SB3163 EngrossedLRB099 12727 SXM 36512 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 1. Short title. This Act may be cited as the
5Illinois Freedom to Work Act.
 
6    Section 5. Definitions. In this Act:
7    "Covenant not to compete" means an agreement:
8        (1) between an employer and a low-wage employee that
9    restricts such low-wage employee from performing:
10            (A) any work for another employer for a specified
11        period of time;
12            (B) any work in a specified geographical area; or
13            (C) work for another employer that is similar to
14        such low-wage employee's work for the employer
15        included as a party to the agreement; and
16        (2) that is entered into after the effective date of
17    this Act.
18    "Director" means the Director of Labor.
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    "Low-wage employee" means an employee who earns the greater
23of (1) the hourly rate equal to the minimum wage required by

 

 

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1the applicable federal, State, or local minimum wage law or (2)
2$13.00 per hour.
 
3    Section 10. Prohibiting covenants not to compete for
4low-wage employees.
5    (a) No employer shall enter into a covenant not to compete
6with any low-wage employee of the employer.
7    (b) A covenant not to compete entered into between an
8employer and a low-wage employee is illegal and void.
 
9    Section 15. Director's duties. The Director, or his or her
10authorized representatives, have the authority to:
11    (a) Investigate and may enter and inspect such places and
12such records (and make copies thereof) at reasonable times
13during regular business hours, not including an inconvenient
14time at the employer's place of business, question employees,
15and investigate those facts, conditions, practices, or matters
16as he or she may deem necessary or appropriate to determine
17whether any person has violated any provision of this Act, or
18which may aid in the enforcement of this Act.
19    (b) Require from any employer full and correct statements
20and reports in writing, including sworn statements, at such
21times as the Director may deem necessary, regarding hiring,
22covenants not to compete, names, addresses, and other
23information pertaining to the employer's low-wage employees as
24the Director may deem necessary for the enforcement of this

 

 

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1Act.
2    (c) Require by subpoena the attendance and testimony of
3witnesses and the production of all books, records, and other
4evidence relative to a matter under investigation or hearing.
5The subpoena shall be signed and issued by the Director or his
6or her authorized representative. If a person fails to comply
7with any subpoena lawfully issued under this Section or a
8witness refuses to produce evidence or testify to any matter
9regarding which he or she may be lawfully interrogated, the
10court may, upon application of the Director, or his or her
11authorized representative, compel obedience by proceedings for
12contempt.
 
13    Section 20. Employer duties. Every employer subject to any
14provision of this Act or of any order issued under this Act
15shall make and keep for a period of not less than 3 years, true
16and accurate records of the name, address, and occupation of
17each of the employer's low-wage employees, all interviews and
18meetings pertaining to the hiring process, including, but not
19limited to, discussions of covenants not to compete, and such
20other information, and make such reports therefrom to the
21Department, as the Department may by rule prescribe as
22necessary or appropriate for the enforcement of the provisions
23of this Act or of the rules adopted thereunder. Such records
24shall be open for inspection or copying by the Director or his
25or her authorized representative at any reasonable time as

 

 

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1limited by paragraph (a) of Section 15 of this Act. Every
2employer shall furnish to the Director or his or her authorized
3representative on demand a sworn statement of such records and
4information upon forms prescribed or approved by the Director.
 
5    Section 25. Administrative rules.
6    The Department shall adopt rules under the Illinois
7Administrative Procedure Act, including definitions of terms,
8as appropriate to carry out the purposes of this Act, to
9prevent the circumvention or evasion thereof, and to safeguard
10the requirements governing covenants not to compete under the
11Act.
 
12    Section 30. Violations; Department duties.
13    (a) Any employer, whether directly or through any officer,
14employee, or agent, who:
15        (1) hinders or delays the Director or his or her
16    authorized representative in the performance of his or her
17    duties in the enforcement of this Act;
18        (2) refuses to admit the Director or his or her
19    authorized representative to any place of employment;
20        (3) fails to keep the records required under this Act
21    or to furnish such records required or any information to
22    be furnished under this Act to the Director or his or her
23    authorized representative upon request;
24        (4) falsifies any such record; or

 

 

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1        (5) refuses to make such records available to the
2    Director or his authorized representative.
3    (b) Any employer, whether directly or through any officer,
4employee, or agent, who discharges or in any other manner
5discriminates against any low-wage employee because that
6employee has made a complaint to his or her employer, or to the
7Director or his or her authorized representative, or because
8that employee has caused to be instituted or is about to cause
9to be instituted any proceeding under or related to this Act,
10or because that employee has testified or is about to testify
11in an investigation or proceeding under this Act, is guilty of
12a Class B misdemeanor.
13    (c) It is the duty of the Department to inquire diligently
14for any violations of this Act, and to institute the action for
15penalties herein provided, and to enforce generally the
16provisions of this Act.
 
17    Section 35. Civil fine.
18    An employer that violates any provision of this Act or any
19rule adopted under this Act is subject to a civil penalty for
20each employee affected as follows:
21        (1) first violation, a civil penalty not to exceed
22    $500;
23        (2) second or subsequent violation, a civil penalty not
24    to exceed $1,000.
25    In determining the amount of any civil fine under this

 

 

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1Section, the Director shall consider the appropriateness of the
2fine to the size of the employer subject to the fine and the
3gravity of the applicable violation.