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Illinois legislators restrict non-solicitation agreements under new employment law

March 19, 2025 | Introduced, House, 2025 Bills, Illinois Legislation Bills, Illinois


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Illinois legislators restrict non-solicitation agreements under new employment law
Illinois lawmakers are making waves with House Bill 3213, a groundbreaking piece of legislation aimed at reforming employment contracts in the state. Introduced on March 19, 2025, the bill seeks to eliminate restrictive covenants not to solicit and not to compete for a broad range of employees, particularly those affected by the COVID-19 pandemic.

At the heart of HB3213 is a clear directive: starting January 1, 2026, no employer in Illinois will be allowed to enforce non-solicitation agreements with employees, regardless of their salary. Prior to this date, such agreements can only be imposed on employees earning over $45,000 annually, with that threshold set to increase incrementally over the next decade. This move is designed to protect workers from being unfairly restricted in their job mobility, especially in a post-pandemic economy.

The bill also addresses specific groups, declaring that non-compete clauses will be void for individuals laid off or furloughed due to pandemic-related circumstances unless the employer provides compensation equivalent to the employee's base salary during the enforcement period. Additionally, it explicitly prohibits such agreements for construction workers and those covered by collective bargaining agreements, ensuring that these vulnerable sectors are safeguarded.

Notably, the legislation includes a provision that prevents mental health professionals from being bound by non-compete clauses when providing services to veterans and first responders, a critical measure aimed at ensuring access to mental health care for those who serve the community.

While the bill has garnered support for its worker-friendly approach, it has also sparked debates among business groups concerned about potential impacts on competitive practices. Critics argue that the removal of non-compete agreements could hinder businesses' ability to protect proprietary information and maintain a competitive edge.

As Illinois moves forward with HB3213, the implications are significant. If passed, the bill could reshape the employment landscape, empowering workers and potentially setting a precedent for other states to follow. With its focus on fairness and accessibility, this legislation could be a game-changer in the ongoing conversation about workers' rights in America. The next steps will involve further discussions and potential amendments as lawmakers weigh the balance between protecting employees and supporting business interests.

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This article is based on a bill currently being presented in the state government—explore the full text of the bill for a deeper understanding and compare it to the constitution

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Scribe from Workplace AI
Scribe from Workplace AI