-1-17.)
16    Section 99. Effective date. This Act takes effect upon
17becoming law.