Non-Compete Laws in Illinois
Restricted by income threshold
Illinois prohibits non-compete agreements for workers earning less than $75,000 annually (threshold increases at regular intervals). For higher earners, non-competes must protect a legitimate business interest and be reasonably restricted. Non-solicitation agreements are banned for workers earning less than $45,000 annually.
Key details
| Enforceability | Restricted by income threshold |
|---|---|
| Income threshold | 75000 — Workers earning below $75,000 annually are protected. The threshold increases at regular intervals set by the statute. |
| Banned industries | Non-competes are void if enforcement would increase cost or difficulty for veterans or first responders seeking mental health services. |
| Blue pencil doctrine | Varies |
| Key statute | 820 ILCS §§90/1 et seq. (Illinois Freedom to Work Act) |
What this means for you
If you earn less than $75,000, your non-compete is void. If you earn more, it must protect a legitimate business interest. Your employer must advise you to consult an attorney before signing.
Non-compete laws in Illinois: what you need to know
Illinois regulates non-competes through the Illinois Freedom to Work Act, which sets income thresholds for enforceability. Non-compete agreements are void for workers earning less than $75,000 per year. Non-solicitation agreements are void for workers earning less than $45,000 per year. These thresholds increase periodically: the non-compete threshold rises to $80,000 on January 1, 2027, and by $5,000 every five years thereafter.
Beyond the income thresholds, Illinois imposes procedural requirements that many employers overlook. Employers must advise employees in writing to consult with an attorney before signing a non-compete or non-solicitation agreement. Employees must have at least 14 calendar days to review the agreement before signing. Agreements that do not satisfy these requirements may be unenforceable regardless of the employee's income level.
The Freedom to Work Act also requires adequate consideration to support a non-compete. Illinois courts have generally required at least two years of continued employment after signing, or some form of additional professional or financial benefit. Simply offering the job itself may not be sufficient consideration if the employee is terminated or leaves within two years of signing the agreement.
Effective January 1, 2026, an amendment makes it against public policy for any employment agreement to prevent protected concerted activity, shorten statutes of limitation, or impose another state's law or out-of-state venues for claims brought by Illinois employees. This affects how non-compete and related provisions can be structured and could limit employers' ability to use choice-of-law provisions to avoid Illinois protections.
Illinois also provides specific protections for certain categories of workers. Non-competes are void for employees covered by collective bargaining agreements under the Illinois Public Labor Relations Act or the Illinois Educational Labor Relations Act, and for employees in construction (with exceptions for management and ownership). If you were terminated, furloughed, or laid off due to pandemic-related circumstances, your non-compete may also be unenforceable unless your employer pays your base salary through the restricted period.
More Illinois workplace laws
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Frequently asked questions about non-compete laws in Illinois
Non-compete agreements are void for employees earning less than $75,000 per year. Non-solicitation agreements are void for those earning less than $45,000 per year. The non-compete threshold increases to $80,000 on January 1, 2027. Income includes salary, bonuses, commissions, and other taxable compensation.
Yes. Illinois law requires employers to advise you in writing to consult with an attorney and give you at least 14 calendar days to review the agreement before signing. Agreements that skip these steps may be unenforceable.
If you were terminated, furloughed, or laid off due to business circumstances or governmental orders related to the pandemic or similar circumstances, your non-compete may be unenforceable unless your employer pays your base salary through the restricted period, minus earnings from subsequent employment.
An amendment effective January 1, 2026, makes it against public policy for employment agreements to impose non-Illinois law or out-of-state venues for claims by Illinois employees. This limits your employer's ability to circumvent Illinois protections through choice-of-law provisions.
If your employer sues to enforce a non-compete or non-solicitation agreement and you prevail, you may recover attorney fees and costs. The Illinois Attorney General also has authority to investigate and pursue enforcement actions against employers that engage in patterns of unlawful restrictive covenant use, with civil penalties up to $5,000 per violation.