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Full Text of HB4565
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HB4565 - 104th General Assembly
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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4565
Introduced 1/30/2026, by Rep. Laura Faver Dias and Martha Deuter
SYNOPSIS AS INTRODUCED:
820 ILCS 90/10
Amends the Illinois Freedom to Work Act. Provides that any covenant
not to compete or covenant not to solicit entered into after the effective
date of the amendatory Act shall not be enforceable with respect to
individuals employed by health care facilities as health care
professionals in the State regardless of whether an individual is covered
by a collective bargaining agreement. Effective immediately.
LRB104 17710 SPS 31141 b
A BILL FOR
HB4565
LRB104 17710 SPS 31141 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 $80,000 per year beginning on January
13
1, 2027, $85,000 per year beginning on January 1, 2032, and
14
$90,000 per year beginning on January 1, 2037. A covenant not
15
to compete entered into in violation of this subsection is
16
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 $47,500 per year beginning on January
21
1, 2027, $50,000 per year beginning on January 1, 2032, and
22
$52,500 per year beginning on January 1, 2037. A covenant not
23
to solicit entered into in violation of this subsection is
HB4565
- 2 -
LRB104 17710 SPS 31141 b
1
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) Any covenant not to compete or covenant not to solicit
HB4565
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LRB104 17710 SPS 31141 b
1
entered into after January 1, 2025 (the effective date of
2
Public Act 103-915) shall not be enforceable with respect to
3
the provision of mental health services to veterans and first
4
responders by any licensed mental health professional in this
5
State if the enforcement of the covenant not to compete or
6
covenant not to solicit is likely to result in an increase in
7
cost or difficulty for any veteran or first responder seeking
8
mental health services.
9
For the purpose of this subsection:
10
"First responders" means any persons who are currently or
11
formerly employed as: (i) emergency medical services
12
personnel, as defined in the Emergency Medical Services (EMS)
13
Systems Act, (ii) firefighters, and (iii) law enforcement
14
officers.
15
"Licensed mental health professional" means a person
16
licensed under the Clinical Psychologist Licensing Act, the
17
Clinical Social Work and Social Work Practice Act, the
18
Marriage and Family Therapy Licensing Act, the Nurse Practice
19
Act, or the Professional Counselor and Clinical Professional
20
Counselor Licensing and Practice Act.
21
(g) Any covenant not to compete or covenant not to solicit
22
entered into after the effective date of this amendatory Act
23
of the 104th General Assembly shall not be enforceable with
24
respect to individuals employed by health care facilities as
25
health care professionals in this State regardless of whether
26
an individual is covered by a collective bargaining agreement.
HB4565
- 4 -
LRB104 17710 SPS 31141 b
1
For the purpose of this subsection:
2
"Health care facility" means a hospital or hospital
3
affiliate as those terms are defined in the Hospital Licensing
4
Act or an ambulatory surgical treatment center as that term is
5
defined in the Ambulatory Surgical Treatment Center Act.
6
"Health care professional" means a physician licensed to
7
practice medicine under all of its branches under the Medical
8
Practice Act of 1987, an advanced practice registered nurse
9
licensed under the Nurse Practice Act, or a physician
10
assistant licensed under the Physician Assistant Practice Act
11
of 1987.
12
(Source: P.A. 103-915, eff. 1-1-25; 103-921, eff. 1-1-25;
13
103-1062, eff. 2-7-25; 104-417, eff. 8-15-25.)
14
Section 99.
Effective date.
This Act takes effect upon
15
becoming law.
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