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Illinois Non-Compete Agreement Template

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The Illinois Non-Compete Agreement Template is presented as a re-usable contract that may be employed when a Business Entity seeks to restrict a specific party from using learned information to compete unfairly with the Business Entity. Currently, there are no Illinois Statutes that directly enforce a non-competition between entities, even if one of those entities can compete only because of knowledge made available to it by the other. Thus, the paperwork on this page should only be considered a contract between two parties involving terms forbidding one party from using another’s knowledge of the industry to further its marketplace status by providing similar products and services.

Some of the Entities who typically use this paperwork range from corporations wishing to partner with another strictly on a temporary basis, companies hiring a new employee, a factory giving a tour of its floor, to a contractor who must work on the premises. In each of these cases, one entity will have access to another’s Confidential Information thus, holding the potential of using such information for its personal gain and against the interest of the Disclosing Entity.

For this contract to be effective, the two parties involved should have a frank and honest discussion about their expectations are. This paperwork should be discussed, and its contents agreed upon before it is filled out and presented for signing. You may obtain a copy on this page using the buttons captioning the preview image.

Restrictions

Non-compete agreements are governed by the Freedom to Work Act. 820 ILCS prohibits non-compete agreements between an employer and employees that make the hourly rate of the minimum wage that applicable federal, state, or local minimum wage laws require or make $13.00 per hour or less.

Non-compete agreements entered into on or after Jan. 1, 2017 are illegal and unenforceable in employment agreements involving employers earning less than $13.00 per hour. Illinois has no statute or regulation governing non-compete agreements in employment for employees who earn more than $13.00 per hour. Illinois generally disfavor non-compete agreements but will enforce a non-compete if the agreement is reasonable and supported by adequate consideration.

Laws – Freedom to Work Act. 820 ILCS

How to Write

1 – The Beginning Of This Contract Requires Attention

The purpose of this document is to protect company proprietary information. The purpose of section 1 is to establish the agreement between the company and the individual willing to agree to maintain secrecy for a reasonably stated period of time. To begin, use the first blank space in “1.Purpose” to present the Legal Name of the Issuing or Disclosing Party and the second blank space to provide the Legal Name of the Recipient of this contract

2 – The Second Part Of This Document Presents A Checklist Requiring Attention

A list of statements describing competitive behavior will be supplied in the second part (titled “2. Non-Compete/Disclosure”) of this contract. Each statement that has a marked checkbox will define Disclosing Party conditions the Recipient of this contract will need to comply with after signing. Any statement that has not been marked will be excluded from the obligations this document imposes. The Company issuing this document may use this section to forbid the Recipient from engaging in “Business Practices” involving similar services/products, associating with its “Clients/Customers,” conducting any type of business with any of the its “General Competitors,” engaging professionally in any manner with its “Specific Competitors” (provide a list on the blank lines in the fourth statement), or associating with any of the Issuing Party’s “Employees” (past or present) by checking the box corresponding to each statement the Recipient should comply with.

3 – A Period Of Time When The Recipient Is Required To Comply Must Be Stated

This paperwork will need to declare how long its terms and conditions will effectively obligate the Recipient. The Issuing Party should name the length of time constituting this contract’s lifespan on the first blank line under the heading “3. Time Period.” Then select either the first or second checkbox to name the start event that will begin this document’s terms. If these conditions should be adhered to immediately upon signing, select the first checkbox. If they are to go into effect only if or when the professional relationship between these two entities ends, select the second checkbox.

4 – The Option Of Purchasing Relief Will Need To Be Addressed

Some businesses or corporations will consider a payment from the Contract Recipient in exchange for a release from these terms. If the Issuing Party intends to include this consideration, then checkmark the first checkbox, in “4. Purchase Option,” and document the Payment the Recipient must submit for relief in the spaces provided. It should be written out in the first space and entered numerically in the second space. If this option will not be considered by the Issuer of this contract then check the second checkbox.

5 – Document The Location Where This Contract’s Terms Are Governed And Have Authority

It will be necessary to indicate where this contract will be enforced. This will be where the terms apply and where they will be enforced through the courts. Generally, you may report this as a State Government(s), or Local Government(s) on the blank line in “5. Jurisdiction.”

6 – This Agreement Will Execute Through The Party Signatures

When both parties have read this paperwork with the information that has been documented on it, each will need to provide proof of agreement. This will be done by signature on the Execution Date. “13. Entire Agreement” will be the closing of this document and the Execution Date will need to be supplied in the last sentence as three separate components (Two-Digit Calendar Day, the Name of the Month, and Two-Digit Year) recorded in their respective spaces. 

There will be two last areas requiring attention: The Company and Recipient. The Issuing Party will need to sign the “Signature” line under the heading “The Company.” In addition, the Printed Name and Title should be presented on the blank line “Print Name And Title.” Finally, this party must enter the Date he or she is signing this document on the “Date” line.

The Contract Recipient will also need to furnish some verification that he or she has read this agreement and has every intention of complying with it. He or she will need to sign the “Signature” line then Print his or her Name and record his or her Signature Date on the lines labeled “Print Name” and “Date” respectively.


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