When former employees compete: Getting noncompetes right — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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When former employees compete: Getting noncompetes right

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in Employment Law,Human Resources

Good employees, especially those in sales or professional services positions with close customer and client contacts, can quickly turn into enemies when they quit. Employers frequently require those potential enemies (sorry, new employees) to sign employment agreements containing noncompete and nonsolicitation restrictions when they start work.

However, Illinois courts generally do not favor these kinds of restrictions and will look at them very closely. In fact, our courts are quite likely to rule in favor of employees.

Leaves after only seven months

Just such an employee was Diane Gunderson, a customer service representative formerly employed by the John Manner Insurance Agency (JMI) in Joliet. JMI decided to sell its insurance business to Brown & Brown, based in Florida. Brown & Brown agreed to buy the agency and its customer list, confidential business information and good will.

To protect those assets, Br...(register to read more)

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