The Illinois Freedom to Work Act limits employers’ ability to require employees accept non-competition and non-solicitation agreements as a condition of employment. A non-competition agreement forbids the employee from working for or starting their own competing business. A non-solicitation agreement forbids the employee from attempting to persuade the employer’s existing employees, customers or clients to leave the employer.
The most significant provisions of the Act are minimum income requirements for new non-competition and non-solicitation agreements to be enforceable. The Act prohibits non-competition agreements where the employee is paid less than $75,000 per year, and non-solicitation agreements where the employee is paid less than $45,000 per year. The minimum income for non-competition agreements increases $5,000 every five years, and the minimum for non-solicitation agreements by $2,500 every five years for the next 15 years.
For a non-competition or non-solicitation agreement to be enforceable, the employee must have either been employed for two full years prior to entering the agreement or have received other financial consideration for entering the agreement. The employee must also be advised in writing that they should consult with an attorney about the proposed agreement and be given 14 days to consider the agreement.
The maximum duration of a non-competition or non-solicitation agreement is “no greater than is required for the protection of a legitimate business interest of the employer.” The interest of the employer is evaluated by the court reviewing “the totality of the facts and circumstances” of each case.
If an employer attempts to enforce a non-competition or non-solicitation in violation of the Act, the law allows the employee to recover its attorney’s fees and court costs.
The law also authorizes the Illinois Attorney General to investigate employers where it believes the employer has engaged in a pattern or practice of violating the Act.