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ARTICLE · 14 SEPTEMBER 2021

Sweeping Changes Made To Illinois Restrictive Covenants Law

Taft, Stettinius & Hollister LLP
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On Aug. 13, 2021, Governor J.B. Pritzker signed into law the Illinois General Assembly's sweeping changes to Illinois law regarding employee non-compete and non-solicitation agreements (Restrictive Covenants).

United StatesEmployment and HR
Sukrat A. Baber
Sukrat A. Baber
Daniel R. Saeedi
Daniel R. Saeedi
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On Aug. 13, 2021, Governor J.B. Pritzker signed into law the Illinois General Assembly's sweeping changes to Illinois law regarding employee non-compete and non-solicitation agreements (Restrictive Covenants). This legislation (the Act) comes on the heels of several states that, in recent years, have enacted statutory reforms governing how Restrictive Covenants may be used by employers. The Act, which amends the Illinois Freedom to Work Act, provides several important changes to the current legal landscape in Illinois regarding Restrictive Covenants. 

The Act applies to all Restrictive Covenants entered into on or after Jan. 1, 2022. However, that does not mean that the Act has no effect on contracts entered into prior to this date. Because the Act modifies the current public policy of Illinois regarding Restrictive Covenants, it remains to be seen how courts will take into account some or all of its substantive provisions as they independently weigh considerations

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