Bill Text: IL SB3163 | 2015-2016 | 99th General Assembly | Chaptered

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Bill Title: Creates the Illinois Freedom to Work Act. Provides that no employer shall enter into a covenant not to compete with any low-wage employee of the employer. Sets forth provisions providing that the Director of the Department of Labor shall adjust for inflation. Provides that in order for an employer to require an employee to enter into a covenant not to compete, the employer shall, prior to the employment of such employee and at the beginning of the process for hiring such employee, have disclosed to such employee the requirement for entering into such covenant. Sets forth provisions providing how the Director shall receive, investigate, attempt to resolve, and enforce complaints. Effective immediately.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Passed) 2016-08-19 - Public Act . . . . . . . . . 99-0860 [SB3163 Detail]

Download: Illinois-2015-SB3163-Chaptered.html

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Public Act 099-0860
SB3163 Enrolled LRB099 12727 SXM 36512 b
AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Illinois Freedom to Work Act.
Section 5. Definitions. In this Act:
"Covenant not to compete" means an agreement:
(1) between an employer and a low-wage employee that
restricts such low-wage employee from performing:
(A) any work for another employer for a specified
period of time;
(B) any work in a specified geographical area; or
(C) work for another employer that is similar to
such low-wage employee's work for the employer
included as a party to the agreement; and
(2) that is entered into after the effective date of
this Act.
"Employer" has the meaning given to such term in subsection
(c) of Section 3 of the Minimum Wage Law. "Employer" does not
include governmental or quasi-governmental bodies.
"Low-wage employee" means an employee who earns the greater
of (1) the hourly rate equal to the minimum wage required by
the applicable federal, State, or local minimum wage law or (2)

$13.00 per hour.
Section 10. Prohibiting covenants not to compete for
low-wage employees.
(a) No employer shall enter into a covenant not to compete
with any low-wage employee of the employer.
(b) A covenant not to compete entered into between an
employer and a low-wage employee is illegal and void.