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ARTICLE · 09 SEPTEMBER 2016

Illinois Limits Non-Compete Agreements Yet Again

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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.

United StatesEmployment and HR
Kevin Cloutier
Kevin Cloutier
Mikela Sutrina
Mikela Sutrina
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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 impact on private sector employers who routinely require all employees, regardless of job level or wage, to enter into non-competition agreements.

The Act expressly prohibits private sector employers from entering into a "covenant not to compete with any low-wage employee of the employer."  Any such agreement "is illegal and void."  The Act's definition of "covenant not to compete" is fairly broad, and includes any agreement that restricts the employee from performing:

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