Non Compete Agreement Illinois Law

Are you an employee in Illinois who has been asked to sign a non-compete agreement? If so, it`s important that you understand the laws surrounding these agreements in Illinois.

A non-compete agreement is a contract between an employer and an employee that restricts the employee`s ability to compete with the employer after the termination of their employment. These agreements are used to protect an employer`s trade secrets, confidential information, and proprietary information.

In Illinois, non-compete agreements are governed by the Illinois Freedom to Work Act. This act states that employers cannot enter into non-compete agreements with “low-wage” employees. Low-wage employees are defined as those earning less than $13 per hour.

For employees who are not considered low-wage, non-compete agreements are still enforceable in Illinois but they must meet certain criteria. The agreement must be:

1. Reasonable in scope: The agreement cannot be overly broad and must be limited to a specific geographic location or industry.

2. Necessary to protect a legitimate business interest: The employer must be able to show that they have a legitimate business interest that needs to be protected.

3. Supported by consideration: The employee must receive some benefit in exchange for signing the agreement, such as a promotion or increased compensation.

If a non-compete agreement does not meet these criteria, it may be unenforceable in Illinois.

It`s also important to note that Illinois courts have held that non-compete agreements that last for longer than two years are presumptively unreasonable. This means that the burden is on the employer to prove that the longer duration is necessary to protect their business interests.

If you are asked to sign a non-compete agreement in Illinois, it`s important that you fully understand the terms of the agreement and how it will impact your future employment opportunities. If you have any questions or concerns about a non-compete agreement, it`s best to consult with an experienced attorney who can help you navigate Illinois` complex laws surrounding these agreements.