Illinois General Assembly - Full Text of SB3163
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Full Text of SB3163  99th General Assembly


Sen. Patricia Van Pelt

Filed: 5/4/2016





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2    AMENDMENT NO. ______. Amend Senate Bill 3163 by replacing
3everything after the enacting clause with the following:
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



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1    this Act.
2    "Director" means the Director of Labor.
3    "Employer" has the meaning given to such term in subsection
4(c) of Section 3 of the Minimum Wage Law. "Employer" does not
5include governmental or quasi-governmental bodies.
6    "Low-wage employee" means an employee who earns the greater
7of (1) the hourly rate equal to the minimum wage required by
8the applicable federal, State, or local minimum wage law or (2)
9$13.00 per hour.
10    Section 10. Prohibiting covenants not to compete for
11low-wage employees.
12    (a) No employer shall enter into a covenant not to compete
13with any low-wage employee of the employer.
14    (b) A covenant not to compete entered into between an
15employer and a low-wage employee is illegal and void.
16    Section 15. Director's duties. The Director, or his or her
17authorized representatives, have the authority to:
18    (a) Investigate and may enter and inspect such places and
19such records (and make copies thereof) at reasonable times
20during regular business hours, not including an inconvenient
21time at the employer's place of business, question employees,
22and investigate those facts, conditions, practices, or matters
23as he or she may deem necessary or appropriate to determine
24whether any person has violated any provision of this Act, or



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1which may aid in the enforcement of this Act.
2    (b) Require from any employer full and correct statements
3and reports in writing, including sworn statements, at such
4times as the Director may deem necessary, regarding hiring,
5covenants not to compete, names, addresses, and other
6information pertaining to the employer's low-wage employees as
7the Director may deem necessary for the enforcement of this
9    (c) Require by subpoena the attendance and testimony of
10witnesses and the production of all books, records, and other
11evidence relative to a matter under investigation or hearing.
12The subpoena shall be signed and issued by the Director or his
13or her authorized representative. If a person fails to comply
14with any subpoena lawfully issued under this Section or a
15witness refuses to produce evidence or testify to any matter
16regarding which he or she may be lawfully interrogated, the
17court may, upon application of the Director, or his or her
18authorized representative, compel obedience by proceedings for
20    Section 20. Employer duties. Every employer subject to any
21provision of this Act or of any order issued under this Act
22shall make and keep for a period of not less than 3 years, true
23and accurate records of the name, address, and occupation of
24each of the employer's low-wage employees, all interviews and
25meetings pertaining to the hiring process, including, but not



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1limited to, discussions of covenants not to compete, and such
2other information, and make such reports therefrom to the
3Department, as the Department may by rule prescribe as
4necessary or appropriate for the enforcement of the provisions
5of this Act or of the rules adopted thereunder. Such records
6shall be open for inspection or copying by the Director or his
7or her authorized representative at any reasonable time as
8limited by paragraph (a) of Section 15 of this Act. Every
9employer shall furnish to the Director or his or her authorized
10representative on demand a sworn statement of such records and
11information upon forms prescribed or approved by the Director.
12    Section 25. Administrative rules.
13    The Department shall adopt rules under the Illinois
14Administrative Procedure Act, including definitions of terms,
15as appropriate to carry out the purposes of this Act, to
16prevent the circumvention or evasion thereof, and to safeguard
17the requirements governing covenants not to compete under the
19    Section 30. Violations; Department duties.
20    (a) Any employer, whether directly or through any officer,
21employee, or agent, who:
22        (1) hinders or delays the Director or his or her
23    authorized representative in the performance of his or her
24    duties in the enforcement of this Act;



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1        (2) refuses to admit the Director or his or her
2    authorized representative to any place of employment;
3        (3) fails to keep the records required under this Act
4    or to furnish such records required or any information to
5    be furnished under this Act to the Director or his or her
6    authorized representative upon request;
7        (4) falsifies any such record; or
8        (5) refuses to make such records available to the
9    Director or his authorized representative.
10    (b) Any employer, whether directly or through any officer,
11employee, or agent, who discharges or in any other manner
12discriminates against any low-wage employee because that
13employee has made a complaint to his or her employer, or to the
14Director or his or her authorized representative, or because
15that employee has caused to be instituted or is about to cause
16to be instituted any proceeding under or related to this Act,
17or because that employee has testified or is about to testify
18in an investigation or proceeding under this Act, is guilty of
19a Class B misdemeanor.
20    (c) It is the duty of the Department to inquire diligently
21for any violations of this Act, and to institute the action for
22penalties herein provided, and to enforce generally the
23provisions of this Act.
24    Section 35. Civil fine.
25    An employer that violates any provision of this Act or any



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1rule adopted under this Act is subject to a civil penalty for
2each employee affected as follows:
3        (1) first violation, a civil penalty not to exceed
4    $500;
5        (2) second or subsequent violation, a civil penalty not
6    to exceed $1,000.
7    In determining the amount of any civil fine under this
8Section, the Director shall consider the appropriateness of the
9fine to the size of the employer subject to the fine and the
10gravity of the applicable violation.".