Full Text of HB5574 102nd General Assembly
HB5574 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 HB5574 Introduced 1/31/2022, by Rep. Denyse Wang Stoneback SYNOPSIS AS INTRODUCED: |
| 820 ILCS 96/1-15 | | 820 ILCS 96/1-30 | |
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Amends the Workplace Transparency Act. Provides that an employer may not require a prospective, current, or former employee to sign a confidentiality provision of a settlement agreement or termination agreement relating to a claim of discrimination, retaliation, harassment, or sexual assault in the workplace. Provides that a confidentiality provision is permissible when it relates to the monetary amount of a settlement or it prohibits disclosure of facts that could lead to the identification of the employee. Provides for notice requirements. Defines "confidentiality provision". Effective January 1, 2023.
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| | A BILL FOR |
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| 1 | | AN ACT concerning employment.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Workplace Transparency Act is amended by | 5 | | changing Sections 1-15 and 1-30 as follows: | 6 | | (820 ILCS 96/1-15)
| 7 | | Sec. 1-15. Definitions. As used in this Act: | 8 | | "Confidentiality provision" means a provision in an | 9 | | agreement which has the purpose or effect of concealing the | 10 | | details relating to a claim of discrimination, retaliation, | 11 | | harassment, or sexual assault brought by the employee subject | 12 | | to the agreement. | 13 | | "Employee" has the same meaning as set forth in Section | 14 | | 2-101 of the Illinois Human Rights Act. "Employee" includes | 15 | | "nonemployees" as defined in Section 2-102 of the Illinois | 16 | | Human Rights Act. | 17 | | "Employer" has the same meaning as set forth in Section | 18 | | 2-101 of the Illinois Human Rights Act. | 19 | | "Mutual condition of employment or continued employment" | 20 | | means any contract, agreement, clause, covenant, or waiver | 21 | | negotiated between an employer and an employee or prospective | 22 | | employee in good faith for consideration in order to obtain or | 23 | | retain employment. |
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| 1 | | "Prospective employee" means a person seeking to enter an | 2 | | employment contract with an employer. | 3 | | "Settlement agreement" means an agreement, contract, or | 4 | | clause within an agreement or contract entered into between an | 5 | | employee, prospective employee, or former employee and an | 6 | | employer to resolve a dispute or legal claim between the | 7 | | parties that arose or accrued before the settlement agreement | 8 | | was executed. | 9 | | "Termination agreement" means a contract or agreement | 10 | | between an employee and an employer terminating the employment | 11 | | relationship. | 12 | | "Unlawful employment practice" means any form of unlawful | 13 | | discrimination, harassment, or retaliation that is actionable | 14 | | under Article 2 of the Illinois Human Rights Act, Title VII of | 15 | | the Civil Rights Act of 1964, or any other related State or | 16 | | federal rule or law that is enforced by the Illinois | 17 | | Department of Human Rights or the Equal Employment Opportunity | 18 | | Commission. | 19 | | "Unilateral condition of employment or continued | 20 | | employment" means any contract, agreement, clause, covenant, | 21 | | or waiver an employer requires an employee or prospective | 22 | | employee to accept as a non-negotiable material term in order | 23 | | to obtain or retain employment.
| 24 | | (Source: P.A. 101-221, eff. 1-1-20 .) | 25 | | (820 ILCS 96/1-30)
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| 1 | | Sec. 1-30. Settlement or termination agreements. | 2 | | (a) An employer may not require a prospective, current, or | 3 | | former employee to sign a confidentiality provision of a | 4 | | settlement agreement or termination agreement relating to a | 5 | | claim of discrimination, retaliation, harassment, or sexual | 6 | | assault in the workplace brought by the employee or prevent | 7 | | the employee from disclosing a claim of discrimination, | 8 | | retaliation, harassment, or sexual assault occurring in the | 9 | | workplace or at a work-related event coordinated by or through | 10 | | the employer. | 11 | | (a-5) This Section does not prohibit a settlement | 12 | | agreement or termination agreement relating to a claim | 13 | | alleging discrimination, retaliation, harassment, or sexual | 14 | | assault in the workplace between an employer and an employee | 15 | | or former employee from containing confidentiality provisions | 16 | | as provided in this subsection. A confidentiality provision is | 17 | | permissible when: | 18 | | (1) it relates to the monetary amount of a settlement; | 19 | | or | 20 | | (2) at the employee's request, it prohibits disclosure | 21 | | of facts that could lead to the identification of the | 22 | | employee. | 23 | | If the employee publicly reveals sufficient details of the | 24 | | claim so that the employer is reasonably identifiable, then | 25 | | the confidentiality provision shall also be unenforceable | 26 | | against the employer. |
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| 1 | | Every settlement agreement or termination agreement | 2 | | resolving a discrimination, retaliation, harassment, or sexual | 3 | | assault claim by an employee against an employer shall include | 4 | | a bold, prominently placed notice that although the parties | 5 | | may have agreed to keep the settlement and underlying facts | 6 | | confidential, such a provision in an agreement is | 7 | | unenforceable against the employer if the employee publicly | 8 | | reveals sufficient details of the claim so that the employer | 9 | | is reasonably identifiable. | 10 | | (a-10) Except as prohibited under subsections (a) and | 11 | | (a-5), an An employee, prospective employee, or former | 12 | | employee and an employer may enter into a valid and | 13 | | enforceable settlement or termination agreement that includes | 14 | | promises of confidentiality related to alleged unlawful | 15 | | employment practices, so long as: | 16 | | (1) confidentiality is the documented preference of | 17 | | the employee, prospective employee, or former employee and | 18 | | is mutually beneficial to both parties; | 19 | | (2) the employer notifies the employee, prospective | 20 | | employee, or former employee, in writing, of his or her | 21 | | right to have an attorney or representative of his or her | 22 | | choice review the settlement or termination agreement | 23 | | before it is executed; | 24 | | (3) there is valid, bargained for consideration in | 25 | | exchange for the confidentiality; | 26 | | (4) the settlement or termination agreement does not |
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| 1 | | waive any claims of unlawful employment practices that | 2 | | accrue after the date of execution of the settlement or | 3 | | termination agreement; | 4 | | (5) the settlement or termination agreement is | 5 | | provided, in writing, to the parties to the prospective | 6 | | agreement and the employee, prospective employee, or | 7 | | former employee is given a period of 21 calendar days to | 8 | | consider the agreement before execution, during which the | 9 | | employee, prospective employee, or former employee may | 10 | | sign the agreement at any time, knowingly and voluntarily | 11 | | waiving any further time for consideration; and | 12 | | (6) unless knowingly and voluntarily waived by the | 13 | | employee, prospective employee, or former employee, he or | 14 | | she has 7 calendar days following the execution of the | 15 | | agreement to revoke the agreement and the agreement is not | 16 | | effective or enforceable until the revocation period has | 17 | | expired. | 18 | | (b) An employer may not unilaterally include any clause in | 19 | | a settlement or termination agreement that prohibits the | 20 | | employee, prospective employee, or former employee from making | 21 | | truthful statements or disclosures regarding unlawful | 22 | | employment practices. | 23 | | (c) Failure to comply with the provisions of this Section | 24 | | shall render any promise of confidentiality related to alleged | 25 | | unlawful employment practices against public policy void and | 26 | | severable from an otherwise valid and enforceable agreement. |
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| 1 | | (d) Nothing in this Section shall be construed to prevent | 2 | | a mutually agreed upon settlement or termination agreement | 3 | | from waiving or releasing the employee, prospective employee, | 4 | | or former employee's right to seek or obtain any remedies | 5 | | relating to an unlawful employment practice claim that | 6 | | occurred before the date on which the agreement is executed.
| 7 | | (e) The provisions of this amendatory Act of the 102nd | 8 | | General Assembly apply to agreements entered into on or after | 9 | | the effective date of this amendatory Act of the 102nd General | 10 | | Assembly. | 11 | | (Source: P.A. 101-221, eff. 1-1-20 .)
| 12 | | Section 99. Effective date. This Act takes effect January | 13 | | 1, 2023. |
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