Drafting enforceable customer solicitation restrictions

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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.

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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.

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