Bill Amendment: IL HB3213 | 2025-2026 | 104th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: EMPLOYMENT-PROHIBIT COVENANTS

Status: 2026-04-17 - House Floor Amendment No. 2 Rule 19(c) / Re-referred to Rules Committee [HB3213 Detail]

Download: Illinois-2025-HB3213-House_Amendment_002.html

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Rep. Anna Moeller

Filed: 3/26/2026

 

 

 

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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

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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

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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

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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

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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

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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

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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.".