Rao v. Rao

ESCHBACH, Circuit Judge.

The primary issue in this diversity case is whether, under Illinois law, an employer may dismiss an employee without good cause and in bad faith and then enforce a restrictive covenant severely limiting the scope of the employee’s professional practice. The secondary issue is whether an employee, who asserts that he is owed money under an employment contract, may circumvent the contract’s arbitration clause by framing his claim as one sounding in tort. We resolve each issue in the negative; the restrictive covenant is unenforceable and the employee must take his claim…