Payday Lender Check Into Cash To End Non-Compete Agreements For Low-Wage Illinois Workers To Settle State Lawsuit Business

Payday lender Check Into Cash is ending non-compete agreements for low-wage workers at its Illinois stores to settle a lawsuit filed by the state attorney general’s office.

Check Into Cash has been accused of forcing employees to sign non-compete agreements in violation of state law, effectively preventing them from finding other employment in Illinois, whether in ‘a bank teller or retail teller for one year after leaving.

The lawsuit, filed in Cook County Circuit Court in October 2017, sought to end the practice of Check Into Cash, based in Cleveland, Tennessee. The company is one of the largest payday lenders in the country, with more than 800 stores in 27 states, according to its website.

“My deal with Check Into Cash ends the company’s inappropriate practice of limiting the employment options of low-wage workers by forcing them to sign unfair non-compete agreements,” the attorney general of Illinois Lisa Madigan in a press release. “Low-income workers should be free to use their experience to get better, better-paying jobs.”

State Alleged Check Into Cash violated Illinois’ Freedom to Work Act, which prohibits the use of non-compete agreements for employees with incomes below the highest minimum wage or $ 13 an hour. The minimum wage in Illinois is $ 8.25 an hour, although it is higher in Chicago and Cook County.

As part of the settlement, Check Into Cash can no longer require store-level employees earning less than $ 13 per hour to sign non-compete agreements, and it must notify employees who are affected by the change, according to the attorney general’s office. In addition, Check Into Cash is due to pay $ 75,000, which the Illinois attorney general’s office will use to educate the public about non-compete agreements.

Check Into Cash could not be reached on Monday for comment.

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