Illinois HB1642 amends the Illinois Freedom to Work Act to restrict covenants not to compete or solicit for employees.
HB1642 amends the Illinois Freedom to Work Act to prohibit employers from entering into covenants not to compete or solicit with employees unless their annual earnings exceed specified thresholds. Beginning January 1, 2026, the threshold is set at $300,000 annually, increasing to $47,500 in 2027, $50,000 in 2032, and $52,500 in 2037. The bill also voids such covenants for employees covered by collective bargaining agreements or those in construction affected by the COVID-19 pandemic, unless they receive compensation equivalent to their base salary during the enforcement period.
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