102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1838
 
Introduced 2/26/2021, by Sen. Mattie Hunter
 
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.
  


LRB102 11384 JLS 16717 b

 
 
A BILL FOR
 

  
SB1838LRB102 11384 JLS 16717 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 
10    that 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 102nd General Assembly.
19    "Employer" has the meaning given to such term in 
20subsection (c) of Section 3 of the Minimum Wage Law. 
21"Employer" does not include governmental or quasi-governmental 
22bodies.
23    "Employee" "Low-wage employee" means any individual 
 
 
SB1838- 2 -LRB102 11384 JLS 16717 b

1permitted to work by an employer an employee whose earnings do 
2not exceed the greater of (1) the hourly rate equal to the 
3minimum wage required by the applicable federal, State, or 
4local minimum wage law or (2) $13.00 per hour.

5(Source: P.A. 99-860, eff. 1-1-17; 100-225, eff. 8-18-17.)
 
6    (820 ILCS 90/10)

7    Sec. 10. Prohibiting covenants not to compete for low-wage 
8employees.
9    (a) After the effective date of this amendatory Act of the 
10102nd General Assembly, no No employer shall enter into a 
11covenant not to compete with any low-wage employee of the 
12employer.
13    (b) A covenant not to compete entered into between an 
14employer and an a low-wage employee is illegal and void.

15(Source: P.A. 99-860, eff. 1-1-17.)
  
 
16    Section 99. Effective date. This Act takes effect upon 
17becoming law.