ATTORNEY GENERAL RAOUL ANNOUNCES $1.9 MILLION SETTLEMENT WITH EQUINOX OVER USE OF NON-COMPETITION CLAUSES

ATTORNEY GENERAL RAOUL ANNOUNCES $1.9 MILLION SETTLEMENT WITH EQUINOX OVER USE OF NON-COMPETITION CLAUSES

October 09, 2026

Settlement Includes Nearly $1 Million in Restitution to Affected Employees

Chicago - Attorney General Kwame Raoul today announced his office has reached a settlement with Equinox Holdings, Inc. (Equinox) resolving an investigation into the luxury fitness company for violations of the Illinois Freedom to Work Act (IFWA), which prohibits the use of non-competition clauses in employment contracts for certain workers.

"Non-competition clauses illegally and unfairly lock workers into low-paying jobs and prevent them from seeking new opportunities, like a second job or better-paying job," Raoul said. "These illegal contracts also make it more difficult for law-abiding businesses to hire workers and compete fairly in the labor market. I will continue to work to hold companies accountable when they break our laws and stand up for the rights of all workers in Illinois."

Equinox owns more than 100 luxury fitness centers nationwide, including five clubs in Chicago. Raoul's investigation found Equinox violated the IFWA hundreds of times between 2022 and 2025 by imposing illegal non-competition clauses in the contracts of more than 300 of its lowest-earning workers. Raoul's investigation also found Equinox failed to provide required notice to these employees about their right to consult with counsel before signing and failed to give them sufficient time to review their contracts.

The settlement requires Equinox to pay $990,000 in restitution to affected employees as well as a $910,000 civil penalty. Equinox has agreed to comply with the IFWA, including by bringing current contracts into compliance within 21 days. Equinox has also agreed to annual training for managerial staff on the requirements of the IFWA.

Today's settlement announcement builds on Attorney General Raoul's ongoing work to fight unlawful employment practices. Shortly after taking office, Raoul initiated legislation to formally establish a Worker Protection Unit within the Attorney General's office.

Attorney General Raoul encourages workers who wish to file a complaint about an employer's potentially unlawful practices to call the Workplace Rights Hotline at 1-844-740-5076 or visit the Attorney General's website.

Assistant Attorneys General Avery Kelly and Samantha Whittaker handled the settlement for Raoul's Workplace Rights Bureau.