Bill > HB1642

This bill amends the Illinois Freedom to Work Act to significantly change restrictions on employment covenants not to compete and not to solicit. Starting January 1, 2026, employers will be prohibited from entering into these types of agreements with employees unless the employee's annual earnings exceed $300,000, which is a substantial increase from previous thresholds. Previously, non-compete agreements were restricted for employees earning less than $75,000, and non-solicitation agreements were restricted for employees earning less than $45,000. The bill maintains existing protections for employees terminated during COVID-19 related circumstances, construction workers, and those covered by collective bargaining agreements. It also preserves a provision protecting mental health professionals serving veterans and first responders from overly restrictive employment covenants. By raising the earnings threshold so dramatically, the bill aims to provide greater employment mobility for a larger number of workers, preventing employers from using non-compete agreements to restrict employees' job opportunities, particularly for lower and middle-income workers.