Bill Pending in Ill. General Assembly

Would Codify Covenants not to Compete

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Tougher Sledding for The Employer

 

            HB 0016 would create the Covenants Not to Compete Act.  In a nutshell these agreements would be enforceable only as to “key employees,” who would have to receive special advance notice of the  integration of the covenant into the employment relationship.  Any covenant with a restraint in excess of one year would be presumed invalid, and any covenant exceeding the geographic scope of where the key employee worked for the employer in the year preceding termination would be presumed invalid.  If the employer seeking enforcement goes to court under a covenant providing for its attorney’s fees, the court would impose a reciprocal obligation on the employer were the former employee successful in defending against the injunctive relief.

 

            Obviously this would not a good law for employers with protectible interests and aggressive competitors.  Stay tuned.

 

 

3/18/2011