Bill Text: IL HB2565 | 2019-2020 | 101st General Assembly | Engrossed

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Bill Title: Amends the Illinois Freedom to Work Act. Expands the scope of the Act to apply to all employees (rather than only low-wage employees). Prohibits all covenants not to compete. Effective immediately.

Spectrum: Partisan Bill (Democrat 17-0)

Status: (Introduced - Dead) 2019-04-12 - Added Co-Sponsor Rep. Curtis J. Tarver, II [HB2565 Detail]

Download: Illinois-2019-HB2565-Engrossed.html

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HB2565 Engrossed LRB101 10625 JLS 55731 b
AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Freedom to Work Act is amended by
changing Sections 5 and 10 as follows:
(820 ILCS 90/5)
Sec. 5. Definitions. In this Act:
"Covenant not to compete" means an agreement:
(1) between an employer and an a low-wage employee that
restricts the 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
the 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 amendatory Act of the 101st General Assembly.
"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.
"Employee" "Low-wage employee" means any individual
permitted to work by an employer an employee whose earnings do

HB2565 Engrossed - 2 - LRB101 10625 JLS 55731 b
not exceed 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.
(Source: P.A. 99-860, eff. 1-1-17; 100-225, eff. 8-18-17.)
(820 ILCS 90/10)
Sec. 10. Prohibiting covenants not to compete for low-wage
employees.
(a) After the effective date of this amendatory Act of the
101st General Assembly, no 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 an a low-wage employee is illegal and void.
(Source: P.A. 99-860, eff. 1-1-17.)
Section 99. Effective date. This Act takes effect upon
becoming law.