NewsTRISTAN & CERVANTES NEWS | September 21, 2016

Illinois Freedom Work Act
Illinois Governor Bruce Rauner recently signed into law the Illinois Freedom Work Act (“Act”). As of January 1, 2017, Illinois employers are prohibited from entering into non-compete agreements with “low-wage employees.”
A “low-wage employee” is defined as someone who earns minimum wage. The Act now bans employers from entering into agreements with these “low-wage employees,” which would prevent the employee from: 1.) working with another employer for a specified period of time; 2.) working in a specified geographical area; or 3.) doing a similar type of work. The Act does not ban employers from using non-disclosure provisions, confidentiality provisions, or non-solicitation provisions.
Some speculate that the creation of this new law was prompted by the June 2016 lawsuit between the Illinois Attorney General and the Illinois based franchise, Jimmy John’s regarding Jimmy John’s “highly restrictive” non-compete agreements with its low wage employees.
Employers are advised to review their employee handbooks to make sure that they are not requiring minimum wage employees to sign non-compete agreements. Tristan & Cervantes has provided counsel to numerous employers regarding employment related issues. If you have any questions regarding this new law, please feel free to contact us. For a full copy of the Act, please visit http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=099-0860