Illinois Adopts Comprehensive Non-Compete Statute Effective January 1, 2022

Non-Compete, Non-Solicit, Employment Agreement, Restrictive Covenant, Illinois

Governor Pritzker has signed a bill creating Illinois’ first comprehensive statute regulating the use of non-compete and non-solicit covenants. The law establishes bright-line, compensation-based rules regarding which employees can be required to sign such covenants and creates a mandatory pre-signature process designed to protect employees. The statute also codifies existing Illinois case law on the enforceability of such covenants without changing it substantially.

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