Starting January 1, 2022, certain amendments to the Illinois Freedom to Work Act take effect, and the amendments pertaining to non-competition agreements and non-solicitation agreements are going to shake up the HR world. Many states, most notably California, have recently taken a hard stance against such restrictive covenants, and Illinois is following suit, but with its own twist.
While “non-competes” and “non-solicits” will still be permitted in select cases (i.e. agreements related to the purchase or sale of a business or ownership interest or where the Shalt Nots and Shalls below have been met), the landscape is most definitely changing. Failure to comply can result in the modification/voiding of your agreement, your payment of the employee’s attorney’s fees/damages in court, and even penalties if investigated by the Attorney General of up to $10,000 per violation.
In an increasingly “remote” world, employees are joining teams from all over the world. It is essential that you consult with an attorney before using your templated employee on-boarding documents if you plan to hire an employee from out of state. Additionally, make sure to have your standard onboarding documents reviewed on a regular basis to ensure that you are staying up to date with employment law trends and legislation in your area.
This blog was written by Hunter Business Law Associate Haley Lemon.
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