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Although governed by individual state laws, common factors include whether the employer has a legitimate interest to protect; whether the geographic scope prevents the worker from making a living; the length of restriction; whether the agreement prevents workers from doing different work from what they are doing; and ...
California law bars covenants not to compete in nearly all circumstances. In Edwards v. Arthur Anderson, the California Supreme Court determined that the law should be read strictly, and not only void the ?unreasonable? noncompete clause, but all noncompete clauses other than those explicitly allowed in the code.
Restrictive covenants in Illinois must adhere to state law and be reasonable to be enforceable. Adequate consideration, such as two years of employment or suitable remuneration, is necessary for validity, especially for low-wage employees.
Minimum Salary Requirements: Covenants not to compete are only enforceable against employees whose ?actual or expected annualized rate of earnings? is over $75,000 per year; likewise, to enforce a covenant not to solicit against an employee, their rate of earnings must exceed $45,000 per year.
Covenants not to compete are frequently enforced where the former employer's "confidential information" may be used or disclosed unless the employee is restrained from competing.
Illinois courts generally disfavor non-competes as a restraint of trade. However, Illinois courts enforce non- compete agreements if they are: Reasonable. Supported by adequate consideration.