Illinois employers will be required to comply with drastically different requirements for non-compete and non-solicitation agreements entered into with their employees on or after January 1, 2022. On August 13, 2021, Illinois Governor J.B. Pritzker signed amendments to the Illinois Freedom to Work Act (“IFWA”). These amendments create annual earning thresholds in the amount of $75,000 for non-compete agreements and $45,000 for non-solicitation agreements such that employees whose compensation falls below the respective thresholds cannot be required to enter into such agreements. These amendments will further require employers to inform existing employees and applicants of the right to consult with an attorney prior to entering into the agreement and provide a 14-day waivable review period to consider the agreement. Employers who fail to comply with the amendments once effective could be subject to investigations, enforcement actions, penalties, and even a prevailing employee’s reasonable attorney’s fees and costs.
During this webinar, Masuda Funai attorneys will:
- Review the current Illinois law on non-competition and non-solicitation agreements
- Explain the recently signed amendment requirements in detail
- Provide recommendations for employers who utilize such agreements with employees
Questions? Please contact Renee Medema at email@example.com or 312.245.7500.