101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2565
 
Introduced , by Rep. Anne Stava-Murray
 
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 (rather than  only low-wage employees). Prohibits all covenants not to compete. Effective immediately.
  


LRB101 10625 JLS 55731 b

 
 
A BILL FOR
 

  
HB2565LRB101 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- 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.