SimplyHR | Employment & Labor Blog 

Recent Illinois appellate court decision puts in doubt enforceability of many existing employment restrictive covenants

Many businesses use restrictive covenants, such as non-solicitation and non-competition restrictions, in employment and other agreements to protect the competitive advantage that they derive from their investment in the development of customer relationships and confidential information. However, a recent Illinois appellate court decision raises serious doubt about the enforceability of many existing employment restrictive covenants. This case necessitates prompt action by employers that have restrictive covenants in agreements with their executives, managers, sales persons or employees in order to secure the protection and value they thought they had through these agreements.