Full Text of SB2770 103rd General Assembly
SB2770sam001 103RD GENERAL ASSEMBLY | Sen. Michael E. Hastings Filed: 2/20/2024 | | 10300SB2770sam001 | | LRB103 36528 SPS 69991 a |
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| 1 | | AMENDMENT TO SENATE BILL 2770
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2770 by replacing | 3 | | everything after the enacting clause with the following: | 4 | | "Section 5. The Illinois Freedom to Work Act is amended by | 5 | | changing Section 10 as follows: | 6 | | (820 ILCS 90/10) | 7 | | Sec. 10. Prohibiting covenants not to compete and | 8 | | covenants not to solicit. | 9 | | (a) No employer shall enter into a covenant not to compete | 10 | | with any employee unless the employee's actual or expected | 11 | | annualized rate of earnings exceeds $75,000 per year. This | 12 | | amount shall increase to $80,000 per year beginning on January | 13 | | 1, 2027, $85,000 per year beginning on January 1, 2032, and | 14 | | $90,000 per year beginning on January 1, 2037. A covenant not | 15 | | to compete entered into in violation of this subsection is | 16 | | void and unenforceable. |
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| 1 | | (b) No employer shall enter into a covenant not to solicit | 2 | | with any employee unless the employee's actual or expected | 3 | | annualized rate of earnings exceeds $45,000 per year. This | 4 | | amount shall increase to $47,500 per year beginning on January | 5 | | 1, 2027, $50,000 per year beginning on January 1, 2032, and | 6 | | $52,500 per year beginning on January 1, 2037. A covenant not | 7 | | to solicit entered into in violation of this subsection is | 8 | | void and unenforceable. | 9 | | (c) No employer shall enter into a covenant not to compete | 10 | | or a covenant not to solicit with any employee who an employer | 11 | | terminates or furloughs or lays off as the result of business | 12 | | circumstances or governmental orders related to the COVID-19 | 13 | | pandemic or under circumstances that are similar to the | 14 | | COVID-19 pandemic, unless enforcement of the covenant not to | 15 | | compete includes compensation equivalent to the employee's | 16 | | base salary at the time of termination for the period of | 17 | | enforcement minus compensation earned through subsequent | 18 | | employment during the period of enforcement. A covenant not to | 19 | | compete or a covenant not to solicit entered into in violation | 20 | | of this subsection is void and unenforceable. | 21 | | (d) A covenant not to compete is void and illegal with | 22 | | respect to individuals covered by a collective bargaining | 23 | | agreement under the Illinois Public Labor Relations Act or the | 24 | | Illinois Educational Labor Relations Act . and | 25 | | (e) A covenant not to compete or a covenant not to solicit | 26 | | is void and illegal with respect to individuals employed in |
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| 1 | | construction , regardless of whether an individual is covered | 2 | | by a collective bargaining agreement . This subsection (e) (d) | 3 | | does not apply to construction employees who primarily perform | 4 | | management, engineering or architectural, design, or sales | 5 | | functions for the employer or who are shareholders, partners, | 6 | | or owners in any capacity of the employer. | 7 | | (Source: P.A. 102-358, eff. 1-1-22 .)". |
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