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IL HB5385

IL HB5385
EMPLOYMENT-PROHIBIT COVENANTS


summary

Introduced
02/09/2024
In Committee
02/09/2024
Crossed Over
Passed
Dead
01/08/2025

Introduced Session

103rd General Assembly

Bill Summary

Amends the Illinois Freedom to Work Act. Provides that no employer shall enter into a covenant not to compete or a covenant not to solicit with any employee (rather than 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 $75,000 per year). Provides that an employer or former employer shall not attempt to enforce a contract that is void and unenforceable under the Act regardless of whether the contract was signed and the employment was maintained outside of the State. Provides that, on or before April 1, 2025, an employer who entered into a covenant not to compete or a covenant not to solicit with an employee, or a former employee who was employed after January 1, 2023, shall notify the employee or the former employee that the covenant not to compete or the covenant not to solicit is void and unenforceable. Repeals provisions concerning the legitimate business interest of the employer; ensuring employees are informed about their obligations; and reformation of covenants not to compete and covenants not to solicit. Makes changes to definitions. Makes conforming changes.

AI Summary

This bill amends the Illinois Freedom to Work Act by prohibiting employers from entering into non-compete or non-solicitation agreements with any employee, regardless of their earnings. It also requires employers who have previously entered into such agreements with employees or former employees hired after January 1, 2023 to notify them that the agreements are void and unenforceable. The bill repeals provisions related to legitimate business interests, employee notification, and reformation of these covenants. It also makes changes to the definitions of key terms like "covenant not to compete" and "covenant not to solicit."

Sponsors (1)

Last Action

Session Sine Die (on 01/07/2025)

Bill Topics

Labor and Employment
  • ‐ Employee Relations, Unions, and Collective Bargaining
  • ‐ General Labor and Employment
  • ‐ Worker Safety and Protection

bill text


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