SB1762 100TH GENERAL ASSEMBLY

LRB100 06732 JLS 16773 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB1762

Introduced 2/9/2017, by Sen. Daniel Biss

SYNOPSIS AS INTRODUCED:

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 (currently applies only to low-wage employees). Prohibits all covenants not to compete.

A BILL FOR

AN ACT concerning employment.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Freedom to Work Act is amended by changing Sections 5 and 10 as follows:

(820 ILCS 90/5)

Sec. 5. Definitions. In this Act:

"Covenant not to compete" means an agreement:

(1) between an employer and an a low-wage employee that restricts the such low-wage employee from performing:

(A) any work for another employer for a specified period of time;

(B) any work in a specified geographical area; or

(C) work for another employer that is similar to the such low-wage employee's work for the employer included as a party to the agreement; and

(2) that is entered into after the effective date of this amendatory Act of the 100th General Assembly.

"Employer" has the meaning given to such term in subsection (c) of Section 3 of the Minimum Wage Law. "Employer" does not include governmental or quasi-governmental bodies.

"Employee" "Low-wage employee" means any individual permitted to work by an employer an employee who earns the greater of (1) the hourly rate equal to the minimum wage required by the applicable federal, State, or local minimum wage law or (2) $13.00 per hour.

(Source: P.A. 99-860, eff. 1-1-17.)

(820 ILCS 90/10)

Sec. 10. Prohibiting covenants not to compete for low-wage employees.

(a) After the effective date of this amendatory Act of the 100th General Assembly, no No employer shall enter into a covenant not to compete with any low-wage employee of the employer.

(b) A covenant not to compete entered into between an employer and an a low-wage employee is illegal and void.

(Source: P.A. 99-860, eff. 1-1-17.)