IL HB5385

Eliminates the $75,000 annual earnings threshold for non-compete agreements, making all covenants not to compete with any employee void and unenforceable regardless of salary.

Eliminates the $45,000 annual earnings threshold for non-solicit agreements, making all covenants not to solicit with any employee void and unenforceable regardless of salary.

Prohibits employers from attempting to enforce non-compete or non-solicit contracts that are void under this Act, even if the contract was signed and employment occurred outside Illinois.

Requires employers to notify employees and former employees employed after January 1, 2023 by April 1, 2025 that any non-compete or non-solicit covenants they signed are void and unenforceable, with notice delivered by mail and email.

Removes prior provisions regarding adequate consideration, legitimate business interests, and reformation of non-compete agreements.