Illinois 2023-2024 Regular Session

Illinois Senate Bill SB0507 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	SB0507 EngrossedLRB103 02959 SPS 47965 b SB0507 Engrossed LRB103 02959 SPS 47965 b
2		-	SB0507 Engrossed LRB103 02959 SPS 47965 b
	1	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0507 Introduced 2/2/2023, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: 820 ILCS 5/1.1 from Ch. 48, par. 2a.1 Amends the Labor Dispute Act. Makes a technical change in a Section concerning the short title. LRB103 02959 SPS 47965 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0507 Introduced 2/2/2023, by Sen. Don Harmon SYNOPSIS AS INTRODUCED: 820 ILCS 5/1.1 from Ch. 48, par. 2a.1 820 ILCS 5/1.1 from Ch. 48, par. 2a.1 Amends the Labor Dispute Act. Makes a technical change in a Section concerning the short title. LRB103 02959 SPS 47965 b LRB103 02959 SPS 47965 b A BILL FOR
	2	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0507 Introduced 2/2/2023, by Sen. Don Harmon SYNOPSIS AS INTRODUCED:
	3	+	820 ILCS 5/1.1 from Ch. 48, par. 2a.1 820 ILCS 5/1.1 from Ch. 48, par. 2a.1
	4	+	820 ILCS 5/1.1 from Ch. 48, par. 2a.1
	5	+	Amends the Labor Dispute Act. Makes a technical change in a Section concerning the short title.
	6	+	LRB103 02959 SPS 47965 b LRB103 02959 SPS 47965 b
	7	+	LRB103 02959 SPS 47965 b
	8	+	A BILL FOR
	9	+	SB0507LRB103 02959 SPS 47965 b SB0507 LRB103 02959 SPS 47965 b
	10	+	SB0507 LRB103 02959 SPS 47965 b
3	11		1 AN ACT concerning employment.
4	12		2 Be it enacted by the People of the State of Illinois,
5	13		3 represented in the General Assembly:
6		-	4 Section 5. The Illinois Freedom to Work Act is amended by
7		-	5 changing Section 10 as follows:
8		-	6 (820 ILCS 90/10)
9		-	7 (Text of Section before amendment by P.A. 103-915 and
10		-	8 103-921)
11		-	9 Sec. 10. Prohibiting covenants not to compete and
12		-	10 covenants not to solicit.
13		-	11 (a) No employer shall enter into a covenant not to compete
14		-	12 with any employee unless the employee's actual or expected
15		-	13 annualized rate of earnings exceeds $75,000 per year. This
16		-	14 amount shall increase to $80,000 per year beginning on January
17		-	15 1, 2027, $85,000 per year beginning on January 1, 2032, and
18		-	16 $90,000 per year beginning on January 1, 2037. A covenant not
19		-	17 to compete entered into in violation of this subsection is
20		-	18 void and unenforceable.
21		-	19 (b) No employer shall enter into a covenant not to solicit
22		-	20 with any employee unless the employee's actual or expected
23		-	21 annualized rate of earnings exceeds $45,000 per year. This
24		-	22 amount shall increase to $47,500 per year beginning on January
25		-	23 1, 2027, $50,000 per year beginning on January 1, 2032, and
	14	+	4 Section 5. The Labor Dispute Act is amended by changing
	15	+	5 Section 1.1 as follows:
	16	+	6 (820 ILCS 5/1.1) (from Ch. 48, par. 2a.1)
	17	+	7 Sec. 1.1. Short title. This Act may be cited as the the
	18	+	8 Labor Dispute Act.
	19	+	9 (Source: P.A. 86-1324.)
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34		-	1 $52,500 per year beginning on January 1, 2037. A covenant not
35		-	2 to solicit entered into in violation of this subsection is
36		-	3 void and unenforceable.
37		-	4 (c) No employer shall enter into a covenant not to compete
38		-	5 or a covenant not to solicit with any employee who an employer
39		-	6 terminates or furloughs or lays off as the result of business
40		-	7 circumstances or governmental orders related to the COVID-19
41		-	8 pandemic or under circumstances that are similar to the
42		-	9 COVID-19 pandemic, unless enforcement of the covenant not to
43		-	10 compete includes compensation equivalent to the employee's
44		-	11 base salary at the time of termination for the period of
45		-	12 enforcement minus compensation earned through subsequent
46		-	13 employment during the period of enforcement. A covenant not to
47		-	14 compete or a covenant not to solicit entered into in violation
48		-	15 of this subsection is void and unenforceable.
49		-	16 (d) A covenant not to compete is void and illegal with
50		-	17 respect to individuals covered by a collective bargaining
51		-	18 agreement under the Illinois Public Labor Relations Act or the
52		-	19 Illinois Educational Labor Relations Act and individuals
53		-	20 employed in construction. This subsection (d) does not apply
54		-	21 to construction employees who primarily perform management,
55		-	22 engineering or architectural, design, or sales functions for
56		-	23 the employer or who are shareholders, partners, or owners in
57		-	24 any capacity of the employer.
58		-	25 (Source: P.A. 102-358, eff. 1-1-22.)
	23	+	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0507 Introduced 2/2/2023, by Sen. Don Harmon SYNOPSIS AS INTRODUCED:
	24	+	820 ILCS 5/1.1 from Ch. 48, par. 2a.1 820 ILCS 5/1.1 from Ch. 48, par. 2a.1
	25	+	820 ILCS 5/1.1 from Ch. 48, par. 2a.1
	26	+	Amends the Labor Dispute Act. Makes a technical change in a Section concerning the short title.
	27	+	LRB103 02959 SPS 47965 b LRB103 02959 SPS 47965 b
	28	+	LRB103 02959 SPS 47965 b
	29	+	A BILL FOR
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	35	+	820 ILCS 5/1.1 from Ch. 48, par. 2a.1
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69		-	1 (Text of Section after amendment by P.A. 103-915 and
70		-	2 103-921)
71		-	3 Sec. 10. Prohibiting covenants not to compete and
72		-	4 covenants not to solicit.
73		-	5 (a) No employer shall enter into a covenant not to compete
74		-	6 with any employee unless the employee's actual or expected
75		-	7 annualized rate of earnings exceeds $75,000 per year. This
76		-	8 amount shall increase to $80,000 per year beginning on January
77		-	9 1, 2027, $85,000 per year beginning on January 1, 2032, and
78		-	10 $90,000 per year beginning on January 1, 2037. A covenant not
79		-	11 to compete entered into in violation of this subsection is
80		-	12 void and unenforceable.
81		-	13 (b) No employer shall enter into a covenant not to solicit
82		-	14 with any employee unless the employee's actual or expected
83		-	15 annualized rate of earnings exceeds $45,000 per year. This
84		-	16 amount shall increase to $47,500 per year beginning on January
85		-	17 1, 2027, $50,000 per year beginning on January 1, 2032, and
86		-	18 $52,500 per year beginning on January 1, 2037. A covenant not
87		-	19 to solicit entered into in violation of this subsection is
88		-	20 void and unenforceable.
89		-	21 (c) No employer shall enter into a covenant not to compete
90		-	22 or a covenant not to solicit with any employee who an employer
91		-	23 terminates or furloughs or lays off as the result of business
92		-	24 circumstances or governmental orders related to the COVID-19
93		-	25 pandemic or under circumstances that are similar to the
94		-	26 COVID-19 pandemic, unless enforcement of the covenant not to
	38	+
	39	+	LRB103 02959 SPS 47965 b
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105		-	1 compete includes compensation equivalent to the employee's
106		-	2 base salary at the time of termination for the period of
107		-	3 enforcement minus compensation earned through subsequent
108		-	4 employment during the period of enforcement. A covenant not to
109		-	5 compete or a covenant not to solicit entered into in violation
110		-	6 of this subsection is void and unenforceable.
111		-	7 (d) A covenant not to compete is void and illegal with
112		-	8 respect to individuals covered by a collective bargaining
113		-	9 agreement under the Illinois Public Labor Relations Act or the
114		-	10 Illinois Educational Labor Relations Act.
115		-	11 (e) A covenant not to compete or a covenant not to solicit
116		-	12 is void and illegal with respect to individuals employed in
117		-	13 construction, regardless of whether an individual is covered
118		-	14 by a collective bargaining agreement. This subsection (e) does
119		-	15 not apply to construction employees who primarily perform
120		-	16 management, engineering or architectural, design, or sales
121		-	17 functions for the employer or who are shareholders, partners,
122		-	18 or owners in any capacity of the employer.
123		-	19 (f) (e) Any covenant not to compete or covenant not to
124		-	20 solicit entered into after January 1, 2025 (the effective date
125		-	21 of Public Act 103-915) this amendatory Act of the 103rd
126		-	22 General Assembly shall not be enforceable with respect to the
127		-	23 provision of mental health services to veterans and first
128		-	24 responders by any licensed mental health professional in this
129		-	25 State if the enforcement of the covenant not to compete or
130		-	26 covenant not to solicit is likely to result in an increase in
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141		-	1 cost or difficulty for any veteran or first responder seeking
142		-	2 mental health services.
143		-	3 For the purpose of this subsection:
144		-	4 "First responders" means any persons who are currently or
145		-	5 formerly employed as: (i) emergency medical services
146		-	6 personnel, as defined in the Emergency Medical Services (EMS)
147		-	7 Systems Act, (ii) firefighters, and (iii) law enforcement
148		-	8 officers.
149		-	9 "Licensed mental health professional" means a person
150		-	10 licensed under the Clinical Psychologist Licensing Act, the
151		-	11 Clinical Social Work and Social Work Practice Act, the
152		-	12 Marriage and Family Therapy Licensing Act, the Nurse Practice
153		-	13 Act, or the Professional Counselor and Clinical Professional
154		-	14 Counselor Licensing and Practice Act.
155		-	15 (Source: P.A. 102-358, eff. 1-1-22; 103-915, eff. 1-1-25;
156		-	16 103-921, eff. 1-1-25; revised 10-10-24.)
157		-	17 Section 95. No acceleration or delay. Where this Act makes
158		-	18 changes in a statute that is represented in this Act by text
159		-	19 that is not yet or no longer in effect (for example, a Section
160		-	20 represented by multiple versions), the use of that text does
161		-	21 not accelerate or delay the taking effect of (i) the changes
162		-	22 made by this Act or (ii) provisions derived from any other
163		-	23 Public Act.
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	49	+	SB0507 LRB103 02959 SPS 47965 b