EMPLOYMENT-PROHIBIT COVENANTS

Session: 104th General Assembly
Year: 2025
Bill #: HB3213
Category: Labor, Personnel and Pensions
Position: No position
Mandate? Yes
Revenue Loss?
Authority Preemption?

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Summary as Introduced

Amends the Illinois Freedom to Work Act. Provides that, on and after January 1, 2026, no employer shall enter into a covenant not to compete or a covenant not to solicit with any employee. Provides that a covenant not to compete or a covenant not to solicit entered into on or after January 1, 2026 is illegal and void regardless of where and when the covenant not to compete or a covenant not to solicit was entered into. Provides that an employer or former employer shall not attempt to enforce a contract that is void and unenforceable under the Act regardless of whether the contract was signed and the employment was maintained outside of the State. Repeals provisions concerning the legitimate business interest of the employer; ensuring employees are informed about their obligations; and reformation of covenants not to compete and covenants not to solicit. Makes changes to definitions. Makes conforming changes. Effective January 1, 2026.



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