Non-Competition

[demonvalex2]

Need some advice. I work in a suburb of Chicago, IL. I have been working for the same company for 3 years. My original position was director of product. In August I was offered a promotion to general manager of the operation. Significant raise, however in the offer letter it states that the promotion was contingent I sign a non compete. Prior to the August promotion, I did not have a non-competition. The company terminated over 15 jobs due to downsizing and SG&A cuts. The term of the non-compete is 1 year. My career has been in the parts industry for over 30 years. In the Chicago area, there are multiple jobs that fit my skills the minute a company asks if I have a non compete they never call back.

I am not working with the same product type. Some of the current job openings are in the same parts industry but not the same product type. I am the only source of income for my family. My wife has a medical condition that does not allow her to work and I have an adult handicap child. I asked my employer if they be willing to wave or modify the non compete and the answer is no.

At this point, I am not sure what to do I am burning through savings, and unemployment is not enough and my hands are tied behind my back to earn a living. Any suggestions

 

[Zigner]

You may wish to run the non-compete by a local employment law attorney. If you find that it is valid and binding, then you will need to wait it out.

 

[PayrollHRGuy]

I have only three suggestions.

1. Have a lawyer look over the NCA.
2. Move out of the geographical area covered.
3. Find work in another field.

 

[demonvalex2]

OK thanks for the advice

 

[quincy]

Need some advice. I work in a suburb of Chicago, IL. I have been working for the same company for 3 years. My original position was director of product. In August I was offered a promotion to general manager of the operation. Significant raise, however in the offer letter it states that the promotion was contingent I sign a non compete. Prior to the August promotion, I did not have a non-competition. The company terminated over 15 jobs due to downsizing and SG&A cuts. The term of the non-compete is 1 year. My career has been in the parts industry for over 30 years. In the Chicago area, there are multiple jobs that fit my skills the minute a company asks if I have a non compete they never call back.

I am not working with the same product type. Some of the current job openings are in the same parts industry but not the same product type. I am the only source of income for my family. My wife has a medical condition that does not allow her to work and I have an adult handicap child. I asked my employer if they be willing to wave or modify the non compete and the answer is no.

At this point, I am not sure what to do I am burning through savings, and unemployment is not enough and my hands are tied behind my back to earn a living. Any suggestions

The "one year" time frame in the noncompete might be unenforceable. But you will need to have the contract personally reviewed in its entirety to determine this for sure.

Noncompete agreements are written promises not to compete with your employer (take a job with a competing business) for a specified amount of time, generally within a certain geographic area. Six months is pretty standard unless trade secrets are involved.

Most state courts will enforce noncompete agreements if the agreements are seen as necessary to protect an employer's legitimate business interests. But state courts are also not fond of restricting a worker's ability to earn a living.

That said, if an employee is a low-wage earner in Illinois ($13/hour or less), an employer in Illinois is prohibited from requiring that the low-wage employee sign a noncompete agreement.

 

[adjusterjack]

At this point, I am not sure what to do I am burning through savings, and unemployment is not enough and my hands are tied behind my back to earn a living. Any suggestions

I don't know how much help this will be. In 2011 the IL Supreme Court placed limitations on non-compete agreements. It ruled that a non-compete is enforceable if it:

(1) is no greater than is required for the protection of a legitimate business interest of the employer-promisee; (2) does not impose undue hardship on the employee-promisor; and (3) is not injurious to the public.

Here's the decision:

http://www.illinoiscourts.gov/opinions/supremecourt/2011/december/111871.pdf
Trouble is, that's not going to be much help unless you actually get sued for taking a job that allegedly violates your non-compete. You'll want to avoid that. You might just have to tough it out until August.

Lesson learned: Never sign another non-compete as long as you live, even if it takes walking away from the job. I learned that the hard way myself.

That said, if an employee is a low-wage earner in Illinois ($13/hour or less), an employer in Illinois is prohibited from requiring that the low-wage employee sign a noncompete agreement.

Referring to the Illinois Freedom to Work Act that was effective 1/1/2017:

http://www.ilga.gov/legislation/publicacts/fulltext.asp?Name=099-0860

 

[Zigner]

I'd say that once someone gets to the point of being General Manager, a non-compete starts making sense.

 

[quincy]

The Illinois Supreme Court decision on noncompete agreements really only reinforced earlier court decisions and mimicked what is standard in other states.

It is not smart to have a self-made policy where you refuse to sign any noncompete agreement. That will lock you out of many jobs, especially in technical fields.