Restrictive Covenants Execution, Chicago Securities Arbitration Lawyer

QUESTION

Will the courts enforce a restrictive covenant that was executed after the employee began working for his employer?

ANSWER

Employees are often asked to sign a new employment agreement when there has been a change in management, or when the firm has initiated a new line of business that it wants to protect, or when the firm becomes concerned about losing business it has developed over time. When a restrictive covenant has been executed after an employee began his employment, the courts in most jurisdictions will still enforce it if the employee received adequate consideration for the covenant and it satisfies the other criteria described above. Continued employment for a significant amount of time will be deemed adequate consideration in most jurisdictions.

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