IL SB2737

Employers cannot enforce non-compete covenants with employees earning less than $75,000 annually, with the threshold increasing to $80,000 (Jan 1, 2027), $85,000 (Jan 1, 2032), and $90,000 (Jan 1, 2037).

Employers cannot enforce non-solicit covenants with employees earning less than $45,000 annually, with the threshold increasing to $47,500 (Jan 1, 2027), $50,000 (Jan 1, 2032), and $52,500 (Jan 1, 2037).

Non-compete and non-solicit covenants are prohibited for employees terminated, furloughed, or laid off due to COVID-19 pandemic circumstances unless the employer provides compensation equal to the employee's base salary minus any earnings from subsequent employment during the enforcement period.

Non-compete covenants are void and illegal for employees covered by collective bargaining agreements under the Illinois Public Labor Relations Act or Illinois Educational Labor Relations Act, and for construction employees (except those in management, engineering, design, sales, or ownership roles).

Non-compete and non-solicit covenants are unenforceable against licensed mental health professionals providing services to veterans and first responders if enforcement would increase cost or difficulty for those individuals accessing mental health services.