When it comes to non-compete agreements in Illinois, the state has a reputation for being one of the most employee-friendly in the country. However, this doesn`t mean that non-compete agreements are unenforceable in the state. In fact, with the right type of consideration, it`s possible to create a valid non-compete agreement that will hold up in court. In this article, we will explore what an Illinois court would likely require as consideration for a valid non-compete agreement.

First, it`s important to define what we mean by “consideration.” In the context of a non-compete agreement, consideration refers to the benefit that the employee receives for agreeing to the restrictions in the agreement. In other words, the employee must receive something of value in exchange for giving up their ability to work for a competitor or start a competing business.

So, what type of consideration would an Illinois court likely require for a non-compete agreement to be valid? The answer is that it depends on the specific circumstances of the agreement. However, there are a few general guidelines that can be useful to keep in mind.

Generally, Illinois courts will require that the consideration provided to the employee in exchange for signing a non-compete agreement be “adequate.” This means that the employee must receive something that has real value and is not illusory or nominal. Examples of adequate consideration might include:

– A signing bonus or other financial incentive

– Access to valuable trade secrets, customer lists, or other confidential business information

– Specialized training or education that will enhance the employee`s skills and career prospects

– A promotion or other advancement opportunity within the company

It`s worth noting that simply offering continued employment to an existing employee is generally considered insufficient to support a non-compete agreement. In other words, an employer cannot require an existing employee to sign a non-compete agreement in exchange for the privilege of keeping their job. Instead, the consideration must be something above and beyond what the employee is already entitled to receive.

In addition to adequate consideration, Illinois courts will also consider other factors when determining the enforceability of a non-compete agreement. For example, the agreement must be reasonable in terms of its duration, geographic scope, and the type of activities that are restricted. The employer must also have a legitimate business interest in enforcing the agreement, such as protecting trade secrets or preventing unfair competition.

In conclusion, if you want to create a valid non-compete agreement in Illinois, it`s important to provide your employees with adequate consideration in exchange for signing the agreement. This might include financial incentives, access to valuable business information, specialized training, or other benefits. However, it`s also important to ensure that the non-compete agreement is reasonable in scope and duration and that it serves a legitimate business purpose. By following these guidelines, you can create a non-compete agreement that is more likely to hold up in court if challenged.