Client Alert: Illinois Attorney General Targets Customer Service Worker Non-Competition Provisions
On October 25, 2017, the Illinois attorney general initiated a lawsuit
against the Illinois subsidiary of Check Into Cash, Inc. alleging violations of the state’s Freedom to Work Act, which became effective on January 1, 2017, and the state’s Consumer Fraud and Deceptive Practices Act. Check Into Cash provides pay day loan, title loan, check cashing, bill payment, and cash advance services. This lawsuit and similar actions taken by other states’ attorneys general and legislatures demonstrate the increased scrutiny that non-competition provisions have faced in recent months. For the reasons we discuss in greater detail below, employers across the country who use or are considering using non-compete agreements with their employees should take note and consider revisiting the issue with their legal counsel.