The Illinois legislature continues to evolve the Illinois Freedom to Work Act. Illinois initially passed the Act in 2017 to prohibit non-compete agreements for lower-wage workers. Effective in 2022, the legislature amended the Act to include additional limitations, as we discussed here. Now, an additional amendment to the Act has taken effect at the start of 2025 that attempts to make access to mental health services easier for veterans and first responders.
Most non-compete and non-solicit legislation is aimed at the perspective of employees or employers. The 2022 amendment, for instance, provided clarity to employees and employers regarding the types of agreements that are unenforceable. Recent legislation has also applied to specific employee salary thresholds or jobs.
The new 2025 amendment is unique in that it applies to specific types of end-clients or consumers (veterans and first responders) and appears to be intended to give the public more ability to seek certain services.
What Does the Law Say?
Under this amendment, non-compete and non-solicit agreements that are "likely to result in an increase in cost or difficulty for any veteran or first responder seeking mental health services" are no longer enforceable. The amendment defines “first responders” as “(i) emergency medical services personnel, as defined in the Emergency Medical Services (EMS) Systems Act, (ii) firefighters, and (iii) law enforcement officers.”
This modification applies to agreements entered into as of January 1, 2025 and beyond. It does not invalidate earlier agreements, nor does it apply to restrictive covenants in relation to other sorts of healthcare clients.
How to define what is “likely to result in an increase in cost or difficulty” remains an open question, one that will likely have to be defined by the courts. In the meantime, this nebulous standard is likely to lead to confusion for both individual providers and employers. What is clear is that while the amendment does not outright ban restrictive covenants for mental health providers, it likely makes enforcement of such agreements more difficult.
Why Was This Law Passed?
The recent amendment was prompted by a case in which a healthcare provider who offered services to a firefighter was sued for violating a non-compete agreement. Concerned that such agreements could be preventing veterans and first responders from getting the mental health care they need, State Senator Paul Faraci took up the charge and sponsored the original legislation, SB 2737.
It is worth noting that the 2022 Amendments to the Act already included a provision that a “covenant not to compete or a covenant not to solicit is illegal and void unless...the covenant does not impose an undue hardship on the employee.” In other words, the law already set the standard for enforceability to be that an agreement must not impose undue hardship. The main innovation of the 2025 addition is that the undue hardship in question is that borne by a therapy client, not only that of a mental healthcare provider.
It is unclear if this change will amount to much in practice. Nevertheless, there are several steps that individual providers and mental health organizations can take to be as compliant as possible.
What Does This Mean for Providers?
For mental health providers, this means they may have more freedom to offer their services to first responders or veterans with less risk of legal action from former employers. That freedom, however, is not absolute or clear.
Below are a few steps that providers can take to ensure they are compliant with the law.
- Maintain written documentation. Independent providers can keep records verifying that their potential clients are veterans or first responders, as defined by the amendment, and noting whether the veteran or first responder faced difficulty in finding a provider or faced other obstacles in accessing mental health care. Such information could help in defending against a potential lawsuit. If a provider is an employee, they should consult with their employer on which information they are permitted to collect.
- Modify your intake process. To ensure the above information is recorded, independent providers should consider implementing an intake questionnaire specifically for veterans and first responders. It can record occupation, whether the client has already attempted to secure mental health services, how many times an attempt was made to find care, and in which geographical boundaries, as well as the nature of any barriers to finding and accessing that care. Again, such information may help with a defense to a lawsuit, and employees should always consult with their employer on which information they are permitted to collect.
- Understand your obligations. Providers should understand their obligations to their former and current employers. They need to be aware of how past employment agreements might still apply to their activity. They also should gain clarity from current employment on how any existing agreements affect their ability to offer services. As always, when providers consider leaving their place of employment, they should be well aware of any non-compete and non-solicit obligations that continue to apply to them in the future.
What Does This Mean for Employers?
For employers, the amendment may signal a shift in hiring and contractual practices. Here are a few key practices to adopt to help ensure your business is compliant:
- Review employment agreements for new hires. Employers should take proactive steps to verify during the hiring process whether a provider is bound by a non-compete or non-solicit agreement from a previous employer. If so, employers can adopt some of the practices mentioned above for providers, such as instituting a new intake process.
- Audit your agreements. It is always best practice to audit your current agreements to determine what, if anything, should be changed. Consult with knowledgeable employment counsel to craft agreements with employees that are tailored to your organization’s circumstances and business needs.
- Train your team. Implement an intake process and clear procedures to ensure your mental health providers are asking the right questions. Additionally, provide training to educate HR and management teams about the amendment's impact on employment practices to prevent potential legal disputes.
The 2025 amendment to the Illinois Freedom to Work Act is a step toward ensuring that veterans and first responders enjoy access to essential mental health care. The amendment attempts to prioritize the well-being of those who serve our communities. For mental health providers, this law attempts to remove a layer of limitation and may allow them to expand their services to clients they previously could not reach.