Full Text of SB3387 101st General Assembly
SB3387 101ST GENERAL ASSEMBLY |
| | 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 | |
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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.
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| | A BILL FOR |
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| 1 | | AN ACT concerning employment.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Workplace Transparency Act is amended by | 5 | | changing 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 | 9 | | employer and an employee to submit to arbitration all or | 10 | | certain disputes that arise in respect of a defined legal | 11 | | relationship, whether contractual or not, and may be in the | 12 | | form of an arbitration clause in a contract or in the form of a | 13 | | separate agreement. | 14 | | "Employee" has the same meaning as set forth in Section | 15 | | 2-101 of the Illinois Human Rights Act. "Employee" includes | 16 | | "nonemployees" as defined in Section 2-102 of the Illinois | 17 | | Human Rights Act. | 18 | | "Employer" has the same meaning as set forth in Section | 19 | | 2-101 of the Illinois Human Rights Act. | 20 | | "Mutual condition of employment or continued employment" | 21 | | means any contract, agreement, clause, covenant, or waiver | 22 | | negotiated between an employer and an employee or prospective | 23 | | employee in good faith for consideration in order to obtain or |
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| 1 | | retain employment. | 2 | | "Prospective employee" means a person seeking to enter an | 3 | | employment contract with an employer. | 4 | | "Settlement agreement" means an agreement, contract, or | 5 | | clause within an agreement or contract entered into between an | 6 | | employee, prospective employee, or former employee and an | 7 | | employer to resolve a dispute or legal claim between the | 8 | | parties that arose or accrued before the settlement agreement | 9 | | was executed. | 10 | | "Termination agreement" means a contract or agreement | 11 | | between an employee and an employer terminating the employment | 12 | | relationship. | 13 | | "Unlawful employment practice" means any form of unlawful | 14 | | discrimination, harassment, or retaliation that is actionable | 15 | | under Article 2 of the Illinois Human Rights Act, Title VII of | 16 | | the Civil Rights Act of 1964, or any other related State or | 17 | | federal rule or law that is enforced by the Illinois Department | 18 | | of Human Rights or the Equal Employment Opportunity Commission. | 19 | | "Unilateral condition of employment or continued | 20 | | employment" means any contract, agreement, clause, covenant, | 21 | | or waiver an employer requires an employee or prospective | 22 | | employee to accept as a non-negotiable material term in order | 23 | | to 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 | 3 | | employer may enter into a contract or agreement with an | 4 | | employee or applicant. However, an arbitration clause shall | 5 | | contain a written exception for claims of harassment or | 6 | | discrimination, as provided under Section 2-102 of the Illinois | 7 | | Human Rights Act, and shall allow an employee or applicant to | 8 | | pursue such claims against the employer through either arbitral | 9 | | or judicial forums. | 10 | | (b) An employer may not enforce or attempt to enforce an | 11 | | arbitration clause entered into if the clause does not contain | 12 | | the written exception required in subsection (a). Any such | 13 | | arbitration clause is severable, and all other provisions of | 14 | | the contract or agreement shall remain in effect. | 15 | | (c) There is a rebuttable presumption that the following | 16 | | contractual terms are unconscionable if they are included in an | 17 | | arbitration agreement and the employee or applicant does not | 18 | | draft 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.
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