Bill Text: IL HB5574 | 2021-2022 | 102nd General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Reinserts the provisions of the introduced bill with the following changes: In provisions concerning settlement or termination agreements, provides that an employee, prospective employee, or former employee and an employer may enter into a valid and enforceable settlement or termination agreement that includes promises of confidentiality related to the monetary amount of the settlement or facts that could lead to the identification of the employee if specified requirements are satisfied. Provides that such an agreement is enforceable if confidentiality is the documented preference of the employee, prospective employee, or former employee (rather than confidentiality is the documented preference of the employee, prospective employee, or former employee and is mutually beneficial to both parties). Adds sexual harassment as a claim covered under the Act. Effective January 1, 2023.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2022-03-04 - Rule 19(a) / Re-referred to Rules Committee [HB5574 Detail]

Download: Illinois-2021-HB5574-Introduced.html

---

102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB5574 Introduced , by Rep. Denyse Wang Stoneback SYNOPSIS AS INTRODUCED:
820 ILCS 96/1-15
820 ILCS 96/1-30
Amends the Workplace Transparency Act. Provides that an employer may not require a prospective, current, or former employee to sign a confidentiality provision of a settlement agreement or termination agreement relating to a claim of discrimination, retaliation, harassment, or sexual assault in the workplace. Provides that a confidentiality provision is permissible when it relates to the monetary amount of a settlement or it prohibits disclosure of facts that could lead to the identification of the employee. Provides for notice requirements. Defines "confidentiality provision". Effective January 1, 2023.
LRB102 25102 SPS 34362 b
A BILL FOR
HB5574 LRB102 25102 SPS 34362 b
AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Workplace Transparency Act is amended by
changing Sections 1-15 and 1-30 as follows:
(820 ILCS 96/1-15)
Sec. 1-15. Definitions. As used in this Act:
"Confidentiality provision" means a provision in an
agreement which has the purpose or effect of concealing the
details relating to a claim of discrimination, retaliation,
harassment, or sexual assault brought by the employee subject
to the agreement.
"Employee" has the same meaning as set forth in Section
2-101 of the Illinois Human Rights Act. "Employee" includes
"nonemployees" as defined in Section 2-102 of the Illinois
Human Rights Act.
"Employer" has the same meaning as set forth in Section
2-101 of the Illinois Human Rights Act.
"Mutual condition of employment or continued employment"
means any contract, agreement, clause, covenant, or waiver
negotiated between an employer and an employee or prospective
employee in good faith for consideration in order to obtain or
retain employment.

HB5574 - 2 - LRB102 25102 SPS 34362 b
"Prospective employee" means a person seeking to enter an
employment contract with an employer.
"Settlement agreement" means an agreement, contract, or
clause within an agreement or contract entered into between an
employee, prospective employee, or former employee and an
employer to resolve a dispute or legal claim between the
parties that arose or accrued before the settlement agreement
was executed.
"Termination agreement" means a contract or agreement
between an employee and an employer terminating the employment
relationship.
"Unlawful employment practice" means any form of unlawful
discrimination, harassment, or retaliation that is actionable
under Article 2 of the Illinois Human Rights Act, Title VII of
the Civil Rights Act of 1964, or any other related State or
federal rule or law that is enforced by the Illinois
Department of Human Rights or the Equal Employment Opportunity
Commission.
"Unilateral condition of employment or continued
employment" means any contract, agreement, clause, covenant,
or waiver an employer requires an employee or prospective
employee to accept as a non-negotiable material term in order
to obtain or retain employment.
(Source: P.A. 101-221, eff. 1-1-20.)
(820 ILCS 96/1-30)

HB5574 - 3 - LRB102 25102 SPS 34362 b
Sec. 1-30. Settlement or termination agreements.
(a) An employer may not require a prospective, current, or
former employee to sign a confidentiality provision of a
settlement agreement or termination agreement relating to a
claim of discrimination, retaliation, harassment, or sexual
assault in the workplace brought by the employee or prevent
the employee from disclosing a claim of discrimination,
retaliation, harassment, or sexual assault occurring in the
workplace or at a work-related event coordinated by or through
the employer.
(a-5) This Section does not prohibit a settlement
agreement or termination agreement relating to a claim
alleging discrimination, retaliation, harassment, or sexual
assault in the workplace between an employer and an employee
or former employee from containing confidentiality provisions
as provided in this subsection. A confidentiality provision is
permissible when:
(1) it relates to the monetary amount of a settlement;
or
(2) at the employee's request, it prohibits disclosure
of facts that could lead to the identification of the
employee.
If the employee publicly reveals sufficient details of the
claim so that the employer is reasonably identifiable, then
the confidentiality provision shall also be unenforceable
against the employer.

HB5574 - 4 - LRB102 25102 SPS 34362 b
Every settlement agreement or termination agreement
resolving a discrimination, retaliation, harassment, or sexual
assault claim by an employee against an employer shall include
a bold, prominently placed notice that although the parties
may have agreed to keep the settlement and underlying facts
confidential, such a provision in an agreement is
unenforceable against the employer if the employee publicly
reveals sufficient details of the claim so that the employer
is reasonably identifiable.
(a-10) Except as prohibited under subsections (a) and
(a-5), an An employee, prospective employee, or former
employee and an employer may enter into a valid and
enforceable settlement or termination agreement that includes
promises of confidentiality related to alleged unlawful
employment practices, so long as:
(1) confidentiality is the documented preference of
the employee, prospective employee, or former employee and
is mutually beneficial to both parties;
(2) the employer notifies the employee, prospective
employee, or former employee, in writing, of his or her
right to have an attorney or representative of his or her
choice review the settlement or termination agreement
before it is executed;
(3) there is valid, bargained for consideration in
exchange for the confidentiality;
(4) the settlement or termination agreement does not

HB5574 - 5 - LRB102 25102 SPS 34362 b
waive any claims of unlawful employment practices that
accrue after the date of execution of the settlement or
termination agreement;
(5) the settlement or termination agreement is
provided, in writing, to the parties to the prospective
agreement and the employee, prospective employee, or
former employee is given a period of 21 calendar days to
consider the agreement before execution, during which the
employee, prospective employee, or former employee may
sign the agreement at any time, knowingly and voluntarily
waiving any further time for consideration; and
(6) unless knowingly and voluntarily waived by the
employee, prospective employee, or former employee, he or
she has 7 calendar days following the execution of the
agreement to revoke the agreement and the agreement is not
effective or enforceable until the revocation period has
expired.
(b) An employer may not unilaterally include any clause in
a settlement or termination agreement that prohibits the
employee, prospective employee, or former employee from making
truthful statements or disclosures regarding unlawful
employment practices.
(c) Failure to comply with the provisions of this Section
shall render any promise of confidentiality related to alleged
unlawful employment practices against public policy void and
severable from an otherwise valid and enforceable agreement.

HB5574 - 6 - LRB102 25102 SPS 34362 b
(d) Nothing in this Section shall be construed to prevent
a mutually agreed upon settlement or termination agreement
from waiving or releasing the employee, prospective employee,
or former employee's right to seek or obtain any remedies
relating to an unlawful employment practice claim that
occurred before the date on which the agreement is executed.
(e) The provisions of this amendatory Act of the 102nd
General Assembly apply to agreements entered into on or after
the effective date of this amendatory Act of the 102nd General
Assembly.
(Source: P.A. 101-221, eff. 1-1-20.)