In Illinois, non-compete agreements are a common tool used by employers to protect their business interests. These agreements, also known as restrictive covenants, restrict an employee`s ability to work for a competing business or start their own competing business for a set period of time after leaving their current employer.
Non-compete agreements are seen as a way to prevent employees from sharing confidential information and trade secrets with competitors, as well as to maintain a company`s customer base. However, the enforcement of these agreements has come under scrutiny in recent years due to concerns over their impact on employees` career advancement and economic mobility.
Illinois law has specific requirements for non-compete agreements. For an agreement to be enforceable, it must be supported by adequate consideration, such as a job offer or a promotion. Additionally, the agreement must be reasonable in terms of the scope of the restrictions and the duration of the non-compete period.
Illinois courts will not enforce non-compete agreements that are overly broad or that place undue burdens on employees. For example, a non-compete agreement that prevents an employee from working in a similar industry for several years after leaving their current job is likely to be found unenforceable.
In recent years, Illinois has strengthened its laws around non-compete agreements. In 2016, a new law was passed that prohibits non-compete agreements for low-wage workers who earn less than $13 per hour or $26,000 per year. Additionally, in 2019, a new law was introduced that would require employers to provide employees with a copy of their non-compete agreement at least 14 days before their first day of work.
Employers in Illinois should take care when drafting non-compete agreements to ensure they are reasonable and enforceable. Employees should review any non-compete agreement carefully before signing, and consult with legal counsel if they have concerns about the terms of the agreement.
In conclusion, non-compete agreements remain a contentious issue in Illinois and elsewhere. While they can be an effective tool for protecting a company`s interests, they must be reasonable in terms of scope and duration and supported by adequate consideration. Employers and employees alike should be aware of the legal requirements surrounding non-compete agreements and take steps to protect their interests accordingly.