As if navigating Omicron spikes and OSHA's on-again, off-again vaccine mandate was not enough for employers, 2021 and 2022 marked significant changes in the legal landscape for Illinois businesses.
Here are the crucial action items you can take to ensure your business is compliant this year.
What changed?
Effective Jan. 1, the Illinois Freedom to Work Act now voids noncompete and non-solicitation clauses entered into on or after Jan. 1 if the employees executing the agreements do not earn above certain income thresholds: noncompete restrictions (prohibiting post-employment work for a competitor) are void unless an employee earns more than $75,000 annually and non-solicitation clauses (prohibiting post-employment solicitation of the employer's customers or employees) are void unless an employee earns more than $45,000 annually.
The act also requires that employees receive "adequate consideration" in connection with signing a restrictive covenant agreement, which the act defines as at least two years of employment after the agreement is signed, or some shorter period of employment coupled with a financial or professional benefit to the employee.
Significantly, the act also provides that employees may recover attorneys' fees from employers that lose a lawsuit to enforce the covenants.
Business action item:
Employers should audit current agreements containing restrictive covenants to ensure that terms are compliant with the...
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