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Include an extension clause in your noncompete agreements

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in Employment Law,Human Resources

In the wake of a recent Illinois court decision, employers should rethink their noncompete agreements. Without fine tuning, these contracts may not work as well as they could.

In Citadel Investment Group, LLC v. Teza Technologies LLC (No. 09 CH 22478, Illinois Court of Appeals, 2010), a financial services firm sought—and won—a court order preventing two former employees from competing for a period of nine months pursuant to the terms of noncompetition agreements they had signed.

But the ruling came a day late and a dollar short. Here’s why.

The court ordered the nine-month restrictive period to begin on the employees’ termination dates and not on the date of the court’s order. But by the time the court had ruled, only one month remained under the terms of the noncompete. By the time the appellate court ruled, the restrictive period had long expired.

Unfortunately for the employer, Citadel Investment Group, the agreements fai...(register to read more)

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