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St. Charles, IL Chicago, IL Office Davenport, IA Office Minneapolis, MN Office Milwaukee, WI Office
St. Charles, IL Chicago, IL Office Davenport, IA Office Minneapolis, MN Office Milwaukee, WI Office

Non-Compete Archives

Non-Compete Statute Applies To No-Raiding Provisions

The enforcement of non-compete agreements in Wisconsin is governed by the provisions of Wis. Stat. § 103.466, which sets forth five requirements that must be met in order for the restriction to be enforceable. Over the years, the courts have found that these restrictions applied not just to traditional non-compete agreements, but also to agreements not to solicit customers, non-disclosure/confidentiality agreements, and no-hire agreements between two employers. It therefore comes as no surprise that the Wisconsin Supreme Court recently held that the restrictions found in § 103.465 also apply to "no-raiding" covenants, which restrict former employees from soliciting or "poaching" employees of their former employer.

Illinois Employers Should Use Caution with Having Low-Income Employees Sign Covenants-Not-To-Compete

The unemployment rate in Illinois continues to decline, as is the case nationally. As of the time of writing this article, the state wide unemployment rate in Illinois is 4.6% and numerous experts predict that this rate will go lower as the economy continues to improve. Some cities in Illinois have unemployment rates as low as 3.4%. What this means for employers is that it may become even more difficult to fill open positions.

Provisions of Non-Compete Law Apply to No-Solicitation of Employees Restraints

It is common, if not standard, for most non-compete agreements to contain a clause that prohibits the covered employee from soliciting current employees to terminate their employment in order to accept employment with a competitor. In essence, it prohibits the departing employee from raiding his/her former employer's valued employees. Until recently, the courts have never determined whether such constraints are subject to the requirements of Wis. Stat. § 103.465, which governs the enforceability of non-compete agreements. It now has, and they are.

Illinois Appellate Court Changes the Rules on Non-Competition Agreements: Are Your Agreements in Compliance?

Just when you thought it was safe to enforce those restrictive covenant agreements, the Illinois Appellate Court, 1 st District, throws a change-up. The Illinois Court of Appeals recently ruled that (under certain circumstances) when an employee is hired and signs a restrictive covenant agreement, the employee must be employed for 2 years, in order for the agreement to have sufficient consideration.

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