Are Non-Competes Enforceable in Illinois? (2026)

What the Illinois Freedom to Work Act Requires

Illinois is an at-will employment state, so the Freedom to Work Act is what keeps a departing worker from being locked out of the job market. It sets five conditions that every restrictive covenant must meet. Under 820 ILCS 90/15, a covenant not to compete or not to solicit is illegal and void unless all five are satisfied:

• The employee receives adequate consideration.
• The covenant is ancillary to a valid employment relationship.
• It is no broader than needed to protect a legitimate business interest.
• It does not impose undue hardship on the employee.
• It is not injurious to the public.

These are not tiebreakers a judge weighs against each other. Fail one, and the agreement is void from the start.

Salary Thresholds That Decide Who Can Be Bound

Pay is the first gate. 820 ILCS 90/10 bars an employer from entering a covenant not to compete unless the employee's actual or expected annualized earnings exceed $75,000 per year. That figure rises to $80,000 on January 1, 2027, $85,000 in 2032, and $90,000 in 2037. Non-solicitation covenants use a lower bar of $45,000, climbing to $47,500 in 2027, $50,000 in 2032, and $52,500 in 2037.

The same section bans these agreements outright for several groups. Construction workers are covered, unless they primarily handle management, engineering, architectural, design, or sales work, or hold an ownership stake. Employees under collective bargaining agreements through the Illinois Public Labor Relations Act or the Illinois Educational Labor Relations Act cannot be bound either. Workers laid off because of COVID-19 or similar circumstances may only be held to a non-compete if the employer pays their base salary during the restricted period.

Notice and Consideration Rules Employers Must Follow

Two procedural steps trip up more Illinois employers than any wording problem. 820 ILCS 90/20 makes a covenant illegal and void unless the employer advises the employee in writing to consult an attorney first, and gives the employee a copy at least 14 calendar days before employment starts or 14 days to review it. An employee may sign early and voluntarily without breaking the rule, but the employer still has to offer the full window.

Consideration is the other sticking point. 820 ILCS 90/5 defines adequate consideration as at least two years of employment after signing, or other professional or financial benefits that stand on their own. A job offer alone typically will not carry a covenant if the worker leaves within that two-year stretch. That same section also spells out what a non-compete is not, including confidentiality agreements, trade secret clauses, and covenants tied to the sale of a business.

How Illinois Courts Judge Whether a Restriction Is Reasonable

Illinois courts are cautious about rescuing an overbroad clause. 820 ILCS 90/35 states that extensive judicial reformation may run against state public policy, and that a court may refrain from wholly rewriting contracts. A judge may still reform or sever a provision, weighing the fairness of the original restraints, whether they reflect a good-faith effort to protect a legitimate business interest, and whether the contract authorizes modification.

Losing can cost an employer more than the clause itself. Under 820 ILCS 90/25, an employee who prevails against an enforcement claim recovers all costs and reasonable attorney's fees. Employers with real secrets to guard often lean on trade secret law, since 765 ILCS 1065/3 allows a court to enjoin actual or threatened misappropriation without any non-compete at all.

Pending Legislation That Could Ban Non-Competes in Illinois

Illinois has narrowed non-competes in steps rather than with one sweeping ban, and the earnings thresholds already carry scheduled increases through 2037. Public Act 103-915 added a carve-out for covenants entered after January 1, 2025, blocking enforcement against licensed mental health professionals treating veterans and first responders when enforcement would likely raise the cost or difficulty of getting care.

Sector-specific bans have followed the same pattern. 820 ILCS 17/10 stops broadcasting employers from imposing post-employment geographic restrictions, and 820 ILCS 17/15 makes a violator liable for civil damages, fees and costs. 225 ILCS 510/14 voids covenants between nurse agencies and temporary nurses or certified nurse aides, with a limited long-term exception running through 2027. Enforcement has teeth too. 820 ILCS 90/30 lets the Attorney General investigate patterns of abuse and seek civil penalties up to $5,000 per violation, or $10,000 for a repeat violation within five years.

Simplify Your Illinois Business Paperwork With ConsumerShield

Drafting a covenant that holds up takes more than copying a template from another state. A clear starting document can save time and reduce the risk of an invalid or unenforceable contract. For help with drafting yours, explore ConsumerShield's online tools and resources today.