FREEDOM TO WORK-COVENANT RATE

Illinois General Assembly - Full Text of HB1642

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1642

Introduced 1/28/2025, by Rep. Anne Stava-Murray

SYNOPSIS AS INTRODUCED:

820 ILCS 90/10

Amends the Illinois Freedom to Work Act. Provides that, beginning on
January 1, 2026, 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 $300,000 per year. Effective
January 1, 2026.
LRB104 09950 SPS 20020 b

A BILL FOR

HB1642
LRB104 09950 SPS 20020 b
1

AN ACT concerning employment.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Freedom to Work Act is amended by
5
changing Section 10 as follows:

6

(820 ILCS 90/10)
7

Sec. 10.
Prohibiting covenants not to compete and
8
covenants not to solicit.
9

(a) No employer shall enter into a covenant not to compete
10
with any employee unless the employee's actual or expected
11
annualized rate of earnings exceeds $75,000 per year. This
12
amount shall increase to
$300,000

$80,000
per year beginning
13
on
January 1, 2026

January 1, 2027, $85,000 per year beginning
14
on January 1, 2032, and $90,000 per year beginning on January
15
1, 2037
. A covenant not to compete entered into in violation of
16
this subsection is void and unenforceable.
17

(b) No employer shall enter into a covenant not to solicit
18
with any employee unless the employee's actual or expected
19
annualized rate of earnings exceeds $45,000 per year. This
20
amount shall increase to
$300,000

$47,500
per year beginning
21
on
January 1, 2026

January 1, 2027, $50,000 per year beginning
22
on January 1, 2032, and $52,500 per year beginning on January
23
1, 2037
. A covenant not to solicit entered into in violation of

HB1642
- 2 -
LRB104 09950 SPS 20020 b
1
this subsection is void and unenforceable.
2

(c) No employer shall enter into a covenant not to compete
3
or a covenant not to solicit with any employee who an employer
4
terminates or furloughs or lays off as the result of business
5
circumstances or governmental orders related to the COVID-19
6
pandemic or under circumstances that are similar to the
7
COVID-19 pandemic, unless enforcement of the covenant not to
8
compete includes compensation equivalent to the employee's
9
base salary at the time of termination for the period of
10
enforcement minus compensation earned through subsequent
11
employment during the period of enforcement. A covenant not to
12
compete or a covenant not to solicit entered into in violation
13
of this subsection is void and unenforceable.
14

(d) A covenant not to compete is void and illegal with
15
respect to individuals covered by a collective bargaining
16
agreement under the Illinois Public Labor Relations Act or the
17
Illinois Educational Labor Relations Act.
18

(e) A covenant not to compete or a covenant not to solicit
19
is void and illegal with respect to individuals employed in
20
construction, regardless of whether an individual is covered
21
by a collective bargaining agreement. This subsection (e) does
22
not apply to construction employees who primarily perform
23
management, engineering or architectural, design, or sales
24
functions for the employer or who are shareholders, partners,
25
or owners in any capacity of the employer.
26

(f)

(e)
Any covenant not to compete or covenant not to

HB1642
- 3 -
LRB104 09950 SPS 20020 b
1
solicit entered into after
January 1, 2025 (
the effective date
2
of
Public Act 103-915)

this amendatory Act of the 103rd
3
General Assembly
shall not be enforceable with respect to the
4
provision of mental health services to veterans and first
5
responders by any licensed mental health professional in this
6
State if the enforcement of the covenant not to compete or
7
covenant not to solicit is likely to result in an increase in
8
cost or difficulty for any veteran or first responder seeking
9
mental health services.
10

For the purpose of this subsection:
11

"First responders" means emergency medical services
12
personnel, as defined in the Emergency Medical Services (EMS)
13
Systems Act, firefighters, and law enforcement officers.
14

"Licensed mental health professional" means a person
15
licensed under the Clinical Psychologist Licensing Act, the
16
Clinical Social Work and Social Work Practice Act, the
17
Marriage and Family Therapy Licensing Act, the Nurse Practice
18
Act, or the Professional Counselor and Clinical Professional
19
Counselor Licensing and Practice Act.
20
(Source: P.A. 102-358, eff. 1-1-22; 103-915, eff. 1-1-25;
21
103-921, eff. 1-1-25; revised 11-26-24.)

22

Section 99.
Effective date.
This Act takes effect January
23
1, 2026.

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This site is maintained for the Illinois General Assembly by the
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