Work · Non-Compete Agreements
Are Non-Competes Enforceable in Illinois?
Whether an employee non-compete holds up in Illinois, any income threshold that voids one, the exceptions and carve-outs, and how the state compares after the 2024 to 2025 changes. Cited to the statute or the controlling law.
The rules and exceptions in Illinois
What makes a non-compete enforceable here, when it is void, and the carve-outs for particular workers or agreements.
The $75,000 non-compete threshold is scheduled to rise to $80,000 on January 1, 2027, then $85,000 in 2032 and $90,000 in 2037. Use $75,000 now, but check the current figure if you are near the line, because the step to $80,000 is a known dated change.
| The rule in this state | What it means |
|---|---|
| Income floor for non-competes | The Illinois Freedom to Work Act (820 ILCS 90) makes a non-compete void for any employee earning $75,000 a year or less. Above that, common-law reasonableness applies. |
| Adequate consideration | A non-compete needs adequate consideration, generally at least two years of employment after signing, or other real benefit given in exchange. |
| Notice and review period | The employer must advise the employee to consult a lawyer and give at least 14 days to review the agreement before signing. |
| Exceptions and carve-outs | What it means |
|---|---|
| Non-solicitation has a lower floor | Non-solicitation agreements are void below $45,000 a year, a distinct and lower threshold than the $75,000 non-compete floor. |
| Terminated or furloughed workers | Non-competes are barred for employees terminated or furloughed due to circumstances like a public-health emergency, unless the employer keeps paying them. |
| Sector-specific bans | Separate bans apply in certain sectors, such as construction and some government or collective-bargaining contexts. Confirm whether one covers your job. |
What you can do right now
Concrete, neutral steps if you signed or were asked to sign a non-compete in Illinois. This is legal information, not legal advice.
- Check your pay against the $75,000 line
If you earn $75,000 a year or less, an Illinois non-compete is void and cannot be enforced against you. Above that line, it still has to be reasonable.
- Confirm you got the required process
The employer had to tell you to consult a lawyer and give you at least 14 days to review before signing, plus adequate consideration. A covenant that skipped those steps is vulnerable.
- Watch the 2027 threshold change if you are near the line
The floor rises to $80,000 on January 1, 2027. If your pay is close, the applicable threshold depends on when the question arises, so confirm the current figure.
- Talk to an Illinois employment lawyer before switching
Whether the threshold, consideration, or a sector ban applies turns on your facts. A licensed Illinois employment attorney can assess your covenant. The State Bar can refer you to one.
Whether a non-compete can be enforced against you turns on its exact terms and your role. This resource can connect you with a licensed employment attorney who can review it.
→ Illinois State Bar — Illinois Lawyer FinderThis is general legal information, not legal advice. A non-compete is different from an NDA or a non-solicitation clause, and enforceability turns on the specific facts, so confirm your situation with a licensed attorney.
What Illinois workers get wrong about non-competes
Illinois takes a middle path built around your paycheck. Under the Freedom to Work Act, an employee non-compete is simply void if you earn $75,000 a year or less, no reasonableness analysis needed. Above that line the old common-law test applies, so a covenant must be reasonable to be enforced. Two process rules add protection at any income: the employer must advise you to consult a lawyer and give you at least 14 days to review before signing, and the covenant needs adequate consideration, generally two years of employment after signing or another real benefit. There is a separate, lower $45,000 floor for non-solicitation agreements, so the two are not the same. The number to watch is the escalation schedule: the non-compete floor steps up to $80,000 on January 1, 2027, then higher in 2032 and 2037. If your pay is anywhere near the line, confirm the current figure before assuming your covenant is void or valid.
Common questions
Are non-compete agreements enforceable in Illinois?
Only above an income floor. Under the Freedom to Work Act a non-compete is void if you earn $75,000 a year or less. Above that, it must be reasonable and backed by adequate consideration to be enforced.
What is the income threshold for Illinois non-competes?
$75,000 a year as of now. A non-compete is void at or below that. The floor is scheduled to rise to $80,000 on January 1, 2027, then $85,000 in 2032 and $90,000 in 2037.
What process must an Illinois employer follow for a non-compete?
The employer must advise you to consult an attorney and give you at least 14 days to review before signing, and the covenant needs adequate consideration, generally two years of employment or another real benefit.
Is the non-solicitation threshold the same as the non-compete one?
No. Non-solicitation agreements are void below $45,000 a year, a lower and separate threshold from the $75,000 non-compete floor. The two are governed by different limits.
Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.