Sen. Michael E. Hastings

Filed: 2/20/2024

 

 


 

 


 
10300SB2770sam001LRB103 36528 SPS 69991 a

1
AMENDMENT TO SENATE BILL 2770

2    AMENDMENT NO. ______. Amend Senate Bill 2770 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
25    (e) A covenant not to compete or a covenant not to solicit
26is void and illegal with respect to individuals employed in

 

 

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1construction, regardless of whether an individual is covered
2by a collective bargaining agreement. This subsection (e) (d)
3does not apply to construction employees who primarily perform
4management, engineering or architectural, design, or sales
5functions for the employer or who are shareholders, partners,
6or owners in any capacity of the employer.
7(Source: P.A. 102-358, eff. 1-1-22.)".