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Posts by Edward S. Weil

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Photo of Dykema Labor & Employment Law Blog Edward S. Weil
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Illinois Appellate Court Ruling Imposes New Requirements on Employers Wishing To Issue Noncompetition Agreements.

The Illinois Appellate Court recently held that the promise of new employment alone provides insufficient consideration for post-employment restrictive covenants, such as non-compete and non-solicitation agreements, unless the new employee continues his or her employment for at least two years.

The new hire in Fifield v. Premier Dealer Services, Inc., 2013 IL App (1st) 120327, signed an “Employee Confidentiality and Inventions Agreement” that included two-year non-compete and non-solicitation provisions. The Agreement stated that the restrictive covenants would not apply if the employee were terminated without cause during the first year of employment. The employee quit three months later, went to work for a competitor, and filed suit with his new employer seeking a declaration that the Agreement’s restrictive covenants were invalid and unenforceable. Read More ›