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Laner Muchin Associate Elizabeth Rice Discusses New Illinois Employee Noncompete Clause Limits in Bloomberg Law News


Laner Muchin Associate Elizabeth Rice was quoted in a recent Bloomberg Law News article discussing new employee noncompete clause limits and their potential ramifications for employers.

Three states, including Illinois, have adopted or amended laws that would limit, if not prevent, businesses from using noncompete provisions to block low-wage workers from moving to competitors. The new and amended laws aim to stem the increasingly prevalent practice and could signal federal regulation to come.

“Employers are going to have to think more critically about, ‘Who am I going to enter into these agreements with and what business interests am I trying to protect?’” Elizabeth explains.

The limits likely follow a similar plan to any federal limits on noncompetes that may come out of the Biden administration. In Illinois, a measure awaiting the signature of Governor Pritzker would bar employers from requiring a noncompete contract for any employee making less than $75,000 annually. The Illinois legislation amended restrictions already at play by increasing the salary thresholds and imposing other rules.

Employers must also be aware that the new Illinois legislation allows the state attorney general to pursue enforcement action related to noncompete contracts and potentially win civil penalties.

To read the full article in Bloomberg Law News, click here.

Elizabeth counsels public and private sector employers to effectively minimize their liability by providing strategic advice on a plethora of day-to-day employment issues, such as employment policies and practices, risk management, employee discipline concerns and accommodations. Elizabeth also defends public and private sector employers against claims of discrimination, harassment, retaliation and wage and hour claims, including claims arising under Title VII, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Illinois Human Rights Act and the Illinois Wage Payment & Collection Act.

Firm Profile: Laner Muchin, Ltd. concentrates in the representation of employers in labor relations, employment litigation, employee benefits and business immigration matters. The firm provides legal services to clients from coast to coast.

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