Law and the Workplace

Tag Archives: restrictive covenants

Illinois Governor Signs Restrictive Covenant Bill Into Law

By Steven J. Pearlman, Edward Young and Dakota D. Treece on Posted in Workplace Policies and Procedures
On August 13, 2021, Illinois Governor J.B. Pritzker signed into law an amendment to the Illinois Freedom to Work Act (820 ILCS § 90), which imposes restrictions on the use of non-competition and non-solicitation (employee and customer) restrictive covenants for Illinois employees. The law takes effect on January 1, 2022, and only applies to restrictive covenants … Continue Reading

President Biden Signs Executive Order Targeting Noncompetition Agreements

By John Barry, Daryl Leon and Abigail Rosenblum on Posted in Biden Administration Coverage, Non-Competes and Protection of Corporate Assets
Overview On July 9, 2021, President Biden signed an Executive Order on Promoting Competition in the American Economy (the “Order”), which, among other things, “encourage[s]” the “Chair of the [Federal Trade Commission (the “FTC”)] . . . to consider working with the rest of the Commission to exercise the FTC’s statutory rulemaking authority . . … Continue Reading

Illinois Legislature Seeks to Limit Use of Restrictive Covenants

By Steven J. Pearlman, Edward Young and Dakota D. Treece on Posted in Workplace Policies and Procedures
Two bills were recently introduced in the Illinois legislature that seek to limit or preclude the use of restrictive covenants for Illinois employers. First, on February 19, 2021, the Illinois House of Representatives introduced House Bill 3066 (accessible here), which seeks to eliminate the use of non-competition and non-solicitation restrictive covenants against Illinois employees unless … Continue Reading

Illinois Prohibits Non-Compete Agreements with Low-Wage Employees

By John Barry, Sunghee Sohn and Steven J. Pearlman on Posted in Non-Competes and Protection of Corporate Assets
Effective January 1, 2017, the Illinois Freedom to Work Act (the “Act”) will prohibit private sector employers from entering into non-competition agreements with employees earning a “low wage.”  The Act defines low-wage employees as those who earn the greater of: (a) the federal ($7.25 per hour), state ($8.25 per hour), or local (currently, $10.50 per … Continue Reading

Illinois Restrictive Covenants Harder to Enforce Post-Fifield and Montel

By Gray Mateo-Harris and Nigel F. Telman on Posted in Litigation and Arbitration, Non-Competes and Protection of Corporate Assets
Illinois employers are still reeling from the Illinois Supreme Court’s refusal to review the decision in Fifield v. Premier Dealer Services, Inc., No. 1-12-0327 (Ill. App. Ct., 1st Dist. June 24, 2013).  In Fifield, the First District Appellate Court ruled that employee non-competition and non-solicitation agreements supported by consideration consisting of less than two years … Continue Reading
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