Non-compete Agreements
Chicago Non-Compete Agreement Lawyer
As a business owner, you want to safeguard your company’s trade secrets and ensure you work in a market with fair competition. You can do this with the proper non-compete agreement.
Non-compete agreements play a pivotal role in preventing key personnel, such as employees or business partners, from leveraging their knowledge and relationships to the detriment of the business by engaging in competitive activities upon their departure. By imposing reasonable restrictions on post-employment activities, these agreements help to protect the business’s intellectual property and client base.
Whether you need a non-compete agreement (NCA) in an investment, mergers and acquisitions, or other transactions, our contract attorneys at Motiva Business Law will draft effective non-compete agreements to ensure the protection of your intellectual, preserve competitive advantages, and uphold the long-term sustainability of the business.
Motiva Business Law Offers
- Non-compete agreements
- Employee handbooks
- Non-disclosure Agreement
- Employment contracts
- Non-soliticitation Agreements
What is a non-compete agreement?
A non-compete agreement is a legal agreement or a clause in a contract specifying that an employee must not enter into competition with an employer after the employment period is over. The agreement usually outlines a specific period of time and a geographic area that restricts an employee from such competitive activities, and courts in many jurisdictions require the employers to have a legitimate business interest in that area for a non-compete agreement to be enforceable against the employee.
It is worth noting that a non-compete agreement can also be used by an employer to prevent competitions from a contractor, consultants, partner, or service provider, even though they are less common.
Elements of a Non-Compete Contract
Overall, a non-compete agreement must be reasonable, necessary, and used to protect a legitimate business interest. The key considerations include:
- Duration
- Geography
- Protected activities
- Legitimate business interest
- Whether the departing employee has inside knowledge or skills obtained from the employment.
- Competitors
- Damages
illinois non-compete agreements
In Illinois, non-compete agreements are not enforceable against employees who earned a salary less than $75,000 (in 2023). Other states that have different rules that regulate and restrict the use of non-compete agreements to prevent employers from hindering employees’ mobility and innovation.
Our business attorneys at Motiva Business Law provide invaluable assistance in drafting, reviewing and negotiating non-compete agreements to ensure that the terms are reasonable, comply with state laws, and effectively protect your business interests.
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Non competes FAQ
The enforceability of a non-compete depends on the circumstances surrounding termination and the position. In some jurisdictions, if an employee is terminated without cause, courts may view the agreement less favorably.
Yes. employees have the right to negotiate the terms of a non-compete agreement. In Illinois, employers are required to give an employee at least 14 days to review a non-compete agreement and consult with an attorney.
To enforce a non-compete agreement, an employer typically needs to demonstrate that the agreement is reasonable in its scope, duration, and geographic area, and is necessary to protect a legitimate business interest.