SB0507 Summary

• Employer covenant not to compete agreements are void unless employee earns at least $75,000 annually, increasing to $80,000 (Jan 1, 2027), $85,000 (Jan 1, 2032), and $90,000 (Jan 1, 2037).

• Employer covenant not to solicit agreements are void unless employee earns at least $45,000 annually, increasing to $47,500 (Jan 1, 2027), $50,000 (Jan 1, 2032), and $52,500 (Jan 1, 2037).

• Covenants not to compete or solicit are void and unenforceable for employees terminated or laid off due to COVID-19 pandemic circumstances unless the employer provides compensation equal to the employee's base salary for the enforcement period, minus any wages earned from subsequent employment.

• Covenants not to compete are void for employees covered by collective bargaining agreements under the Illinois Public Labor Relations Act or Illinois Educational Labor Relations Act.

• Covenants not to compete or solicit are void for construction employees, except those in management, engineering, architectural, design, or sales functions, or those who are shareholders, partners, or owners.

• Covenants not to compete or solicit entered after January 1, 2025 are unenforceable regarding mental health services provided by licensed mental health professionals to veterans and first responders if enforcement would increase access costs or difficulty.