Jenner & Block

Illinois Federal Judge Strikes Down Director-Level Restrictive Covenant As Facially Unreasonable

A recent Northern District of Illinois decision further illustrates the potential pitfalls of utilizing sweeping restrictive covenants even with senior-level staff.  Medix Staffing Solutions, Inc. v. Dumrauf, No. 17-CV-6648 (N.D. Ill. Apr. 17, 2018).  In Medix, the Court, applying Illinois law, granted a former high-level employee’s Rule 12(b)(6) motion to dismiss with prejudice his former employer’s action to enforce a restrictive covenant against him.  Given the overbroad nature of the restrictive covenant, the Court also rejected the employer’s request to “blue pencil” it where the Court found it to be unreasonable.

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