Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.
Illinois Employee Restrictive Covenants
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FAQ
Section 10. Prohibiting covenants not to compete for low-wage employees. (a) No employer shall enter into a covenant not to compete with any low-wage employee of the employer. (b) A covenant not to compete entered into between an employer and a low-wage employee is illegal and void.
Sec. 10. Prohibiting covenants not to compete and covenants not to solicit. (a) No employer shall enter into a covenant not to compete with any employee unless the employee's actual or expected annualized rate of earnings exceeds $75,000 per year.
Restrictive covenants in Illinois must adhere to state law and be reasonable to be enforceable. Adequate consideration, such as two years of employment or suitable remuneration, is necessary for validity, especially for low-wage employees.
An employer cannot prohibit its employees from disclosing their own salaries, benefits or other compensation to other individuals.
The Act focuses on the ability of employers to enforce restrictive covenants with employees, including non-compete and non-solicitation agreements. Many employers across a wide range of industries have been implementing restrictive covenants with employees for a long time.
Although it is not an established rule, some Illinois courts have held that an employer must provide some benefit other than a job that you can be fired from at any time for a non-compete agreement to be enforceable.
Summary. Illinois law prohibits an employer from discriminating and retaliating against employees in a variety of protected classes. Employers must also provide pregnancy and religious accommodations, allow employees to access their personnel files and allow wage discussions. See EEO, Diversity and Employee Relations.
As of 2023, Illinois's minimum wage law guarantees at least $13 an hour for all non-tipped workers 18 years of age and older. But, the state allows tipped workers and minors to be paid a subminimum wage.
