summary
Introduced
02/06/2025
02/06/2025
In Committee
04/11/2025
04/11/2025
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
104th General Assembly
Bill Summary
Amends the Illinois Freedom to Work Act. Provides that, on and after January 1, 2026, no employer shall enter into a covenant not to compete or a covenant not to solicit with any employee. Provides that a covenant not to compete or a covenant not to solicit entered into on or after January 1, 2026 is illegal and void regardless of where and when the covenant not to compete or a covenant not to solicit was entered into. 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. 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. Effective January 1, 2026.
AI Summary
This bill amends the Illinois Freedom to Work Act to comprehensively prohibit non-compete and non-solicitation agreements in employment contracts. Specifically, before January 1, 2026, non-compete agreements will only be allowed for employees earning over $75,000 annually, and non-solicitation agreements for employees earning over $45,000 annually. However, on and after January 1, 2026, the bill completely bans all such agreements for employees, regardless of their earnings. The legislation declares that any covenant not to compete or not to solicit entered into on or after January 1, 2026, will be illegal and void, even if the contract was signed outside of Illinois. The bill maintains existing exemptions for certain types of agreements like confidentiality clauses, trade secret protections, and invention assignment agreements. Additionally, the bill explicitly prohibits employers from attempting to enforce these now-void contracts, even if they were originally signed in another state. This change aims to provide greater employment flexibility for workers by removing contractual restrictions that limit their ability to change jobs or work in their chosen field.
Committee Categories
Business and Industry
Sponsors (6)
Anna Moeller (D)*,
Laura Faver Dias (D),
Norma Hernandez (D),
Lilian Jiménez (D),
Kevin Olickal (D),
Anne Stava-Murray (D),
Last Action
House Labor & Commerce Committee Hearing (14:00:00 2/25/2026 Room 114) (on 02/25/2026)
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