Bill Text: IL SB2737 | 2023-2024 | 103rd General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Reinserts the provisions of the engrossed bill with the following changes. Provides that the enforcement of a covenant not to compete or covenant not to solicit described in the amendatory Act shall not be enforceable if it is likely to result in an increase in cost or difficulty for any veteran or first responder seeking mental health services (rather than would result in an undue burden on veterans or first responders seeking mental health services). Defines "licensed mental health professional" as a person licensed under the Clinical Psychologist Licensing Act, the Clinical Social Work and Social Work Practice Act, the Marriage and Family Therapy Licensing Act, the Nurse Practice Act, or the Professional Counselor and Clinical Professional Counselor Licensing and Practice Act (rather than a person who is licensed or registered to provide mental health services by the Department of Financial and Professional Regulation or a board of registration duly authorized to register or grant licenses to persons engaged in the practice of providing mental health services in Illinois). Changes the effective date to January 1, 2025.

Spectrum: Moderate Partisan Bill (Democrat 17-5)

Status: (Passed) 2024-08-09 - Public Act . . . . . . . . . 103-0915 [SB2737 Detail]

Download: Illinois-2023-SB2737-Enrolled.html

---

SB2737 Enrolled LRB103 37212 SPS 67331 b
AN ACT concerning employment.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Freedom to Work Act is amended by
changing Section 10 as follows:
(820 ILCS 90/10)
Sec. 10. Prohibiting covenants not to compete and
covenants not to solicit.
(a) No employer shall enter into a covenant not to compete
with any employee unless the employee's actual or expected
annualized rate of earnings exceeds $75,000 per year. This
amount shall increase to $80,000 per year beginning on January
1, 2027, $85,000 per year beginning on January 1, 2032, and
$90,000 per year beginning on January 1, 2037. A covenant not
to compete entered into in violation of this subsection is
void and unenforceable.
(b) No employer shall enter into a covenant not to solicit
with any employee unless the employee's actual or expected
annualized rate of earnings exceeds $45,000 per year. This
amount shall increase to $47,500 per year beginning on January
1, 2027, $50,000 per year beginning on January 1, 2032, and
$52,500 per year beginning on January 1, 2037. A covenant not
to solicit entered into in violation of this subsection is

SB2737 Enrolled - 2 - LRB103 37212 SPS 67331 b
void and unenforceable.
(c) No employer shall enter into a covenant not to compete
or a covenant not to solicit with any employee who an employer
terminates or furloughs or lays off as the result of business
circumstances or governmental orders related to the COVID-19
pandemic or under circumstances that are similar to the
COVID-19 pandemic, unless enforcement of the covenant not to
compete includes compensation equivalent to the employee's
base salary at the time of termination for the period of
enforcement minus compensation earned through subsequent
employment during the period of enforcement. A covenant not to
compete or a covenant not to solicit entered into in violation
of this subsection is void and unenforceable.
(d) A covenant not to compete is void and illegal with
respect to individuals covered by a collective bargaining
agreement under the Illinois Public Labor Relations Act or the
Illinois Educational Labor Relations Act and individuals
employed in construction. This subsection (d) does not apply
to construction employees who primarily perform management,
engineering or architectural, design, or sales functions for
the employer or who are shareholders, partners, or owners in
any capacity of the employer.
(e) Any covenant not to compete or covenant not to solicit
entered into after the effective date of this amendatory Act
of the 103rd General Assembly shall not be enforceable with
respect to the provision of mental health services to veterans

SB2737 Enrolled - 3 - LRB103 37212 SPS 67331 b
and first responders by any licensed mental health
professional in this State if the enforcement of the covenant
not to compete or covenant not to solicit is likely to result
in an increase in cost or difficulty for any veteran or first
responder seeking mental health services.
For the purpose of this subsection:
"First responders" means emergency medical services
personnel, as defined in the Emergency Medical Services (EMS)
Systems Act, firefighters, and law enforcement officers.
"Licensed mental health professional" means a person
licensed under the Clinical Psychologist Licensing Act, the
Clinical Social Work and Social Work Practice Act, the
Marriage and Family Therapy Licensing Act, the Nurse Practice
Act, or the Professional Counselor and Clinical Professional
Counselor Licensing and Practice Act.
(Source: P.A. 102-358, eff. 1-1-22.)