There is a logical
process that Illinois employers should go through when thinking about a
non-compete agreement for their employees to sign:
- 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).
- 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.)
- Should I include a confidentiality provision in the non-compete? (Always a good idea)
- 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.)
- 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!!)