In Illinois, a non-compete agreement is completely void and unenforceable if you earn $75,000 per year or less in actual or expected annualized earnings. This is the bright-line rule set by the Illinois Freedom to Work Act (820 ILCS 90), as amended effective January 1, 2022. The salary floor is scheduled to rise to $80,000 on January 1, 2027, then to $85,000 in 2032 and $90,000 in 2037. A separate, lower threshold applies to customer- and employee-non-solicitation agreements: those are void for workers earning $45,000 per year or less (rising to $47,500 on January 1, 2027). If your pay falls under these lines, a non-compete or non-solicit your employer asks you to sign has no legal force in Illinois, no matter what the document says.
The Illinois Freedom to Work Act: the core rule
Illinois does not ban non-competes outright the way California, North Dakota, Oklahoma, and Minnesota effectively do. Instead, Illinois layers a wage-based ban on top of a long-standing reasonableness test. Two numbers control whether an agreement can even be considered:
- Non-compete agreements (barring you from working for a competitor) are void if your earnings are $75,000 a year or less as of 2026.
- Non-solicitation agreements (barring you from soliciting the employer's customers or co-workers) are void if your earnings are $45,000 a year or less as of 2026.
"Earnings" includes salary, earned bonuses, commissions, and other forms of taxable compensation reflected on your W-2, plus elective deferrals. Because the thresholds step up every five years, always confirm the figure in effect for the year you are asked to sign.
Even above the salary floor, the agreement must be reasonable
Clearing the $75,000 line does not make a non-compete automatically enforceable. Illinois courts still apply the common-law reasonableness test, which the Freedom to Work Act now codifies. A restrictive covenant is enforceable only if it:
- Is supported by adequate consideration;
- Is ancillary to a valid employment relationship;
- Is no greater than necessary to protect a legitimate business interest of the employer;
- Does not impose undue hardship on you, the employee; and
- Is not injurious to the public.
A "legitimate business interest" generally means protecting trade secrets, confidential information, or near-permanent customer relationships, not simply shielding the employer from ordinary competition. Courts weigh the totality of the circumstances, including how broad the geographic scope and time period are and how easily the employer's interest could be protected by less restrictive means.
Adequate consideration: the two-year rule
Illinois has an unusual and important rule on consideration. Under cases such as Fifield v. Premier Dealer Services and the decisions following it, continued at-will employment is generally not adequate consideration unless you remain employed for at least two years after signing the covenant. If you sign a non-compete and quit or are fired before two years pass, courts often refuse to enforce it for lack of consideration, unless the employer gave you separate consideration such as a signing bonus, raise, or other professional or financial benefit. This is one of the most powerful and frequently overlooked protections for Illinois workers.
The 14-day review period and right to counsel
The Freedom to Work Act adds procedural safeguards. Before a covenant is enforceable, the employer must:
- Advise you in writing to consult with an attorney before signing; and
- Give you at least 14 calendar days to review the agreement.
You may sign before the 14 days run out if you choose, but the employer must offer you the full period. An employer that skips these steps risks having the agreement thrown out.
Categorical bans: who can never be bound
Beyond the wage thresholds, Illinois law voids covenants for several groups regardless of pay:
- Construction workers. The Act bars non-competes for most employees covered by certain construction-related collective bargaining agreements, with narrow exceptions for management and certain shareholders.
- Government employees covered by collective bargaining in police, fire, and similar units.
- Workers laid off, furloughed, or terminated because of COVID-19 or similar circumstances, unless enforcement includes payment of your base salary for the enforcement period (minus compensation earned elsewhere).
How does Illinois compare to federal law?
There is currently no nationwide ban on non-competes. The Federal Trade Commission issued a rule in 2024 that would have banned most non-competes, but a federal court in Texas blocked it before it took effect, so it is not in force. That means your protections come almost entirely from state law, and Illinois's Freedom to Work Act is more protective than the federal baseline, which provides essentially nothing on non-competes. (By comparison, on wages the federal floor is the FLSA's $7.25 minimum wage and 40-hour weekly overtime standard, while Illinois's minimum wage reached $15.00 per hour as of 2026 - confirm the current rate with the Illinois Department of Labor.)
What courts can do if part of an agreement is too broad
Illinois courts have discretion to "blue-pencil" or reform an overbroad covenant, narrowing its scope, duration, or geography rather than striking it entirely. But the Act tells courts to be cautious: extensive judicial reformation is disfavored, and a court may decline to rewrite an agreement that is so unreasonable it reflects bad faith by the employer. So an employer cannot count on a judge to save a covenant that overreaches.
What to do if you are asked to sign - or threatened with - a non-compete
- Check your earnings against the thresholds. If you make $75,000 or less, a non-compete is void; $45,000 or less, a non-solicit is void. Keep documentation of your pay.
- Do not sign on the spot. You are entitled to 14 days and to written notice of your right to consult a lawyer. Use that time.
- Get the agreement reviewed by an Illinois employment attorney before signing or before changing jobs. Many offer flat-fee reviews.
- Note when you signed and how long you stayed. If you signed and left within two years without separate consideration, the agreement may be unenforceable.
- Respond carefully to threats. Employers sometimes send "cease and desist" letters to scare departing workers. An unenforceable covenant does not become valid because a lawyer mailed a letter. Do not ignore it, but do not assume it is valid either - have it evaluated.
- Know the fee-shifting protection. If an employer sues to enforce a covenant and you prevail, the Freedom to Work Act allows you to recover your reasonable attorney's fees and costs. This deters meritless lawsuits.
Where to verify and get help
The Freedom to Work Act is enforced in part by the Illinois Attorney General's Office, which can investigate employers that engage in a pattern of using unlawful covenants and can seek civil penalties. For wage, overtime, and related labor questions, the Illinois Department of Labor (IDOL) is the state's labor agency. For the exact, current statutory text and thresholds, read 820 ILCS 90 directly through the Illinois General Assembly's website. Because the salary thresholds change on a five-year schedule and case law continues to evolve, verify the figures in effect for your situation, and consult a licensed Illinois attorney for advice on your specific agreement. This article is general information, not legal advice.
Official Illinois Sources
This page is based on Illinois employment law. Rules and figures change — verify the current details directly with the official Illinois sources below. This is general legal information, not legal advice.
Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Illinois state law.
This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.
