Is a Non-Compete Enforceable in Illinois? (2025)
Illinois banned non-competes for workers earning under $75,000. Here's what the Freedom to Work Act says, what counts as valid consideration, and what to do if you've signed one.
Is a Non-Compete Enforceable in Illinois? (2025)
When Jordan took a job at a Chicago marketing agency, he signed a standard onboarding packet. Buried inside: a non-compete clause preventing him from working for any competing agency in Illinois for 18 months after leaving. His salary was $62,000.
Two years later, he got a better offer from a rival firm. His manager reminded him about the non-compete. What nobody told Jordan — including the person who handed him the paperwork — was that Illinois law had changed.
Under Illinois' Freedom to Work Act, his non-compete was void from the moment he signed it.
Quick answer: Illinois bans non-compete agreements for employees earning $75,000 per year or less. Even for higher earners, non-competes in Illinois require a 14-day review period, written advice to consult an attorney, and at least two years of employment (or other genuine consideration) before the restriction becomes enforceable.
The Illinois Freedom to Work Act
Illinois passed the Freedom to Work Act (820 ILCS 90/) in 2021, effective January 1, 2022. It's the most comprehensive non-compete reform outside California's near-total ban.
The income thresholds:
| Restriction Type | Enforceable Only Above |
|---|---|
| Non-compete agreement | $75,000/year |
| Non-solicitation agreement | $45,000/year |
If your compensation is at or below these thresholds, the restriction is void. Period. Not "potentially challengeable" — void.
These thresholds are set to increase: the $75,000 threshold rises to $80,000 in 2027, $85,000 in 2032, and $90,000 in 2037. The non-solicitation threshold increases proportionally.
Have an Illinois non-compete in your contract? Upload it to Contrivox for a plain-English breakdown of whether it meets the law's requirements — in under a minute.
The Consideration Requirement
Even above the income threshold, an Illinois non-compete requires "adequate consideration" to be enforceable. This is where many agreements fail.
The Freedom to Work Act specifies that adequate consideration means one of:
- At least two years of employment after the non-compete is signed (if you were already employed when you signed it), OR
- Offering a new position to a prospective employee, OR
- Something of value beyond mere continued employment — a raise, a promotion, a signing bonus, or another concrete benefit
The two-year rule catches a lot of employers. If you were handed a non-compete six months into your job and then let go after a year, the agreement likely fails the consideration test entirely — you were never employed long enough for the consideration to vest.
Process Requirements: What the Employer Must Do
Illinois law imposes procedural obligations that don't exist in most other states:
14-day review period. The employer must provide at least 14 calendar days for the employee to review the agreement before signing. An employer cannot insist you sign immediately.
Written advice to consult an attorney. The agreement itself must advise the employee in writing to consult with an attorney before signing. A contract that omits this may be unenforceable regardless of other terms.
Both requirements apply to non-solicitation agreements as well, for workers above the $45,000 threshold.
What Illinois Courts Can Do to Overbroad Non-Competes
Unlike California, which simply voids non-competes, Illinois courts can "blue pencil" — narrow — an overly broad agreement to make it reasonable rather than throwing it out entirely.
This means: if your non-compete covers the entire US for 3 years, a court might enforce it as applying to Illinois only for 12 months instead of voiding it outright.
For employees, this is a mixed outcome. It means you can't rely on overbreadth alone to escape a restriction — but it also means courts are applying genuine scrutiny to whether the employer has a legitimate interest worth protecting.
Courts look at:
- Whether the restriction is longer than necessary to protect legitimate business interests
- Whether the geographic scope is tied to where the company actually competes
- Whether the employer's interest in enforcement outweighs the hardship to the employee
What Counts as "Protectable Business Interest"
Illinois requires employers to demonstrate a legitimate business interest before a non-compete can be enforced. Courts have recognised these as protectable:
- Trade secrets and confidential information
- Confidential client relationships and customer lists developed at the employer's expense
- Specialized or proprietary training provided to the employee
General skills and knowledge you developed in your career — even while employed there — are not protectable interests. An employer cannot enforce a non-compete simply to prevent competition; they must show what specific asset they're protecting.
The Narrow Exceptions
Two situations allow non-competes regardless of income level:
1. Sale of a business: A seller who agrees not to compete with the buyer as part of a business sale transaction can be bound regardless of their salary.
2. Dissolution of a partnership: Partners dissolving a business may enter binding non-compete restrictions as part of the dissolution.
Neither applies to ordinary employment relationships.
What To Do If You've Signed an Illinois Non-Compete
If you earn under $75,000: The non-compete is void. You can take a competing job without legal exposure from the non-compete itself (separate NDA obligations remain). If your employer threatens enforcement, you can cite Section 10 of the Freedom to Work Act.
If you earn over $75,000 and the consideration requirement may not be met: Assess how long you were employed after signing. If less than two years, or if you received no tangible benefit when you signed, the adequacy of consideration is genuinely arguable.
If you're being threatened: A cease-and-desist letter is not a court order. Get a legal opinion before changing your plans. Illinois non-compete litigation involves real costs even if you'd ultimately win — factor that in.
FAQ: Non-Competes in Illinois
Does the $75,000 threshold include bonus and commission? The law refers to "earnings" rather than just base salary, and courts have generally looked at total compensation. A base of $70,000 with consistent bonuses pushing total pay over $75,000 is worth examining carefully.
My employer gave me 14 days but didn't include the attorney advice language. Is the agreement void? Almost certainly unenforceable. Both requirements — the review period and the written attorney advice — must be satisfied. Courts have shown little tolerance for employers who skip the notice requirement.
Can my employer fire me for refusing to sign? Illinois courts have been skeptical of retaliation for refusing to sign an illegal non-compete. Whether termination for refusal constitutes wrongful discharge depends on your specific facts.
What about a non-solicitation clause at $55,000? Non-solicitation clauses require earnings above $45,000. At $55,000, the clause could apply — but still requires the 14-day review, attorney advice notice, and adequate consideration.
I work remotely for an Illinois company but live in Wisconsin. Which state's law applies? Typically the state whose law is specified in the contract, or the state where you primarily work. If you're a Wisconsin resident working for an Illinois company with an Illinois choice-of-law clause, Illinois law likely governs — and its protections likely apply.
Related guides
- Non-Compete Clauses: What Employees Actually Need to Know
- Is a Non-Compete Agreement Enforceable? A Plain-English State Guide
- How to Get Out of a Non-Compete Agreement: Your Actual Options
Know What You Signed Before You Move
Illinois has made significant strides in protecting workers from overreaching non-compete agreements. But "significant strides" isn't the same as "California-level ban." The income thresholds, consideration requirements, and procedural rules all create real protection — if you know to invoke them.
Upload your employment contract to Contrivox → Get a plain-English analysis of your non-compete — what it says, whether Illinois law supports enforcement, and what to watch for — in under a minute.
Explore the clause in depth: Non-Compete Clause — Legal Breakdown, Risks & Red Flags →
Found a non-compete in your Illinois contract? Upload it to Contrivox and get a full plain-English analysis — red flags, fairness score, and negotiation scripts — in 60 seconds. From $9. No subscription. No account needed.
Contrivox is not a law firm and does not provide legal advice. This article is for informational purposes only. Always consult a qualified attorney before making decisions based on any contract.
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