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Home > State Law Articles > Illinois > Restrictive Covenants (IL)

Articles Discussing Restrictive Covenants In Illinois.

Illinois Amends Nurse Agency Licensing Act to Prohibit Noncompetes and Add New Reporting Requirements

August 12, 2022 | Ogletree Deakins Filed Under: Restrictive Covenants (IL)

With little press coverage, Illinois just amended the Nurse Agency Licensing Act (House Bill (HB) 4666) to prohibit noncompete agreements between nurse staffing agencies and nurses or certified nursing assistants (CNAs) and impose additional reporting requirements.

Non-Compete News: Illinois Legislature Changes the Game on Non-Compete Agreements

August 25, 2021 | Ford Harrison Filed Under: Restrictive Covenants (IL)

It’s no secret that Illinois courts have historically been less than friendly to restrictive covenants, and non-compete agreements in particular. On August 13, 2021, Governor JB Pritzker signed into law Public Act 102-0358, an amendment to Illinois’ “Freedom to Work Act,” which both codifies existing requirements under Illinois precedent, and imposes new restrictions on when, with whom, and under what circumstances Illinois will enforce non-compete and non-solicitation agreements.

Governor Pritzker Signs Illinois Noncompete Legislation Into Law

August 24, 2021 | Ogletree Deakins Filed Under: Restrictive Covenants (IL)

On August 13, 2021, Illinois Governor JB Pritzker signed into law Senate Bill (SB) 672, an amendment to the Illinois Freedom to Work Act. While the law codifies substantive Illinois common law on restrictive covenants, it also sets forth new and important limitations and requirements regarding the use of noncompete

Employers: Restrictive Covenant Reform Is Coming to Illinois in 2021

June 17, 2021 | Franczek P.C. Filed Under: Restrictive Covenants (IL)

Recently, the Illinois General Assembly passed legislation significantly amending the Illinois Freedom to Work Act, which governs the legality and enforceability of non-compete agreements and other post-employment restrictive covenants. The new law imposes some new restrictions on the use of […]

The post Employers: Restrictive Covenant Reform Is Coming to


Illinois Passes Bill to Further Limit Restrictive Covenants for Employees

June 9, 2021 | Jackson Lewis Filed Under: Restrictive Covenants (IL)

Jackson Lewis

After extensive negotiations between interest groups representing both employees and businesses, the Illinois General Assembly passed a major bill on May 31, 2021, that further limits and clarifies the circumstances in which restrictive covenants can be enforced against Illinois employees. Illinois Governor J. B. Pritzker is expected to sign

Illinois Renews Effort to Enact Expansive Restrictive Covenant Legislation

February 17, 2021 | Ogletree Deakins Filed Under: Restrictive Covenants (IL)

In 2016, Illinois enacted the Illinois Freedom to Work Act (IFWA). In doing so, it became one of the first states to pass legislation in response to the Obama administration’s Call to Action, which asked states to amend their restrictive covenant laws to, among other things, ban covenants not to

A Not So Sweet Deal for Employers Seeking to Protect Trade Secrets Under the Inevitable Disclosure Doctrine

February 11, 2020 | Franczek P.C. Filed Under: Restrictive Covenants (IL)

An Illinois appellate court recently clarified the outer limits of the controversial “inevitable disclosure doctrine” under the Illinois Trade Secrets Act.

Illinois Poised to Ban Salary History Inquiries

June 9, 2019 | Franczek P.C. Filed Under: Restrictive Covenants (IL)

Among the bills awaiting signature by Illinois Governor J.B. Pritzker is an amendment to the Illinois Equal Pay Act of 2003 that would ban employers from asking job applicants for information about their wage, salary or benefits history. Governor Pritzker is expected to sign the bill, HB834. With this new law, Illinois joins at least 12 other states and multiple counties and municipalities in restricting employers’ ability to obtain or use applicants’ compensation history in the process of hiring and setting compensation.

Non-Compete News: Is Your Non-Compete Clause Too Broad? An Illinois Court Offers Guidance

April 24, 2018 | Ford Harrison Filed Under: Restrictive Covenants (IL)

Executive Summary: When drafting restrictive covenants, employers face a common dilemma about the scope of activities to be restrained. On the one hand, highly focused non-compete language tends to be more enforceable but might not protect the company’s legitimate business interests. On the other, a one-size-fits-all blanket prohibition is more comprehensive but runs the risk it will be unreasonably broad and unenforceable. A recent decision by a federal court in Illinois, Medix Staffing Solutions, Inc. v. Dumrauf (N.D. Ill. Apr. 17, 2018), draws a bright line regarding when a non-compete clause is overbroad as a matter of law. Notably, the court rejected language used frequently in non-compete covenants throughout the country, finding the language so all-encompassing as to be entirely unreasonable.

The Second Circuit Provides A Roadmap For Employers Defending Claims Under Illinois’ Biometric Information Privacy Act

December 7, 2017 | Littler Filed Under: Restrictive Covenants (IL)

Littler

While the emergence of biometric technology in the workplace is not a new phenomenon, employers being sued for utilizing this technology is a new trend. Over the past three months, more than 30 class action lawsuits have been filed in Illinois state and federal courts against employers that use timeclocks that scan an employee’s fingerprint, retina, or iris to clock employees into and out of work (“biometric timeclocks”).1 The lawsuits allege violations of Illinois’ Biometric Information Privacy Act (“BIPA”), which governs the collection, use, and disclosure of biometric data2 by entities in Illinois.

Illinois Statute Bars Non-Competes For Low-Wage Workers

August 26, 2016 | Jackson Lewis Filed Under: Restrictive Covenants (IL)

Jackson Lewis

Illinois has a new non-compete statute that bans the use of non-compete agreements with “low-wage” employees.

Consideration for Non-Competes in Illinois: You’re Better Off in Federal Court

March 18, 2016 | Jackson Lewis Filed Under: Restrictive Covenants (IL)

Jackson Lewis

The saga of “What consideration is adequate?” in Illinois continues. What has become clear is that federal courts are more forgiving than Illinois state courts on this issue.

Illinois Appellate Court Finds Non-Compete Restrictions Over-Reaching and Affirms Court Decision Not to Blue Pencil

November 13, 2015 | Jackson Lewis Filed Under: Restrictive Covenants (IL)

Jackson Lewis

A recent decision from an Illinois Appellate Court suggests that employers with non-compete agreements “built to scare” may end up with an unenforceable contact and even the loss of confidential information under Illinois law. AssuredPartners, Inc. v. Schmitt (October 27, 2015 1st Dist.)

Some Clarity to What is Sufficient Consideration for Non-Competes in Illinois

July 22, 2015 | Jackson Lewis Filed Under: Restrictive Covenants (IL)

Jackson Lewis

Since the much-discussed Fifield case from the Illinois appellate court two years ago, all that could be said with confidence was that, unless someone was employed for at least two years after signing a restrictive covenant agreement, its enforceability was highly questionable. Practitioners in Illinois have been recommending that employers provide consideration in addition to employment, such as a “sign on” bonus tied to the restrictions or any other consideration that would not be given but for the individual’s agreement to the restrictions. In the next breath, practitioners have been telling their clients that even the additional consideration might not be enough to bind employees employed for less than two years. Uncertainty is everyone’s enemy in this area, and there has been great uncertainty for the past two years. But that uncertainty recently has been reduced by the same appellate court’s ruling in McInnis v. OAG Motorcycle Ventures, Inc. decided June 25, 2015 by the Illinois Appellate Court for the First District, albeit by a 3-judge panel different from the panel that decided Fifield.

Illinois Federal Court Questions Fifield

March 31, 2014 | Jackson Lewis Filed Under: Restrictive Covenants (IL)

Jackson Lewis

A recent Illinois federal court decision has called into question the much begrudged holding from the Illinois Appellate Court for the First District, First Division, in Eric Fifield and Enterprise Financial Group, Inc. v. Premier Dealer Services, Inc., 373 Ill. Dec. 379, 993 N.E. 2d 938 (Ill. App. Ct. June 24, 2013).

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