Illinois General Assembly - Full Text of HB3418
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Full Text of HB3418  102nd General Assembly




HB3418 EngrossedLRB102 11388 JLS 16721 b

1    AN ACT concerning employment.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Workplace Transparency Act is amended by
5changing Section 1-30 as follows:
6    (820 ILCS 96/1-30)
7    Sec. 1-30. Settlement or termination agreements.
8    (a) An employer may not, as a term of employment, require
9an employee to sign a nondisclosure provision of a settlement
10agreement relating to a claim of sexual harassment or sexual
11assault in the workplace brought by the employee or prevent
12the employee from disclosing a claim of sexual harassment or
13sexual assault occurring in the workplace or at a work-related
14event coordinated by or through the employer.
15    (a-5) This Section does not prohibit a settlement
16agreement relating to a claim alleging sexual harassment or
17sexual assault in the workplace between an employer and an
18employee or former employee from containing confidentiality
19provisions as provided in this subsection. A confidentiality
20provision is permitted when:
21        (1) it relates to the monetary amount of a settlement;
22    or
23        (2) at the employee's request, it prohibits disclosure



HB3418 Engrossed- 2 -LRB102 11388 JLS 16721 b

1    of facts that could lead to the identification of the
2    employee. An employee, prospective employee, or former
3    employee and an employer may enter into a valid and
4    enforceable settlement or termination agreement that
5    includes promises of confidentiality related to alleged
6    unlawful employment practices, so long as:
7        (1) confidentiality is the documented preference of
8    the employee, prospective employee, or former employee and
9    is mutually beneficial to both parties;
10        (2) the employer notifies the employee, prospective
11    employee, or former employee, in writing, of his or her
12    right to have an attorney or representative of his or her
13    choice review the settlement or termination agreement
14    before it is executed;
15        (3) there is valid, bargained for consideration in
16    exchange for the confidentiality;
17        (4) the settlement or termination agreement does not
18    waive any claims of unlawful employment practices that
19    accrue after the date of execution of the settlement or
20    termination agreement;
21        (5) the settlement or termination agreement is
22    provided, in writing, to the parties to the prospective
23    agreement and the employee, prospective employee, or
24    former employee is given a period of 21 calendar days to
25    consider the agreement before execution, during which the
26    employee, prospective employee, or former employee may



HB3418 Engrossed- 3 -LRB102 11388 JLS 16721 b

1    sign the agreement at any time, knowingly and voluntarily
2    waiving any further time for consideration; and
3        (6) unless knowingly and voluntarily waived by the
4    employee, prospective employee, or former employee, he or
5    she has 7 calendar days following the execution of the
6    agreement to revoke the agreement and the agreement is not
7    effective or enforceable until the revocation period has
8    expired.
9    (b) An employer may not unilaterally include any clause in
10a settlement or termination agreement that prohibits the
11employee, prospective employee, or former employee from making
12truthful statements or disclosures regarding unlawful
13employment practices.
14    (c) Failure to comply with the provisions of this Section
15shall render any promise of confidentiality related to alleged
16unlawful employment practices against public policy void and
17severable from an otherwise valid and enforceable agreement.
18    (d) Nothing in this Section shall be construed to prevent
19a mutually agreed upon settlement or termination agreement
20from waiving or releasing the employee, prospective employee,
21or former employee's right to seek or obtain any remedies
22relating to an unlawful employment practice claim that
23occurred before the date on which the agreement is executed.
24    (e) The provisions of this amendatory Act of the 102nd
25General Assembly apply to agreements entered into on or after
26the effective date of this amendatory Act of the 102nd General



HB3418 Engrossed- 4 -LRB102 11388 JLS 16721 b

2(Source: P.A. 101-221, eff. 1-1-20.)