On January 1, 2022, Public Act 102-0358, an amendment to the Illinois Freedom to Work Act will take effect and impact all non-compete agreements entered into prospectively. The law will ban employers from using non-compete agreements with employees earning less than $75,000 and from using non-solicitation agreements with employees earning less than $45,000. The law will not affect non-disclosure agreements entered with employees, regardless of income level.

The law also requires an employer to provide a 14-day period to consider a non-compete or non-solicitation agreement and to advise the employee to consult with an attorney before entering into such an agreement.

Illinois’ new law continues a recent trend limiting the scope of restrictive covenants, including, for example, at the federal level and in the District of Columbia.