Illinois Restricts Use of Non-Competition Agreements

Illinois restricts use of non-competition and non-solicitation agreements

New Rules Affect Employers

Effective January 1, 2022, employers will need to comply with significant new rules which restrict the use of employee non-competition and non-solicitation provisions.

Among other changes, the recent amendments to the Illinois Freedom to Work Act prohibit employers from entering into non-competition agreements with employees who earn less than $75,000 annually and from entering into non-solicitation agreements with those earning less than $45,000.

The law also requires any agreements containing such restrictive covenants to provide upfront and explicitly reference an additional professional or financial benefit.

Attorney General Given Power to Investigate

The Attorney General has been given the power to investigate and fine employers it believes are “engaged in a pattern or practice prohibited” by the law.

Whether you need to revise your employment agreements or investigate other options to protect your customers and confidential information, the attorneys at Kelleher + Holland, LLC can assist you.