Published: December 21, 2017

On November 27, 2017, Pennsylvania became the next state to join the national trend to limit the use of restrictive covenants when a bill was introduced in the Pennsylvania House that would ban non-competition covenants in employment agreements.

. . . . . .

Published: December 13, 2017

In keeping with the national trend limiting the use of restrictive covenants, in November 2017, the New Jersey Senate introduced SB3518, a bill setting forth sweeping restrictions that would limit the enforceability of non-competes. The bill states that restrictive covenants “impede the development of business in the State by driving skilled workers” out of New Jersey, “discourage innovation and production, impose special hardships on employees . . .

. . . . . .

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.

. . . . . .

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.

. . . . . .

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.

. . . . . .

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

. . . . . .

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.

. . . . . .

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.

. . . . . .