In “Noncompete agreements are about to get more prickly,” labor and employment partner Greg Abrams addressed how a bill concerning noncompete and nonsolicitation agreements will affect Chicago companies.
According to Crain’s Chicago Business, the bill passed unanimously by lawmakers this spring and is awaiting Governor J.B. Pritzker’s signature. Under the bill, employers are prohibited from imposing noncompetes on workers earning below $75,000 and from using nonsolicitation agreements on those making below $45,000.
Abrams said the bill mirrors a national trend of lawmakers trying to limit noncompetes. The changes, particularly the attorneys’ fees provisions, increases the risk of trying to enforce a noncompete in court.
“Employers, no doubt, are going to have to be more careful, and there’s going to be more uncertainty with new legislation like this,” Abrams explained. “As far as the underlying reasons why employers have noncompete agreements in the first place, this would cut against that.”