I am proud to write that the Illinois legislature passed quite a bit of substantive legislation that was signed into law by Governor Pritzker. Business owners need to be aware of what new laws are passed every year.
This post shares summaries of a limited number of business-related laws that Illinois companies should know about.
Noncompete Agreements (Corporate Law): Two new provisions were added Illinois law. First, all covenants not to compete or not to solicit governing “individuals employed in construction” are null and void. No collective bargaining agreement will interfere with this statutory ban. Second, any covenant not to compete or covenant not to solicit governing mental health services provided to veterans and first responders. Any such provision will not be enforceable if it (A) increases the cost or (B) decreases the availability of mental health services to veterans or first responders. Each statute became effective immediately when it was enacted in August.
Artificial Intelligence (Employment Law): The legislature made it clear use of AI toward improper discrimination is illegal–yes, this was already illegal. What matters is that employers must inform their employee if AI is used in their employment decision making no later than January 1, 2026.
Digital Likeness (Professional Service Agreements): What is most notable is that the statute (1) deems all such contracts unenforceable unless the service provider was represented by a union or an attorney; and (2) requires clarification of the intended uses of the digital likeness in the agreement.
Potential Liability (LLCs): The LLC Act was amended to make it clear the LLC Act permits “veil piercing ” claims to resolve a dispute between Illinois appellate courts.
Parking for Disabled Residents (Condominiums): Accommodations must be made regardless of whether the parking is on Association property.
David Seidman is the principal and founder of Seidman Law Group, LLC. He serves as outside general counsel for companies, which requires him to consider a diverse range of corporate, dispute resolution and avoidance, contract drafting and negotiation, and other issues.
He can be reached at david@seidmanlawgroup.com or 312-399-7390.
This blog post is not legal advice. Please consult an experienced attorney to assist with your legal issues.
Photo Credit: New Laws of Interest – Austin Lawyer (austinlawyeronline.com)
