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Non-compete agreements will be enforced in Illinois if the agreement is ancillary to a valid relationship (employment, sale of a business, etc.) and (1) must be no greater in scope than is required to protect a legitimate business interest of the employer, (2) must not impose an undue hardship on the employee, and (3) cannot be injurious to the ...
Research shows that non-compete agreements make labor markets less competitive, reduce wages and reduce labor mobility. [3] [1] While non-compete agreements may incentivize company investment into their workers and research, they may also reduce innovation and productivity by employees who may be forced to leave a sector when they leave a firm.
A non-competition clause prevents an employee from taking a position with a competitor of their employer following the termination of employment. The employer must have a legitimate interest in restricting the employee from future employment and the clause must be reasonable in time, activities, and geographic area.
The AFL-CIO, America's largest labor group, praised the new rule in a post on X Tuesday, saying noncompete agreements "trap workers from finding better jobs, drive down wages, and stifle competition."
The U.S. Federal Trade Commission has proposed a rule that would ban companies from entering or attempting to enter a non-compete agreement with a worker. The rule banning non-compete clauses in...
Employees continue to receive their normal pay during garden leave and must adhere to their conditions of employment, such as confidentiality and non-compete clause, at least until their notice period expires. [4] An employer's main benefit from a garden leave is the ability to protect their businesses. [5]
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