non-compete agreements

Following a nationwide trend, Illinois has proposed significant legislation affecting employee restrictive covenants, such as non-compete agreements.  While the proposed law does not dramatically change most aspects of the patchwork of Illinois common law, it adds certainty to long-questioned areas and imposes several threshold hurdles and eligibility factors to the test for assessing enforceable restrictive covenants.
Continue Reading What Employers Need to Know About New Non-Compete Legislation in Illinois

Last month, the New Jersey State Senate introduced Senate Bill 3518 (the “Bill”), which, if passed, will severely restrict the use and enforceability of employee non-compete agreements in the state of New Jersey. Most significantly, the Bill would: (1) prohibit entering or enforcing non-compete agreements with certain groups of employees; (2) require employers to pay full wages, salary, and benefits to employees during their non-compete period: (3) prohibit applying an arbitration provision or other such restriction to non-compete provisions; and (4) allow employees a private right of action for any statutory violation. The passage of the Bill would be a significant departure from current New Jersey law which generally enforces non-compete agreements and other restrictive covenants provided that they are reasonable in scope, protect legitimate business interests, and are not unduly burdensome on the employee or against public policy.
Continue Reading New Jersey Proposes to Drastically Restrict the Use of Non-Compete Agreements