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Public Act 103-0921


 

Public Act 0921 103RD GENERAL ASSEMBLY

 


 
Public Act 103-0921
 
SB2770 EnrolledLRB103 36528 SPS 66634 b

    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
    (e) A covenant not to compete or a covenant not to solicit
is void and illegal with respect to individuals employed in
construction, regardless of whether an individual is covered
by a collective bargaining agreement. This subsection (e) (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.
(Source: P.A. 102-358, eff. 1-1-22.)

Effective Date: 1/1/2025