Generally, a covenant not to compete is when an Illinois employee agrees not to work for an employer's competitors when the employee leaves the company. Covenants not to compete are also known as "non-compete clauses". Compensation might be paid for employees who sign the covenant, or at times the employment might be conditioned upon such an agreement.

When are Covenants not to Compete Unenforceable?

It is difficult to foresee whether a judge will enforce a given non-compete agreement. Even though the interests of an employer are significant, Illinois courts value a person's freedom to select the type of employment that they desire. Thus, courts will typically uphold only those covenants not to compete that they conclude to be reasonable. Terms contained in a covenant not to compete will be struck down by a court as unreasonable if they bind the employee for an unusually long period of time or if they cover an unreasonably large geographic area around Barrington Hills.

Limitations on non-compete clauses must also be restricted to cover only competitors who are related in a reasonable way to the employer's industry. Finally, the employer must have a legitimate business interest behind its motivation for mandating a covenant not to compete.

Do I Need an Attorney when Dealing with a Covenant not to Compete?

You might want to hire a Barrington Hills, Illinois lawyer to review the covenant before signing any provisions that may limit or restrict your rights. The lawyer will then be able to negotiate any modifications to the contract as needed, or they can even draft a new one should it be required by one or both parties. Employers can receive useful advice from an attorney should they decide to sue a worker for breaching a covenant, and employees who have signed such covenants can also benefit from a lawyer's counseling.