| ||||
| Public Act 103-0921 | ||||
| ||||
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.) | ||