Illinois employers now have a concrete measure of the risks associated with systemic noncompliance with the Illinois Freedom to Work Act. On October 9, 2026, the Illinois Attorney General announced a $1.9 million settlement with Equinox Holdings, Inc., the operator of well-known upscale fitness clubs, resolving allegations that the company required hundreds of Illinois employees to sign non-compete and non-solicitation agreements that violated the Act.
Under the settlement, Equinox agreed to pay $990,000 in restitution to affected employees and a $910,000 civil penalty. Equinox also agreed to bring its current agreements into compliance with the Act within 21 days and to provide annual training on the Act to managerial employees. The resolution demonstrates that restrictive-covenant compliance is not merely an enforceability issue that arises when an employer seeks to hold a departing employee to an agreement. A pattern of noncompliant agreements may itself lead to a government investigation, substantial monetary liability, remediation obligations, and ongoing compliance requirements.
The settlement followed a complaint filed in Cook County Circuit Court on October 7, 2026. The State alleged that Equinox employed more than 600 people in Illinois during the relevant period and entered into agreements containing non-competes, non-solicits, or both with more than 300 part-time or full-time employees whose...
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