Balough
October 8, 2021
(October 8, 2021) New statutory restrictions on the use of covenants not-to-compete and non-solicitation provisions in Illinois employment contracts will become effective starting on January 1, 2022. The law codifies court rulings that restricted the use of non-compete agreements and offers specific criteria for their use. The law also sets limits on the use of non-solicitation […]
Balough
December 7, 2019
(December 7, 2019) The Federal Trade Commission (“FTC”) is exploring whether there is sufficient legal basis and economic support to restrict the use of non-compete clauses in employer-employee contracts. The FTC has scheduled a workshop for January 9, 2020 and will accept public comments until February 10, 2020. The FTC’s interest in banning non-compete clauses […]
Balough
December 8, 2016
(December 8, 2016) A settlement agreement with the Illinois Attorney General has torpedoed submarine sandwich maker Jimmy John’s non-compete agreements with low-paid workers and drivers. Under the agreement, Jimmy John’s Enterprises LLC and Jimmy John’s Franchise LLC agreed to drop its requirement that all employees and drivers sign a non-compete. The non-compete had prohibited the […]
Balough
December 23, 2013
Being employed for less than two years is not sufficient consideration for enforcing a non-compete agreement in Illinois, a state appellate court ruled. The issue arose when an employee quit his job after three months. His employment contract included a non-compete agreement restricting his employment for two years after he terminated his employment for any […]
Balough
December 14, 2013
A plaintiff must show that his computer was actually damaged in order to properly allege a violation of the Computer Fraud and Abuse Act (CFAA), a federal judge found. The issue arose in a case where a former employee was accused of unauthorized copying and emailing of computer files so that he could use the […]
Balough
December 14, 2013
An Illinois appellate court judge has questioned whether the courts should continue to require employers to show a “legitimate business interest” before a non-compete convenant is enforced. Under current Illinois cases, a covenant not to compete will only be enforced if the restriction protects a legitimate business interest of the employer. In a concurring opinion, […]
Balough
December 7, 2013
An employer may not be able to fire a “low-level” employee who refuses to sign a non-compete agreement under a ruling by a New Jersey state appellate court. In order to be enforceable, covenants not to compete must protect the legitimate business interests of the employer. So if an employee does not have access to […]
