12. Do all U.S. states have the same law on the legality and applicability of non-compete bans? Answer: No, it is not enough for each party (employers and employees) to voluntarily sign the non-competition agreement. To be applicable in Illinois, a non-compete clause must be supported by some kind of valuable consideration like money, a laptop, employment for a longer period, etc. Here is a video that could help you understand if your non-compete agreement is applicable in Illinois: non-compete bans are governed by the Freedom Against Labor Act. 820 The ILCS prohibits non-competition prohibitions between an employer and a worker that make $13.00 per hour or less the hourly minimum wage rate that existing federal, regional or local laws impose or prescribe. Answer: Yes, it is often done. Non-competition agreements often do not have invitations that the employee will not ask the company`s customers, employees (or independent contractors) to leave the company and go elsewhere. Non-injunction clauses are sometimes drafted instead of a non-competition clause, because the courts consider them more favourable than non-competitions. (Non-invitation clauses must also be supported by a consideration.) A non-competition agreement must be sufficiently limited in space to be applicable. The basic rule is that the agreement can cover all geographic areas in which the employer is currently operating or directly considering doing business.
This can be a five-mile radius, it can be the state of Illinois, or it can cover the entire United States, depending on the extent of the employer`s activity. If the agreement is not limited in space or if the geographical scope is not limited to areas where the employer has a legitimate commercial interest, the agreement cannot be applicable. All agreements must be supported by independent reflection, that is, to get something in exchange for your promise to respect the agreement. Most of the time, the offer is sufficient to rent in return for the acceptance of the non-competition agreement. If you are already hired and a non-compete agreement is offered to you, continued employment with the employer or a cash payment may also be acceptable. Finally, the agreement must not go against public order. Agreements that are illegal, that give employers virtual monopolies over workers in this sector or workplace, or that wrongly deprive a worker of the choice to work elsewhere, cannot be applicable. It is particularly important for workers that, in order for a non-competition agreement to be implemented in Illinois, one of the things that must be done is "sufficient consideration." This requirement of "sufficient consideration" is stricter than the mere "counterparty" of a contract. Non-competition agreements must be time-limited to avoid unreasonable severity for the employer.