Illinois Employee and Severance NDA
Draft an Illinois employee or severance NDA that follows the Workplace Transparency Act, which voids a one-sided gag on truthful reports of unlawful conduct.
Introduction
An employee NDA is a confidentiality agreement between a company and a worker that protects the employer's trade secrets and confidential business information. A severance NDA is the version signed at separation, usually inside a release agreement, and it often keeps the terms of the exit private. What separates it from a commercial NDA between two businesses is who signs it: a worker cannot be forced to stay silent about unlawful conduct. In Illinois, the Workplace Transparency Act (820 ILCS 96/1-25) makes any agreement preventing an employee from making truthful statements about alleged unlawful employment practices void to that extent. Its reach is broad: discrimination, harassment, and retaliation, not just sexual harassment. Settlement confidentiality is allowed only as the employee's documented preference, with consideration and a 21-day review and 7-day revocation period. DocDraft drafts an Illinois-compliant employee or severance NDA from your facts, with that carve-out built in, and attorney review is available before anyone signs.
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Key Things to Know
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Illinois's limit comes from the Workplace Transparency Act (820 ILCS 96/1-25). An agreement that prevents an employee from making truthful statements about alleged unlawful employment practices is void to that extent.
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The scope is broad. It reaches discrimination, harassment, and retaliation under employment law generally, not only sexual harassment, so an Illinois NDA cannot gag any unlawful workplace practice.
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It also protects the underlying claim. The Act voids a provision that would make an employee waive, arbitrate, or otherwise diminish an existing or future claim or right tied to an unlawful employment practice.
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A one-sided gag at hire is void. A unilateral confidentiality term imposed as a condition of employment cannot bar truthful disclosure of unlawful conduct in Illinois.
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Settlement confidentiality is allowed only on the worker's terms. It must reflect the employee's documented preference, be supported by consideration, and give 21 days to review and 7 days to revoke.
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The 21-and-7 timeline is built into the law here. Illinois writes the review-and-revocation period into the statute for confidentiality of unlawful-conduct information, separate from the federal age-based review period.
- 7
Trade secrets stay protectable, on the federal floor. Illinois still lets an NDA protect legitimate confidential information, and the Speak Out Act, agency-reporting rights, and the Defend Trade Secrets Act notice apply on top.
Key decisions before you file
Before you file a Employee and Severance NDA in Illinois, a few decisions shape the document: which option to choose and what each one means. The Employee and Severance NDA guide walks through them.
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Illinois Requirements for Employee and Severance NDA
Illinois Workplace Transparency Act (820 ILCS 96/1-25)
Draft an Illinois employee or severance NDA that follows the Workplace Transparency Act, which voids a one-sided gag on truthful reports of unlawful conduct.