Illinois Passes Password-Privacy Law
The Illinois Senate approved a bill banning employers from requesting the Facebook passwords of employees and applicants on Tuesday, reports the Chicago Tribune. If Illinois' Governor signs the legislation, it will become the second state in the country to pass such a law. Maryland was the first--its law takes effect October 1.
Illinois Civil Union Partners Soon May Enjoy Greater Leave Rights Than Married Couples Under a Newly Proposed Illinois Family Medical Leave Act
Illinois currently has no equivalent of the federal Family and Medical Leave Act. Soon, it may. And unlike the FMLA, the proposed Illinois leave law would allow civil union partners the same leave entitlements currently enjoyed by married couples.
llinois House Unanimously Passes Bill That Would Make University Employees Mandated Reporters
On February 29, 2012, the Illinois House of Representatives unanimously passed House Bill 3887, which would amend the Illinois Abused and Neglected Child Reporting Act (ANCRA) to require university and college employees to report suspected child abuse or neglect. Such an amendment would formally enact the position announced by the Illinois Department of Children and Family Services (DCFS) as we reported in November of 2011 that ANCRA’s reporting obligations apply to all employees of higher education institutions. If enacted into law as expected, HB 3887 would expressly make all “personnel of institutions of higher education†mandated reporters, thus requiring such individuals to report to DCFS if they have reasonable cause to believe that a child known to them in their professional or official capacity may be abused or neglected.
Illinois Appellate Court Applies Reliable Fire Retroactively to Reverse and Remand Hair Salon Restrictive Covenant Case
In Reliable Fire Equipment Company v. Arrendondo [pdf], discussed here, the Supreme Court of Illinois dramatically altered how protectable legitimate business interests in noncompetition agreements were to be reviewed under Illinois law, clarifying what it felt were decades of misapplication. On February 3, 2012, the first decision was issued applying Reliable Fire in a retroactive fashion, resulting in an Illinois appellate court reversing and remanding a lower court decision denying enforcement of a noncompetition agreement.
Education: New Salary Posting Requirement Takes Effect January 1, 2012
Illinois School Code provisions requiring the reporting and posting of administrator and teacher salaries have gone through multiple revisions recently.
Illinois Supreme Court Clarifies Employer’s Burden in Enforcing Post-Employment Covenants Not-to-Compete
A decision issued last week by the Illinois Supreme Court clarified the requirements in Illinois for enforceable post-employment restrictive covenants. In Reliable Fire Equipment Co. v. Arrendondo, the Court reaffirmed the longstanding requirement that a “legitimate business interest†is, in fact, a necessary element in determining the enforceability of a post-employment covenant not-to-compete. At the same time the Court rejected the view prevailing for many years among the lower Illinois courts that the only means to establish a legitimate business interest was for an employer to demonstrate either a near-permanent customer relationship or the existence of confidential and/or trade secret information. Under the Reliable Fire decision, courts must now look to the “totality of circumstances†to determine whether a non-compete restriction is justified by a legitimate business interest and otherwise is enforceable.
IL Supreme Ct's Decision in Reliable Fire Broadens Enforceability of Restrictive Covenants
Many clients who deal regularly with employee restrictive covenants have eagerly awaited the Illinois Supreme Court’s decision in Reliable Fire Equipment Co. v. Arredondo et al. The court was faced with answering the question of whether employers seeking to enforce restrictive covenants must show a legitimate business interest—in, for example, customer relationships and/or confidential information—in addition to demonstrating the reasonableness of the time, territory and activity restraints. There has been disagreement recently among the Illinois appellate courts as to whether a protectable interest need be shown at all, a position which, if adopted by the supreme court, would significantly alter how restrictive covenants are written and enforced in Illinois.
Illinois Supreme Court Expands Scope of Covenants Not to Compete
On December 1, 2011, the Supreme Court of Illinois issued its opinion in Reliable Fire Equipment Company v. Arrendondo, Case No. 2011 IL 111871, addressing and clarifying several issues relating to the enforceability of noncompetition agreements in Illinois and setting forth a standard that may result in employers facing a lighter burden to enforce such agreements against former employees.
Illinois Supreme Court Resolves Split in Appellate Courts and Rejects Use of Rigid Tests to Evaluate Restrictive Covenants
On December 1, 2011, the Illinois Supreme Court issued a unanimous opinion in Reliable Fire Equipment Company v. Arredondo, No. 111871, 2011 WL 6000743 (Dec. 1, 2011) holding that courts cannot use rigid, structured tests to determine whether restrictive covenants are enforceable. Specifically, the Illinois Supreme Court held that while courts must continue to evaluate whether an employer has a legitimate business interest that justifies the use of a restrictive covenant, courts should not use isolated, inflexible factors in making this assessment.
Illinois Joins the Mainstream With Respect to Non-Competes
The Illinois Supreme Court recently brought Illinois into the mainstream of non-compete agreements. Like a majority of states across the country, Illinois courts must now determine whether an employer has a legitimate business interest that warrants the imposition of a restrictive covenant, whether the covenant presents an undue burden, and whether it is contrary to the public interest. In short, Illinois courts must determine whether a restrictive covenant is reasonable under the circumstances.
