Bill Text: IL SB2770 | 2023-2024 | 103rd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Illinois Freedom to Work Act. Provides that a covenant not to compete or a covenant not to solicit is void and illegal with respect to individuals employed in construction, regardless of whether an individual is covered by a collective bargaining agreement.

Spectrum: Slight Partisan Bill (Democrat 7-3)

Status: (Passed) 2024-08-09 - Public Act . . . . . . . . . 103-0921 [SB2770 Detail]

Download: Illinois-2023-SB2770-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2770 Introduced 1/17/2024, by Sen. Michael E. Hastings SYNOPSIS AS INTRODUCED:
New Act
Creates the Construction Industry Employment Freedom Act. Provides that any employer not party to a bona fide collective bargaining agreement with a labor organization in the construction industry shall not enter into or enforce a non-compete agreement or non-solicitation agreement that restricts or prohibits a worker from accepting employment with an employer that is party to a bona fide collective bargaining agreement with a labor organization. Provides that any non-compete agreement or non-solicitation agreement that violates that provision shall be void and unenforceable. Provides that the Department of Labor shall be responsible for enforcing the provisions of the Act. Provides that any employer found to be in violation of the Act shall be subject to a fine as determined by the Department of Labor, not to exceed $5,000 for each violation. Provides that any affected employee may bring a civil action against an employer for injunctive relief and damages for violations of the Act. Effective immediately.
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A BILL FOR
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AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Construction Industry Employment Freedom Act.
Section 5. Purpose and findings.
(a) The purpose of this Act is to ensure fair competition
and safeguard the right of individuals to pursue employment
opportunities without undue restrictions.
(b) The General Assembly finds that non-compete and
non-solicitation agreements forced upon unrepresented workers
are being used to infringe upon their constitutional right to
freedom of employment and right to be represented by a labor
organization.
Section 10. Definitions. As used in this Act:
"Construction industry" means any constructing, altering,
reconstructing, repairing, rehabilitating, refinishing,
refurbishing, remodeling, remediating, renovating, custom
fabricating, maintenance, landscaping, improving, wrecking,
painting, decorating, demolishing, and adding to or
subtracting from any building, structure, highway, roadway,
street, bridge, alley, sewer, ditch, sewage disposal plant,

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water works, parking facility, railroad, excavation or other
structure, project, development, real property or improvement,
or to do any part thereof, whether or not the performance of
the work herein described involves the addition to, or
fabrication into, any structure, project, development, real
property or improvement herein described of any material or
article of merchandise. "Construction industry" also includes
moving construction-related materials on the job site to or
from the job site, snow plowing, snow removal, and refuse
collection.
"Labor organization" means an organization that is the
exclusive representative of an employer's employees recognized
or certified under the National Labor Relations Act.
"Non-compete agreement" means any contract or agreement,
written or oral, between an employer and an employee that
restricts the employee's ability to engage in the same or
similar occupation, profession, or trade after the termination
of employment.
"Non-solicitation agreement" means any contract or
agreement, written or oral, between an employer and an
employee that restricts the employee's ability to solicit or
accept business from the employer's clients or customers after
the termination of employment.
Section 15. Prohibition of non-compete and
non-solicitation agreements in the construction industry.

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(a) Any employer not party to a bona fide collective
bargaining agreement with a labor organization in the
construction industry shall not enter into or enforce a
non-compete agreement or non-solicitation agreement that
restricts or prohibits a worker from accepting employment with
an employer that is party to a bona fide collective bargaining
agreement with a labor organization.
(b) Any non-compete agreement or non-solicitation
agreement that violates subsection (a) shall be void and
unenforceable.
Section 20. Enforcement and penalties.
(a) The Department of Labor shall be responsible for
enforcing the provisions of this Act.
(b) Any employer found to be in violation of this Act shall
be subject to a fine as determined by the Department of Labor,
not to exceed $5,000 for each violation.
(c) Any affected employee may bring a civil action against
an employer for injunctive relief and damages for violations
of this Act.