Bill Status of HB 5385   103rd General Assembly


Short Description:  EMPLOYMENT-PROHIBIT COVENANTS

House Sponsors
Rep. Anna Moeller

Last Action  View All Actions

DateChamber Action
  2/9/2024HouseReferred to Rules Committee

Statutes Amended In Order of Appearance
820 ILCS 90/5
820 ILCS 90/10
820 ILCS 90/15
820 ILCS 90/17 new
820 ILCS 90/7 rep.
820 ILCS 90/20 rep.
820 ILCS 90/35 rep.

Synopsis As Introduced
Amends the Illinois Freedom to Work Act. Provides that no employer shall enter into a covenant not to compete or a covenant not to solicit with any employee (rather than no employer shall enter into a covenant not to compete or a covenant not to solicit with any employee unless the employee's actual or expected annualized rate of earnings exceeds $75,000 per year). Provides that an employer or former employer shall not attempt to enforce a contract that is void and unenforceable under the Act regardless of whether the contract was signed and the employment was maintained outside of the State. Provides that, on or before April 1, 2025, an employer who entered into a covenant not to compete or a covenant not to solicit with an employee, or a former employee who was employed after January 1, 2023, shall notify the employee or the former employee that the covenant not to compete or the covenant not to solicit is void and unenforceable. Repeals provisions concerning the legitimate business interest of the employer; ensuring employees are informed about their obligations; and reformation of covenants not to compete and covenants not to solicit. Makes changes to definitions. Makes conforming changes.

Actions 
DateChamber Action
  2/9/2024HouseFiled with the Clerk by Rep. Anna Moeller
  2/9/2024HouseFirst Reading
  2/9/2024HouseReferred to Rules Committee

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