Starting January 1, 2017, the new Illinois Freedom to Work Act will prohibit
private sector employers from entering into covenants
not-to-compete with "low-wage employees" who work in the
state, and render unenforceable any such restrictions that are
entered into on or after that date.
The Act defines a "low-wage employee" as one who earns
the greater of $13.00 per hour or the minimum wage required by
applicable federal, state, or local law. As of January 1, 2017,
that would include any private sector employee in Illinois who is
paid $13.00 per hour or less.
The Act defines a "covenant not to compete" as an
agreement between an employer and a low-wage employee entered into
on or after January 1, 2017, that restricts the employee from
performing any work for another employer for a specified period of
time, any work in a specified geographical area, or work for
another employer that is similar to the employee’s work for
the employer that is a party to the agreement.
