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) 2019-04-12 - Added Co-Sponsor Rep. Curtis J. Tarver, II [HB2565 Detail]

Download: Illinois-2019-HB2565-Engrossed.html



HB2565 EngrossedLRB101 10625 JLS 55731 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 Illinois Freedom to Work Act is amended by
5changing Sections 5 and 10 as follows:
6 (820 ILCS 90/5)
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
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
21include governmental or quasi-governmental bodies.
22 "Employee" "Low-wage employee" means any individual
23permitted to work by an employer an employee whose earnings do

HB2565 Engrossed- 2 -LRB101 10625 JLS 55731 b
1not exceed the greater of (1) the hourly rate equal to the
2minimum wage required by the applicable federal, State, or
3local minimum wage law or (2) $13.00 per hour.
4(Source: P.A. 99-860, eff. 1-1-17; 100-225, eff. 8-18-17.)
5 (820 ILCS 90/10)
6 Sec. 10. Prohibiting covenants not to compete for low-wage
7employees.
8 (a) After the effective date of this amendatory Act of the
9101st General Assembly, no No employer shall enter into a
10covenant not to compete with any low-wage employee of the
11employer.
12 (b) A covenant not to compete entered into between an
13employer and an a low-wage employee is illegal and void.
14(Source: P.A. 99-860, eff. 1-1-17.)
15 Section 99. Effective date. This Act takes effect upon
16becoming law.
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