On February 6, 2015, a federal judge in the Northern District of Illinois rejected the Illinois First District Appellate Court’s holding in Fifield v. Premier Dealer Services, the 2013 decision which held for the first time that an employee must work for at least two years after signing a restrictive covenant agreement for the continued employment to constitute adequate consideration. The decision raises the possibility that the Court of Appeals for the Seventh Circuit will review the issue, as three federal district judges now disagree over the viability of the “bright line rule.” While this decision provides a ray of hope for employers seeking to enforce non-competes in Illinois, Fifield remains binding precedent that will be applied by Illinois courts. Employers seeking definitive guidance on the consideration necessary to support a non-compete will need to wait until the Illinois Supreme Court issues a definitive ruling.
Defendants Argue Fifield Precludes Enforcement of Their Employment Agreements
In Bankers Life & Casualty Co. v. Miller, No. 14 CV 3165, 2015 WL 515965 (N.D. Ill. Feb. 6, 2015), several insurance sales agents and managers left Bankers Life to work for a competitor. They convinced several employees at Bankers Life’s to leave also, and allegedly downloaded confidential client lists and contact information prior to their departure. The sales agents and managers had employment agreements containing restrictive covenants that prohibited them from using Bankers Life’s confidential information, soliciting its customers, and inducing any Bankers Life employees to leave.
Bankers Life filed suit in federal court, alleging that the sale agents and managers violated the restrictive covenants contained in their agreements...
