Illinois Non-Compete Agreement Template
Draft a non-compete that complies with the Illinois Freedom to Work Act (820 ILCS 90), which voids non-competes for workers earning $75,000 or less and imposes strict review and consideration rules.
AI-generated draft for review. Not legal advice. Starting at $19.
Legal Requirements in Illinois
The employee must earn more than $75,000 in actualized annual earnings for a non-compete to be valid; below this threshold the covenant is void (820 ILCS 90/10, threshold in effect through 2026, rising to $80,000 on Jan. 1, 2027).
The employer must advise the employee in writing to consult an attorney before signing and give at least 14 calendar days to review the agreement (820 ILCS 90/20).
The covenant must be supported by adequate consideration: either at least 2 years of continued employment after signing, or other valuable professional or financial benefits (820 ILCS 90/10, codifying the Fifield consideration standard).
The restraint must be no greater than necessary to protect a legitimate business interest and reasonable in time, geography, and activity (820 ILCS 90/15).
Non-competes are entirely prohibited for employees covered by a collective bargaining agreement under the Illinois Public Labor Relations Act or Illinois Educational Labor Relations Act, and for individuals in construction (820 ILCS 90/10(b)).
Key Statutes & Regulations
- Illinois Freedom to Work Act, 820 ILCS 90/1 et seq. (2022, as amended; thresholds in effect through 2026)
- 820 ILCS 90/10 ($75,000 non-compete / $45,000 non-solicit thresholds; adequate consideration)
- 820 ILCS 90/15 (legitimate business interest and reasonableness)
- 820 ILCS 90/20 (14-day review period and written advice to consult counsel)
- 820 ILCS 90/25 (recovery of employee costs and attorney's fees)
Common Pitfalls
- •Imposing a non-compete on a worker earning $75,000 or less, which renders the entire covenant void under 820 ILCS 90/10.
- •Skipping the 14-day review period or the written advice-to-consult-counsel notice, which invalidates the agreement.
- •Relying on continued at-will employment as the only consideration without satisfying the 2-year rule or providing other value.
- •Treating the non-compete and non-solicitation thresholds as identical when they differ ($75,000 vs. $45,000).
Local Terminology
- Adequate consideration
- Under 820 ILCS 90/10, either at least 2 years of continued employment after signing, or other valuable professional or financial benefit sufficient to support the restraint.
- Freedom to Work Act
- The Illinois statute (820 ILCS 90) governing the validity of employee covenants not to compete and not to solicit.
- Fifield rule
- The judicial standard, now codified, that continued employment is adequate consideration only if it lasts at least 2 years.
- Legitimate business interest
- An employer interest such as confidential information or near-permanent customer relationships that a restraint may lawfully protect (820 ILCS 90/15).
How Illinois Differs
Unlike states with no wage floor, Illinois makes a non-compete outright void, not merely unenforceable, when the worker earns $75,000 or less.
Illinois requires a hard 14-day review window plus a written attorney-consultation advisory, a procedural step many baseline templates omit.
Illinois codifies the Fifield rule: continued at-will employment alone is generally not adequate consideration unless it lasts at least 2 years or other value is given.
Separate, lower salary thresholds apply to non-solicitation covenants ($45,000 through 2026), so a single restraint may need to be split.
An employer that brings an unsuccessful enforcement action can be ordered to pay the employee's costs and reasonable attorney's fees (820 ILCS 90/25).
Frequently Asked Questions
What is the salary threshold for non-competes in Illinois?
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A non-compete is void in Illinois unless the employee earns more than $75,000 in annual earnings, a threshold in effect through 2026 under the Freedom to Work Act (820 ILCS 90/10). It rises to $80,000 on January 1, 2027. The separate threshold for non-solicitation covenants is $45,000.
How long must an employee have to review an Illinois non-compete?
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At least 14 calendar days. Under 820 ILCS 90/20, the employer must give the employee 14 days to review the agreement and must advise, in writing, that the employee should consult an attorney before signing. Failing to meet both steps can invalidate the covenant.
Is continued employment enough consideration for an Illinois non-compete?
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Usually not by itself. Under the codified Fifield rule (820 ILCS 90/10), continued at-will employment is adequate consideration only if it lasts at least two years after signing, unless the employer provides other valuable professional or financial benefits to support the restraint.
Does the vacated FTC rule affect Illinois non-competes?
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No. The FTC's 2024 federal ban was vacated in Ryan LLC v. FTC and formally removed from federal regulations in February 2026, so it has no effect. Illinois non-competes are governed entirely by state law, principally the Freedom to Work Act, 820 ILCS 90.
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