Can I require employees to sign non-compete agreements in Illinois? What are the requirements?

According to the Illinois Freedom to Work Act, employers cannot require low-wage employees to sign non-compete agreements. However, for other employees, non-compete agreements are enforceable in Illinois if they meet certain requirements.

Requirements for Non-Compete Agreements in Illinois

Non-compete agreements in Illinois are enforceable if they are:

1. Ancillary to a valid employment relationship;
2. No greater than is required for the protection of a legitimate business interest of the employer;
3. Does not impose an undue hardship on the employee;
4. Does not harm the public.

Factors to Consider

To determine whether a non-compete agreement meets the above requirements, Illinois courts consider the following factors:

1. The employee’s exposure to the employer’s customer relationships or other confidential information;
2. The time period of the restriction;
3. The geographic area of the restriction;
4. The scope of the activity restricted.

Conclusion

In summary, non-compete agreements are enforceable in Illinois if they meet certain requirements. Employers cannot require low-wage employees to sign non-compete agreements. To determine whether a non-compete agreement is enforceable, Illinois courts consider factors such as the employee’s exposure to confidential information, the time period of the restriction, the geographic area of the restriction, and the scope of the activity restricted. ^[3.1]

Source(s):

• [3.1] 820 ILCS 96/1-15

Jurisdiction

Illinois

• Labor