Supplemental materials for LEAP 2025 session Protecting Your Business Interest When Employer Agreements Are Under Attack
Q: I work in HR for a construction firm in Illinois. I heard that there was a national ban on noncompete agreements, but I am unclear on when or if that happened. I am also unclear what rules apply in Illinois.—A.F., Illinois
A: First things first: In September, a federal court struck down a Federal Trade Commission proposed ban on noncompete agreements. The court said the proposed ban was “arbitrary and capricious” and outside the power of the FTC to enact. It would have banned noncompete agreements nationwide. With the arrival of a new administration this month, it’s unlikely the FTC will attempt to revive the ban.
Second, the law in Illinois is complicated and about to get more complicated in the construction industry. Here is an interactive map of states that have various forms of noncompete bans. If you click through to Illinois, you will see that there are some recent rules affecting the construction industry in Illinois, including a legislated change that took effect on Jan. 1. That statute is found here.
Advice: Illinois employers in the construction industry should consult an Illinois attorney to determine what, if anything, they need to do to conform with the new rules.
Interested in joining HR Employment Law Advisor? For a limited time, LEAP 2025 attendees can get an annual membership at 30% off at https://www.hremploymentlawadvisor.com/leap30.
