Drafting enforceable customer solicitation restrictions

more+
less-

Originally published in Illinois State Bar Association’s Labor & Employment Law Newsletter Vol . 50 #1, July 2012.

Legal Issues in Drafting Restrictions -

A restriction on soliciting customers should be part of most noncompetition agreements. Because the restriction does not prevent working in an industry or geographic area, it is more likely to be enforced than one that does and may still be enforced if a broader restriction is not. Also, a customer restriction may by itself provide sufficient protection against competition by former salespersons.

The legal requirements for a customer restriction, as for other restrictions, are legal consideration, protection of a legitimate business interest, and reasonable scope. Because it is a narrower restriction, no geographic limitation is ordinarily needed.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Civil Remedies Updates, General Business Updates, Labor & Employment Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Thompson Coburn LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »