Summary — HB 2561 (Freedom to Work — Health Care) — Illinois (104th General Assembly)
Status: House Floor Amendment No. 1 (Rule 19(c)); re‑referred to Rules Committee.
Introduced: Feb 4, 2025 (Rep. Laura Faver Dias). Effective date: upon becoming law (if enacted).
Purpose
Amend the Illinois Freedom to Work Act to limit enforcement of post‑effective‑date covenants not to compete and covenants not to solicit when enforcement would likely reduce the availability of reproductive health care or maternity care provided by health care professionals in Illinois. The amendment places the burden on a party seeking enforcement to prove enforcement will not reduce availability of those services, and (as amended) requires proof with respect to availability within a 50‑mile radius of the medical practice/health‑care facility.
Key provisions
- Applies only to covenants not to compete or not to solicit entered into after the bill’s effective date.
- Such covenants are not enforceable with respect to provision of reproductive health care or maternity care if enforcement is likely to reduce availability of those services in the State.
- In an enforcement action, the party seeking to enforce a covenant (including a buyer of a medical practice or facility that limits/eliminates services) bears the burden of proving enforcement will not reduce availability of reproductive or maternity care within a 50‑mile radius of the practice/facility (per House Floor Amendment No. 1).
- Terms such as “health care professional,” “reproductive health care,” and “maternity care” are defined by reference to Section 1‑10 of the Reproductive Health Act.
- “Health care facility” (per amendment) is defined to mean either (i) a hospital or hospital affiliate (Hospital Licensing Act) or (ii) an ambulatory surgical treatment center (Ambulatory Surgical Treatment Center Act).
Context inside the Freedom to Work Act
The bill is an amendment to Section 10 of the Illinois Freedom to Work Act, which already:
- Prohibits noncompetes for employees earning under specified thresholds ($75,000 initially for noncompetes; scheduled increases to $80,000 on 1/1/2027, $85,000 on 1/1/2032, $90,000 on 1/1/2037).
- Prohibits non‑solicit covenants for employees earning under specified lower thresholds ($45,000 initially; scheduled increases to $47,500 in 2027, $50,000 in 2032, $52,500 in 2037).
- Contains carve‑outs (e.g., collective bargaining, many construction employees) and an existing provision making post‑effective‑date covenants unenforceable where enforcement would hinder access to mental health services for veterans and first responders.
Who is affected
- Health care professionals providing reproductive and maternity care in Illinois (physicians, advanced practice clinicians, etc., as defined in Reproductive Health Act).
- Employers, medical practices, health‑care facilities, and buyers of practices/facilities that use or seek to enforce noncompete/non‑solicit covenants against such clinicians.
- Patients who rely on reproductive health and maternity services (possible effect on service availability).
Procedural history (selected)
- Filed Feb 4, 2025 (Rep. Laura Faver Dias).
- Referred through Rules and Labor & Commerce committees; committee action includes Do Pass recommendation (Labor & Commerce — 19‑8‑0) and later House Floor Amendment No. 1 filed Apr 2, 2025.
- Public committee hearing and testimony held Apr 10, 2025; matter was left pending and re‑referred to Rules.
Potential impacts and considerations
- Increases legal hurdle for employers and buyers seeking to enforce restrictive covenants against clinicians who provide reproductive/maternity care — enforcement requires affirmative proof of no reduction in local service availability.
- May limit the practical enforceability of covenants in health‑care contexts where staffing changes could reduce service access.
- Creates a geographically‑focused review (50‑mile radius) for the likely impact on availability (under the House amendment).
- Interaction with existing exemptions, salary thresholds, and private‑order terms could generate litigation about scope, evidence standards, and definitions (i.e., what constitutes a reduction in availability).
If enacted, the amendment would apply prospectively to covenants entered after the act takes effect.
