Legal Question in Employment Law in Illinois
I was recently let go from a medical job in the suburbs of Chicago that has a 7 mile radius clause in it. The clause states
It is expressly understood and agreed by Doctor that "office" is engaged in a unique enterprise based upon the methodology and the "office"'s good will, trade name and trade secrets are unique to "office". In consideration of the employment under the terms of this Agreement, Doctor agrees that in the event of termination of this Agreement "office", Doctor agrees that he/she shall not engage in the rendering of Chiropractic services for a period of twenty-four (24) months within a geographical radius of seven (7) miles from the Premises. Associate further covenants not to make any effort to contact patients who have undergone or who are undergoing treatment, care, consultation or diagnosis on the Premises, or who have visited or who are visiting the premises for any professional reason whatsoever, by means of personal contact, appeal or correspondence of any nature whatsoever including telephone calls,US Postal or other mail service, flyers, circulars or contact by paid or voluntary representatives,agents or solicitors, prior to the termination of this Agreement or for a period of Twelve (12)months following termination of this Agreement, without the written consent of Doctor. Associate acknowledges and agrees that the provision of this shall be enforceable by an action for specific performance or injunction in a court of equity or chancery.
Doctor does hereby agree to hold harmless and indemnify "office" in any legal proceedings to enforce the provisions of this paragraph. It is further agreed that the breach of this covenant would cause damages to "office" which are impossible to ascertain or measure. Therefore,solely as liquidated damages and not as a penalty or forfeiture, both parties agree that should Doctor breach this covenant, the measure of damages shall be Three Thousand Dollars($3,000.00) per month for a period of twenty-four (24) months, all due and payable to "office".
Is it enforceable if I am receiving unemployment benefits and a job opportunity comes up within that 7 miles and I take it. Also if I am working outside the 7 miles and the new employer needs me to work at a different office that is within that 7 miles is it enforceable.
1 Answer from Attorneys
Every situation involving a non-compete should be addressed in collaboration with an attorney that is experienced in these matters. The reason is that Illinois courts typically enforce these if they appear reasonable on their face, which your does. However, Illinois uses the business interest test. Arguing that a non-compete does not serve this employer's business interest is tricky. Furthermore, because you are a licensed professional, a court would take into account certain factors such as: patient choice, and whether or not your professional chiropractic obligations disfavor non-competes. We are happy to discuss your specific situation with you by email or telephone.
Tsamis Law Firm PC
www.tsamislaw.com
866-703-5509
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