Bill Text: IL SB0672 | 2021-2022 | 102nd General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Freedom to Work Act. Provides that a covenant not to compete shall not be valid or enforceable unless the employee's actual or expected annualized rate of earnings exceeds $75,000 per year on the effective date of the amendatory Act, $80,000 per year beginning on January 1, 2027, $85,000 per year beginning on January 1, 2032, or $90,000 per year beginning on January 1, 2037 (rather than no employer shall enter into a covenant not to compete with any low-wage employee of the employer). Provides that a covenant not to solicit shall not be valid or enforceable unless the employee's actual or expected annualized rate of earnings exceeds $45,000 per year and increasing in steps to $52,500 per year in 2037. Provides that a covenant not to compete is void and illegal for any employee who an employer terminates or furloughs or lays off as the result of business circumstances or governmental orders related to the COVID-19 pandemic, or under circumstances that are similar to the COVID-19 pandemic, unless enforcement of the covenant not to compete includes compensation equivalent to the employee's base salary at the time of termination for the period of enforcement minus compensation earned through subsequent employment during the period of enforcement. Provides that a covenant not to compete is void and illegal for individuals covered by a collective bargaining agreement under the Illinois Public Labor Relations Act or the Illinois Educational Labor Relations Act or individuals employed in construction. Establishes exclusions for management professional personnel engaged in the construction industry. Provides a procedure for enforcement by the Attorney General. Contains provisions concerning the enforceability of a covenant not to compete or a covenant not to solicit; notice requirements for employers under a covenant not to compete or a covenant not to solicit; remedies for employees who prevail against an employer's civil action to enforce a covenant not to compete or a covenant not to solicit; and certain factors a court may consider when determining whether to reform a covenant not to compete or a covenant not to solicit. Defines "adequate consideration"; "covenant not to compete"; "covenant not to solicit"; "earnings"; "employee"; and "construction". Removes the definition for the term "low-wage employee". Contains a severability clause. Effective January 1, 2022.
Spectrum: Moderate Partisan Bill (Democrat 18-2)
Status: (Passed) 2021-08-13 - Public Act . . . . . . . . . 102-0358 [SB0672 Detail]
Download: Illinois-2021-SB0672-Introduced.html
Bill Title: Amends the Illinois Freedom to Work Act. Provides that a covenant not to compete shall not be valid or enforceable unless the employee's actual or expected annualized rate of earnings exceeds $75,000 per year on the effective date of the amendatory Act, $80,000 per year beginning on January 1, 2027, $85,000 per year beginning on January 1, 2032, or $90,000 per year beginning on January 1, 2037 (rather than no employer shall enter into a covenant not to compete with any low-wage employee of the employer). Provides that a covenant not to solicit shall not be valid or enforceable unless the employee's actual or expected annualized rate of earnings exceeds $45,000 per year and increasing in steps to $52,500 per year in 2037. Provides that a covenant not to compete is void and illegal for any employee who an employer terminates or furloughs or lays off as the result of business circumstances or governmental orders related to the COVID-19 pandemic, or under circumstances that are similar to the COVID-19 pandemic, unless enforcement of the covenant not to compete includes compensation equivalent to the employee's base salary at the time of termination for the period of enforcement minus compensation earned through subsequent employment during the period of enforcement. Provides that a covenant not to compete is void and illegal for individuals covered by a collective bargaining agreement under the Illinois Public Labor Relations Act or the Illinois Educational Labor Relations Act or individuals employed in construction. Establishes exclusions for management professional personnel engaged in the construction industry. Provides a procedure for enforcement by the Attorney General. Contains provisions concerning the enforceability of a covenant not to compete or a covenant not to solicit; notice requirements for employers under a covenant not to compete or a covenant not to solicit; remedies for employees who prevail against an employer's civil action to enforce a covenant not to compete or a covenant not to solicit; and certain factors a court may consider when determining whether to reform a covenant not to compete or a covenant not to solicit. Defines "adequate consideration"; "covenant not to compete"; "covenant not to solicit"; "earnings"; "employee"; and "construction". Removes the definition for the term "low-wage employee". Contains a severability clause. Effective January 1, 2022.
Spectrum: Moderate Partisan Bill (Democrat 18-2)
Status: (Passed) 2021-08-13 - Public Act . . . . . . . . . 102-0358 [SB0672 Detail]
Download: Illinois-2021-SB0672-Introduced.html
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| 1 | AN ACT concerning business.
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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 1. Short title. This Act may be cited as the Fair | |||||||||||||||||||
| 5 | Food Delivery Act.
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| 6 | Section 5. Definitions. In this Act: | |||||||||||||||||||
| 7 | "Agreement" means a written contractual agreement between | |||||||||||||||||||
| 8 | the merchant and a third-party delivery service. | |||||||||||||||||||
| 9 | "Customer" means the person, business, or other entity | |||||||||||||||||||
| 10 | that places an order for merchant products through the | |||||||||||||||||||
| 11 | marketplace. | |||||||||||||||||||
| 12 | "Likeness" means identifiable symbols attributed and | |||||||||||||||||||
| 13 | easily identified as belonging to a specific merchant or | |||||||||||||||||||
| 14 | retailer. | |||||||||||||||||||
| 15 | "Marketplace" means a third party's proprietary online | |||||||||||||||||||
| 16 | communication platform by means of which customers may view, | |||||||||||||||||||
| 17 | search, or place orders for the products of merchants via the | |||||||||||||||||||
| 18 | third party's website or mobile application for delivery by | |||||||||||||||||||
| 19 | the third party to the customer. | |||||||||||||||||||
| 20 | "Merchant" means a restaurant or other retail entity. | |||||||||||||||||||
| 21 | "Third-party delivery service" means a company, | |||||||||||||||||||
| 22 | organization, or entity outside of the operation of the | |||||||||||||||||||
| 23 | merchant's business that provides limited delivery services to | |||||||||||||||||||
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| 1 | customers.
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| 2 | Section 10. Third-party use of merchant trademarks and | ||||||
| 3 | likenesses. A third-party delivery service may not use the | ||||||
| 4 | likeness, registered trademark, or intellectual property | ||||||
| 5 | belonging to a merchant without obtaining written consent from | ||||||
| 6 | the merchant for the use of the likeness, trademark, or other | ||||||
| 7 | intellectual property.
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| 8 | Section 15. Indemnity agreement void. An agreement subject | ||||||
| 9 | to this Act may not include a provision that requires a | ||||||
| 10 | merchant to indemnify a third-party delivery service, an | ||||||
| 11 | independent contractor acting on behalf of the third-party | ||||||
| 12 | delivery service, or a registered agent of the third-party | ||||||
| 13 | delivery service for any damages or harm that may occur after | ||||||
| 14 | the merchant's product leaves the merchant's place of | ||||||
| 15 | business.
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| 16 | Section 20. Enforcement and penalties. | ||||||
| 17 | (a) A merchant whose likeness is used by a third-party | ||||||
| 18 | delivery service in violation of this Act may bring an action | ||||||
| 19 | in the circuit court in the county in which the merchant or | ||||||
| 20 | third-party delivery service conducts business to recover | ||||||
| 21 | actual damages or $5,000, whichever is greater. The court may, | ||||||
| 22 | in its discretion, award punitive damages and other equitable | ||||||
| 23 | relief it deems appropriate. | ||||||
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| 1 | (b) The court may impose upon a third-party delivery | ||||||
| 2 | service found to have violated this Act a civil penalty of not | ||||||
| 3 | more than $1,000 per violation payable to the State. Each day a | ||||||
| 4 | violation occurs shall count as a separate violation.
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| 5 | Section 99. Effective date. This Act takes effect upon | ||||||
| 6 | becoming law.
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