Non-compete agreements are common in employment contracts, but they can create challenges when switching jobs—especially to a new company in the same industry. Understanding whether your non-compete is enforceable and how to protect yourself during a job transition is essential.
For employees in states like Illinois, where restrictive covenant laws impose certain conditions on enforceability, navigating a non-compete requires careful consideration.
When Is a Non-Compete Enforceable?
Non-compete agreements restrict employees from working for competitors after leaving a company. However, their enforceability depends on factors such as:
✅ State laws: Some states, like Illinois, require that employees earn above a salary threshold and work a minimum length of time before a non-compete is enforceable.
✅ Industry relevance: If the new job is in a different sector with non-competing products or services, the risk of enforcement is lower.
✅ Consideration provided: In some cases, a signing bonus or other compensation is required to make the agreement legally binding.
If a non-compete is overly broad or restrictive, courts may refuse to enforce it—especially if it unfairly limits an employee’s ability to earn a living.
Understanding Trade Secrets: What Employees Can and Cannot Take
Even if a non-compete is not enforceable, employees must still protect trade secrets and confidential business information when transitioning to a new role.
🔹 What counts as a trade secret?
- Proprietary source code and algorithms
- Customer lists and business strategies
- Internal pricing models or marketing strategies
- Any confidential information that provides a competitive advantage
While employees can use their general knowledge and skills at a new job, they cannot take or use proprietary company information.
Key Steps to Protect Yourself When Switching Jobs
If you’re considering moving to a new employer, follow these best practices:
✅ 1. Review Your Non-Compete Agreement
Check any contracts, handbooks, or documents you signed with your employer to understand your obligations.
✅ 2. Do Not Take Company Data
Avoid transferring, downloading, or emailing company files, emails, or customer lists before leaving your job.
✅ 3. Be Transparent With Your New Employer
If your non-compete includes restrictions, inform your new employer so they can avoid potential legal issues.
✅ 4. Consult an Employment Attorney
Non-compete laws vary by state and industry. If you have concerns about enforceability, an employment attorney can review your situation and help you make informed decisions.
Get Legal Guidance on Your Non-Compete Agreement
Every non-compete situation is unique, and state laws continue to evolve. If you’re unsure about your rights, it’s best to seek legal advice before making a career move.
Contact our office today for a consultation. We’ll help you understand your rights and obligations so you can move forward with confidence.
