Legal Question in Employment Law in Illinois

Noncompete Clauses

Do I have to sign a noncompete policy and if I do, Should I receive compensation for signing? Can I be fired if I do not sign the policy?


Asked on 10/04/01, 2:36 pm

1 Answer from Attorneys

Kenneth J. Ashman Ashman Law Offices, LLC

Re: Noncompete Clauses

"Have to" is an interesting choice of words, for the entrance into contracts is and should be made on a voluntary basis. It seems that your questions relates more to the issue of whether your employer will fire you or, if you are now only entertaining an employment offer, not hire you if you do not sign the agreement.

If you have been working for your company for some time and the company has decided to make its employees sign non-compete agreements, the agreement -- if you did not it -- might not be enforceable because the company did not give you anything to get you to agree to the contract. In legal terms, it would (or might) fail for want of consideration.

If, on the other hand, the non-compete is a condition to starting employment or a condition of getting a promotion or a raise, the contract would probably be enforceable.

Note this exception, however: Non-compete clauses are construed strictly by courts, meaning that courts will try to read them narrowly. As such, in order for a non-compete to be enforceable, it would need to have a narrow geographic limitation, be relatively of short duration, and limit the practices in which you cannot engage to something that has a connection to its business.

I hope you find this explanation helpful.

-- Kenneth J. Ashman; Ashman Law Offices, LLC; [email protected]

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Answered on 11/21/01, 3:07 pm


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