SB2770 EngrossedLRB103 36528 SPS 66634 b

1    AN ACT concerning employment.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
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.
17    (b) No employer shall enter into a covenant not to solicit
18with any employee unless the employee's actual or expected
19annualized rate of earnings exceeds $45,000 per year. This
20amount shall increase to $47,500 per year beginning on January
211, 2027, $50,000 per year beginning on January 1, 2032, and
22$52,500 per year beginning on January 1, 2037. A covenant not
23to solicit entered into in violation of this subsection is

 

 

SB2770 Engrossed- 2 -LRB103 36528 SPS 66634 b

1void and unenforceable.
2    (c) No employer shall enter into a covenant not to compete
3or a covenant not to solicit with any employee who an employer
4terminates or furloughs or lays off as the result of business
5circumstances or governmental orders related to the COVID-19
6pandemic or under circumstances that are similar to the
7COVID-19 pandemic, unless enforcement of the covenant not to
8compete includes compensation equivalent to the employee's
9base salary at the time of termination for the period of
10enforcement minus compensation earned through subsequent
11employment during the period of enforcement. A covenant not to
12compete or a covenant not to solicit entered into in violation
13of this subsection is void and unenforceable.
14    (d) A covenant not to compete is void and illegal with
15respect to individuals covered by a collective bargaining
16agreement under the Illinois Public Labor Relations Act or the
17Illinois Educational Labor Relations Act. and
18    (e) A covenant not to compete or a covenant not to solicit
19is void and illegal with respect to individuals employed in
20construction, regardless of whether an individual is covered
21by a collective bargaining agreement. This subsection (e) (d)
22does not apply to construction employees who primarily perform
23management, engineering or architectural, design, or sales
24functions for the employer or who are shareholders, partners,
25or owners in any capacity of the employer.
26(Source: P.A. 102-358, eff. 1-1-22.)