HB3213ham002 104TH GENERAL ASSEMBLY

Rep. Anna Moeller

Filed: 3/26/2026

10400HB3213ham002 LRB104 08712 SPS 35993 a

AMENDMENT TO HOUSE BILL 3213

AMENDMENT NO. ______. Amend House Bill 3213 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Freedom to Work Act is amended by changing Sections 10, 20, and 25 and by adding Sections 40 and 45 as follows:

(820 ILCS 90/10)

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

(a) No employer shall enter into a covenant not to compete with any employee unless the employee's actual or expected annualized rate of earnings exceeds $300,000 $75,000 per year. This amount shall increase to $80,000 per year beginning on January 1, 2027, $85,000 per year beginning on January 1, 2032, and $90,000 per year beginning on January 1, 2037. A covenant not to compete entered into in violation of this subsection is void and unenforceable.

(b) No employer shall enter into a covenant not to solicit with any employee unless the employee's actual or expected annualized rate of earnings exceeds $45,000 per year. This amount shall increase to $47,500 per year beginning on January 1, 2027, $50,000 per year beginning on January 1, 2032, and $52,500 per year beginning on January 1, 2037. A covenant not to solicit entered into in violation of this subsection is void and unenforceable.

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

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

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

(f) Any covenant not to compete or covenant not to solicit entered into after January 1, 2025 (the effective date of Public Act 103-915) shall not be enforceable with respect to the provision of mental health services to veterans and first responders by any licensed mental health professional in this State if the enforcement of the covenant not to compete or covenant not to solicit is likely to result in an increase in cost or difficulty for any veteran or first responder seeking mental health services.

For the purpose of this subsection:

"First responders" means any persons who are currently or formerly employed as: (i) emergency medical services personnel, as defined in the Emergency Medical Services (EMS) Systems Act, (ii) firefighters, and (iii) law enforcement officers.

"Licensed mental health professional" means a person licensed under the Clinical Psychologist Licensing Act, the Clinical Social Work and Social Work Practice Act, the Marriage and Family Therapy Licensing Act, the Nurse Practice Act, or the Professional Counselor and Clinical Professional Counselor Licensing and Practice Act.

(g) No employer shall enter into a covenant not to compete or covenant not to solicit that has a restricted period longer than one calendar year. A covenant not to compete or a covenant not to solicit entered into in violation of this subsection is void and unenforceable.

(h) No employer shall enter into a covenant not to compete with a licensed medical professional that works in the City of Chicago if the radius of the restricted area exceeds 3 miles from the location from which the licensed medical professional physically provided more than 50% of his or her services to the employer. No employer shall enter into a covenant not to compete with a licensed medical professional that works outside of the City of Chicago if the radius of the restricted area exceeds 15 miles from the location from which the licensed medical professional physically provided more than 50% of his or her services to the employer. A covenant not to compete entered into in violation of this subsection is void and unenforceable.

(i) No employer shall enter into a covenant not to compete that prohibits an employee from accepting any customer or client or other forms of business. A covenant not to compete entered into in violation of this subsection is void and unenforceable.

(j) A covenant not to compete is illegal and void and unenforceable if the employer terminates the employee without cause.

(Source: P.A. 103-915, eff. 1-1-25; 103-921, eff. 1-1-25; 103-1062, eff. 2-7-25; 104-417, eff. 8-15-25.)

(820 ILCS 90/20)

Sec. 20. Ensuring employees are informed about their obligations. An agreement containing a A covenant not to compete or a covenant not to solicit is illegal and void unless (1) the employer advises the employee in writing in the agreement containing the covenant not to compete or covenant not to solicit to consult with an attorney before entering into the covenant and (2) the employer provides the employee with a copy of the covenant at least 14 calendar days before the commencement of the employee's employment or the employer provides the employee with at least 14 calendar days to review the covenant and confirms the time period in the agreement containing the covenant not to compete or covenant not to solicit. An employer is in compliance with this Section even if the employee voluntarily elects to sign the covenant before the expiration of the 14-day period.

(Source: P.A. 102-358, eff. 1-1-22.)

(820 ILCS 90/25)

Sec. 25. Remedies. In addition to any remedies available under any agreement between an employer and an employee or under any other statute, in a civil action or arbitration filed by an employer (including, but not limited to, a complaint or counterclaim), if an employee prevails on a claim to enforce a covenant not to compete or a covenant not to solicit, the employee or the employee's current employer, if the employer pays for the employee's costs and reasonable attorneys' fees, shall recover from the employer all costs and all reasonable attorney's fees regarding such claim to enforce a covenant not to compete or a covenant not to solicit, and the court or arbitrator may award appropriate relief. For the purpose of this Section, the term "claim" shall be interpreted broadly to include pleadings or motions. For the purposes of this Section, the term "prevails" shall be interpreted broadly and shall require the recovery of attorneys' fees and costs if the employer voluntarily dismisses any claim to enforce a covenant not to compete or a covenant not to solicit or if the court or arbitrator enters an order dismissing any claim or grants any similar judgment to enforce a covenant not to compete or a covenant not to solicit.

(Source: P.A. 102-358, eff. 1-1-22.)

(820 ILCS 90/40 new)

Sec. 40. Choice of law and venue. An agreement between an employer and an employee who provides services to that employer in this State that contains a covenant not to compete or a covenant not to solicit is illegal and void if the agreement includes a provision seeking or attempting to apply the law of any other state. Any legal action related to an agreement between an employer and an employee who provides services to the employer in this State that contains a covenant not to compete or a covenant not to solicit shall be initiated in a court of competent jurisdiction in this State, unless a court in this State does not have competent jurisdiction for the claim.

(820 ILCS 90/45 new)

Sec. 45. Payment of annualized rate of earnings equivalent. A covenant not to compete is illegal and void unless the employer pays the employee the annualized rate of earnings equivalent to the employee expected annualized rate of earnings during the period the covenant not to compete is effective.".