Published: February 21, 2017

Employees at payroll processing giant ADP were held to the terms of a non-compete contained in online stock award documents when they clicked the “I have read and agreed” button in order to receive stock grants. On February 7, 2017, the U.S. Court of Appeals for the Third Circuit, in ADP, LLC v. Lynch, affirmed the district court's decision to partially enforce non-compete agreements against two of ADP's former employees.

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Published: November 1, 2016

This week the White House issued a “call to action” regarding the inclusion of non-compete agreements in employee contracts for certain categories of workers.  The White House is encouraging the passage of  new laws by the states limiting non-competes in various industries, even providing guidelines on how to accomplish this goal.

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Published: October 24, 2016

On October 20, 2016, the Department of Justice and Federal Trade Commission issued their joint “Antitrust Guidelines for Human Resource Professionals” (“Guidelines”), which might come as a bit of a shock to the HR world, but not to the antitrust community. Hiring and compensation decisions can result in antitrust violations – and these Guidelines do not create any new law in that arena.

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Published: August 19, 2016

On August 19, 2016, Illinois enacted the Illinois Freedom to Work Act (Public Act 99-0869), which prohibits a private employer from entering into a non-compete agreement with a “low-wage employee.”  A “low-wage employee” is defined as an employee who earns the greater of the applicable minimum wage rate or $13.00 per hour.  The Act, which takes effect January 1, 2017 and will be applied prospectively, renders “illegal and void” agreemen

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Published: June 8, 2015

Resolving previously unsettled law in Wisconsin, the Wisconsin Supreme Court recently held in Runzheimer International Ltd v. Friedlen that continued employment of an at-will employee following the execution of a restrictive covenant, such as a non-competition agreement, is sufficient consideration to enforce the restrictive covenant.

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Published: May 11, 2012

Arnstein & Lehr Chicago Partner Steven N. Malitz has written an article entitled, “Leverage and Documentation Create Business Freedom.” In this article, Mr. Malitz discusses his successful representation of a shareholder in two separate suits brought against him by a fellow shareholder and the facts and results of the litigation. The case involved the disagreement between two shareholders who owned a business for many years, under a "hand-shake."  Mr. Malitz' client started an unrelated, non-competitive business in foreign country.  Claiming that Mr.

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Published: January 27, 2012

Arnstein & Lehr Partner E. Jason Tremblay authored the article, “5 ways to protect your company when a key employee departs,” which appeared in the January 23 edition of Inside Counsel. In the article, he stresses the importance for all companies to know what steps to take when an employee decides to leave, especially in circumstances where he or she leaves to work for a competitor.

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Published: December 13, 2011

On December 1, 2011, the Illinois Supreme Court issued an opinion in Reliable Fire Equipment Company v. Arnold Arrendondo, et al. that set forth the factors that the Illinois courts should look to in evaluating the reasonableness of non-competition agreements. The Court reaffirmed that a non-competition agreement is reasonable only if the following the following four conditions are met:

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Published: March 12, 2010

In order to ensure that an employer gets the full benefit of the restrictive time period in its non-competition, non-disclosure or non-solicitation agreements, employers in Illinois should make sure that such agreements contain “extension clauses.”  An extension clause states that the time period of the restrictive covenant will not start or will be extended for the period in which the ex-employee was breaching in the event that an employer does not discover the former employee’s breach until near the end of the restrictive time period.

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Published: March 10, 2010

Illinois businesses should be aware that Illinois House Bill 4923 would radically alter the law regarding non-competition agreements in Illinois by creating the Illinois Not to Compete Act.  This Act would restrict the enforceability of non-competition agreements in several key respects and create numerous rebuttable presumptions in favor of employees that would make it more difficult for employers to enforce non-competition agreements in Illinois.

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