Is Less Than One Year of Continued Employment Sufficient Consideration for an Illinois No-Compete?
It is well-established Illinois law that “substantial continued employment” is sufficient consideration to support a post-employment restrictive covenant signed by an existing employee. The issue, however, has been what constitutes “substantial continued employment.” Courts have held that continued employment of only seven months is not sufficient consideration, but that continued employment for two years is sufficient.
A federal judge in Chicago recently weighed in on this issue, holding that continued employment for less than one year was not sufficient consideration for a post-employment restrictive covenant. The Court therefore refused to enforce the provision.
