01 Sep

September 2021: Illinois Enacts New Non-Compete Bill

Posted at

9:46pm

in

Update Applicable to:
All employers in Illinois.

What happened?
On August 13, 2021, Governor Pritzker signed SB 672 into law.

What are the details?
The law, effective January 1, 2022, makes changes to how and when employers can use restrictive covenants with Illinois Employees.

Some of the key information on the law’s changes are:

  • Prohibits the use of non-compete agreements with employees paid less than $75,000 per year.
  • Prohibits non-solicitation agreements for employees paid less than $45,000 per year.
  • Requires employers to provide employees “at least two years or more of continued employment” as consideration for signing a restrictive covenant, if at-will employment alone is the consideration for the agreement.
  • The law also requires employers to advise employees in writing to seek attorney consultation and provide at least 14 calendar days to review the agreement before signing.

The law can be found and read here.

An article detailing the law can be read here.

What do employers need to do?
Employers should review the law and their current restrictive covenant agreements and make any applicable changes to be in compliance once the law is effective.

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