Illinois non-compete law changed significantly in 2022. If your company uses non-compete agreements—or if you signed one as an employee—the rules have shifted in ways that may affect whether those agreements are enforceable.
This guide explains what Illinois non-competes look like after the Freedom to Work Act amendments, what’s enforceable, and what founders and employers need to do to protect their business interests.
What Changed in 2022: Illinois Freedom to Work Act Amendments
The Illinois Freedom to Work Act (820 ILCS 90) was originally enacted in 2016 to prohibit non-compete and non-solicitation agreements for low-wage workers. The 2021 amendments (effective January 1, 2022) significantly expanded these protections:
Income Thresholds
- Non-compete agreements are void and unenforceable for employees earning $75,000/year or less. This threshold increases to $80,000 in 2027, $85,000 in 2032, and $90,000 in 2037.
- Non-solicitation agreements (restrictions on soliciting customers or co-workers) are void and unenforceable for employees earning $45,000/year or less. This threshold increases to $47,500 in 2027, $50,000 in 2032, and $52,500 in 2037.
Mandatory Notice and Review Period
Employers must:
- Advise employees in writing to consult with an attorney before signing
- Provide the employee with the covenant at least 14 calendar days before the start of employment (or at least 14 days before signing if presented to an existing employee)
Failure to provide the attorney advisement or the 14-day review period voids the covenant.
Consideration Requirements
For employees who are already working (not new hires), the non-compete must be supported by “adequate consideration”—something beyond continued employment. The amendment states that at least two years of employment following the signing can constitute adequate consideration, but this creates uncertainty for shorter periods.
Enforcement Limitations
Illinois courts must consider the totality of the circumstances in determining reasonableness. Judges can modify (or “blue pencil”) overbroad non-competes rather than voiding them entirely—but they are not required to do so.
What Makes a Non-Compete Enforceable in Illinois After 2022?
A valid Illinois non-compete must:
- Apply to an employee earning more than $75,000/year (non-compete) or $45,000/year (non-solicitation)
- Be supported by adequate consideration
- Be accompanied by written advice to consult an attorney and a 14-day review period
- Be reasonable in scope: geographic area, duration, and restricted activities must be no broader than necessary to protect legitimate business interests
- Protect a legitimate business interest: trade secrets, confidential information, near-permanent customer relationships, or extraordinary investment in the employee’s training
Reasonable Scope: What Do Illinois Courts Require?
| Dimension | Generally Enforceable | Generally Problematic |
|---|---|---|
| Duration | 6–18 months for most roles | 3+ years for non-executive roles |
| Geographic area | Territory where employee worked; defined region | Nationwide or worldwide for local businesses |
| Activity restriction | Working for direct competitors in the same role | Any employment in the employee’s industry |
What Employers Should Do Now
- Audit existing non-competes for compliance with 2022 requirements—agreements signed before January 1, 2022 are not grandfathered
- Update templates to include the required attorney consultation advisement and 14-day review
- Consider whether non-competes are truly necessary, or whether a strong confidentiality/trade secret agreement is sufficient protection
- For executive hires, have an Illinois employment attorney review the agreement before it’s signed
FAQ: Illinois Non-Competes in 2026
Can I enforce a non-compete signed before 2022?
The 2022 amendments apply to covenants entered into on or after January 1, 2022. Pre-2022 non-competes are still evaluated under prior law, but recent Illinois case law trends toward stricter scrutiny regardless.
Can an employee waive the 14-day review period?
Under the statute, the 14-day period is a minimum and cannot be waived by the employee. If an employee wants to sign earlier, that is their choice, but employers should still provide the full period and document that it was offered.
Fitter Law drafts and reviews Illinois non-compete agreements, employment contracts, and restrictive covenants for startups and employers. Learn about our employment contract services or view our flat-fee packages.