Contractor Poaching and Trade-Secret Lawsuits in Illinois

 Posted on November 08, 2025 in Business & Contract Disputes

The manner in which Illinois employers can use non-compete and non-solicitation agreements was sharply curtailed by the 2022 Freedom to Work Act amendments. But for contractors and construction firms, there is another line of defense that can, in some cases, be even stronger: the Illinois Trade Secrets Act (765 ILCS 1065).

When key personnel take project bids, client lists, or cost models to a competitor, trade-secret litigation can often fill the gap left by weakened non-competes. Consulting with an experienced Winnebago County, IL construction litigation attorney can help you protect your competitive information, enforce confidentiality, and respond when a former employee or rival misuses your company’s proprietary data.

How Does the 2022 Freedom to Work Act Reforms Affect Construction Businesses and Contractors?

The 2022 Illinois Freedom to Work Act reforms impact construction businesses and contractors by increasing restrictions on non-solicitation and non-compete agreements, particularly for employees with lower wages. The law now prohibits non-compete agreements for employees who earn less than $75,000 per year, and non-solicitation agreements for employees who earn less than $45,000 per year.

Employees must be given at least 14 days' written notice to review these agreements before signing, and any non-compete or non-solicitation agreement must include consideration for the employee. While the Act does not explicitly address independent contractors, courts are likely to apply the same standards. So, why do these changes matter to construction employers?

They matter because, without non-compete restrictions, construction businesses and contractors have no leverage for retaining key employees. In the construction business, there are frequent lateral movements of project managers, estimators, and superintendents, forcing contractors to rely more heavily on confidentiality and trade-secret protections.

How Can the Illinois Trade Secrets Act (ITSA) Serve as an Employer Safety Net in the Construction Business?

The Illinois Trade Secrets Act can provide legal protection for construction employers regarding confidential and proprietary information. To benefit from the ITSA, construction companies must take "reasonable efforts to maintain secrecy." These reasonable measures could include restricted access to sensitive company data and employee training. The ITSA can protect valuable non-public information that gives construction companies a competitive edge. It can also provide legal recourse when an employee or competitor discloses a trade secret.

Confidentiality agreements can be used as a condition of employment, and employers can provide regular training to ensure that employees understand what constitutes a trade secret and their obligations to keep information confidential. Access to sensitive information must be provided only on a "need-to-know" basis, and when an employee leaves, he or she must be reminded of their confidentiality obligations.

What Type of Trade Secrets Do Construction Businesses Need to Safeguard?

Any information that affords the contractor or construction business economic value from not being generally known is considered a trade secret. Some of the most common trade secrets in the construction industry include:

• Bid-pricing models
• Margin formulas
• Supplier and subcontractor rates
• Proprietary project templates
• Drone survey data
• Design specs
• Scheduling algorithms

What Mechanisms Can Address Trade Secret Violations?

Temporary restraining orders and preliminary injunctions may be granted within days if evidence shows potential imminent harm to the business or contractor. Digital forensics and metadata tracing can be used to prove violations of trade secrets. Courts may also double damages for willful violations of trade secrets and award attorney fees. Despite the limitations of non-compete and non-solicitation agreements, Illinois courts remain willing to protect competitively valuable data for contractors and construction companies.  

Contact a Chicago, IL Construction Litigation Lawyer

If your construction company is facing subcontractor poaching, misuse of bid data, and violations of trade secrets, the Winnebago County, IL trade secret agreements attorneys from SpyratosDavis LLC can help. We can draft compliant restrictive covenant agreements and pursue trade secret injunctions to safeguard your competitive edge. Our attorneys are highly focused on creating a smart, workable strategy for you and your business. Call 630-810-8881 to schedule your initial attorney meeting.