Illinois significantly strengthened employee protections against non-competes through amendments to the Freedom to Work Act effective January 1, 2022. If you earn under $75,000 a year, a non-compete clause in your employment contract is void by law. Even above that threshold, new procedural requirements make many Illinois non-competes unenforceable.
What is a Enforceability?
A non-compete agreement attempts to prevent you from working for a competitor or starting a competing business after leaving your employer. Under the Illinois Freedom to Work Act (820 ILCS 90), non-compete clauses are void and unenforceable for employees earning $75,000 or less per year. Non-solicitation clauses are void for employees earning $45,000 or less. For higher earners, non-competes must meet additional requirements: 14 days advance notice before the agreement takes effect, adequate consideration beyond continued employment, and the employer must advise the employee in writing to consult an attorney.
Red flags to watch for
This is void under the Illinois Freedom to Work Act regardless of what the contract says. The employer may be hoping you comply without knowing your rights.
Illinois law requires employers to give employees at least 14 days to review a non-compete before it takes effect. Agreements sprung on new hires at the last minute may be unenforceable.
The employer must advise the employee in writing to consult an attorney before signing. Missing this procedural step is a basis for challenging enforceability.
Illinois courts generally view non-competes lasting more than 2 years as presumptively unreasonable. Longer restrictions face a high bar to enforce.
Illinois courts require geographic limits to match the actual territory where the employee worked or had customer contact. A nationwide ban for a local sales role is overbroad.
Your legal rights
Under the Illinois Freedom to Work Act (820 ILCS 90), non-compete clauses are void for employees earning $75,000 or less annually, and non-solicitation clauses are void for employees earning $45,000 or less. For higher earners, the agreement must be ancillary to a valid employment relationship, supported by adequate consideration (which may include benefits, bonuses, or a raise — not just continued employment alone), and the employer must provide 14 days to review and written advice to consult an attorney. Violations allow employees to recover attorney fees and costs.
Questions to ask before you sign
- 1Is my salary above $75,000? If not, any non-compete is void under Illinois law.
- 2Was I given at least 14 days to review the non-compete before it took effect?
- 3Did the employer advise me in writing to consult an attorney?
- 4What consideration am I receiving beyond continued employment?
- 5How long does the restriction last and what geographic area does it cover?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.