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Significant Change in the Law Governing Restrictive Covenants in Illinois

November 10, 2009

By Kenneth W. Gage

For years, the enforcement of restrictive covenants in Illinois has been contingent on proof of a legitimate business interest to support the covenant. In a dramatic departure from uniform statewide precedent, the Appellate Court, Fourth District, recently abandoned the legitimate business interest test in favor of the reasonableness test applied in many other jurisdictions. This creates new opportunities for the enforcement of restrictive covenants in Illinois.

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Image: Kenneth W Gage
Kenneth W Gage
Partner, Employment Law Department