Thursday, May 21, 2015

Putting Together An Enforceable Non-Compete Agreement in Illinois

By Nancy E. Joerg



There is a logical process that Illinois employers should go through when thinking about a non-compete agreement for their employees to sign:
  1. Which employees should I have sign the non-compete agreement?  (Key employees with the highest knowledge of the company and its confidential information are the best candidates for non-compete agreements).
  2. Should I have just new employees sign the non-compete or should I also have current employees sign it?  (If you choose to have current employees sign it, then give them significant legal consideration such as $1,000, to bind the agreement and make it a valid contract.)
  3. Should I include a confidentiality provision in the non-compete?  (Always a good idea) 
  4. Should I make the non-compete for a certain geographic area around the company?  (It is always best to have a very small geographic area, if possible.   Or, in the alternative, restrict the employee under the non-compete from working for certain specific competitors, who are named in the agreement.)
  5. Should I have the restriction for five years after termination?  (It is best to have a shorter period such as two years---one year is even better!!) 
For assistance with non-compete agreements, contact Attorney Nancy E. Joerg, who has worked with many companies who use non-compete agreements. Nancy Joerg can be reached at Wessels Sherman's St. Charles, Illinois office: 630-377-1554 or email her at najoerg@wesselssherman.com.