Competition prohibitions are enforced in Illinois when the agreement is ancillary to a valid relationship (employment, sale of a business, etc.) and (1) must not be greater than is necessary to protect a legitimate business interest of the employer, (2) must not impose unreasonable harshness on the worker, and (3) cannot be contrary to the public.  Although geographical and temporal restrictions appropriate to the non-competition clause are not expressly imposed by the legislation in force, they tend to be regarded as measures to determine whether the level of non-competition is higher than is necessary to protect a legitimate commercial interest of the employer.  Employers who do not use non-compete rules should consider whether they should start doing so. It is free and easy to directly download formulations written by a lawyer on the Internet. However, some studies have shown that competition bans tend to restrict occupational mobility, accelerate talent flight and discourage venture capital investment in areas where they are enforced. Or, if you have acquired certain confidential knowledge that you would inevitably use for your new employer in the course of work, a court may consider it a legitimate reason to maintain a non-competition clause. Starting in 2018, competition bans will cover 18 percent of workers in the U.S., a 38 percent drop in workers. [When? ] While high-wage workers are more common, in 2018 non-competitors covered 14% of workers without tertiary education.  In March 2019, the U.S. Federal Trade Commission was pressured by politicians, unions, and stakeholders to ban non-compete.
One petition to that effect estimated that “one in five American workers — about 30 million — is bound by such an agreement.”  In the case of a worker who is required to protect the employer`s confidentiality and trade secrets, employers and workers may agree to include a non-competition clause in the employment contract or a separate confidentiality agreement. In the event of termination or expiry of the employment contract during the agreed non-competition period, the employer pays a monthly allowance to the worker. If the worker violates the competition section, he must pay damages to the employer, as agreed. A “non-compete obligation” (NQF) or a non-competition clause is governed by national law and not by federal law, and the general concept has three aspects: in addition, the employer can claim any actual damage or loss he invokes because the worker has not competed in breach of the agreement, which could include lost customer revenue, loss of secret employer information, and other similar losses….