Rep. Angelica Guerrero-Cuellar

Filed: 5/15/2024

 

 


 

 


 
10300SB2737ham001LRB103 37212 SPS 73532 a

1
AMENDMENT TO SENATE BILL 2737

2    AMENDMENT NO. ______. Amend Senate Bill 2737 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Freedom to Work Act is amended by
5changing Section 10 as follows:
 
6    (820 ILCS 90/10)
7    Sec. 10. Prohibiting covenants not to compete and
8covenants not to solicit.
9    (a) No employer shall enter into a covenant not to compete
10with any employee unless the employee's actual or expected
11annualized rate of earnings exceeds $75,000 per year. This
12amount shall increase to $80,000 per year beginning on January
131, 2027, $85,000 per year beginning on January 1, 2032, and
14$90,000 per year beginning on January 1, 2037. A covenant not
15to compete entered into in violation of this subsection is
16void and unenforceable.

 

 

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1    (b) No employer shall enter into a covenant not to solicit
2with any employee unless the employee's actual or expected
3annualized rate of earnings exceeds $45,000 per year. This
4amount shall increase to $47,500 per year beginning on January
51, 2027, $50,000 per year beginning on January 1, 2032, and
6$52,500 per year beginning on January 1, 2037. A covenant not
7to solicit entered into in violation of this subsection is
8void and unenforceable.
9    (c) No employer shall enter into a covenant not to compete
10or a covenant not to solicit with any employee who an employer
11terminates or furloughs or lays off as the result of business
12circumstances or governmental orders related to the COVID-19
13pandemic or under circumstances that are similar to the
14COVID-19 pandemic, unless enforcement of the covenant not to
15compete includes compensation equivalent to the employee's
16base salary at the time of termination for the period of
17enforcement minus compensation earned through subsequent
18employment during the period of enforcement. A covenant not to
19compete or a covenant not to solicit entered into in violation
20of this subsection is void and unenforceable.
21    (d) A covenant not to compete is void and illegal with
22respect to individuals covered by a collective bargaining
23agreement under the Illinois Public Labor Relations Act or the
24Illinois Educational Labor Relations Act and individuals
25employed in construction. This subsection (d) does not apply
26to construction employees who primarily perform management,

 

 

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1engineering or architectural, design, or sales functions for
2the employer or who are shareholders, partners, or owners in
3any capacity of the employer.
4    (e) Any covenant not to compete or covenant not to solicit
5entered into after the effective date of this amendatory Act
6of the 103rd General Assembly shall not be enforceable with
7respect to the provision of mental health services to veterans
8and first responders by any licensed mental health
9professional in this State if the enforcement of the covenant
10not to compete or covenant not to solicit is likely to result
11in an increase in cost or difficulty for any veteran or first
12responder seeking mental health services.
13    For the purpose of this subsection:
14    "First responders" means emergency medical services
15personnel, as defined in the Emergency Medical Services (EMS)
16Systems Act, firefighters, and law enforcement officers.
17    "Licensed mental health professional" means a person
18licensed under the Clinical Psychologist Licensing Act, the
19Clinical Social Work and Social Work Practice Act, the
20Marriage and Family Therapy Licensing Act, the Nurse Practice
21Act, or the Professional Counselor and Clinical Professional
22Counselor Licensing and Practice Act.
23(Source: P.A. 102-358, eff. 1-1-22.)
 
24    Section 99. Effective date. This Act takes effect January
251, 2025.".