Are Non-Competes Enforceable in Illinois?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Pay threshold / worker limits
Void at or below $75,000 pay; non-solicits at or below $45,000
Under the Illinois Freedom to Work Act, a non-compete is void unless the employee's actual or expected annualized earnings exceed $75,000 ($80,000 from January 1, 2027), and a customer or employee non-solicit is void unless earnings exceed $45,000 ($47,500 from 2027). Every covenant also needs adequate consideration, a written advisory to consult a lawyer and at least 14 calendar days to review, and must be no broader than a legitimate business interest requires. Non-competes are banned for construction workers, public-sector union members, broadcast employees and certain mental-health professionals.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Allowed only with strict limits
Illinois allows this non-compete only if it meets the statute's conditions — check each item below.
- Illinois: Void at or below $75,000 pay; non-solicits at or below $45,000. 820 ILCS 90 (Illinois Freedom to Work Act)
- Enter annual earnings — Illinois voids non-competes below $75,000. Actual or expected annualized earnings must exceed $75,000 (rising to $80,000 on Jan. 1, 2027, $85,000 in 2032 and $90,000 in 2037); earnings include W-2 wages, tips and elective deferrals 820 ILCS 90/10(a)
- If employment ends by layoff or termination without cause: Void for employees terminated, furloughed or laid off because of COVID-19 or similar circumstances unless the employer pays base salary (minus new earnings) during enforcement. 820 ILCS 90 (Illinois Freedom to Work Act)
Other Illinois rules to check
- Notice and timing: The employer must advise the employee in writing to consult an attorney and give at least 14 calendar days to review (the employee may sign sooner).
- Pay during the restricted period: Paid notice-period ('garden leave') clauses are excluded from the definition of a non-compete.
- Non-solicitation clauses: Non-solicits of customers, vendors, suppliers or employees are void unless earnings exceed $45,000 ($47,500 from Jan. 1, 2027).
- If a court finds it too broad: Courts have discretion to modify or refuse to enforce.
- Penalties: An employee who prevails against an employer's enforcement claim recovers costs and attorney's fees. The Attorney General may seek civil penalties of up to $5,000 per violation and $10,000 per repeat violation within 5 years.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Illinois non-compete rules
- Employee pay threshold
- $75,000 Actual or expected annualized earnings must exceed $75,000 (rising to $80,000 on Jan. 1, 2027, $85,000 in 2032 and $90,000 in 2037); earnings include W-2 wages, tips and elective deferrals
- Notice and timing
- The employer must advise the employee in writing to consult an attorney and give at least 14 calendar days to review (the employee may sign sooner).
- Signed mid-employment
- 'Adequate consideration' means at least 2 years of employment after signing, or other consideration such as a period of employment plus professional or financial benefits.
- Layoffs / firing without cause
- Void for employees terminated, furloughed or laid off because of COVID-19 or similar circumstances unless the employer pays base salary (minus new earnings) during enforcement.
- Garden leave / pay
- Paid notice-period ('garden leave') clauses are excluded from the definition of a non-compete.
- Non-solicitation
- Non-solicits of customers, vendors, suppliers or employees are void unless earnings exceed $45,000 ($47,500 from Jan. 1, 2027).
- Overbroad covenants
- Courts have discretion to modify or refuse to enforce
- Penalties
- An employee who prevails against an employer's enforcement claim recovers costs and attorney's fees. The Attorney General may seek civil penalties of up to $5,000 per violation and $10,000 per repeat violation within 5 years.
Profession-specific rules
- VoidNon-competes and non-solicits are void for construction workers (union or not), except those mainly doing management, engineering, architectural, design or sales work, and owners. 820 ILCS 90/10(e)
- VoidCovenants entered into after January 1, 2025 are unenforceable against licensed mental-health professionals serving veterans and first responders when enforcement would likely increase the cost or difficulty of their care. (effective January 1, 2025) P.A. 103-0915
- VoidBroadcasting employers may not require post-employment non-competes from broadcast employees other than sales or management staff. 820 ILCS 17
- VoidNon-competes are void for employees covered by collective bargaining agreements under the Illinois Public Labor Relations Act or the Educational Labor Relations Act. 820 ILCS 90/10(d)
Recent and pending changes
- January 1, 2027: Upcoming scheduled increase: non-compete threshold rises to $80,000 and non-solicit threshold to $47,500. 820 ILCS 90/10
- January 1, 2025: P.A. 103-915 adds the mental-health professional exception; P.A. 103-921 makes technical changes. P.A. 103-0915
Pending: 104th General Assembly bills HB 1642 ($300,000 threshold), HB 2561, HB 3213 (full ban) and HB 4221 (health-care professionals) were all re-referred to the House Rules Committee; none has been enacted.
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Illinois?
Void at or below $75,000 pay; non-solicits at or below $45,000. Under the Illinois Freedom to Work Act, a non-compete is void unless the employee's actual or expected annualized earnings exceed $75,000 ($80,000 from January 1, 2027), and a customer or employee non-solicit is void unless earnings exceed $45,000 ($47,500 from 2027). Every covenant also needs adequate consideration, a written advisory to consult a lawyer and at least 14 calendar days to review, and must be no broader than a legitimate business interest requires. Non-competes are banned for construction workers, public-sector union members, broadcast employees and certain mental-health professionals.
Is there a salary threshold for non-competes in Illinois?
Yes — $75,000. Actual or expected annualized earnings must exceed $75,000 (rising to $80,000 on Jan. 1, 2027, $85,000 in 2032 and $90,000 in 2037); earnings include W-2 wages, tips and elective deferrals
Did the FTC ban non-competes in Illinois?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Pay threshold / worker limits): Colorado, District of Columbia, Maine, Maryland, Massachusetts, Nevada, New Hampshire, Oregon
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Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Illinois.