Illinois non compete law restricts non competes by statute: illinois bars non competes for employees earning $75,000 or less and non solicits for $45,000 or less, with 14 days to review and a right to counsel.
This guide gives the exact Illinois non compete law rule with the date we verified it, the threshold and carve-outs where they exist, what a court does with an overbroad term, and what to do if you signed one. Rules verified against the statute on 2026-10-08; confirm the current rule with Illinois Department of Labor or an attorney before you rely on it.
Illinois Non Compete Law at a Glance
| Status | Restricted by statute |
| Income threshold | $75,000 a year for a non compete (rising to $80,000 on January 1, 2027, $85,000 in 2032, $90,000 in 2037); $45,000 for a non solicit (rising to $47,500 in 2027) |
| Statute | 820 ILCS 90 (Illinois Freedom to Work Act) |
| Notice / consideration | 14 calendar days to review and written advice to consult a lawyer |
| Carve-outs | Workers laid off because of COVID-19 or similar circumstances unless paid base salary through the restriction; union workers under the Public Labor Relations… |
| Overbroad terms | void and unenforceable below the threshold; a court may reform or sever an overbroad covenant at its discretion (820 ILCS 90/35), and a prevailing employee recovers attorney fees |
| In effect since | January 1, 2022 (P.A. 102-358); amended 2025 (P.A. 103-915, 103-921) |
In This Illinois Non Compete Law Guide:
Is a Non Compete Enforceable Under Illinois Non Compete Law?
Illinois bars non competes for employees earning $75,000 or less and non solicits for $45,000 or less, with 14 days to review and a right to counsel. The statute is 820 ILCS 90 (Illinois Freedom to Work Act).
The carve-outs matter: workers laid off because of COVID-19 or similar circumstances unless paid base salary through the restriction; union workers under the Public Labor Relations or Educational Labor Relations Acts; construction workers; licensed mental health professionals serving veterans and first responders (2025 amendments).
Illinois Non Compete Law at a Glance
Rules verified against the statute on 2026-10-08; confirm the current rule with Illinois Department of Labor or an attorney before you rely on it. The statute row is where to check it yourself.
| Status | Restricted by statute |
| What the rule says | Illinois bars non competes for employees earning $75,000 or less and non solicits for $45,000 or less, with 14 days to review and a right to counsel. |
| Income threshold | $75,000 a year for a non compete (rising to $80,000 on January 1, 2027, $85,000 in 2032, $90,000 in 2037); $45,000 for a non solicit (rising to $47,500 in 2027) |
| Statute | 820 ILCS 90 (Illinois Freedom to Work Act) |
| Notice or consideration rule | 14 calendar days to review and written advice to consult a lawyer |
| Carve-outs | Workers laid off because of COVID-19 or similar circumstances unless paid base salary through the restriction; union workers under the Public Labor Relations or Educational Labor Relations Acts; construction workers; licensed mental health professionals serving veterans and first responders (2025 amendments) |
| What a court does with an overbroad term | void and unenforceable below the threshold; a court may reform or sever an overbroad covenant at its discretion (820 ILCS 90/35), and a prevailing employee recovers attorney fees |
| In effect since | January 1, 2022 (P.A. 102-358); amended 2025 (P.A. 103-915, 103-921) |
The Reasonableness Test Under Illinois Non Compete Law
Illinois courts enforce a non compete only if it protects a legitimate business interest of the employer, such as near-permanent customer relationships or confidential information. They weigh all the circumstances of the case together. The restriction can be no broader than needed in time, area and type of work. It also cannot place an undue hardship on the worker or harm the public.
Courts weigh all of this case by case, not with a fixed formula.
Illinois courts have more often upheld restrictions of about 1 to 2 years that are limited to the area or customers the worker actually served. They tend to strike down agreements that cover the whole country, have no time limit, or bar any kind of work for a competitor.
With an overbroad term the court will void and unenforceable below the threshold; a court may reform or sever an overbroad covenant at its discretion (820 ILCS 90/35), and a prevailing employee recovers attorney fees.
Illinois Non Compete Law If You Were Fired or Laid Off
Under Illinois law, a non compete generally cannot be enforced against a worker who was fired, furloughed or laid off because of COVID-19 or similar circumstances. The exception is when the employer pays the worker’s base salary for the restricted period, minus any pay from new work.
Outside that rule, a court may also consider whether the employer ended the job unfairly or in bad faith when deciding whether to enforce. Under Illinois non compete law, workers laid off because of COVID-19 or similar circumstances unless paid base salary through the restriction; union workers under the Public Labor Relations or Educational Labor Relations Acts; construction workers; licensed mental health professionals serving veterans and first responders (2025 amendments).
What the Employer Must Give Under Illinois Non Compete Law
14 calendar days to review and written advice to consult a lawyer Illinois law generally requires adequate consideration. That can be at least 2 years of continued work after signing, or a shorter period of work plus extra professional or financial benefits. A benefit that is enough on its own also counts. If neither applies, a court may find the agreement unenforceable even though the worker signed it.
Non Solicit and Non Disclosure Agreements Under Illinois Non Compete Law
An Illinois non solicit only stops you from pursuing the employer’s clients or coworkers, and a non disclosure agreement only protects confidential information. Neither one stops you from working in your field. Because these are narrower, courts are often more willing to enforce them, though non solicits must still meet the same reasonableness and consideration rules as non competes.
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If You Already Signed One: Illinois Non Compete Law in Practice
Read the agreement closely for how long it lasts, the area it covers, the kind of work it bars, and whether it applies when you are laid off or only when you quit. Ask your former employer in writing for a release or waiver, and tell a new employer about the agreement early.
Before turning down an offer, have an Illinois employment attorney review the agreement, since many are narrower than they look or cannot be enforced.
An Illinois employer may ask a court for an injunction ordering the worker to stop the restricted work, and may also seek money damages for lost business. Under state law, a worker who wins when the employer sues to enforce can recover court costs and reasonable attorney’s fees from the employer.
The Federal Rule and Illinois Non Compete Law
The Federal Trade Commission adopted a nationwide non compete ban in 2024, but a federal court blocked it before it took effect and the FTC later withdrew its defense; as of October 2026 there is no federal ban in force, so Illinois non compete law controls.
Starting January 1, 2025 (Public Act 103-0915), Illinois bars enforcing non competes and non solicits against licensed mental health professionals who serve veterans and first responders, when enforcing them would likely make care harder or more costly to get. Bills filed in 2025 and 2026 to ban non competes more broadly or for health care workers remained in committee as of March 2026.
Other Illinois Non Compete Law Rules to Know
Illinois law voids non competes for most construction workers, except those in management, engineering, architecture, design or sales and business owners. It also voids them for certain public-sector and unionized workers. A judge may rewrite an overly broad agreement instead of throwing it out, but does not have to. The Illinois Attorney General can also take action against employers who use non competes in a pattern that breaks the law.
Think your employer owes you money or broke the law?
A non compete is a contract question, and the answer turns on your own agreement’s words. Your state bar runs a lawyer-referral service that connects you with an employment attorney for a short, low-cost first consultation — find it through the American Bar Association referral directory. Free legal aid may also help if your income qualifies.
Illinois — the bottom line
- Illinois non compete law is a statute with its own limits — the first thing to check is which side of the line your agreement falls on.
- Under Illinois non compete law, an overbroad term is void and unenforceable below the threshold; a court may reform or sever an overbroad covenant at its discretion (820 ILCS 90/35), and a prevailing employee recovers attorney fees — the words of your own agreement decide more than the headline rule.
- Illinois non compete law does not stop you from taking a new job in a different field or outside the restricted area — read the scope before you turn an offer down.
Frequently Asked Questions
Are non competes enforceable in Illinois?
Sometimes. Illinois bars non competes for employees earning $75,000 or less and non solicits for $45,000 or less, with 14 days to review and a right to counsel.
Is there an income threshold under Illinois non compete law?
$75,000 a year for a non compete (rising to $80,000 on January 1, 2027, $85,000 in 2032, $90,000 in 2037); $45,000 for a non solicit (rising to $47,500 in 2027)
What does an Illinois court do with an overbroad non compete?
Void and unenforceable below the threshold; a court may reform or sever an overbroad covenant at its discretion (820 ILCS 90/35), and a prevailing employee recovers attorney fees.
Can my employer enforce a non compete in Illinois after firing me?
Under Illinois law, a non compete generally cannot be enforced against a worker who was fired, furloughed or laid off because of COVID-19 or similar circumstances. The exception is when the employer pays the worker’s base salary for the restricted period, minus any pay from new work.
I signed a non compete in Illinois and have a new offer — what should I do?
Read the agreement closely for how long it lasts, the area it covers, the kind of work it bars, and whether it applies when you are laid off or only when you quit. Ask your former employer in writing for a release or waiver, and tell a new employer about the agreement early.
Official Illinois Sources & Resources
- Illinois Department of Labor: https://labor.illinois.gov/laws-rules/fls/wage-payment-and-collection-act.html
- Illinois non compete statute (820 ILCS 90 (Illinois Freedom to Work Act)): https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3737&ChapterID=68
- Verified source: https://www.ilga.gov/documents/Legislation/ILCS/Documents/082000900K10.htm
- Verified source: https://ilga.gov/ftp/Public%20Acts/103/103-0921.htm
- U.S. Department of Labor, Wage and Hour Division — state payday requirements: dol.gov
- Federal Trade Commission — the non compete rule (status): ftc.gov
- Illinois bar lawyer referral: https://www.isba.org/public/illinoislawyerfinder
This Illinois non compete law guide was last verified against official Illinois sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
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Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.