Non-Compete Laws in Illinois

Restricted by income threshold

Illinois enacted the Illinois Freedom to Work Act, which restricts non-competes based on income thresholds.

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Non-Compete Overview: Illinois

Illinois enacted the Illinois Freedom to Work Act, which restricts non-competes based on income thresholds. As of 2022, non-competes cannot be enforced against employees earning less than $75,000/year (threshold increases over time). The law also requires consideration and advance notice.

Key Points for Illinois

Cannot enforce non-competes against employees earning under $75,000/year
Income threshold increases over time ($80K in 2027, $90K in 2032)
Non-solicitation threshold: $45,000/year (also increasing)
Employee must receive adequate consideration (2 years of employment or other)
Must advise employee to consult attorney; 14-day review period required
Cannot enforce if employee terminated without cause or laid off

Frequently Asked Questions

Are non-competes enforceable in Illinois?

Only for employees earning above $75,000/year (as of 2022, threshold increases over time). The Illinois Freedom to Work Act also requires adequate consideration and a 14-day review period. Non-competes cannot be enforced against employees terminated without cause.

What is the income threshold for non-competes in Illinois?

As of 2022, the threshold is $75,000/year for non-compete agreements. For non-solicitation agreements, the threshold is $45,000/year. Both thresholds increase over time through 2037.

Can my employer enforce a non-compete if I was laid off in Illinois?

No. Under the Illinois Freedom to Work Act, non-competes are unenforceable against employees who are terminated without cause, furloughed, or laid off due to COVID-19 or similar circumstances, unless enforcement includes compensation equivalent to base salary during the restriction period.

What consideration is required for an Illinois non-compete?

The employee must receive adequate consideration, which can be at least 2 years of continued employment after signing, or other adequate consideration such as a raise, bonus, or promotion.

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