IL HB1642

Raises the earnings threshold for non-compete agreements from the current $75,000 (scheduled to increase gradually under existing law) to $300,000 per year, effective January 1, 2026

Raises the earnings threshold for non-solicitation agreements from the current $45,000 (scheduled to increase gradually under existing law) to $300,000 per year, effective January 1, 2026

Eliminates the previously scheduled incremental increases to these thresholds that were set for 2027, 2032, and 2037 under existing law

Any non-compete or non-solicitation covenant entered into with employees earning below $300,000 annually would be void and unenforceable

Amends the Illinois Freedom to Work Act, with changes taking effect January 1, 2026