Illinois Non-compete Agreement Template

When two parties decide to start a working relationship in Illinois, they need to do it according to state law. When one party wants to prevent the other from sharing trade or manufacturing secrets and protect its business interests, it insists on signing a Non-Compete Agreement.

An Illinois Non-Compete Agreement guarantees that a worker won’t have any career expectations from an employer after leaving the company. By signing the non-compete agreement template, workers confirm that they won’t use any confidential information from the former employer to gain or provide leverage. With a signature, the employee shows they have no intention to use this information for personal purposes or to the company’s detriment.

Illinois Non-Compete Agreement Form

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As no Illinois Statutes regulate the non-compete relationships between local entities, all details regarding such relationships should be established in the agreement. To make the contract effective, both parties should have a frank and open discussion to share career and business expectations. The two parties need to agree on all essential details in the contract before signing it.

Illinois NCA Laws and Restrictions

Although there are no Illinois Statutes regulating non-compete relationships between entities, the Freedom to Work Act (820 ILCS 90/Illinois Compiled Statutes) sets particular restrictions.

Popular Local NCA Forms

When the relationship between an employee and employer comes to an end, the latter may want the former to sign a non-compete, also called “covenant no to compete (CNC),” to keep their trade secrets from being being exposed to their competitors. Below are the state-level NCA forms our users research the most.

Here are some examples of what parties can and cannot do under the Illinois Non-Compete Agreement according to the Freedom to Work Act:

  • An employer cannot force a worker earning under $13.00 per hour to sign the non-compete agreement form as it violates the worker’s right to make a living. At the moment, no legal papers exist to establish non-compete relationships for those who earn over $13.00 per hour.
  • Non-compete agreements that came into force on or after January 1, 2017, in Illinois have no legal power nowadays. Therefore, no one can refer to them.
  • Details of non-compete agreements must be adequate, sensible, and performed with respect for personal rights and freedoms for them to be accepted by the Illinois state laws. Illinois doesn’t support entities establishing non-compete relationships, so if you want to have one, try to make these relations as reasonable and transparent as possible.
  • Please note that government contractors, physicians, and broadcasters cannot participate in non-compete relationships under any circumstances.
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Published: May 13, 2022
Jennifer M. Settles
Jennifer M. Settles
Author & Attorney
With over 25 years of experience as a business and transactional attorney, Jennifer has mastered the craft of closing highly successful deals for her clients. Through her wide-ranging expertise in commercial contracts, real estate transactions, M&A and corporate law, Jennifer secures results that are second-to-none.