Illinois Employment Agreement
Create an Illinois employment agreement that complies with the Freedom to Work Act's non-compete salary thresholds (820 ILCS 90), the Wage Payment and Collection Act (820 ILCS 115), and the Paid Leave for All Workers Act (820 ILCS 192).
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Legal Requirements in Illinois
Under the Freedom to Work Act (820 ILCS 90), a non-compete is void unless the employee earns more than $75,000 per year (rising to $80,000 on Jan. 1, 2027), and a non-solicitation covenant is void below $45,000 per year (rising to $47,500 in 2027).
A restrictive covenant is void unless the employer advises the employee in writing to consult an attorney and gives at least 14 calendar days to review it before signing (820 ILCS 90/20).
Adequate consideration generally requires two years of continued employment after signing or other consideration, codifying the Fifield standard (820 ILCS 90).
The Wage Payment and Collection Act (820 ILCS 115) requires at least semi-monthly pay, payment of final compensation by the next regular payday, and prohibits most deductions without written consent given at the time of the deduction.
The Paid Leave for All Workers Act (820 ILCS 192), effective Jan. 1, 2024, grants up to 40 hours of paid leave per 12-month period, accrued at one hour per 40 hours worked.
Illinois minimum wage is $15.00 per hour (since Jan. 1, 2025), with higher local rates in Chicago and Cook County.
Key Statutes & Regulations
- Illinois Freedom to Work Act, 820 ILCS 90 (amended eff. Jan. 1, 2022)
- Illinois Wage Payment and Collection Act, 820 ILCS 115 (2024)
- Paid Leave for All Workers Act, 820 ILCS 192 (eff. Jan. 1, 2024)
- Illinois Minimum Wage Law, 820 ILCS 105 (2024)
Common Pitfalls
- •Imposing a non-compete on an employee earning $75,000 or less, which is void under 820 ILCS 90.
- •Failing to give the 14-day review period and written advice to consult counsel, which makes the covenant unenforceable.
- •Assuming continued at-will employment alone is adequate consideration without meeting the two-year Fifield standard.
- •Taking wage deductions without the employee's written consent given at the time of the deduction (820 ILCS 115).
Local Terminology
- Freedom to Work Act
- 820 ILCS 90, which voids non-competes below $75,000 and non-solicitation covenants below $45,000 in annual earnings (thresholds indexed upward).
- Adequate consideration
- Under the codified Fifield rule, generally two years of continued employment after signing, or other professional or financial benefits, needed to support a restrictive covenant.
- Final compensation
- All earned wages, salary, commissions, and the monetary equivalent of earned vacation, which must be paid by the next regular payday after separation under 820 ILCS 115.
How Illinois Differs
Illinois voids non-competes and non-solicits below statutory salary floors, unlike states that enforce them regardless of pay.
A mandatory 14-day review period and written advice to consult counsel are prerequisites to any enforceable restrictive covenant.
Illinois requires adequate consideration (generally two years' employment) under the codified Fifield rule.
Employees are entitled to up to 40 hours of statutory paid leave per year under the Paid Leave for All Workers Act.
Frequently Asked Questions
When is a non-compete enforceable in Illinois?
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Only above a salary floor and with proper process. Under the Freedom to Work Act (820 ILCS 90), a non-compete is void unless the employee earns more than $75,000 per year (rising to $80,000 in 2027). The employer must also advise the employee in writing to consult counsel and give at least 14 days to review before signing.
Are non-solicitation clauses limited in Illinois?
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Yes. Under the Freedom to Work Act (820 ILCS 90), a non-solicitation covenant is void unless the employee earns more than $45,000 per year, a threshold rising to $47,500 on January 1, 2027. Like non-competes, these covenants also require the 14-day review period and written advice to consult an attorney.
When must final pay be issued in Illinois?
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By the next regularly scheduled payday. Under the Wage Payment and Collection Act (820 ILCS 115), a departing employee's final compensation, including earned wages, commissions, and the monetary equivalent of earned vacation, must be paid no later than the next regular payday following separation.
Do Illinois employees get paid leave?
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Yes. The Paid Leave for All Workers Act (820 ILCS 192), effective January 1, 2024, entitles most Illinois employees to up to 40 hours of paid leave per 12-month period, accrued at one hour for every 40 hours worked and usable for any reason after 90 days of employment.
Available in Other Jurisdictions
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