How does a non-compete work?

UPDATED: Jul 23, 2015

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How does a non-compete work?

I signed a non-compete for my employer. It basically states that I can’t be in the industry for a year. I got a job with a bigger company that my old company does business with. Are they considered direct competition of the old company I worked for does business with them?

Asked on July 23, 2015 under Employment Labor Law, Illinois


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Only you can answer if they are in the same industry or not. Do they sell or provide the same or similar goods, products, or services to the same or similar customers or clients? Then they most likely in comptition for this purpose, even if they also did business together in some cases. If they don't sell the same goods/products/services to the same or similar customers, they are most likely not in competition for purposes of a non-competition clause or agreement.

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