Bill Text: IL HB2565 | 2019-2020 | 101st General Assembly | Engrossed
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 17-0)
Status: (Introduced - Dead) 2019-04-12 - Added Co-Sponsor Rep. Curtis J. Tarver, II [HB2565 Detail]
Download: Illinois-2019-HB2565-Engrossed.html
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| 1 | AN ACT concerning employment.
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| 2 | Be it enacted by the People of the State of Illinois,
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| 3 | represented in the General Assembly:
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| 4 | Section 5. The Illinois Freedom to Work Act is amended by | ||||||
| 5 | changing Sections 5 and 10 as follows:
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| 6 | (820 ILCS 90/5)
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| 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 that | ||||||
| 10 | 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
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| 17 | (2) that is entered into after the effective date of | ||||||
| 18 | this amendatory Act of the 101st General Assembly. | ||||||
| 19 | "Employer" has the meaning given to such term in subsection | ||||||
| 20 | (c) of Section 3 of the Minimum Wage Law. "Employer" does not | ||||||
| 21 | include governmental or quasi-governmental bodies. | ||||||
| 22 | "Employee" "Low-wage employee" means any individual | ||||||
| 23 | permitted to work by an employer an employee whose earnings do | ||||||
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| 1 | not exceed the greater of (1) the hourly rate equal to the | ||||||
| 2 | minimum wage required by the applicable federal, State, or | ||||||
| 3 | local minimum wage law or (2) $13.00 per hour.
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| 4 | (Source: P.A. 99-860, eff. 1-1-17; 100-225, eff. 8-18-17.)
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| 5 | (820 ILCS 90/10)
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| 6 | Sec. 10. Prohibiting covenants not to compete for low-wage | ||||||
| 7 | employees. | ||||||
| 8 | (a) After the effective date of this amendatory Act of the | ||||||
| 9 | 101st General Assembly, no No employer shall enter into a | ||||||
| 10 | covenant not to compete with any low-wage employee of the | ||||||
| 11 | employer. | ||||||
| 12 | (b) A covenant not to compete entered into between an | ||||||
| 13 | employer and an a low-wage employee is illegal and void.
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| 14 | (Source: P.A. 99-860, eff. 1-1-17.)
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| 15 | Section 99. Effective date. This Act takes effect upon | ||||||
| 16 | becoming law.
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