Tuesday, March 8, 2011

Amendment Introduced to Proposed Illinois Covenants Not to Compete Act

As I wrote back in January, House Bill 16 in the Illinois General Assembly introduces a statutory framework for non-compete agreements in the State of Illinois. Though it is unlikely to work its way to the required "Third Reading" during the General Assembly's regular session for 2011, the bill has drawn a significant number of co-sponsors.

Rep. Rosemary Mulligan is back as Chief Sponsor. Even if the bill gains some traction (likely next year), there will be several changes. This week, an amendment was added to make clear that the Act does not apply to "news media." Readers of this blog are aware that Illinois is one of many states that exempt broadcast industry employees from post-termination non-compete agreements. The amendment offered likely only clarifies this exemption.

Other changes likely will concern the two-week notice provision for employees who are asked to sign a non-compete agreement. The recent Oregon law contains a similar requirement as House Bill 16.

I also would not be surprised to see some provision included in the bill that is specific to medical practices, perhaps along the lines of what the Texas Covenant Not to Compete Act provides. In addition to other criteria, the Texas statute provides that a physician must be allowed to buy out the covenant at a reasonable price. Non-compete disputes for physicians were the main impetus behind House Bill 16 and its predecessor.

No comments:

Post a Comment