non solicitation of employees illinois template

Third, the Bill provides courts with the discretion to “blue pencil” restrictive covenants. Under the Bill, the “adequate consideration” requirement is met if: (1) the employee worked for the employer for two years after signing the non-compete or non-solicit agreement or (2) the employer otherwise provided adequate consideration to support a non-compete or non-solicit, such as “a period of employment plus additional professional or financial benefits or merely professional or financial benefits adequate by themselves.” The Bill does not provide guidance as to either of these “benefits” prongs. To constitute sufficient consideration for restrictive covenants under Fifield, continued employment must last at least two years. Premier Dealer Services, Inc., 933 N.E.2d 938 (Ill. Second, it adopts the “two year” Fifield consideration rule, first established in Fifield v. This rule requires courts to assess the “totality of the facts and circumstances of the individual case” when determining whether a restrictive covenant is necessary to protect a legitimate business interest. First, it adopts the legitimate business interest rule delineated by the Illinois Supreme Court in Reliable Fire v. With these new considerations, the Bill also codifies certain aspects of Illinois common law. In addition, non-competition agreements and non-solicitation agreements will be deemed illegal and void unless the employer advises the employee in writing to consult with an attorney prior to signing the agreement and further provides the employee with at least 14 calendar days to review the agreement. These annualized earning thresholds increase periodically beginning in 2027. The Bill prohibits non-competition agreements with employees earning $75,000 or less and non-solicitation covenants with employees earning $45,000 or less. The amendments become effective on Januand will not apply retroactively.

We detailed the Bill in a prior blog here. On May 30, 2021, the Illinois General Assembly passed a bill codifying existing noncompete law in some respects and modifying it in others. On August 13, 2021, Governor Pritzker signed into law a bill amending the Illinois Freedom to Work Act governing restrictive covenants and non-competition agreements.

Non solicitation of employees illinois template