Bill Text: IL SB3982 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Freedom to Work Act. Provides that the definition of "first responders" means any persons who are currently or formerly employed as: (i) emergency medical services personnel, (ii) firefighters, and (iii) law enforcement officers. Effective January 1, 2025.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-11-06 - Referred to Assignments [SB3982 Detail]
Download: Illinois-2023-SB3982-Introduced.html
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1 | AN ACT concerning employment.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Freedom to Work Act is amended by | |||||||||||||||||||
5 | changing Section 10 as follows:
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6 | (820 ILCS 90/10) | |||||||||||||||||||
7 | (Text of Section before amendment by P.A. 103-915 and | |||||||||||||||||||
8 | 103-921 ) | |||||||||||||||||||
9 | Sec. 10. Prohibiting covenants not to compete and | |||||||||||||||||||
10 | covenants not to solicit. | |||||||||||||||||||
11 | (a) No employer shall enter into a covenant not to compete | |||||||||||||||||||
12 | with any employee unless the employee's actual or expected | |||||||||||||||||||
13 | annualized rate of earnings exceeds $75,000 per year. This | |||||||||||||||||||
14 | amount shall increase to $80,000 per year beginning on January | |||||||||||||||||||
15 | 1, 2027, $85,000 per year beginning on January 1, 2032, and | |||||||||||||||||||
16 | $90,000 per year beginning on January 1, 2037. A covenant not | |||||||||||||||||||
17 | to compete entered into in violation of this subsection is | |||||||||||||||||||
18 | void and unenforceable. | |||||||||||||||||||
19 | (b) No employer shall enter into a covenant not to solicit | |||||||||||||||||||
20 | with any employee unless the employee's actual or expected | |||||||||||||||||||
21 | annualized rate of earnings exceeds $45,000 per year. This | |||||||||||||||||||
22 | amount shall increase to $47,500 per year beginning on January | |||||||||||||||||||
23 | 1, 2027, $50,000 per year beginning on January 1, 2032, and |
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1 | $52,500 per year beginning on January 1, 2037. A covenant not | ||||||
2 | to solicit entered into in violation of this subsection is | ||||||
3 | void and unenforceable. | ||||||
4 | (c) No employer shall enter into a covenant not to compete | ||||||
5 | or a covenant not to solicit with any employee who an employer | ||||||
6 | terminates or furloughs or lays off as the result of business | ||||||
7 | circumstances or governmental orders related to the COVID-19 | ||||||
8 | pandemic or under circumstances that are similar to the | ||||||
9 | COVID-19 pandemic, unless enforcement of the covenant not to | ||||||
10 | compete includes compensation equivalent to the employee's | ||||||
11 | base salary at the time of termination for the period of | ||||||
12 | enforcement minus compensation earned through subsequent | ||||||
13 | employment during the period of enforcement. A covenant not to | ||||||
14 | compete or a covenant not to solicit entered into in violation | ||||||
15 | of this subsection is void and unenforceable. | ||||||
16 | (d) A covenant not to compete is void and illegal with | ||||||
17 | respect to individuals covered by a collective bargaining | ||||||
18 | agreement under the Illinois Public Labor Relations Act or the | ||||||
19 | Illinois Educational Labor Relations Act and individuals | ||||||
20 | employed in construction. This subsection (d) does not apply | ||||||
21 | to construction employees who primarily perform management, | ||||||
22 | engineering or architectural, design, or sales functions for | ||||||
23 | the employer or who are shareholders, partners, or owners in | ||||||
24 | any capacity of the employer. | ||||||
25 | (Source: P.A. 102-358, eff. 1-1-22 .)
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1 | (Text of Section after amendment by P.A. 103-915 and | ||||||
2 | 103-921 ) | ||||||
3 | Sec. 10. Prohibiting covenants not to compete and | ||||||
4 | covenants not to solicit. | ||||||
5 | (a) No employer shall enter into a covenant not to compete | ||||||
6 | with any employee unless the employee's actual or expected | ||||||
7 | annualized rate of earnings exceeds $75,000 per year. This | ||||||
8 | amount shall increase to $80,000 per year beginning on January | ||||||
9 | 1, 2027, $85,000 per year beginning on January 1, 2032, and | ||||||
10 | $90,000 per year beginning on January 1, 2037. A covenant not | ||||||
11 | to compete entered into in violation of this subsection is | ||||||
12 | void and unenforceable. | ||||||
13 | (b) No employer shall enter into a covenant not to solicit | ||||||
14 | with any employee unless the employee's actual or expected | ||||||
15 | annualized rate of earnings exceeds $45,000 per year. This | ||||||
16 | amount shall increase to $47,500 per year beginning on January | ||||||
17 | 1, 2027, $50,000 per year beginning on January 1, 2032, and | ||||||
18 | $52,500 per year beginning on January 1, 2037. A covenant not | ||||||
19 | to solicit entered into in violation of this subsection is | ||||||
20 | void and unenforceable. | ||||||
21 | (c) No employer shall enter into a covenant not to compete | ||||||
22 | or a covenant not to solicit with any employee who an employer | ||||||
23 | terminates or furloughs or lays off as the result of business | ||||||
24 | circumstances or governmental orders related to the COVID-19 | ||||||
25 | pandemic or under circumstances that are similar to the | ||||||
26 | COVID-19 pandemic, unless enforcement of the covenant not to |
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1 | compete includes compensation equivalent to the employee's | ||||||
2 | base salary at the time of termination for the period of | ||||||
3 | enforcement minus compensation earned through subsequent | ||||||
4 | employment during the period of enforcement. A covenant not to | ||||||
5 | compete or a covenant not to solicit entered into in violation | ||||||
6 | of this subsection is void and unenforceable. | ||||||
7 | (d) A covenant not to compete is void and illegal with | ||||||
8 | respect to individuals covered by a collective bargaining | ||||||
9 | agreement under the Illinois Public Labor Relations Act or the | ||||||
10 | Illinois Educational Labor Relations Act. | ||||||
11 | (e) A covenant not to compete or a covenant not to solicit | ||||||
12 | is void and illegal with respect to individuals employed in | ||||||
13 | construction, regardless of whether an individual is covered | ||||||
14 | by a collective bargaining agreement. This subsection (e) does | ||||||
15 | not apply to construction employees who primarily perform | ||||||
16 | management, engineering or architectural, design, or sales | ||||||
17 | functions for the employer or who are shareholders, partners, | ||||||
18 | or owners in any capacity of the employer. | ||||||
19 | (f) (e) Any covenant not to compete or covenant not to | ||||||
20 | solicit entered into after January 1, 2025 ( the effective date | ||||||
21 | of Public Act 103-915) this amendatory Act of the 103rd | ||||||
22 | General Assembly shall not be enforceable with respect to the | ||||||
23 | provision of mental health services to veterans and first | ||||||
24 | responders by any licensed mental health professional in this | ||||||
25 | State if the enforcement of the covenant not to compete or | ||||||
26 | covenant not to solicit is likely to result in an increase in |
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1 | cost or difficulty for any veteran or first responder seeking | ||||||
2 | mental health services. | ||||||
3 | For the purpose of this subsection: | ||||||
4 | "First responders" means any persons who are currently or | ||||||
5 | formerly employed as: (i) emergency medical services | ||||||
6 | personnel, as defined in the Emergency Medical Services (EMS) | ||||||
7 | Systems Act, (ii) firefighters, and (iii) law enforcement | ||||||
8 | officers. | ||||||
9 | "Licensed mental health professional" means a person | ||||||
10 | licensed under the Clinical Psychologist Licensing Act, the | ||||||
11 | Clinical Social Work and Social Work Practice Act, the | ||||||
12 | Marriage and Family Therapy Licensing Act, the Nurse Practice | ||||||
13 | Act, or the Professional Counselor and Clinical Professional | ||||||
14 | Counselor Licensing and Practice Act. | ||||||
15 | (Source: P.A. 102-358, eff. 1-1-22; 103-915, eff. 1-1-25; | ||||||
16 | 103-921, eff. 1-1-25; revised 10-10-24.)
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17 | Section 95. No acceleration or delay. Where this Act makes | ||||||
18 | changes in a statute that is represented in this Act by text | ||||||
19 | that is not yet or no longer in effect (for example, a Section | ||||||
20 | represented by multiple versions), the use of that text does | ||||||
21 | not accelerate or delay the taking effect of (i) the changes | ||||||
22 | made by this Act or (ii) provisions derived from any other | ||||||
23 | Public Act.
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