Are Non-Competes Really Enforceable? Most non-compete agreements between employers and employees violate the National Labor Relations Act, according to a May 30 memo from Jennifer A. Abruzzo, general counsel for the National Labor Relations Board. Such agreements, which bar employees from taking certain types of positions or running certain types…
Articles Posted in Contracts
‘Independent Contractor’ Might Be a Trojan Horse
Independent Contractors A recent Illinois Court of Appeals decision in an Illinois Wage Claim Act case puts a magnifying glass on the sticky wicket employers can find themselves when they are unable to pay an outside contractor, at least under certain circumstances. The decision in O’Malley v. Udo, 2022 IL…
You Might Need to Rework Your Non-Competes
Illinois Freedom to Work Act Illinois Employers who want to protect their business and trade secrets by using restrictive employment contracts will find new hoops to jump through. The enforcement of non-compete and non-solicit agreements, designed to erect roadblocks to prevent former employees from gaining an unfair advantage due to…
Rent Relief for Chicago Restaurant Ordered by Judge
For the first time to our knowledge a judge has ordered rent relief for a Chicago restaurant. The bankruptcy judge ruled that the “Act of God” clause in the lease gives the restaurant rent relief when it was forced to closed during the the COVID-19 mandatory closings. CoronaVirus FAQs The…
Does Your Cyber Insurance Protect Your Business While Working Remotely?
Cyber Security Issues while working remotely. Does your cyber liability insurance cover data breaches that occur while employees are working at home, using their personal devices such as tablets and laptops? There’s no time like the present to look into this issue, with most employees telecommuting and hackers perhaps sensing…
After Health… Businesses Must Consider Legal & Economic Impacts of COVID-19
Did someone say force majeure? COVID-19 Pandemic and Force Majeure clauses According to Black’s Law Dictionary, force majeure is defined as “An event or effect that can be neither anticipated nor controlled.” It is generally viewed as an unexpected event that prevents someone from doing or completing something that he…
Illinois Freedom to Work Act – Another Problem for Employers
The Illinois Freedom to Work Act, which prevents non-governmental employers from requiring that low-wage employees enter into non-compete agreements, has begun to impact case law in the past three years since it was enacted. Employers would be wise to take note. Chicago Business Lawyers The act, which defines “low-wage employees”…
The End of “Wholly Groundless Exception” in Arbitration Agreements
An arbitration agreement is a contract, in which two or more parties agree to settle a dispute outside of court. Usually, an arbitration agreement is a clause in a larger contract. The arbitration clauses are often subjects to hotly disputed litigation, stemming from the vague verbiage and possible inconsistencies with…
Illinois prohibits Non-Compete Agreements for Low Pay Employees
Under a new Illinois law, non-compete agreements must be premised on a legitimate business interest and narrowly tailored in terms of time, activity, and place. In addition, under the newly enacted Illinois Freedom to Work Act, employers are prohibited from entering into non-competes with employees who make less than $13/hour.…
Can Student Loans Ever Be Discharged?
Can Student Loans Ever Be Discharged? Yes, and there’s a new tool to help bankruptcy lawyers deter mine whether clients qualify Contrary to common perception, not all student loans can be wiped out in bankruptcy court. Although the Bankruptcy Code does protect federal loans and some private loans from discharge,…