Full Text of SB0858 100th General Assembly
SB0858ham001 100TH GENERAL ASSEMBLY | Rep. Melissa Conyears-Ervin Filed: 5/19/2017
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| 1 | | AMENDMENT TO SENATE BILL 858
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 858 on page 1, by | 3 | | replacing line 4 with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Prohibition of Contracts in Restraint of Trade Act. | 6 | | Section 5. Policy and intent. Current estimates suggest 20% | 7 | | of employees in the United States have restrictions on job | 8 | | movement created by non-compete clauses in their employment | 9 | | contracts. | 10 | | The free movement of labor has the positive effects of: | 11 | | increasing competition in the labor market; increasing wages; | 12 | | improving career satisfaction; developing regional economic | 13 | | clusters; and increasing economic growth through more rapid | 14 | | diffusion of expertise. | 15 | | The public policy and intent of this Act is to allow | 16 | | workers in Illinois maximum freedom to change employers.
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| 1 | | Section 10. Definitions. In this Act: | 2 | | "Business entity" means a partnership (including a limited | 3 | | partnership or a limited liability partnership), limited | 4 | | liability company (including a series of a limited liability | 5 | | company formed under the laws of a jurisdiction that recognizes | 6 | | such a series), or corporation. | 7 | | "Owner of a business entity" means a partner, in the case | 8 | | of a business entity that is a partnership (including a limited | 9 | | partnership or a limited liability partnership), or a member, | 10 | | in the case of a business entity that is a limited liability | 11 | | company (including a series of a limited liability company | 12 | | formed under the laws of a jurisdiction that recognizes such a | 13 | | series), or an owner of capital stock, in the case of a | 14 | | business entity that is a corporation. | 15 | | "Ownership interest" means a partnership interest, in the | 16 | | case of a business entity that is a partnership (including a | 17 | | limited partnership a limited liability partnership), a | 18 | | membership interest, in the case of a business entity that is a | 19 | | limited liability company (including a series of a limited | 20 | | liability company formed under the laws of a jurisdiction that | 21 | | recognizes such a series), or a capital stockholder, in the | 22 | | case of a business entity that is a corporation. | 23 | | "Subsidiary" means a business entity over which the selling | 24 | | business entity has voting control or from which the selling | 25 | | business entity has a right to receive a majority share of |
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| 1 | | distributions upon dissolution or other liquidation of the | 2 | | business entity (or has both voting control and a right to | 3 | | receive these distributions). | 4 | | Section 15. Certain contracts void. Except as provided in | 5 | | this Act, any contract by which anyone is restrained from | 6 | | engaging in a lawful profession, trade, or business of any kind | 7 | | is to that extent void. | 8 | | Section 20. Sale of business; agreement not to compete. A | 9 | | person who sells the goodwill of a business, an owner of a | 10 | | business entity selling or otherwise disposing of all of his or | 11 | | her ownership interest in the business entity, or an owner of a | 12 | | business entity that sells (1) all or substantially all of its | 13 | | operating assets together with the goodwill of the business | 14 | | entity, (2) all or substantially all of the operating assets of | 15 | | a division or a subsidiary of the business entity together with | 16 | | the goodwill of that division or subsidiary, or (3) all of the | 17 | | ownership interest of any subsidiary may agree with the buyer | 18 | | to refrain from carrying on a similar business within a | 19 | | specified geographic area in which the business so sold, or | 20 | | that of the business entity, division, or subsidiary has been | 21 | | carried on, so long as the buyer, or any person deriving title | 22 | | to the goodwill or ownership interest from the buyer, carries | 23 | | on a like business therein. |
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| 1 | | Section 25. Activities of partners. | 2 | | (a) A partner may, upon or in anticipation of any of the | 3 | | circumstances described in subsection (b), agree that the | 4 | | partner will not carry on a similar business within a specified | 5 | | geographic area where the partnership business has been | 6 | | transacted, so long as any other member of the partnership, or | 7 | | any person deriving title to the business or its goodwill from | 8 | | any such other member of the partnership, carries on a like | 9 | | business therein. | 10 | | (b) Subsection (a) applies to: | 11 | | (1) a dissolution of the partnership; or | 12 | | (2) dissociation of the partner from the partnership.
| 13 | | Section 30. Activities of members; limited liability | 14 | | companies. A member may, upon or in anticipation of a | 15 | | dissolution of, or the termination of the member's interest in, | 16 | | a limited liability company (including a series of a limited | 17 | | liability company formed under the laws of a jurisdiction | 18 | | recognizing such a series), agree that the member will not | 19 | | carry on a similar business within a specified geographic area | 20 | | where the limited liability company business has been | 21 | | transacted, so long as any other member of the limited | 22 | | liability company, or any person deriving title to the business | 23 | | or its goodwill from any such other member of the limited | 24 | | liability company, carries on a like business therein. |
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| 1 | | Section 35. Protections for trade secrets. Nothing in this | 2 | | Act is intended to supersede the Illinois Trade Secrets Act, | 3 | | nor is this Act intended to interfere with remedies for | 4 | | misappropriation of trade secrets under the Illinois Trade | 5 | | Secrets Act. | 6 | | Section 40. Broadcast Industry Free Market Act; rules | 7 | | governing attorney conduct. Nothing in this Act is intended to | 8 | | supersede the Broadcast Industry Free Market Act or any rules | 9 | | adopted by the Supreme Court of the State of Illinois governing | 10 | | attorney conduct. | 11 | | Section 45. Telephone answering service; customer list. | 12 | | The customer list, including the names, addresses, and identity | 13 | | of customers, of a telephone answering service constitutes a | 14 | | trade secret and confidential information of, and belong to, | 15 | | the owner of the telephone answering service. | 16 | | Section 50. Employment agency; customer list. | 17 | | (a) Except as provided in subsection (b), the customer | 18 | | list, including the names, addresses and identity of all | 19 | | employer customers who have listed job orders with an | 20 | | employment agency within a period of 180 days prior to the | 21 | | separation of an employee from the agency and including the | 22 | | names, addresses, and identity of all applicant customers of | 23 | | the employment agency, constitutes a trade secret and |
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| 1 | | confidential information of, and belong to, the employment | 2 | | agency. | 3 | | (b) Notwithstanding the provisions of subsection (a), no | 4 | | liability shall attach to, and no cause of action shall arise | 5 | | from, the use of a customer list of an employment agency by a | 6 | | former employee who enters into business as an employment | 7 | | agency more than one year immediately following termination of | 8 | | his or her employment.
| 9 | | Section 55. Limitation on applicability of Act. The | 10 | | prohibitions applicable to non-compete agreements contained in | 11 | | this Act apply only to employment contracts covering employees | 12 | | earning less than $1,000,000 annually per calendar year from | 13 | | any combination of salary, benefits, equity, commissions, | 14 | | bonuses, or other forms of compensation. | 15 | | Section 90. The Illinois Freedom to Work Act is amended | 16 | | by".
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