A bill called the Illinois Freedom to Work Act was amended last year and the new changes took effect on January 1, 2022. The amendment addressed several common issues involved in non-compete agreements, including setting minimum salary thresholds for when such agreements are legal, parameters to ensure they are fair, and conditions to protect employees laid off, fired, or furloughed for Covid-19-related situations.
Non-compete contracts can be highly restrictive and it may be in your best interests to negotiate or dispute them. If you are considering signing a non-compete clause, speak with an experienced Illinois business law attorney first. If you have already signed a non-compete clause, a business law attorney may still be able to help you challenge an unfair or illegal contract.
What is a Non-Compete Clause or Agreement?
Depending on the type of agreement, a non-compete clause can restrict an employee from working for another employer in a similar capacity, working in a specific geographic area, or working at all for a specific period of time. These clauses often contain vague language around when the clause can kick in, including being fired or laid off for any reason. Violating the terms of a non-compete agreement can result in serious financial consequences for the employee.
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