By Brian K. LaFratta and Joel W. Rice, Fisher & Phillips
A landmark Illinois Appellate Court decision was recently issued making restrictive covenants substantially easier to enforce, at least in central Illinois. In this article, the prevailing party’s attorneys explain the implications of the decision, as well as the circumstances that led to this significant change in the law.
For years, many Illinois businesses have used restrictive covenants (or covenants not to compete) to protect their customer relationships and confidential information. Such covenants, which are typically part of employment agreements, provide that employees cannot solicit the company’s customers or otherwise compete with the company after the termination of their employment. Recognizing that such covenants are a restraint of trade and detrimental to employees’ job prospects, Illinois courts have historically not looked favorably on them and have imposed strict requirements that must be met in order for the covenants to be enforceable.
