As originally drafted, the Illinois Freedom to Work Act (IFWA) only barred employers from entering into non-compete agreements with “low wage employees,” i.e., those making no more than minimum wage or $13 per hour, whichever is greater. In 2022, the law is expanding to include broader limitations on non-competes and, for the first time, non-solicitation agreements.
The new IFWA will impact virtually all health care employers, including hospitals, medical practices, dental practices and others, which frequently use non-compete and non-solicitation agreements for their health care professionals. The following addresses several aspects of the law for health care providers.
Chris Bailey previously did an excellent job summarizing the law here, including additional details on certain notice requirements and enforcement of the IFWA.
When do the changes take effect?
The new requirements under the IFWA apply to agreements containing non-compete and non-solicitation agreements that are “entered into” after January 1, 2022.
So existing agreements are OK?
Generally, yes. However, the law does not define what it means to “enter into” an agreement, and there are some circumstances where the law’s application is open to interpretation.
First, agreements with physicians and other health care professionals are frequently amended or restated at various intervals. So even though an employment agreement may have been originally entered into prior to January 1, 2022, if the agreement is...
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