SB 672

Abstract

Creates the Fair Food Delivery Act. Prohibits a third-party delivery service from using the likeness, registered trademark, or intellectual property belonging to a merchant without obtaining written consent from the merchant for the use of the likeness, trademark, or other intellectual property. Provides that an agreement subject to the Act may not include a provision that requires a merchant to indemnify a third-party delivery service, an independent contractor acting on behalf of the third-party delivery service, or a registered agent of the third-party delivery service for any damages or harm that may occur after the merchant's product leaves the merchant's place of business. Authorizes recovery of actual damages or $5,000, whichever is greater. Imposes a civil penalty of not more than $1,000 per violation. Provides that each day a violation occurs constitutes a separate violation. Defines terms. Effective immediately. Senate Floor Amendment No. 1 Removes a provision concerning third-party use of merchant trademarks and likenesses and instead provides that a third-party delivery service may not purchase or use the name, likeness, registered trademark, or intellectual property belonging to a merchant, and may not take or arrange for the pickup or delivery of an order from a merchant, without first obtaining written consent from the merchant. Provides that an agreement subject to the Fair Food Delivery Act may not include a provision that requires a merchant to indemnify a third-party delivery service, an independent contractor of the third-party delivery service, or a registered agent of the third-party delivery service for any damages or harm partially or wholly caused by or resulting from the third-party delivery service, an independent contractor of the third-party delivery service, or a registered agent of the third-party delivery service. Removes the immediate effective date. Senate Floor Amendment No. 2 Replaces everything after the enacting clause. Reinserts the provisions of the bill as amended by Senate Amendment No. 1 with the following changes. Removes bars from the definition of "merchant". Provides that a merchant whose likeness is used (rather than whose likeness is used, or pickup or delivery is arranged through the marketplace) by a third-party delivery service in violation of the Act may bring an action in the circuit court in the county in which the merchant or third-party delivery service conducts business to recover actual damages or $5,000, whichever is greater. Makes grammatical and other changes. House Committee Amendment No. 1 Deletes reference to: New Act Adds reference to: 820 ILCS 90/5 820 ILCS 90/7 new 820 ILCS 90/10 820 ILCS 90/15 new 820 ILCS 90/20 new 820 ILCS 90/25 new 820 ILCS 90/30 new 820 ILCS 90/35 new 820 ILCS 90/97 new Replaces everything after the enacting clause. Amends the Illinois Freedom to Work Act. Provides that a covenant not to compete shall not be valid or enforceable unless the employee's actual or expected annualized rate of earnings exceeds $75,000 per year on the effective date of the amendatory Act, $80,000 per year beginning on January 1, 2027, $85,000 per year beginning on January 1, 2032, or $90,000 per year beginning on January 1, 2037 (rather than no employer shall enter into a covenant not to compete with any low-wage employee of the employer). Provides that a covenant not to solicit shall not be valid or enforceable unless the employee's actual or expected annualized rate of earnings exceeds $45,000 per year and increasing in steps to $52,500 per year in 2037. Provides that a covenant not to compete is void and illegal for any employee who an employer terminates or furloughs or lays off as the result of business circumstances or governmental orders related to the COVID-19 pandemic, or under circumstances that are similar to the COVID-19 pandemic, unless enforcement of the covenant not to compete includes compensation equivalent to the employee's base salary at the time of termination for the period of enforcement minus compensation earned through subsequent employment during the period of enforcement. Provides that a covenant not to compete is void and illegal for individuals covered by a collective bargaining agreement under the Illinois Public Labor Relations Act or the Illinois Educational Labor Relations Act or individuals employed in construction. Establishes exclusions for management professional personnel engaged in the construction industry. Provides a procedure for enforcement by the Attorney General. Contains provisions concerning the enforceability of a covenant not to compete or a covenant not to solicit; notice requirements for employers under a covenant not to compete or a covenant not to solicit; remedies for employees who prevail against an employer's civil action to enforce a covenant not to compete or a covenant not to solicit; and certain factors a court may consider when determining whether to reform a covenant not to compete or a covenant not to solicit. Defines "adequate consideration"; "covenant not to compete"; "covenant not to solicit"; "earnings"; "employee"; and "construction". Removes the definition for the term "low-wage employee". Contains a severability clause. Effective January 1, 2022.