Non-Compete Agreement in Illinois
State-specific overview · Employment Law
Illinois enforces reasonable non-competes under the Compete Act, which requires legitimate business interests and reasonableness in scope, duration, and geography.
How Illinois treats Non-Compete Agreement
Under the Illinois Compete Act (815 ILCS 5/2), non-competes must protect legitimate business interests including trade secrets, substantial relationships with prospective or existing customers, and substantial relationships with prospective or existing independent contractors or suppliers. The restriction must be reasonable in time, area, and line of business; Illinois courts generally accept durations up to two years as reasonable. The agreement must be in writing and supported by consideration, such as employment or promotion. Violation can result in injunctive relief and damages.
The general definition of Non-Compete Agreement
A contract clause restricting an employee from working for competitors or starting a competing business after leaving.
A non-compete agreement is a contract between an employer and employee that prevents the employee from working for a competitor or starting a competing business for a set period after leaving the job. These agreements are designed to protect the employer's trade secrets and customer relationships. However, courts scrutinize them carefully because they restrict a person's right to earn a living. A non-compete is generally enforceable only if it is reasonable in scope (limited to a specific geographic area and time period) and protects a legitimate business interest. Some states, like California, disfavor non-competes entirely.
Read the full Non-Compete Agreement entry →This page is a plain-English reference and is not legal advice. State laws change frequently. For specific situations consult a licensed attorney in Illinois.