
Non-solicitation agreements are a common tool Illinois businesses use to protect their most valuable relationships, but enforcing them is not always straightforward. In this article, we explore…
While both are restrictive covenants and are used to protect business interests, they serve different purposes. A non-solicitation agreement prohibits a departing employee, or, in some cases, a client, from actively poaching or recruiting your clients, customers, or employees for a set period of time.
A non-compete agreement, on the other hand, restricts individuals from working for a competitor, either by starting a competing business or by working for an existing one, within a specific geographic area or timeframe.
Employers primarily use non-solicitation agreements to prevent poaching and to safeguard their client relationships and their employees, which are typically their two most important assets. Businesses can also use these agreements to help protect their data and systems, secure talent, and preserve goodwill with their clients.
Generally, Illinois courts enforce non-solicitation clauses against former employees only if the agreement meets fairly strict statutory and common law requirements. These requirements are very specific, and businesses typically need the assistance of competent legal counsel when bringing claims related to enforcement.
There are several factors needed to prove that a non-solicitation agreement has been violated. First and foremost, recent law has developed to require that certain minimum thresholds be met. For example, the employee or individual at issue must meet a minimum salary threshold to be subject to a non-solicitation agreement.
There must also be adequate consideration, meaning something of value, such as compensation or continued employment, was provided in exchange for the agreement. Additionally, the employee must have been employed for a minimum period of time for the agreement to be enforceable.
Beyond this, the contract itself must meet various requirements, including a reasonable scope and a legitimate business interest that the non-solicitation clause is designed to protect.
I always recommend seeking legal counsel early. There are often time restrictions involved in these cases, and sensitive information can be lost very quickly. If a valid non-solicitation clause is not enforced promptly, delays can end up costing companies significant money and goodwill with their customers.
For more information on non-solicitation clauses in Illinois, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (630) 274-6196 today.