Non-compete agreements (NCAs) are very common in this day and age, especially in specific fields that are at the leading edge of technology, but also throughout business in general.  There are a number of prevailing myths about NCAs.  One myth is that NCAs can be fairly far-reaching and restrictive.  At the same time, another myth is that they are not typically enforceable.  The truth is that NCAs are enforceable, but the more far-reaching and restrictive an NCA is, the less likely a court will deem it enforceable.  Still, NCAs can be powerful tools in protecting your business, your customers, and your proprietary information.

Illinois Trends

While Illinois does not have a general statute that regulates the creation of NCAs, common-law precedent establishes the two major trends that Illinois courts continue to follow in regulating NCAs. Generally, the state tends to disfavor NCAs because they are restraints upon trade, which is against public policy.  In order to be enforceable, a court must find that a legitimate business interest exists worthy of protection to support an NCA, rather than a mere desire to hamstring a potential competitor or former employee.