Restrictive Covenants in Employment Agreements: Non-Competition Clauses

Restrictive covenants are often contained in employment agreements and designed to protect the employer’s legitimate business interests. Three restrictive covenants are often included in employment agreements: 1.) non-disclosure clauses, 2.) non-solicitation clauses, and 3.) non-competition clauses. With respect to the third category, non-competition clauses protect the employer by limiting an employee’s ability to work for a direct competitor upon termination of employment. Non-competition clauses must be very narrowly tailored to protect the specific employer’s business interests. For an Illinois court to enforce a non-competition clause, it must protect a legitimate business interest of the employer, and be reasonable in terms of time limit, geographic limit, and scope. Drafting an enforceable non-competition clause requires a detailed, factual analysis of the employer’s business interests. The Business Law Group drafts employment agreements that include non-competition clauses for business clients in our General Counsel Packages without any additional charge. If you have questions about drafting an employment agreement with restrictive covenants or whether an existing non-competition clause is likely to be enforceable, call the Business Law Group today and speak to an attorney.