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| Public Act 103-0915 | ||||
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AN ACT concerning employment. | ||||
Be it enacted by the People of the State of Illinois, | ||||
represented in the General Assembly: | ||||
Section 5. The Illinois Freedom to Work Act is amended by | ||||
changing Section 10 as follows: | ||||
(820 ILCS 90/10) | ||||
Sec. 10. Prohibiting covenants not to compete and | ||||
covenants not to solicit. | ||||
(a) No employer shall enter into a covenant not to compete | ||||
with any employee unless the employee's actual or expected | ||||
annualized rate of earnings exceeds $75,000 per year. This | ||||
amount shall increase to $80,000 per year beginning on January | ||||
1, 2027, $85,000 per year beginning on January 1, 2032, and | ||||
$90,000 per year beginning on January 1, 2037. A covenant not | ||||
to compete entered into in violation of this subsection is | ||||
void and unenforceable. | ||||
(b) No employer shall enter into a covenant not to solicit | ||||
with any employee unless the employee's actual or expected | ||||
annualized rate of earnings exceeds $45,000 per year. This | ||||
amount shall increase to $47,500 per year beginning on January | ||||
1, 2027, $50,000 per year beginning on January 1, 2032, and | ||||
$52,500 per year beginning on January 1, 2037. A covenant not | ||||
to solicit entered into in violation of this subsection is | ||||
void and unenforceable. | ||
(c) No employer shall enter into a covenant not to compete | ||
or a covenant not to solicit with 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. A covenant not to | ||
compete or a covenant not to solicit entered into in violation | ||
of this subsection is void and unenforceable. | ||
(d) A covenant not to compete is void and illegal with | ||
respect to individuals covered by a collective bargaining | ||
agreement under the Illinois Public Labor Relations Act or the | ||
Illinois Educational Labor Relations Act and individuals | ||
employed in construction. This subsection (d) does not apply | ||
to construction employees who primarily perform management, | ||
engineering or architectural, design, or sales functions for | ||
the employer or who are shareholders, partners, or owners in | ||
any capacity of the employer. | ||
(e) Any covenant not to compete or covenant not to solicit | ||
entered into after the effective date of this amendatory Act | ||
of the 103rd General Assembly shall not be enforceable with | ||
respect to the provision of mental health services to veterans | ||
and first responders by any licensed mental health | ||
professional in this State if the enforcement of the covenant | ||
not to compete or covenant not to solicit is likely to result | ||
in an increase in cost or difficulty for any veteran or first | ||
responder seeking mental health services. | ||
For the purpose of this subsection: | ||
"First responders" means emergency medical services | ||
personnel, as defined in the Emergency Medical Services (EMS) | ||
Systems Act, firefighters, and law enforcement officers. | ||
"Licensed mental health professional" means a person | ||
licensed under the Clinical Psychologist Licensing Act, the | ||
Clinical Social Work and Social Work Practice Act, the | ||
Marriage and Family Therapy Licensing Act, the Nurse Practice | ||
Act, or the Professional Counselor and Clinical Professional | ||
Counselor Licensing and Practice Act. | ||
(Source: P.A. 102-358, eff. 1-1-22.) | ||
Section 99. Effective date. This Act takes effect January | ||
1, 2025. | ||