Clark Kaericher | Vice President, Government Affairs | 217-522-5512 ext. 296

July 29, 2020

The Technology Council seeks to aggressively and proactively promote the interests of the Illinois technology community by advocating for public policy that fosters innovation and promotes economic growth. The Council will seek to promote workforce development policies, advocate for world-class technology infrastructure, avoid overregulation on the industry and support innovators access to the capital they need to grow.
Your Feedback is Needed
I have received the following from Jay Shattuck, the Executive Director of the Chamber's Employment Law Council. We are requesting your input on legislation involving non-compete and non-solicitation clauses. More information from Jay, including legislative summaries and full bill text, can be found below. I know these employment mechanisms are utilized by many of your companies  and the issue may be important to your HR and legal departments. Negotiations resume Tuesday and therefore we would like your input by noon Monday,  August 3rd.

The Illinois Chamber has been involved in negotiations since February, with a pause from March to June. we are attempting to obtain a reasonable approach to allow employers to effectively use covenants not to compete and not to solicit in Illinois. During 2019,  HB 2975  was approved by both chambers, but  failed to be called in the House on a concurrence vote. This measure prohibited  an employer may not require as a condition or precondition of employment that an employee or person seeking employment waive, arbitrate, or otherwise diminish any future claim, right, or benefit to which the person would otherwise be entitled under State or federal law. In addition , HB 4699, HB 5454 and SB 3021 completely eliminate covenants not to compete.
SB 3430, as introduced, provides an opportunity to avoid the destruction of covenants not to compete. While we are playing defense in negotiations, our goal is to codify elements of current Illinois case law and to provide certainty and consistency for Illinois employers that utilize covenants not to compete and not to solicit. 

Amendments to the Illinois Freedom to Work Act can be found here.  A chart showing areas of negotiation can be found here. 

Illinois Innovation Vouchers
This morning I met with the Illinois Science and Technology Council (ISTC) to discuss their proposal for new legislation to create Illinois Innovation Grants of up to $75,000 for Illinois businesses to work with Illinois Universities on research and business development projects. Their draft can be found here.  The Chamber expects to support this initiative when the Legislature reconvenes in January and we would appreciate any input you can provide. 

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