101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3387

 

Introduced 2/14/2020, by Sen. Laura Ellman

 

SYNOPSIS AS INTRODUCED:
 
820 ILCS 96/1-15
820 ILCS 96/1-27 new

    Amends the Workplace Transparency Act. Prohibits the enforcement of certain arbitration clauses. Provides that arbitration clauses must contain an exception for claims of harassment or discrimination. Establishes a rebuttable presumption that certain provisions are unconscionable in arbitration agreements, including venue conditions, waiver of other legal rights, and excessive fees.


LRB101 20248 JLS 69788 b

 

 

A BILL FOR

 

SB3387LRB101 20248 JLS 69788 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 Workplace Transparency Act is amended by
5changing Section 1-15 and by adding Section 1-27 as follows:
 
6    (820 ILCS 96/1-15)
7    Sec. 1-15. Definitions. As used in this Act:
8    "Arbitration agreement" means an agreement between an
9employer and an employee to submit to arbitration all or
10certain disputes that arise in respect of a defined legal
11relationship, whether contractual or not, and may be in the
12form of an arbitration clause in a contract or in the form of a
13separate agreement.
14    "Employee" has the same meaning as set forth in Section
152-101 of the Illinois Human Rights Act. "Employee" includes
16"nonemployees" as defined in Section 2-102 of the Illinois
17Human Rights Act.
18    "Employer" has the same meaning as set forth in Section
192-101 of the Illinois Human Rights Act.
20    "Mutual condition of employment or continued employment"
21means any contract, agreement, clause, covenant, or waiver
22negotiated between an employer and an employee or prospective
23employee in good faith for consideration in order to obtain or

 

 

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1retain employment.
2    "Prospective employee" means a person seeking to enter an
3employment contract with an employer.
4    "Settlement agreement" means an agreement, contract, or
5clause within an agreement or contract entered into between an
6employee, prospective employee, or former employee and an
7employer to resolve a dispute or legal claim between the
8parties that arose or accrued before the settlement agreement
9was executed.
10    "Termination agreement" means a contract or agreement
11between an employee and an employer terminating the employment
12relationship.
13    "Unlawful employment practice" means any form of unlawful
14discrimination, harassment, or retaliation that is actionable
15under Article 2 of the Illinois Human Rights Act, Title VII of
16the Civil Rights Act of 1964, or any other related State or
17federal rule or law that is enforced by the Illinois Department
18of Human Rights or the Equal Employment Opportunity Commission.
19    "Unilateral condition of employment or continued
20employment" means any contract, agreement, clause, covenant,
21or waiver an employer requires an employee or prospective
22employee to accept as a non-negotiable material term in order
23to obtain or retain employment.
24(Source: P.A. 101-221, eff. 1-1-20.)
 
25    (820 ILCS 96/1-27 new)

 

 

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1    Sec. 1-27. Limitations on arbitration.
2    (a) Except when inconsistent with federal or State law, an
3employer may enter into a contract or agreement with an
4employee or applicant. However, an arbitration clause shall
5contain a written exception for claims of harassment or
6discrimination, as provided under Section 2-102 of the Illinois
7Human Rights Act, and shall allow an employee or applicant to
8pursue such claims against the employer through either arbitral
9or judicial forums.
10    (b) An employer may not enforce or attempt to enforce an
11arbitration clause entered into if the clause does not contain
12the written exception required in subsection (a). Any such
13arbitration clause is severable, and all other provisions of
14the contract or agreement shall remain in effect.
15    (c) There is a rebuttable presumption that the following
16contractual terms are unconscionable if they are included in an
17arbitration agreement and the employee or applicant does not
18draft the contract or agreement:
19        (1) A requirement that resolution of legal claims take
20    place in an inconvenient venue. As used in this paragraph,
21    "inconvenient venue" means:
22            (A) for State law claims, a place other than the
23        county in which the employee or applicant resides or
24        the contract was consummated; and
25            (B) for federal law claims, a place other than the
26        federal judicial district in which the employee or

 

 

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1        applicant resides or the contract was consummated.
2        (2) A waiver of the employee or applicant's right to
3    assert claims or seek remedies provided by State or federal
4    statute.
5        (3) A waiver of the employee or applicant's right to
6    seek punitive damages as provided by law.
7        (4) A provision limiting the time within which an
8    employee or applicant may bring an action to a period
9    shorter than the applicable statute of limitations.
10        (5) A requirement that the employee or applicant pay
11    fees and costs to bring a legal claim substantially in
12    excess of the fees and costs that State or federal courts
13    require to bring a claim.