Protecting Employers Since 1985

Federal Trade Commission (“FTC”) Publishes Its Final Rule, Barring Most Noncompete Agreements

By Joseph H. Laverty / April 25, 2024

            On April 23rd the FTC issued a final rule which for all practical purposes would ban noncompete agreements nationwide. Under the new rule, existing noncompete agreements for senior executives can remain in force, but employers are not allowed to enter into or enforce new noncompete agreements with senior executives. The final rule defines senior…

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Federal Law – “Speak Out Act!” – Limits the Use of Non-Disclosure and Non-Disparagement Provisions in Pre-Dispute Employee/Employer Agreements

By Anthony J. Caruso Jr. / March 30, 2023

Effective Date: President Biden signed it into law on December 7, 2022. What It Does: Renders unenforceable non-disclosure and non-disparagement provisions in employee/employer agreements. Type of Agreements: Related to allegation of sexual assault and/or sexual harassment and that are entered into “before the dispute arises.”   “Before the Dispute Arises” Defined: Before a lawsuit is…

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Major Changes Coming to Non-Compete/Non-Solicitation Restrictive Covenants in Illinois

By Anthony J. Caruso Jr. / September 27, 2021

On August 13, 2021, Governor J.B. Pritzker signed into law major amendments to the Illinois Freedom to Work Act which will become effective January 1, 2022. What is covered: Employment agreements with non-compete and non-solicitation covenants signed after January 1, 2022.  New Salary Requirements: Prohibits non-competes with employees earning less than $75,000 per year. Prohibits…

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Seneczko Wins Default as Discovery Sanction in Duty of Loyalty Claim

By Alan E. Seneczko / October 15, 2019

Wessels Sherman Attorney Alan Seneczko, managing shareholder of the Wisconsin office, recently won a huge decision in a claim against a former executive for breach of his duty of loyalty to the company (among other claims). The company, Storage Battery Systems, suspected its director of sales was using his position and the confidential information he…

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Illinois Employers Should Not Go Overboard With Non-Compete Agreements!

By Nancy E. Joerg / May 6, 2019

In order to have non-compete agreements which have a chance of being found legally enforceable by an Illinois judge, Illinois employers must carefully figure out the scope of activities to be restricted by their proposed non-compete agreements. Employers relying on the protection of a non-compete agreement naturally want to protect the company’s legitimate business interests.…

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Twelve Commonly Asked Questions About Non-Compete Agreements In Illinois

By Nancy E. Joerg / February 26, 2019

Illinois is a state where non-compete agreements can be enforceable if done with certain guiding concepts and wording. The following are the most common questions asked by Illinois clients who are considering the use of non-compete agreements: 1. Why does a non-compete agreement have to be “supported by consideration” even though both parties sign the…

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Non-Compete Statute Applies To No-Raiding Provisions

By Alan E. Seneczko / March 15, 2018

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…

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

By Joseph H. Laverty / November 28, 2017

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…

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Legislative Update: Some Non-Compete Agreements Unenforceable Under New Illinois Law

By Anthony J. Caruso Jr. / November 14, 2016

New Law Affects Non-Compete Agreements for Employees earning less than $13 per hour Today, many employers use non-compete agreements to protect their company’s business. As such, the issue is always whether or not a non-compete agreement is enforceable for the Company. Now, in Illinois, there is a clear directive as to certain employees that the…

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

By Alan E. Seneczko / September 27, 2016

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…

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