Non-Compete Enforceability in Illinois: A Plain-English Guide
Illinois Has Tightened Non-Compete Rules
Illinois made significant changes to non-compete law with the Illinois Freedom to Work Act (820 ILCS 90), effective January 1, 2022. The law added new requirements that employers must meet before a non-compete is enforceable.
Key Requirements Under Current Law
- Income threshold: Non-competes are unenforceable against employees earning less than $75,000 per year (this threshold increases over time, reaching $90,000 by 2037).
- Adequate consideration: Employees must receive at least 2 years of continued employment after signing, or other adequate consideration such as a signing bonus or additional benefits.
- Advice of counsel: Employers must advise the employee in writing to consult an attorney before signing, and provide at least 14 calendar days to review the agreement.
What Courts Consider
Illinois courts have traditionally applied a reasonableness test looking at:
- Whether the restriction protects a legitimate business interest (trade secrets, customer relationships, confidential information)
- Whether the time period is reasonable (typically 1-2 years)
- Whether the geographic scope matches the employer's actual competitive footprint
- The hardship imposed on the employee versus the benefit to the employer
Red Flags in Illinois Non-Competes
- You earn below the statutory income threshold
- The employer did not give you 14 days to review or advise you to consult a lawyer
- You signed at-will with no additional consideration and were employed for less than 2 years
- The restriction covers industries or roles unrelated to your actual work
- The geographic scope extends well beyond your employer's market
When to Consult a Lawyer
Consider speaking with an Illinois employment attorney if you were terminated and face non-compete enforcement, if you were not given the required notice period, or if you believe your agreement does not meet the statutory requirements. The Freedom to Work Act also allows employees to recover attorney fees if the employer violates the statute.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.