Alerts6.28.21

Pending Illinois Legislation Will Restrict Employers’ Use of Non-Compete, Non-Solicit Agreements

IL

Highlights

Senate Bill 672, when signed by the governor, will amend the Illinois Freedom to Work Act, which governs non-compete and non-solicit agreements

Under the new law, Illinois employers that use non-compete and non-solicit agreements will be subject to new restrictions and requirements

Illinois employers should consider promptly reviewing their existing agreements and related practices to ensure they will comply with the new requirements


On May 31, 2021, the Illinois legislature unanimously passed Senate Bill 672, which is expected to be signed into law by Gov. JB Pritzker. Once signed, SB 672 will be effective Jan. 1, 2022, amending the Illinois Freedom to Work Act and making numerous significant changes that affect non-compete and non-solicit agreements for Illinois employees. 

Employers should consider promptly reviewing their existing form agreements and related practices in light of the pending law to ensure they will remain legally enforceable once the new law goes into effect.

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