No.  Most non-compete agreements are lawful.

In our post of 02-07-2016, we augmented the lesson plan on Confidentiality with information about non-compete agreements.

In our update to that post on 06-19-2016, we observed that on 06-08-2016, the Illinois Attorney General filed suit against the Jimmy Johns Sandwich Chain – an Illinois-based employer – indicating that their non-compete agreement was unconstitutional.

On 06-23-2016, the www.News-Gazette.com – an Illinois-based newspaper – reported New York’s Attorney General announced that the Jimmy Johns Sandwich Chain had agreed to stop including non-compete agreements in hiring packets used for low-wage workers.

But most non-compete agreements remain lawful.  Illinois state law requires a non-compete agreement to be based on a legitimate business interest, and narrowly tailored in terms of time, activity, and place.  For example, a company with a sizeable investment in time, creative development, and financial investment in software may legally require a non-compete agreement from a prospective employee.  Legality and constitutionality depend on the situation.

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