Independent Contractor Agreement With Non Compete Clause In Illinois
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FAQ
Certainly, even if they have an NCA, some employers will not come after you if you go to work for a competitor. And some will fold their cards if you firmly but politely decline to sign an NCA. They will hire you anyway.
Yes. It affects everyone in the US, it's a federal ruling. You simply will not have any more non compete clauses in any employment agreements, outside the handful of given exceptions. That does not mean your employer has to tolerate your working for a competitor, however. You will just be subject to termination.
(820 ILCS 90/10.) A non-compete agreement entered into on or after January 1, 2022, is void unless: The employee receives adequate consideration. The agreement is ancillary to a valid employment relationship.
The employer's breach of the parties' employment relationship or unclean hands can serve as a defense to defeat a covenant not to compete or non-solicitation clause signed by the employee, even if that agreement is otherwise properly narrowly drafted and enforceable.
Illinois prohibits non-compete agreements between an employer and low-wage employees, including non-competes that restrict a low- wage employee from performing work in a specified geographical area, and work for another employer that is similar to the employee's work for the employer that is party to the agreement (see ...
Even workers labeled as “independent contractors”—who should have the freedom to work for multiple clients—are often required to sign non-competes that limit where they can work. Employers often present non-competes as a “take it or leave it” contract, forcing workers either to sign or forego employment.
(a) No employer shall enter into a covenant not to compete with any employee unless the employee's actual or expected annualized rate of earnings exceeds $75,000 per year.
