Illinois Freedom to Work Act (820 ILCS 90) Non-Compete & IP Assignment Redline Auditor
Under the Illinois Freedom to Work Act (820 ILCS 90/1 et seq.), an employer’s non-compete or non-solicitation covenant is illegal and void unless: (1) the employee earns above the statutory salary floor ($75,000+ for non-competes / $45,000+ for non-solicits, escalating every 5 years); (2) the employer gives 14 calendar days to review the covenant before starting; AND (3) where "at-will employment alone" is the consideration, the employee actually works for the employer for at least 2 full years after signing (or receives equivalent financial/professional consideration)! In addition, the Illinois Employee Patent Act (765 ILCS 1060/2) protects personal inventions.
Physician Group Hit With $195,000 Uninsured Prior-Acts Gap & 80/20 Hammer Penalty After Switching Carriers
When a surgical practice switched malpractice carriers to save 12% on premium, the new binder silently set the Claims-Made Retroactive Date to the new policy inception date and included an 80/20 Hammer Clause—leaving a claim from a surgery 14 months earlier 100% uninsured.
EndorseIQ™ verifies the Declarations Retroactive Date matches the original career Prior Acts Date, replaces 80/20 Hammer Clauses with Pure Consent to Settle, and caps ERP Tail at 150%.
Check Your Full Contract PDF for Cross-Section Overrides (Free 60s Scan)
Fixing one clause alone often fails when a buried definition, exhibit, or survival clause elsewhere in your Medical & Professional Malpractice neutralizes your protection. Drop your PDF or Word (.docx) below for an instant, 100% anonymous cross-section audit.
“Illinois 820 ILCS 90 & 765 ILCS 1060 Protection: (a) Pursuant to the Illinois Freedom to Work Act (820 ILCS 90/15), the restrictive covenants herein shall be null and void if Employee is terminated without Cause prior to completing twenty-four (24) months of employment (unless Company pays at least 6 months of garden-leave severance consideration); (b) Customer non-solicitation is limited strictly to clients with whom
What to Say to the Malpractice Carrier & Employer / Hospital Group
"Under the Illinois Freedom to Work Act (820 ILCS 90/15), we need the agreement to state that the non-compete waives if I am terminated without Cause within the first 24 months (or is paired with guaranteed severance), and include the 765 ILCS 1060/2 invention carve-out."
Why they drafted it this way: Employers hand Illinois hires a non-compete on Day 1 without additional cash/equity consideration, hoping you don’t know that Illinois law requires 2 years of continued employment (or independent financial consideration) for the non-compete to stick.
Mandatory Audit Checklist Points
- Enforce 820 ILCS 90/15: Void the non-compete if employment ends within 24 months without separate financial/severance consideration
- Enforce 820 ILCS 90/20: Employer must provide 14 calendar days advance written review notice and advise consulting an attorney
- Include the Illinois Employee Patent Act (765 ILCS 1060/2) statutory carve-out and Exhibit A Prior Inventions
Paste Your Illinois Freedom to Work Act 820 ILCS 90 non-compete redline Section or Upload Your Full Medical & Professional Malpractice (.pdf / .docx)
Check if your draft has a hidden loophole or cross-section override. Click ⚡ Preview Sample Audit (Instant) to see a live demo in 0.2s, or upload your own PDF / Word (.docx) contract below:
EndorseIQ™ Policy & Binder Scanner
ACTIVE ENGINE: ENDORSEIQ™ (MULTI-HOP ISO & COVERAGE GRAPH)Frequently Asked Questions
What is the "2-Year Rule" under the Illinois Freedom to Work Act (820 ILCS 90/15)?
Under 820 ILCS 90/15, "adequate consideration" for a non-compete or non-solicit requires EITHER (1) the employee working for the employer for at least 2 years after signing, OR (2) the employer providing independent professional or financial benefits (such as a signing bonus, equity grant, or guaranteed severance) adequate by themselves to support the restriction.
How do I redline Illinois Freedom to Work Act 820 ILCS 90 non-compete redline traps in my Medical & Professional Malpractice anonymously without creating an account?
Upload your Medical & Professional Malpractice PDF or Word (.docx) draft to ExclusionRadar.com to run the "Illinois Freedom to Work Act (820 ILCS 90) Non-Compete & IP Assignment Redline Auditor" defense cartridge 100% anonymously—with zero account registration, zero email login, and stateless in-memory processing. EndorseIQ™ flags Illinois Freedom to Work Act 820 ILCS 90 non-compete redline exposure (typically $50,000 – $250,000 in voidable IL non-competes & retained side IP; documented unredlined loss: $195,000 uncovered prior-acts claim & defense haircut), checks for cross-section overrides, and exports a ready-to-send Microsoft Word (.docx) Track-Changes file.
More Medical & Professional Malpractice Redline Playbooks
View All Medical & Professional Malpractice PlaybooksMassachusetts Noncompetition Agreement Act (M.G.L. c. 149, § 24L) Garden Leave Redline
Under the Massachusetts Noncompetition Agreement Act (M.G.L. c. 149, § 24L), any post-employment non-compete signed by a Massachusetts resident or employee is STATUTORILY UNENFORCEABLE if you are laid off or terminated without Cause! Furthermore, even if you resign voluntarily, § 24L requires the agreement to include either a "Garden Leave Clause" paying at least 50% of your highest annualized base salary during the restricted period OR "other mutually-agreed upon consideration" explicitly specified in the contract—which employers constantly try to replace with a token "$1,000 signing bonus" loophole!
Colorado Non-Compete Statute (C.R.S. § 8-2-113) & Overbroad NDA Redline Auditor
Colorado’s restrictive covenant statute (C.R.S. § 8-2-113) imposes a $5,000 per-worker statutory penalty plus attorney fees on employers who even *present* an unlawful non-compete! Under C.R.S. § 8-2-113, non-competes are void unless you earn at or above the Colorado "Highly Compensated Worker" threshold (~$123,750+, adjusted annually) AND the employer delivers a separate, standalone signed statutory notice before you accept the offer. Even more importantly, § 8-2-113(2)(b) voids Confidentiality/NDA clauses that prohibit using "general training, knowledge, skill, or experience" gained on the job!
Executive IRS Section 409A Deferred Compensation & 20% Penalty Redline
Under Internal Revenue Code Section 409A, if your employment or severance agreement promises installment severance or deferred bonuses without strict 409A savings language—or allows the timing of when you sign a Release in December vs. January to shift which tax year severance begins—the IRS imposes a brutal 20% federal penalty tax PLUS premium interest entirely on YOU (the Executive), not the Employer.
Executive 90-Day Post-Termination Stock Option Exercise Window (PTEW) Redline
In 95% of startup stock option plans, even after you work 3 years to vest your options, if you leave or are laid off, a ticking 90-day Post-Termination Exercise Window (PTEW) starts. Within 90 days of losing your paycheck, you must wire $50,000 to $300,000+ in cash out of pocket (exercise price + Alternative Minimum Tax on illiquid private stock) or 100% of your hard-earned vested options are canceled and returned to the company pool.