Illinois 2025-2026 Regular Session

Illinois Senate Bill SB2162 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2162 Introduced 2/7/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED: See Index Amends the Uniform Arbitration Act. Exempts from the definition of "employer" any person who is covered by a collective bargaining agreement. Allows a party to serve upon another party a demand for arbitration or a notice of intention to arbitrate, specifying the agreement under which arbitration is sought and the name and address of the party serving the notice and stating that unless the party served applies to stay the arbitration within 20 days after service the party shall be precluded from objecting that a valid agreement was not made or has not been complied with and from asserting in court the bar of a limitation of time. Provides that in an arbitration brought by a consumer or employee that requires the drafting party to pay certain fees and costs before the arbitration can proceed, if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. Sets forth various actions a party may take if the drafting party materially breaches the arbitration agreement. Includes sanctions an arbitrator or court may impose for materially breaching the agreement. Provides that, if a party is represented by an attorney, papers to be served on the party shall be served upon the attorney for that party, and any agreement which discriminates against or penalizes a party for retaining the services of counsel in an arbitration is null and void. In a provision regarding venue, provides that: if the name of the county is not specified, the application shall be brought in the county where the party seeking arbitration resides or is doing business, and other proceedings affecting arbitration are to be brought in the county where at least one of the parties resides or is doing business or where the arbitration was held or is pending; if there are multiple parties seeking arbitration against the same party or parties, the proceeding may be brought in any court and county where any of the parties seeking arbitration resides or is doing business or where the arbitration was held or is pending; and if there is no county in which the proceeding may be brought, the proceeding may be brought in any county. LRB104 11083 JRC 21165 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2162 Introduced 2/7/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED: See Index See Index Amends the Uniform Arbitration Act. Exempts from the definition of "employer" any person who is covered by a collective bargaining agreement. Allows a party to serve upon another party a demand for arbitration or a notice of intention to arbitrate, specifying the agreement under which arbitration is sought and the name and address of the party serving the notice and stating that unless the party served applies to stay the arbitration within 20 days after service the party shall be precluded from objecting that a valid agreement was not made or has not been complied with and from asserting in court the bar of a limitation of time. Provides that in an arbitration brought by a consumer or employee that requires the drafting party to pay certain fees and costs before the arbitration can proceed, if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. Sets forth various actions a party may take if the drafting party materially breaches the arbitration agreement. Includes sanctions an arbitrator or court may impose for materially breaching the agreement. Provides that, if a party is represented by an attorney, papers to be served on the party shall be served upon the attorney for that party, and any agreement which discriminates against or penalizes a party for retaining the services of counsel in an arbitration is null and void. In a provision regarding venue, provides that: if the name of the county is not specified, the application shall be brought in the county where the party seeking arbitration resides or is doing business, and other proceedings affecting arbitration are to be brought in the county where at least one of the parties resides or is doing business or where the arbitration was held or is pending; if there are multiple parties seeking arbitration against the same party or parties, the proceeding may be brought in any court and county where any of the parties seeking arbitration resides or is doing business or where the arbitration was held or is pending; and if there is no county in which the proceeding may be brought, the proceeding may be brought in any county. LRB104 11083 JRC 21165 b LRB104 11083 JRC 21165 b A BILL FOR
22 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2162 Introduced 2/7/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED:
33 See Index See Index
44 See Index
55 Amends the Uniform Arbitration Act. Exempts from the definition of "employer" any person who is covered by a collective bargaining agreement. Allows a party to serve upon another party a demand for arbitration or a notice of intention to arbitrate, specifying the agreement under which arbitration is sought and the name and address of the party serving the notice and stating that unless the party served applies to stay the arbitration within 20 days after service the party shall be precluded from objecting that a valid agreement was not made or has not been complied with and from asserting in court the bar of a limitation of time. Provides that in an arbitration brought by a consumer or employee that requires the drafting party to pay certain fees and costs before the arbitration can proceed, if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. Sets forth various actions a party may take if the drafting party materially breaches the arbitration agreement. Includes sanctions an arbitrator or court may impose for materially breaching the agreement. Provides that, if a party is represented by an attorney, papers to be served on the party shall be served upon the attorney for that party, and any agreement which discriminates against or penalizes a party for retaining the services of counsel in an arbitration is null and void. In a provision regarding venue, provides that: if the name of the county is not specified, the application shall be brought in the county where the party seeking arbitration resides or is doing business, and other proceedings affecting arbitration are to be brought in the county where at least one of the parties resides or is doing business or where the arbitration was held or is pending; if there are multiple parties seeking arbitration against the same party or parties, the proceeding may be brought in any court and county where any of the parties seeking arbitration resides or is doing business or where the arbitration was held or is pending; and if there is no county in which the proceeding may be brought, the proceeding may be brought in any county.
66 LRB104 11083 JRC 21165 b LRB104 11083 JRC 21165 b
77 LRB104 11083 JRC 21165 b
88 A BILL FOR
99 SB2162LRB104 11083 JRC 21165 b SB2162 LRB104 11083 JRC 21165 b
1010 SB2162 LRB104 11083 JRC 21165 b
1111 1 AN ACT concerning civil law.
1212 2 Be it enacted by the People of the State of Illinois,
1313 3 represented in the General Assembly:
1414 4 Section 5. The Uniform Arbitration Act is amended by
1515 5 changing Sections 6 and 17 and by adding Sections 1.1, 2.1,
1616 6 2.2, 2.3, and 2.4 as follows:
1717 7 (710 ILCS 5/1.1 new)
1818 8 Sec. 1.1. Definitions. As used in this Act:
1919 9 "Consumer" means an individual who seeks, uses, or
2020 10 acquires, by purchase or lease, any goods or services for
2121 11 personal, family, or household purposes.
2222 12 "Employee" means any current employee, former employee, or
2323 13 applicant for employment. "Employee" includes any person who
2424 14 is, was, or who claims to have misclassified as an independent
2525 15 contractor or otherwise improperly placed into a category
2626 16 other than employee or applicant for employment. "Employee"
2727 17 does not include any person whose position is covered by a
2828 18 collective bargaining agreement.
2929 19 (710 ILCS 5/2.1 new)
3030 20 Sec. 2.1. Notice of intention to arbitrate. A party may
3131 21 serve upon another party a demand for arbitration or a notice
3232 22 of intention to arbitrate, specifying the agreement under
3333
3434
3535
3636 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB2162 Introduced 2/7/2025, by Sen. Michael W. Halpin SYNOPSIS AS INTRODUCED:
3737 See Index See Index
3838 See Index
3939 Amends the Uniform Arbitration Act. Exempts from the definition of "employer" any person who is covered by a collective bargaining agreement. Allows a party to serve upon another party a demand for arbitration or a notice of intention to arbitrate, specifying the agreement under which arbitration is sought and the name and address of the party serving the notice and stating that unless the party served applies to stay the arbitration within 20 days after service the party shall be precluded from objecting that a valid agreement was not made or has not been complied with and from asserting in court the bar of a limitation of time. Provides that in an arbitration brought by a consumer or employee that requires the drafting party to pay certain fees and costs before the arbitration can proceed, if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. Sets forth various actions a party may take if the drafting party materially breaches the arbitration agreement. Includes sanctions an arbitrator or court may impose for materially breaching the agreement. Provides that, if a party is represented by an attorney, papers to be served on the party shall be served upon the attorney for that party, and any agreement which discriminates against or penalizes a party for retaining the services of counsel in an arbitration is null and void. In a provision regarding venue, provides that: if the name of the county is not specified, the application shall be brought in the county where the party seeking arbitration resides or is doing business, and other proceedings affecting arbitration are to be brought in the county where at least one of the parties resides or is doing business or where the arbitration was held or is pending; if there are multiple parties seeking arbitration against the same party or parties, the proceeding may be brought in any court and county where any of the parties seeking arbitration resides or is doing business or where the arbitration was held or is pending; and if there is no county in which the proceeding may be brought, the proceeding may be brought in any county.
4040 LRB104 11083 JRC 21165 b LRB104 11083 JRC 21165 b
4141 LRB104 11083 JRC 21165 b
4242 A BILL FOR
4343
4444
4545
4646
4747
4848 See Index
4949
5050
5151
5252 LRB104 11083 JRC 21165 b
5353
5454
5555
5656
5757
5858
5959
6060
6161
6262 SB2162 LRB104 11083 JRC 21165 b
6363
6464
6565 SB2162- 2 -LRB104 11083 JRC 21165 b SB2162 - 2 - LRB104 11083 JRC 21165 b
6666 SB2162 - 2 - LRB104 11083 JRC 21165 b
6767 1 which arbitration is sought and the name and address of the
6868 2 party serving the notice, or of an officer or agent if the
6969 3 party is an association or corporation, and stating that
7070 4 unless the party served applies to stay the arbitration within
7171 5 20 days after service the party shall be precluded from
7272 6 objecting that a valid agreement was not made or has not been
7373 7 complied with and from asserting in court the bar of a
7474 8 limitation of time. Notice or demand shall be served in the
7575 9 same manner as a summons or by registered or certified mail,
7676 10 return receipt requested. An application to stay arbitration
7777 11 must be made by the party served within 20 days after service
7878 12 upon the party of the notice or demand or the party shall be so
7979 13 precluded. Notice of such application shall be served in the
8080 14 same manner as a summons or by registered or certified mail,
8181 15 return receipt requested. Service of the application may be
8282 16 made upon the adverse party or upon the adverse party's
8383 17 attorney if the attorney's name appears on the demand for
8484 18 arbitration or the notice of intention to arbitrate. Service
8585 19 of the application by mail shall be timely if the application
8686 20 is posted within the prescribed period. Any provision in an
8787 21 arbitration agreement or arbitration rules which waives the
8888 22 right to apply for a stay of arbitration or proscribes a manner
8989 23 of notifying a party of an intention to commence arbitration
9090 24 that is more burdensome than that described in this Section is
9191 25 null and void.
9292
9393
9494
9595
9696
9797 SB2162 - 2 - LRB104 11083 JRC 21165 b
9898
9999
100100 SB2162- 3 -LRB104 11083 JRC 21165 b SB2162 - 3 - LRB104 11083 JRC 21165 b
101101 SB2162 - 3 - LRB104 11083 JRC 21165 b
102102 1 (710 ILCS 5/2.2 new)
103103 2 Sec. 2.2. Fees and costs of arbitration initiation;
104104 3 invoice; breach of agreement; sanctions.
105105 4 (a) In an arbitration brought by a consumer or employee
106106 5 that requires, either expressly or through application of
107107 6 State or federal law or the rules of the arbitrator, the
108108 7 drafting party to pay certain fees and costs before the
109109 8 arbitration can proceed, if the fees or costs to initiate an
110110 9 arbitration proceeding are not paid within 30 days after the
111111 10 due date, the drafting party is in material breach of the
112112 11 arbitration agreement, is in default of the arbitration, and
113113 12 waives its right to compel arbitration under Section 2.
114114 13 After an employee or consumer meets the filing
115115 14 requirements necessary to initiate an arbitration, the
116116 15 arbitrator shall immediately provide an invoice for any fees
117117 16 and costs required before the arbitration can proceed to all
118118 17 of the parties to the arbitration. The invoice shall be
119119 18 provided in its entirety, shall state the full amount owed and
120120 19 the date that payment is due, and shall be sent to all parties
121121 20 by the same means on the same day. To avoid delay, absent an
122122 21 express provision in the arbitration agreement stating the
123123 22 number of days in which the parties to the arbitration must pay
124124 23 any required fees or costs, the arbitrator shall issue all
125125 24 invoices to the parties as due upon receipt.
126126 25 (b) If the drafting party materially breaches the
127127 26 arbitration agreement and is in default under subsection (a),
128128
129129
130130
131131
132132
133133 SB2162 - 3 - LRB104 11083 JRC 21165 b
134134
135135
136136 SB2162- 4 -LRB104 11083 JRC 21165 b SB2162 - 4 - LRB104 11083 JRC 21165 b
137137 SB2162 - 4 - LRB104 11083 JRC 21165 b
138138 1 the employee or consumer may:
139139 2 (1) withdraw the claim from arbitration and proceed in
140140 3 a court of appropriate jurisdiction; or
141141 4 (2) compel arbitration in which the drafting party
142142 5 shall pay reasonable attorney's fees and costs related to
143143 6 the arbitration.
144144 7 (c) If the employee or consumer withdraws the claim from
145145 8 arbitration and proceeds with an action in a court of
146146 9 appropriate jurisdiction under paragraph (1) of subsection
147147 10 (b), the statute of limitations with regard to all claims
148148 11 brought or that relate back to any claim brought in
149149 12 arbitration shall be tolled as of the date of the first filing
150150 13 of a claim in a court, arbitration forum, or other dispute
151151 14 resolution forum.
152152 15 (d) If the employee or consumer proceeds with an action in
153153 16 a court of appropriate jurisdiction, the court shall impose
154154 17 sanctions on the drafting party in accordance with Section
155155 18 2.4.
156156 19 (710 ILCS 5/2.3 new)
157157 20 Sec. 2.3. Fees and costs of arbitration continuance;
158158 21 invoice; breach of agreement; sanctions.
159159 22 (a) In an arbitration brought by a consumer or employee,
160160 23 either expressly or through application of State or federal
161161 24 law or the rules of the arbitrator, that the drafting party pay
162162 25 certain fees and costs during the pendency of an arbitration
163163
164164
165165
166166
167167
168168 SB2162 - 4 - LRB104 11083 JRC 21165 b
169169
170170
171171 SB2162- 5 -LRB104 11083 JRC 21165 b SB2162 - 5 - LRB104 11083 JRC 21165 b
172172 SB2162 - 5 - LRB104 11083 JRC 21165 b
173173 1 proceeding, if the fees or costs required to continue the
174174 2 arbitration proceeding are not paid within 30 days after the
175175 3 due date, the drafting party is in material breach of the
176176 4 arbitration agreement, is in default of the arbitration, and
177177 5 waives its right to compel the employee or consumer to proceed
178178 6 with that arbitration as a result of the material breach.
179179 7 The arbitrator shall provide an invoice for any fees and
180180 8 costs required for the arbitration proceeding to continue to
181181 9 all of the parties to the arbitration. The invoice shall be
182182 10 provided in its entirety, shall state the full amount owed and
183183 11 the date that payment is due, and shall be sent to all parties
184184 12 by the same means on the same day. To avoid delay, absent an
185185 13 express provision in the arbitration agreement stating the
186186 14 number of days in which the parties to the arbitration must pay
187187 15 any required fees or costs, the arbitrator shall issue all
188188 16 invoices to the parties as due upon receipt. Any extension of
189189 17 time for the due date shall be agreed upon by all parties.
190190 18 (b) If the drafting party materially breaches the
191191 19 arbitration agreement and is in default under subsection (a),
192192 20 the employee or consumer may unilaterally elect to:
193193 21 (1) withdraw the claim from arbitration and proceed in
194194 22 a court of appropriate jurisdiction. If the employee or
195195 23 consumer withdraws the claim from arbitration and proceeds
196196 24 with an action in a court of appropriate jurisdiction, the
197197 25 statute of limitations with regard to all claims brought
198198 26 or that relate back to any claim brought in arbitration
199199
200200
201201
202202
203203
204204 SB2162 - 5 - LRB104 11083 JRC 21165 b
205205
206206
207207 SB2162- 6 -LRB104 11083 JRC 21165 b SB2162 - 6 - LRB104 11083 JRC 21165 b
208208 SB2162 - 6 - LRB104 11083 JRC 21165 b
209209 1 shall be tolled as of the date of the first filing of a
210210 2 claim in any court, arbitration forum, or other dispute
211211 3 resolution forum;
212212 4 (2) continue the arbitration proceeding, if the
213213 5 arbitrator agrees to continue administering the
214214 6 proceeding, notwithstanding the drafting party's failure
215215 7 to pay fees or costs. The neutral arbitrator may institute
216216 8 a collection action at the conclusion of the arbitration
217217 9 proceeding against the drafting party that is in default
218218 10 of the arbitration for payment of all fees associated with
219219 11 the arbitration proceeding brought by a consumer or
220220 12 employee, including the cost of administering any
221221 13 proceedings after the default;
222222 14 (3) petition the court for an order compelling the
223223 15 drafting party to pay all arbitration fees that the
224224 16 drafting party is obligated to pay under the arbitration
225225 17 agreement or the rules of the arbitrator;
226226 18 (4) pay the drafting party's fees and proceed with the
227227 19 arbitration proceeding. As part of the award, the employee
228228 20 or consumer shall recover all arbitration fees paid on
229229 21 behalf of the drafting party without regard to any
230230 22 findings on the merits in the underlying arbitration; or
231231 23 (5) if the employee or consumer withdraws the claim
232232 24 from arbitration and proceeds in a court of appropriate
233233 25 jurisdiction under paragraph (1), both of the following
234234 26 apply:
235235
236236
237237
238238
239239
240240 SB2162 - 6 - LRB104 11083 JRC 21165 b
241241
242242
243243 SB2162- 7 -LRB104 11083 JRC 21165 b SB2162 - 7 - LRB104 11083 JRC 21165 b
244244 SB2162 - 7 - LRB104 11083 JRC 21165 b
245245 1 (A) The employee or consumer may bring a motion,
246246 2 or a separate action, to recover all attorney's fees
247247 3 and all costs associated with the abandoned
248248 4 arbitration proceeding.
249249 5 (B) The recovery of arbitration fees, interest,
250250 6 and related attorney's fees shall be without regard to
251251 7 any findings on the merits in the underlying action or
252252 8 arbitration.
253253 9 The court shall impose sanctions on the drafting party in
254254 10 accordance with Section 2.4.
255255 11 (c) If the employee or consumer continues in arbitration
256256 12 under paragraphs (2) through (4) of subsection (b), the
257257 13 arbitrator shall impose appropriate sanctions on the drafting
258258 14 party, including monetary sanctions, issue sanctions, evidence
259259 15 sanctions, or terminating sanctions.
260260 16 (710 ILCS 5/2.4 new)
261261 17 Sec. 2.4. Breach of arbitration agreement; monetary
262262 18 sanctions; additional sanctions.
263263 19 (a) The court shall impose a monetary sanction against a
264264 20 drafting party that materially breaches an arbitration
265265 21 agreement pursuant to subsection (a) of Section 2.2 or
266266 22 subsection (a) of Section 2.3, by ordering the drafting party
267267 23 to pay the reasonable expenses, including attorney's fees and
268268 24 costs, incurred by the employee or consumer as a result of the
269269 25 material breach.
270270
271271
272272
273273
274274
275275 SB2162 - 7 - LRB104 11083 JRC 21165 b
276276
277277
278278 SB2162- 8 -LRB104 11083 JRC 21165 b SB2162 - 8 - LRB104 11083 JRC 21165 b
279279 SB2162 - 8 - LRB104 11083 JRC 21165 b
280280 1 (b) In addition to the monetary sanction described in
281281 2 subsection (a), the court may order any of the following
282282 3 sanctions against a drafting party that materially breaches an
283283 4 arbitration agreement under subsection (a) of Section 2.2 or
284284 5 subsection (a) of Section 2.3, unless the court finds that the
285285 6 one subject to the sanction acted with substantial
286286 7 justification or that other circumstances make the imposition
287287 8 of the sanction unjust:
288288 9 (1) an evidence sanction by an order prohibiting the
289289 10 drafting party from conducting discovery in the civil
290290 11 action;
291291 12 (2) a terminating sanction by:
292292 13 (A) an order striking out the pleadings or parts
293293 14 of the pleadings of the drafting party; or
294294 15 (B) an order rendering a judgment by default
295295 16 against the drafting party; or
296296 17 (3) a contempt sanction by an order treating the
297297 18 drafting party as in contempt of court.
298298 19 (710 ILCS 5/6) (from Ch. 10, par. 106)
299299 20 Sec. 6. Representation by attorney.
300300 21 A party has the right to be represented by an attorney at
301301 22 any proceeding or hearing under this Act. A waiver thereof
302302 23 prior to the proceeding or hearing is ineffective. If a party
303303 24 is represented by an attorney, papers to be served on the party
304304 25 shall be served upon the attorney for that party. Any
305305
306306
307307
308308
309309
310310 SB2162 - 8 - LRB104 11083 JRC 21165 b
311311
312312
313313 SB2162- 9 -LRB104 11083 JRC 21165 b SB2162 - 9 - LRB104 11083 JRC 21165 b
314314 SB2162 - 9 - LRB104 11083 JRC 21165 b
315315 1 agreement which discriminates against or penalizes a party for
316316 2 retaining the services of counsel in an arbitration is null
317317 3 and void.
318318 4 (Source: Laws 1961, p. 3844.)
319319 5 (710 ILCS 5/17) (from Ch. 10, par. 117)
320320 6 Sec. 17. Venue.
321321 7 (a) An initial application shall be made to the court of
322322 8 the county in which the agreement provides the arbitration
323323 9 hearing shall be held or, if the hearing has been held, in the
324324 10 county in which it was held. Otherwise the application shall
325325 11 be made in the county where the adverse party resides or has a
326326 12 place of business or, if he has no residence or place of
327327 13 business in this State, to the court of any county. All
328328 14 subsequent applications shall be made to the court hearing the
329329 15 initial application unless the court otherwise directs.
330330 16 (b) If the name of the county is not specified, the
331331 17 application shall be brought in the county where the party
332332 18 seeking arbitration resides or is doing business, and other
333333 19 proceedings affecting arbitration are to be brought in the
334334 20 county where at least one of the parties resides or is doing
335335 21 business or where the arbitration was held or is pending.
336336 22 (c) If there are multiple parties seeking arbitration
337337 23 against the same party or parties, the proceeding may be
338338 24 brought in any court and county where any of the parties
339339 25 seeking arbitration resides or is doing business or where the
340340
341341
342342
343343
344344
345345 SB2162 - 9 - LRB104 11083 JRC 21165 b
346346
347347
348348 SB2162- 10 -LRB104 11083 JRC 21165 b SB2162 - 10 - LRB104 11083 JRC 21165 b
349349 SB2162 - 10 - LRB104 11083 JRC 21165 b
350350 1 arbitration was held or is pending. All subsequent
351351 2 applications shall be made to the court hearing the initial
352352 3 application unless the court otherwise directs.
353353 4 (d) If there is no county in which the proceeding may be
354354 5 brought under this Section, the proceeding may be brought in
355355 6 any county.
356356 7 (Source: Laws 1961, p. 3844.)
357357 SB2162- 11 -LRB104 11083 JRC 21165 b 1 INDEX 2 Statutes amended in order of appearance SB2162- 11 -LRB104 11083 JRC 21165 b SB2162 - 11 - LRB104 11083 JRC 21165 b 1 INDEX 2 Statutes amended in order of appearance
358358 SB2162- 11 -LRB104 11083 JRC 21165 b SB2162 - 11 - LRB104 11083 JRC 21165 b
359359 SB2162 - 11 - LRB104 11083 JRC 21165 b
360360 1 INDEX
361361 2 Statutes amended in order of appearance
362362
363363
364364
365365
366366
367367 SB2162 - 10 - LRB104 11083 JRC 21165 b
368368
369369
370370
371371 SB2162- 11 -LRB104 11083 JRC 21165 b SB2162 - 11 - LRB104 11083 JRC 21165 b
372372 SB2162 - 11 - LRB104 11083 JRC 21165 b
373373 1 INDEX
374374 2 Statutes amended in order of appearance
375375
376376
377377
378378
379379
380380 SB2162 - 11 - LRB104 11083 JRC 21165 b