A recent Illinois Supreme Court opinion clarifies and broadens the scope of enforceable noncompete agreements for Illinois employers. This newsletter summarizes the court's opinion and the resulting changes regarding the enforceability of noncompete agreements.

In its recent decision in Reliable Fire Equipment Comp. v. Arnold Arredondo, the Illinois Supreme Court clarified and broadened the circumstances in which noncompete agreements will be considered enforceable in Illinois. Docket No. IL 111871 (Dec. 1, 2011). The court held there is no specific test to determine whether a noncompete agreement protects an employer’s legitimate business interest and is therefore enforceable; therefore, any court considering a noncompete agreement should look at the totality of the circumstances surrounding the agreement to determine whether it protects a legitimate business interest. This decision has significant implications for any business that has or will create noncompete agreements because it expands the number of interests that a business may protect through a noncompete agreement.