SB2770 103RD GENERAL ASSEMBLY

LRB103 36528 SPS 66634 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB2770

Introduced 1/17/2024, by Sen. Michael E. Hastings

SYNOPSIS AS INTRODUCED:

New Act

Creates the Construction Industry Employment Freedom Act. Provides that any employer not party to a bona fide collective bargaining agreement with a labor organization in the construction industry shall not enter into or enforce a non-compete agreement or non-solicitation agreement that restricts or prohibits a worker from accepting employment with an employer that is party to a bona fide collective bargaining agreement with a labor organization. Provides that any non-compete agreement or non-solicitation agreement that violates that provision shall be void and unenforceable. Provides that the Department of Labor shall be responsible for enforcing the provisions of the Act. Provides that any employer found to be in violation of the Act shall be subject to a fine as determined by the Department of Labor, not to exceed $5,000 for each violation. Provides that any affected employee may bring a civil action against an employer for injunctive relief and damages for violations of the Act. Effective immediately.

A BILL FOR

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 Construction Industry Employment Freedom Act.

Section 5. Purpose and findings.

(a) The purpose of this Act is to ensure fair competition and safeguard the right of individuals to pursue employment opportunities without undue restrictions.

(b) The General Assembly finds that non-compete and non-solicitation agreements forced upon unrepresented workers are being used to infringe upon their constitutional right to freedom of employment and right to be represented by a labor organization.

Section 10. Definitions. As used in this Act:

"Construction industry" means any constructing, altering, reconstructing, repairing, rehabilitating, refinishing, refurbishing, remodeling, remediating, renovating, custom fabricating, maintenance, landscaping, improving, wrecking, painting, decorating, demolishing, and adding to or subtracting from any building, structure, highway, roadway, street, bridge, alley, sewer, ditch, sewage disposal plant, water works, parking facility, railroad, excavation or other structure, project, development, real property or improvement, or to do any part thereof, whether or not the performance of the work herein described involves the addition to, or fabrication into, any structure, project, development, real property or improvement herein described of any material or article of merchandise. "Construction industry" also includes moving construction-related materials on the job site to or from the job site, snow plowing, snow removal, and refuse collection.

"Labor organization" means an organization that is the exclusive representative of an employer's employees recognized or certified under the National Labor Relations Act.

"Non-compete agreement" means any contract or agreement, written or oral, between an employer and an employee that restricts the employee's ability to engage in the same or similar occupation, profession, or trade after the termination of employment.

"Non-solicitation agreement" means any contract or agreement, written or oral, between an employer and an employee that restricts the employee's ability to solicit or accept business from the employer's clients or customers after the termination of employment.

Section 15. Prohibition of non-compete and non-solicitation agreements in the construction industry.

(a) Any employer not party to a bona fide collective bargaining agreement with a labor organization in the construction industry shall not enter into or enforce a non-compete agreement or non-solicitation agreement that restricts or prohibits a worker from accepting employment with an employer that is party to a bona fide collective bargaining agreement with a labor organization.

(b) Any non-compete agreement or non-solicitation agreement that violates subsection (a) shall be void and unenforceable.

Section 20. Enforcement and penalties.

(a) The Department of Labor shall be responsible for enforcing the provisions of this Act.

(b) Any employer found to be in violation of this Act shall be subject to a fine as determined by the Department of Labor, not to exceed $5,000 for each violation.

(c) Any affected employee may bring a civil action against an employer for injunctive relief and damages for violations of this Act.

Section 99. Effective date. This Act takes effect upon becoming law.