This form is a Post-Employment Restrictions on Competition for use with exiting employees exposed to commercial trade secrets or other confidential information as part of their job. This form includes a Noncompetition Covenant as well as other relevant clauses, such as a Savings Clause, a Consulting Option, and an Assignment Clause, that can be integrated into any agreement with the former employee.
Illinois Post-Employment Restrictions on Competition, also known as non-compete agreements, are legal agreements that limit an employee's ability to compete with their former employer after the termination of their employment. These restrictions aim to prevent employees from using the knowledge, skills, and relationships gained during their employment to directly compete against their former employer. In Illinois, these post-employment restrictions on competition must meet certain requirements to be enforceable. Firstly, such agreements must be supported by adequate consideration, which means that employees should receive something of value in exchange for signing the non-compete agreement, such as employment, promotions, or access to confidential information. Secondly, Illinois law specifies that non-compete agreements should be reasonable in terms of their geographical scope, duration, and the activities they seek to restrict. The geographical scope should typically be limited to areas where the former employer actually conducts business, whereas the duration of the restriction should be reasonable and should not exceed a certain time frame, usually one or two years. Additionally, the activities restricted by the agreement should be narrow and reasonably necessary to protect the legitimate business interests of the employer. These interests can include protecting trade secrets and confidential information, preventing the unfair use of customer relationships developed during employment, or safeguarding specialized training received by the employee. However, it is important to note that certain employees are exempt from these post-employment restrictions in Illinois. For instance, non-compete agreements may not be enforced against low-wage employees, individuals terminated without cause or laid off, students in internships or short-term employment, or individuals under the age of 18. Different types of Illinois Post-Employment Restrictions on Competition include non-compete agreements, non-solicitation agreements, and non-disclosure agreements. Non-compete agreements limit an employee's ability to work for a competitor or start a competing business within a specific time period and geographical region. Non-solicitation agreements restrict former employees from soliciting and luring clients or customers away from their former employer. Non-disclosure agreements, on the other hand, prohibit the disclosure of confidential information learned during employment. In summary, Illinois Post-Employment Restrictions on Competition are legal agreements that limit employees' ability to compete with their former employer after termination. These agreements must be supported by adequate consideration, be reasonable in terms of their scope, duration, and restricted activities, and serve the legitimate business interests of the employer. Different types of post-employment restrictions include non-compete agreements, non-solicitation agreements, and non-disclosure agreements.
