November 27, 2021

Volume XI, Number 331

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November 24, 2021

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Illinois Law Places New Limits Restrictive Covenants

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.

© Polsinelli PC, Polsinelli LLP in CaliforniaNational Law Review, Volume XI, Number 237
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About this Author

Christopher Razo Attorney Labor Employment Polsinelli Chicago
Associate

Clients rely on Christopher Razo for his valuable legal counsel as they face complex workplace matters. His practice focuses on assisting clients with a wide variety of workplace related issues, including discrimination, retaliation, harassment, wage claims, reductions in force and affirmative action compliance. Prior to joining the firm, Christopher served as a summer associate at Polsinelli and as a law clerk for The United States Senate Committee on the Judiciary.

312-873-3672
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