In Illinois, what is necessary for a non-compete agreement to be enforceable?

In Illinois, for a non-compete agreement to be enforceable, it must be reasonably designed to protect legitimate business interests. This requirement ensures that the restriction placed on an employee is not overly broad or burdensome but is instead aimed at safeguarding the employer's competitive advantage, trade secrets, customer relationships, or other essential interests.

To be deemed reasonable, the scope of the non-compete agreement must align with the legitimate interests of the employer without being excessive in duration or geographic reach. The state has historically emphasized that such agreements must strike a fair balance between protecting business interests and not unduly restricting an employee’s ability to find work in their field.

While a written contract is important and helps formalize the agreement, merely being in writing does not inherently make a non-compete enforceable unless it meets the criteria of safeguarding legitimate business interests. The inclusion of a specified financial penalty and universal agreement among all employees are not standard requirements for enforceability in Illinois law. Hence, focusing on the reasonable protection of business interests is crucial for the validity of non-compete agreements in the state.