SB3163eng 99TH GENERAL ASSEMBLY

SB3163 Engrossed 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.

"Director" means the Director of Labor.

"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.

Section 15. Director's duties. The Director, or his or her authorized representatives, have the authority to:

(a) Investigate and may enter and inspect such places and such records (and make copies thereof) at reasonable times during regular business hours, not including an inconvenient time at the employer's place of business, question employees, and investigate those facts, conditions, practices, or matters as he or she may deem necessary or appropriate to determine whether any person has violated any provision of this Act, or which may aid in the enforcement of this Act.

(b) Require from any employer full and correct statements and reports in writing, including sworn statements, at such times as the Director may deem necessary, regarding hiring, covenants not to compete, names, addresses, and other information pertaining to the employer's low-wage employees as the Director may deem necessary for the enforcement of this Act.

(c) Require by subpoena the attendance and testimony of witnesses and the production of all books, records, and other evidence relative to a matter under investigation or hearing. The subpoena shall be signed and issued by the Director or his or her authorized representative. If a person fails to comply with any subpoena lawfully issued under this Section or a witness refuses to produce evidence or testify to any matter regarding which he or she may be lawfully interrogated, the court may, upon application of the Director, or his or her authorized representative, compel obedience by proceedings for contempt.

Section 20. Employer duties. Every employer subject to any provision of this Act or of any order issued under this Act shall make and keep for a period of not less than 3 years, true and accurate records of the name, address, and occupation of each of the employer's low-wage employees, all interviews and meetings pertaining to the hiring process, including, but not limited to, discussions of covenants not to compete, and such other information, and make such reports therefrom to the Department, as the Department may by rule prescribe as necessary or appropriate for the enforcement of the provisions of this Act or of the rules adopted thereunder. Such records shall be open for inspection or copying by the Director or his or her authorized representative at any reasonable time as limited by paragraph (a) of Section 15 of this Act. Every employer shall furnish to the Director or his or her authorized representative on demand a sworn statement of such records and information upon forms prescribed or approved by the Director.

Section 25. Administrative rules.

The Department shall adopt rules under the Illinois Administrative Procedure Act, including definitions of terms, as appropriate to carry out the purposes of this Act, to prevent the circumvention or evasion thereof, and to safeguard the requirements governing covenants not to compete under the Act.

Section 30. Violations; Department duties.

(a) Any employer, whether directly or through any officer, employee, or agent, who:

(1) hinders or delays the Director or his or her authorized representative in the performance of his or her duties in the enforcement of this Act;

(2) refuses to admit the Director or his or her authorized representative to any place of employment;

(3) fails to keep the records required under this Act or to furnish such records required or any information to be furnished under this Act to the Director or his or her authorized representative upon request;

(4) falsifies any such record; or

(5) refuses to make such records available to the Director or his authorized representative.

(b) Any employer, whether directly or through any officer, employee, or agent, who discharges or in any other manner discriminates against any low-wage employee because that employee has made a complaint to his or her employer, or to the Director or his or her authorized representative, or because that employee has caused to be instituted or is about to cause to be instituted any proceeding under or related to this Act, or because that employee has testified or is about to testify in an investigation or proceeding under this Act, is guilty of a Class B misdemeanor.

(c) It is the duty of the Department to inquire diligently for any violations of this Act, and to institute the action for penalties herein provided, and to enforce generally the provisions of this Act.

Section 35. Civil fine.

An employer that violates any provision of this Act or any rule adopted under this Act is subject to a civil penalty for each employee affected as follows:

(1) first violation, a civil penalty not to exceed $500;

(2) second or subsequent violation, a civil penalty not to exceed $1,000.

In determining the amount of any civil fine under this Section, the Director shall consider the appropriateness of the fine to the size of the employer subject to the fine and the gravity of the applicable violation.