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By: Rebecca K. Wohltman

Effective for agreements entered into on or after January 1, 2022, Illinois law regarding non-compete and non-solicitation agreements is changing.

Employers cannot enter into non-compete agreements with employees who earn less than $75,000 per year. This $75,000 salary threshold will increase by $5,000 every 5 years, until the threshold reaches $90,000 in 2037.

Employers cannot enter into non-solicitation agreements with employees who earn less than $45,000 per year. This $45,000 salary threshold also increases – by $2,500 every 5 years, until the threshold reaches $52,500 in 2037.

Further, employers must advise employees to consult with an attorney before signing a non-compete or a non-solicitation agreement. The employer must give the employee at least 14 days to review the agreement and decide whether the employee wants to sign the agreement, though the employee can sign the agreement before the expiration of the 14-day period.

Finally, if an employer files a complaint to enforce a non-compete or a non-solicitation and the employer loses, the employee can be awarded his or her costs and reasonable attorneys’ fees, whether the claim is filed in court or through arbitration.

It will be important to review your form non-compete and non-solicitation agreement to ensure that they comply with the new requirements, particularly the salary requirements.

Professional Services Disclaimer: Please note that the information presented here is as an educational service, and while it contains information about legal issues, it is not legal advice. No warranty is made regarding the applicability of the information presented to a particular client situation, and the information set forth is not a substitute for original legal research, analysis and drafting for a particular client situation.