Introduction:
Non-competition agreements have become a commonplace element in the employment sector, particularly in Illinois. These agreements are contracts that prevent current or former employees from competing with their former employer for a certain period after they leave. Although these agreements are meant to protect companies from losing valuable assets, more people are questioning their enforcement and validity.
Overview of Illinois Non-Competition Agreement Laws:
Non-competition agreements are governed by state law, and Illinois is among the states that enforce these agreements. In Illinois, non-competition agreements are legal as long as they meet certain requirements. The agreement must be reasonably necessary to protect the employer`s legitimate business interests, and must not impose an undue hardship on the employee.
In Illinois, non-competition agreements must be supported by consideration. This means that employees must receive something of value in exchange for signing the agreement, such as a job offer or a promotion. Additionally, the agreement must be reasonable in terms of duration and scope. Illinois courts are unlikely to enforce agreements that last longer than two years, and agreements that limit an employee`s ability to work in their chosen field are likely to be deemed overly broad.
Illinois also recognizes the „blue pencil“ doctrine, which allows a court to sever or modify the terms of an agreement that is overly broad or unreasonable. This means that a court can strike out provisions of a non-competition agreement that are deemed unenforceable, while still upholding the remaining provisions.
Enforcement of Non-Competition Agreements:
Employers who wish to enforce non-competition agreements generally must file a lawsuit in a court of law. In Illinois, courts are reluctant to enforce non-competition agreements that are overly broad, and generally require employers to demonstrate that the agreement is reasonable and necessary to protect their legitimate business interests.
Additionally, Illinois courts are unlikely to enforce agreements that impose an undue hardship on employees. For example, an agreement that prevents a highly skilled worker from working in their chosen field may be deemed overly restrictive, and therefore unenforceable.
Conclusion:
Non-competition agreements are becoming increasingly common in Illinois, but their enforcement is subject to strict scrutiny by state courts. Employers must ensure that their agreements are reasonable, necessary, and supported by consideration, to increase their chances of enforceability. Employees who are subject to non-competition agreements should seek guidance from an experienced employment attorney, to better understand their rights and options under Illinois law.