Non-Disclosure Agreements (NDAs) and non-compete agreements can be important for protecting businesses. However, they must be constructed correctly to be enforceable in Illinois. A business lawyer Maywood Illinois can help you make sure your NDA or non-compete comply with Illinois law. Contact us today at 312-210-9598 for a consultation.
NDA’s and non-compete agreements are often used to protect trade secrets and confidential information. There are some important considerations you should make before entering into a non-disclosure agreement or non-compete agreement with someone else. How long they should be, what special considerations there are when drafting them, and what happens if they are found invalid by a court in Illinois all need to be addressed ahead of time.
Non-Disclosure Agreement (NDA)
A non-disclosure agreement (NDA) is a contract between two parties that prevents the disclosure of certain information. NDAs are often used to protect trade secrets, confidential information, and other proprietary information.
When writing an NDA, you’ll want to make sure that each party understands what they are agreeing not to disclose. You should specify who owns any intellectual property, whether this means patents or simply ideas about how things could be done better in the future. If there are any trade secrets involved then those should be clearly defined as well.
Considerations for NDA’s
NDAs come in an infinite variety of forms and styles, but to be effective they should at a minimum contain some important information.
- It should identify the parties to the agreement – only employees that have access to confidential information or trade secrets should be asked to sign an NDA.
- It should define what information will be considered confidential – The agreement should include a clear description of the information to be protected. Making the description easy to understand ensures the employees know exactly what they are prohibited from disclosing.
- It should specify the duration of the confidentiality obligations – Your NDA may not continue indefinitely. To ensure your agreement is enforceable, add a reasonable time limit to the confidentiality obligation.
In Illinois it has become more difficult to enforce a non-disclosure agreement as the law changed at the beginning of 2022. In order to have an enforceable NDA, you want an experienced business lawyer Maywood Illinois to help you set it up correctly, so it complies with Illinois Law.
What is a Non-Compete Agreement?
A non-compete agreement is a contract between an employer and an employee that states the employee can’t work for another company in the same industry. Non-competes are often used by employers to protect their intellectual property or trade secrets.
The length of a non-compete should be reasonable and tailored to the situation. If you are hiring someone who will be working with sensitive information, or if you want to protect yourself from being copied by other companies in your industry, then it may make sense for them to sign an agreement that lasts longer than two years.
However, if your company does not deal with sensitive information and does not have any competitors nearby, then there is no reason why a lengthy non-compete should be necessary.
When are non-competes enforceable in Illinois?
In Illinois, non-competes are enforceable if certain criteria are met.
- It must describe the scope of the work the employee may not perform.
- It must specify a reasonable time frame.
- It must be limited to a certain geographical area.
If an employer seeks to impose a non-compete or non-solicitation restriction on an employee, it needs to meet the legal criteria for Illinois. Whether a court would find a specific non-compete agreement enforceable will depend on the nature of the job and the terms of the non-compete agreement itself.
If you think you need a non-compete agreement for your company, our business lawyer Maywood Illinois will help you ensure it is legally enforceable.
Contact our business lawyer Maywood Illinois today for a consultation
Enforcing an NDA or non-compete agreement can be a complicated matter. In some cases, the enforceability of these agreements can be decided in court and there are also other methods for enforcing them that you may want to consider. A business lawyer Maywood Illinois can help you by providing advice on how best to proceed. Contact The Law Office of David Hyde for a consultation today.