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Recent legislative developments in the State of Illinois underscore the need for employers to review and revise their restrictive covenant agreements with their employees to maximize potential enforceability. Specifically, a bill has emerged in the state legislature that would significantly restrict employer use and enforcement of restrictive covenant agreements. What do Illinois employers need to know about this potentially game-changing development?
Current State Of Illinois Law
As is the case in many states, Illinois law governing the enforceability of restrictive covenant agreements – which include covenants not to compete and not to solicit customers and employees – in the employment context has developed largely through judge-made, common law decisions. Under current law, and to briefly summarize, Illinois courts will enforce restrictive covenant agreements against a former employee where necessary to protect a