News & Analysis as of September 18, 2024

Non-Compete Agreements › Freedom To Work Act

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Non-Compete Agreements are contracts, typically formed in employment or business purchase contexts, where one party agrees to refrain from engaging in a particular line of work or pursuing business within a certain industry or locale. The purpose of these agreements is to protect employers or business purchasers from competition stemming from former employees or former owners of a business. less -

The Future of Restrictive Covenants in Illinois

Fox Rothschild LLP on 7/20/2023

With federal regulations becoming stricter and the potential near erasure of non-competes under state laws such as that of New York, it is important to take a renewed look at legal requirements surrounding restrictive...more

Illinois Amends Nurse Agency Licensing Act to Bar Non-Competes, Add Reporting, Contract Obligations

Jackson Lewis P.C. on 9/7/2022

Amendments to the Illinois Nurse Agency Licensing Act (HB 4666) aim to promote transparency and protections for healthcare workers, but, in practice, they make it more difficult for nurse staffing agencies to retain...more

Major Changes to Illinois’ Non-Compete and Non-Solicit Laws: Company Agreements Likely Require Revision

Perkins Coie on 3/2/2022

As of January 1, 2022, Illinois employers are more limited in their ability to bind employees to non-competition and non-solicitation agreements. These changes stem from a recent amendment to the Illinois Freedom to Work Act,...more

Illinois Non-Competes: Is Two Years of Employment Required?

Vinson & Elkins LLP on 1/14/2022

Can an employee working for an Illinois company bust their non-compete by resigning after 1 year and 364 days of employment? The new year brought with it an attempt by the State of Illinois to resolve that question with a...more

Updated: Illinois Freedom to Work Act Imposes New Restrictions on Restrictive Covenants

Quarles & Brady LLP on 8/31/2021

Joining a recent slew of other states, Illinois recently enacted a new law limiting the use of restrictive covenants and codified existing case law around their enforcement and interpretation. ...more

Non-Compete News: Illinois Legislature Changes the Game on Non-Compete Agreements

FordHarrison on 8/26/2021

It’s no secret that Illinois courts have historically been less than friendly to restrictive covenants, and non-compete agreements in particular. On August 13, 2021, Governor JB Pritzker signed into law Public Act 102-0358,...more

Amendments to the Illinois Freedom to Work Act Add Substantive Requirements and Limitations for Non-Compete and Non-Solicitation...

Laner Muchin, Ltd. on 6/21/2021

Non-compete and non-solicitation agreements (“restrictive covenants”) can be a helpful tool for protecting a business, as they allow employers to restrict their employees’ ability to seek employment with competitors and/or...more

Illinois Enacts Sweeping Reforms to Non-Compete and Non-Solicit Agreements - What All Employers Need To Know

BCLP on 6/21/2021

The Illinois General Assembly has enacted sweeping changes to the Illinois Freedom to Work Act, 820 ILCS § 90, et seq. (the “Act”), which will limit the use of covenants not to compete (“non-competes”) and covenants not to...more

Illinois Bill Modifying Non-Competition Agreements Nears Enactment

Holland & Knight LLP on 6/9/2021

Illinois Gov. JB Pritzker is expected to soon sign into law a bill that will make significant changes to the Illinois Freedom to Work Act and affect the enforceability of employee non-competition provisions. The General...more

Amendments to the Illinois Freedom to Work Act: Significant Changes Coming to Illinois Noncompete and Nonsolicitation Agreements

Faegre Drinker Biddle & Reath LLP on 6/8/2021

Restrictive covenants are intended to protect an employer’s legitimate business interests following an employee’s departure from the business. While these agreements are quite common, Illinois law in this area has evolved...more

Illinois Legislature Considering Freedom To Work Act Amendments That Target Non-Compete And Non-Solicitation Clauses

Amundsen Davis LLC on 4/20/2021

In recent years, many states have enacted legislation directed at employment contracts containing non-compete and non-solicitation clauses. Illinois first did so in 2016 with the Freedom to Work Act (the Act), which bans...more

Illinois Attorney General Wages War Against Low-Wage Non-Competes

Fisher Phillips on 10/31/2017

Last week, the Attorney General of Illinois filed suit against Check Into Cash, LLC, alleging that the payday lender required its low-wage customer service employees to agree to illegal non-compete agreements in violation of...more

Employers Should Keep An Eye On the Non-Compete Reform Movement

Akerman LLP - HR Defense on 12/8/2016

Employers who require all employees to sign a form non-competition agreement regardless of the state in which the employee is located or the type of work performed by the employee should think twice before doing so. Recent...more

"Employment Flash - October 2016"

Skadden, Arps, Slate, Meagher & Flom LLP on 10/31/2016

Spotlight on Whistleblower Protections - On October 24, 2016, the Securities and Exchange Commission (SEC) issued a “risk alert” regarding SEC registrants’ compliance with Rule 21 F-17, which implements Section 21F of...more

Recent Illinois Law Prevents Use of Non-Competition Agreements for “Low-Wage Employees”

Clark Hill PLC on 9/21/2016

On August 19, 2016, Governor Bruce Rauner signed into law the Illinois Freedom to Work Act (the “Act”), which prohibits private sector employers from entering into non-competition agreements with their “low-wage employees”. ...more

Government Attacks on Non-Compete Agreements Continue

Orrick - Trade Secrets Group on 9/16/2016

Non-compete agreements have long been used by employers as an effective tool to protect their valuable trade secrets and confidential information. However, employers’ overuse of non-compete agreements and employers’ practice...more

New Illinois Law Restricts Use of Employee Non-Compete Agreements

Franczek P.C. on 9/9/2016

Governor Bruce Rauner has signed into law the Illinois Freedom to Work Act, prohibiting private sector employers from requiring their “low-wage employees” to sign non-compete agreements. The Act takes effect on January 1,...more

Illinois Limits Non-Compete Agreements Yet Again

Sheppard Mullin Richter & Hampton LLP on 9/8/2016

On August 19, 2016, Governor Bruce Rauner officially signed into law the Illinois Freedom to Work Act (the “Act”), with an effective date of January 1, 2017. The Act, while short and to the point, will have a significant...more

New Non-Compete Law Regarding Low-Wage Workers Passes in Illinois

Littler on 8/31/2016

In the wake of increasing federal and state scrutiny on the use of non-compete agreements for lower wage workers, Illinois has enacted the Illinois Freedom to Work Act (the “Act”). The Act, which applies to agreements entered...more

Illinois Prohibits Non-Compete Agreements with Low-Wage Employees

Proskauer - Law and the Workplace on 8/30/2016

Effective January 1, 2017, the Illinois Freedom to Work Act (the “Act”) will prohibit private sector employers from entering into non-competition agreements with employees earning a “low wage.” The Act defines low-wage...more

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Non-Compete Agreements › Freedom To Work Act

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