Can I Collect Unemployment in Illinois if I Refuse to Sign a Non-compete Agreement?
- The state of Illinois does not have a specific set of laws that cover non-compete contracts across all industries. However, Illinois courts have upheld non-compete agreements in instances when the employer successfully proved that such an agreement existed. Generally, courts uphold non-compete agreements if the employer has a protectable interest. If you have access to client information, financial reports or blueprints for new products, then your employer could argue that you should sign a non-compete clause to prevent such information being shared with competitors. However, non-compete clauses must have a limited scope. The agreement should only pertain to a certain geographic area and remain in force for a set period of time.
- You can apply for unemployment insurance benefits when you get fired in the state of Illinois. Under state law, you qualify for unemployment benefits if you lose your job through no fault of your own. You qualify for unemployment if your firm downsizes but you do not qualify if you lose your job as a result of stealing or committing fraud. Therefore, unless your refusal to sign a non-compete clause was somehow related to a wider misconduct issue, you may qualify for unemployment insurance benefits.
- Even if you were unfairly dismissed by an Illinois employer, you may not qualify for unemployment benefits. You can only claim unemployment if you earned at least $1,600 during the last year. Unemployment insurance benefits are funded by premiums paid by your employer. Typically, employers ask you to sign non-compete agreements when you first start work. Conceivably, your employer could fire you before you have earned $1,600, which means that you cannot qualify for unemployment benefits regardless of the reason for your firing.
- Illinois, like many states, has at-will employment laws under which you or your employer can terminate your relationship at any time and without prior notice. If you lose your job for refusing to sign a non-compete clause, then you have no recourse in court. However, nothing prevents you from going to work for one of your employer's competitors. However, if you are a member of a union then you should consult your union representatives to see if your employer violates your union's working agreement by requiring you to sign a non-compete clause or firing you for refusing to sign. Depending on the nature of your union's agreement, your employer may have to rehire you or pay you some form of compensation.
