Illinois Passes Landmark Restrictive Covenant Legislation

On August 13, 2021, a significant amendment to the Freedom to Work Act became law in Illinois. The new legislation will provide Illinois employees greater protections in the areas of employee non-competition and non-solicitation agreements entered into beginning in 2022.

Highlights of the law include: (i) $75,000 minimum annual compensation for employees subject to non-competes ($45,000 for non-solicits); (ii) codification of the two-year minimum employment rule where at-will employment is the only consideration supporting the covenant; (iii) a 14-day period for employees to review non-competes and/or non-solicits before signing; and (iv) mandatory attorney's fees for prevailing employees in enforcement actions brought by employers.