Full Text of SB2737 103rd General Assembly
SB2737enr 103RD GENERAL ASSEMBLY | | | SB2737 Enrolled | | LRB103 37212 SPS 67331 b |
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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 Illinois Freedom to Work Act is amended by | 5 | | changing Section 10 as follows: | 6 | | (820 ILCS 90/10) | 7 | | Sec. 10. Prohibiting covenants not to compete and | 8 | | covenants not to solicit. | 9 | | (a) No employer shall enter into a covenant not to compete | 10 | | with any employee unless the employee's actual or expected | 11 | | annualized rate of earnings exceeds $75,000 per year. This | 12 | | amount shall increase to $80,000 per year beginning on January | 13 | | 1, 2027, $85,000 per year beginning on January 1, 2032, and | 14 | | $90,000 per year beginning on January 1, 2037. A covenant not | 15 | | to compete entered into in violation of this subsection is | 16 | | void and unenforceable. | 17 | | (b) No employer shall enter into a covenant not to solicit | 18 | | with any employee unless the employee's actual or expected | 19 | | annualized rate of earnings exceeds $45,000 per year. This | 20 | | amount shall increase to $47,500 per year beginning on January | 21 | | 1, 2027, $50,000 per year beginning on January 1, 2032, and | 22 | | $52,500 per year beginning on January 1, 2037. A covenant not | 23 | | to solicit entered into in violation of this subsection is |
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| 1 | | void and unenforceable. | 2 | | (c) No employer shall enter into a covenant not to compete | 3 | | or a covenant not to solicit with any employee who an employer | 4 | | terminates or furloughs or lays off as the result of business | 5 | | circumstances or governmental orders related to the COVID-19 | 6 | | pandemic or under circumstances that are similar to the | 7 | | COVID-19 pandemic, unless enforcement of the covenant not to | 8 | | compete includes compensation equivalent to the employee's | 9 | | base salary at the time of termination for the period of | 10 | | enforcement minus compensation earned through subsequent | 11 | | employment during the period of enforcement. A covenant not to | 12 | | compete or a covenant not to solicit entered into in violation | 13 | | of this subsection is void and unenforceable. | 14 | | (d) A covenant not to compete is void and illegal with | 15 | | respect to individuals covered by a collective bargaining | 16 | | agreement under the Illinois Public Labor Relations Act or the | 17 | | Illinois Educational Labor Relations Act and individuals | 18 | | employed in construction. This subsection (d) does not apply | 19 | | to construction employees who primarily perform management, | 20 | | engineering or architectural, design, or sales functions for | 21 | | the employer or who are shareholders, partners, or owners in | 22 | | any capacity of the employer. | 23 | | (e) Any covenant not to compete or covenant not to solicit | 24 | | entered into after the effective date of this amendatory Act | 25 | | of the 103rd General Assembly shall not be enforceable with | 26 | | respect to the provision of mental health services to veterans |
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| 1 | | and first responders by any licensed mental health | 2 | | professional in this State if the enforcement of the covenant | 3 | | not to compete or covenant not to solicit is likely to result | 4 | | in an increase in cost or difficulty for any veteran or first | 5 | | responder seeking mental health services. | 6 | | For the purpose of this subsection: | 7 | | "First responders" means emergency medical services | 8 | | personnel, as defined in the Emergency Medical Services (EMS) | 9 | | Systems Act, firefighters, and law enforcement officers. | 10 | | "Licensed mental health professional" means a person | 11 | | licensed under the Clinical Psychologist Licensing Act, the | 12 | | Clinical Social Work and Social Work Practice Act, the | 13 | | Marriage and Family Therapy Licensing Act, the Nurse Practice | 14 | | Act, or the Professional Counselor and Clinical Professional | 15 | | Counselor Licensing and Practice Act. | 16 | | (Source: P.A. 102-358, eff. 1-1-22 .) | 17 | | Section 99. Effective date. This Act takes effect January | 18 | | 1, 2025. |
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