Non-Compete Agreements and Non-Management Employees

Published on 8/21/2018
Categories: Employment Contract, Federal Law, Illinois Law, Non-Compete Agreements, Non-Management Employees

A common question we are asked is whether employers may require non-management personnel to sign a non-compete agreement. The answer is yes, but there are limitations of which employers should be aware.  To be enforceable in the State of Illinois, the agreement must (1) have adequate consideration, (2) be reasonably necessary to protect the employer’s legitimate business interest, (3) not impose undue hardship on the employee, and (4) not be injurious to the public.[1] Courts will generally determine the enforceability of a non-compete agreement based on the totality of these factors. As of January 2017, however, employers are prohibited from requiring any low-wage employees under the Illinois Freedom to Work Act to sign non-competes.[2] The Act effectively protects employees earning less than $13.00 per hour or minimum wage, whichever is greater.[3] Read more…

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