January 29, 2022

Volume XII, Number 29

Advertisement
Advertisement

January 28, 2022

Subscribe to Latest Legal News and Analysis

January 27, 2022

Subscribe to Latest Legal News and Analysis

January 26, 2022

Subscribe to Latest Legal News and Analysis
Advertisement

Illinois Governor Signs New Non-Compete Bill

The Illinois General Assembly passed a major bill in May that significantly alters how and when employers can use restrictive covenants with Illinois employees.  Illinois Governor JB Pritzker signed the bill into law on August 13, 2021, and it will go into effect January 1, 2022.

We provided details and analysis on the new law here.  At a high level, the new law: (a) prohibits the use of non-compete agreements with employees paid less than $75,000 per year; (b) prohibits non-solicitation agreements for employees paid less than $45,000 per year; and (c) codifies the rule under Fifield and Enterprise Financial Group, Inc. v. Premier Dealer Services, Inc., 373 Ill. Dec. 379, 993 N.E. 2d 938 (Ill. App. Ct. 2013), requiring employers to provide employees with “at least two years or more of continued employment” as consideration for signing a restrictive covenant, if at-will employment alone (as opposed to some other “professional or financial benefits”) is the consideration for the agreement. The law also requires employers to advise employees in writing to seek attorney consultation and provide at least 14 calendar days to review the agreement before signing.

Illinois employers are encouraged to review their current restrictive covenant agreements and bring them into compliance before the January 1, 2022 effective date of the amendments.

Jackson Lewis P.C. © 2022National Law Review, Volume XI, Number 236
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Gregory H. Andrews, jackson lewis, chicago, trade secrets lawyer, restrictive covenants attorney
Principal

Gregory H. Andrews is a Principal in the Chicago, Illinois, office of Jackson Lewis P.C. His litigation experience is focused on representing employers of all sizes in a wide variety of industries in ADA, FMLA, Title VII and FLSA single plaintiff and class action cases.

Much of Mr. Andrews work is focused on representing employers in unfair competition, trade secret and restrictive covenant cases in state and federal courts as well as at FINRA. He has successfully guided employers through numerous arbitrations, trials, and...

(312) 787-4949
Advertisement
Advertisement
Advertisement