Illinois General Assembly - Full Text of HB5574
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Full Text of HB5574  102nd General Assembly

HB5574eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB5574 EngrossedLRB102 25102 SPS 34362 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 Workplace Transparency Act is amended by
5changing Sections 1-15 and 1-30 as follows:
 
6    (820 ILCS 96/1-15)
7    Sec. 1-15. Definitions. As used in this Act:
8    "Confidentiality provision" means a provision in an
9agreement which has the purpose or effect of concealing the
10details relating to a claim of discrimination, retaliation,
11harassment, sexual harassment, or sexual assault brought by
12the employee subject to the agreement.
13    "Employee" has the same meaning as set forth in Section
142-101 of the Illinois Human Rights Act. "Employee" includes
15"nonemployees" as defined in Section 2-102 of the Illinois
16Human Rights Act.
17    "Employer" has the same meaning as set forth in Section
182-101 of the Illinois Human Rights Act.
19    "Mutual condition of employment or continued employment"
20means any contract, agreement, clause, covenant, or waiver
21negotiated between an employer and an employee or prospective
22employee in good faith for consideration in order to obtain or
23retain employment.

 

 

HB5574 Engrossed- 2 -LRB102 25102 SPS 34362 b

1    "Prospective employee" means a person seeking to enter an
2employment contract with an employer.
3    "Settlement agreement" means an agreement, contract, or
4clause within an agreement or contract entered into between an
5employee, prospective employee, or former employee and an
6employer to resolve a dispute or legal claim between the
7parties that arose or accrued before the settlement agreement
8was executed.
9    "Termination agreement" means a contract or agreement
10between an employee and an employer terminating the employment
11relationship.
12    "Unlawful employment practice" means any form of unlawful
13discrimination, harassment, sexual harassment, or retaliation
14that is actionable under Article 2 of the Illinois Human
15Rights Act, Title VII of the Civil Rights Act of 1964, or any
16other related State or federal rule or law that is enforced by
17the Illinois Department of Human Rights or the Equal
18Employment Opportunity Commission.
19    "Unilateral condition of employment or continued
20employment" means any contract, agreement, clause, covenant,
21or waiver an employer requires an employee or prospective
22employee to accept as a non-negotiable material term in order
23to obtain or retain employment.
24(Source: P.A. 101-221, eff. 1-1-20.)
 
25    (820 ILCS 96/1-30)

 

 

HB5574 Engrossed- 3 -LRB102 25102 SPS 34362 b

1    Sec. 1-30. Settlement or termination agreements.
2    (a) An employer may not require a prospective, current, or
3former employee to sign a confidentiality provision of a
4settlement agreement or termination agreement relating to a
5claim of discrimination, retaliation, harassment, sexual
6harassment, or sexual assault in the workplace brought by the
7employee or prevent the employee from disclosing a claim of
8discrimination, retaliation, harassment, sexual harassment, or
9sexual assault occurring in the workplace or at a work-related
10event coordinated by or through the employer.
11    (a-5) This Section does not prohibit a settlement
12agreement or termination agreement relating to a claim
13alleging discrimination, retaliation, harassment, sexual
14harassment, or sexual assault in the workplace between an
15employer and an employee or former employee from containing
16confidentiality provisions as provided in this subsection. A
17confidentiality provision is permissible when:
18        (1) it relates to the monetary amount of a settlement;
19    or
20        (2) at the employee's request, it prohibits disclosure
21    of facts that could lead to the identification of the
22    employee.
23    If the employee publicly reveals sufficient details of the
24claim so that the employer is reasonably identifiable, then
25the confidentiality provision shall also be unenforceable
26against the employer.

 

 

HB5574 Engrossed- 4 -LRB102 25102 SPS 34362 b

1    Every settlement agreement or termination agreement
2resolving a discrimination, retaliation, harassment, sexual
3harassment, or sexual assault claim by an employee against an
4employer shall include a bold, prominently placed notice that
5although the parties may have agreed to keep the settlement
6and underlying facts confidential, such a provision in an
7agreement is unenforceable against the employer if the
8employee publicly reveals sufficient details of the claim so
9that the employer is reasonably identifiable.
10    (a-10) An employee, prospective employee, or former
11employee and an employer may enter into a valid and
12enforceable settlement or termination agreement that includes
13promises of confidentiality related to the monetary amount of
14the settlement or facts that could lead to the identification
15of the employee as described in subsection (a-5) alleged
16unlawful employment practices, so long as:
17        (1) confidentiality is the documented preference of
18    the employee, prospective employee, or former employee and
19    is mutually beneficial to both parties;
20        (2) the employer notifies the employee, prospective
21    employee, or former employee, in writing, of his or her
22    right to have an attorney or representative of his or her
23    choice review the settlement or termination agreement
24    before it is executed;
25        (3) there is valid, bargained for consideration in
26    exchange for the confidentiality;

 

 

HB5574 Engrossed- 5 -LRB102 25102 SPS 34362 b

1        (4) the settlement or termination agreement does not
2    waive any claims of unlawful employment practices that
3    accrue after the date of execution of the settlement or
4    termination agreement;
5        (5) the settlement or termination agreement is
6    provided, in writing, to the parties to the prospective
7    agreement and the employee, prospective employee, or
8    former employee is given a period of 21 calendar days to
9    consider the agreement before execution, during which the
10    employee, prospective employee, or former employee may
11    sign the agreement at any time, knowingly and voluntarily
12    waiving any further time for consideration; and
13        (6) unless knowingly and voluntarily waived by the
14    employee, prospective employee, or former employee, he or
15    she has 7 calendar days following the execution of the
16    agreement to revoke the agreement and the agreement is not
17    effective or enforceable until the revocation period has
18    expired.
19    (b) An employer may not unilaterally include any clause in
20a settlement or termination agreement that prohibits the
21employee, prospective employee, or former employee from making
22truthful statements or disclosures regarding unlawful
23employment practices.
24    (c) Failure to comply with the provisions of this Section
25shall render any promise of confidentiality related to alleged
26unlawful employment practices against public policy void and

 

 

HB5574 Engrossed- 6 -LRB102 25102 SPS 34362 b

1severable from an otherwise valid and enforceable agreement.
2    (d) Nothing in this Section shall be construed to prevent
3a mutually agreed upon settlement or termination agreement
4from waiving or releasing the employee, prospective employee,
5or former employee's right to seek or obtain any remedies
6relating to an unlawful employment practice claim that
7occurred before the date on which the agreement is executed.
8    (e) The provisions of this amendatory Act of the 102nd
9General Assembly apply to agreements entered into on or after
10the effective date of this amendatory Act of the 102nd General
11Assembly.
12(Source: P.A. 101-221, eff. 1-1-20.)
 
13    Section 99. Effective date. This Act takes effect January
141, 2023.