Illinois non-compete law

Pay figure in the law

$75,000 a year

Separate rules for professions

mental health professionals

Statutes and official texts quoted

820 ILCS 90/10(a); 820 ILCS 90/10(b); 820 ILCS 90/5; 820 ILCS 90/15; 820 ILCS 90/20; 820 ILCS 90/10(c); 820 ILCS 90/10(d); 820 ILCS 90/10(e); 820 ILCS 90/10(f); 820 ILCS 90/25; 820 ILCS 90/30(d)(1); 820 ILCS 90/35(b); 820 ILCS 90/15 (source note)

Is a non-compete allowed?

A covenant not to compete or not to solicit is illegal and void unless five conditions are met, including adequate consideration and being no greater than required to protect a legitimate business interest.

“A covenant not to compete or a covenant not to solicit is illegal and void unless (1) the employee receives adequate consideration, (2) the covenant is ancillary to a valid employment relationship, (3) the covenant is no greater than is required for the protection of a legitimate business interest of the employer, (4) the covenant does not impose undue hardship on the employee, and (5) the covenant is not injurious to the public.”
820 ILCS 90/15

Pay thresholds

An employer may not enter a covenant not to compete with an employee unless the employee's actual or expected annualized earnings exceed $75,000 per year.

“No employer shall enter into a covenant not to compete with any employee unless the employee's actual or expected annualized rate of earnings exceeds $75,000 per year.”
820 ILCS 90/10(a)

The non-compete earnings floor rises to $80,000 on January 1, 2027, $85,000 on January 1, 2032, and $90,000 on January 1, 2037; a covenant entered in violation is void.

“This amount shall increase to $80,000 per year beginning on January 1, 2027, $85,000 per year beginning on January 1, 2032, and $90,000 per year beginning on January 1, 2037. A covenant not to compete entered into in violation of this subsection is void and unenforceable.”
820 ILCS 90/10(a)

An employer may not enter a covenant not to solicit unless the employee's actual or expected annualized earnings exceed $45,000 per year.

“No employer shall enter into a covenant not to solicit with any employee unless the employee's actual or expected annualized rate of earnings exceeds $45,000 per year.”
820 ILCS 90/10(b)

'Earnings' means compensation reflected or expected to be reflected as wages, tips, and other compensation on the employee's IRS Form W-2, plus elective deferrals.

“"Earnings" means the compensation, including earned salary, earned bonuses, earned commissions, or any other form of taxable compensation, reflected or that is expected to be reflected as wages, tips, and other compensation on the employee's IRS Form W-2 plus any elective deferrals not reflected as wages, tips, and other compensation on the employee's IRS Form W-2,”
820 ILCS 90/5

Notice and signing

'Adequate consideration' means at least 2 years of employment after signing, or other professional or financial benefits adequate to support the agreement.

“"Adequate consideration" means (1) the employee worked for the employer for at least 2 years after the employee signed an agreement containing a covenant not to compete or a covenant not to solicit or (2) the employer otherwise provided consideration adequate to support an agreement to not compete or to not solicit,”
820 ILCS 90/5

A covenant is void unless the employer advises the employee in writing to consult an attorney and gives the employee a copy at least 14 calendar days before employment starts, or at least 14 calendar days to review it.

“A covenant not to compete or a covenant not to solicit is illegal and void unless (1) the employer advises the employee in writing to consult with an attorney before entering into the covenant and (2) the employer provides the employee with a copy of the covenant at least 14 calendar days before the commencement of the employee's employment or the employer provides the employee with at least 14 calendar days to review the covenant.”
820 ILCS 90/20

Health care and other professions

A covenant not to compete is void for individuals covered by a collective bargaining agreement under the Illinois Public Labor Relations Act or the Illinois Educational Labor Relations Act.

“A covenant not to compete is void and illegal with respect to individuals covered by a collective bargaining agreement under the Illinois Public Labor Relations Act or the Illinois Educational Labor Relations Act.”
820 ILCS 90/10(d)

Covenants not to compete or solicit are void for individuals employed in construction, except those primarily in management, engineering, architectural, design, or sales functions, or owners.

“A covenant not to compete or a covenant not to solicit is void and illegal with respect to individuals employed in construction, regardless of whether an individual is covered by a collective bargaining agreement.”
820 ILCS 90/10(e)

Covenants entered after January 1, 2025 are not enforceable as to licensed mental health professionals providing services to veterans and first responders if enforcement is likely to increase cost or difficulty for them.

“Any covenant not to compete or covenant not to solicit entered into after January 1, 2025 (the effective date of Public Act 103-915) shall not be enforceable with respect to the provision of mental health services to veterans and first responders by any licensed mental health professional in this State if the enforcement of the covenant not to compete or covenant not to solicit is likely to result in an increase in cost or difficulty for any veteran or first responder seeking mental health services.”
820 ILCS 90/10(f)

Exceptions

The statutory definition of covenant not to compete excludes, among others, confidentiality agreements, trade-secret and invention agreements, and covenants by a person purchasing or selling the goodwill of a business.

“"Covenant not to compete" does not include (1) a covenant not to solicit, (2) a confidentiality agreement or covenant, (3) a covenant or agreement prohibiting use or disclosure of trade secrets or inventions, (4) invention assignment agreements or covenants, (5) a covenant or agreement entered into by a person purchasing or selling the goodwill of a business or otherwise acquiring or disposing of an ownership interest,”
820 ILCS 90/5

Limits on length and area

Covenants are void for employees terminated, furloughed, or laid off due to COVID-19 or similar circumstances unless enforcement includes base-salary-equivalent compensation minus subsequent earnings.

“No employer shall enter into a covenant not to compete or a covenant not to solicit with any employee who an employer terminates or furloughs or lays off as the result of business circumstances or governmental orders related to the COVID-19 pandemic or under circumstances that are similar to the COVID-19 pandemic, unless enforcement of the covenant not to compete includes compensation equivalent to the employee's base salary at the time of termination for the period of enforcement minus compensation earned through subsequent employment during the period of enforcement.”
820 ILCS 90/10(c)

If it is challenged

If an employee prevails against an employer's claim to enforce a covenant, the employee recovers all costs and reasonable attorney's fees for that claim.

“if an employee prevails on a claim to enforce a covenant not to compete or a covenant not to solicit, the employee shall recover from the employer all costs and all reasonable attorney's fees regarding such claim to enforce a covenant not to compete or a covenant not to solicit,”
820 ILCS 90/25

In an Attorney General action, a court may impose a civil penalty up to $5,000 per violation or $10,000 per repeat violation within 5 years.

“In addition, the Attorney General may request and the court may impose a civil penalty not to exceed $5,000 for each violation or $10,000 for each repeat violation within a 5-year period.”
820 ILCS 90/30(d)(1)

A court may, in its discretion, reform or sever provisions of a covenant rather than hold it unenforceable.

“In some circumstances, a court may, in its discretion, choose to reform or sever provisions of a covenant not to compete or a covenant not to solicit rather than hold such covenant unenforceable.”
820 ILCS 90/35(b)

When the rules took effect

The current definitions and core provisions come from Public Act 102-358, effective January 1, 2022.

“(Source: P.A. 102-358, eff. 1-1-22 .)”
820 ILCS 90/15 (source note)

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Illinois rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Illinois?

A covenant not to compete or not to solicit is illegal and void unless five conditions are met, including adequate consideration and being no greater than required to protect a legitimate business interest. (820 ILCS 90/15).

Is there a salary threshold for non-competes in Illinois?

An employer may not enter a covenant not to compete with an employee unless the employee's actual or expected annualized earnings exceed $75,000 per year. (820 ILCS 90/10(a)).

Does Illinois have special non-compete rules for health care workers or other professions?

A covenant not to compete is void for individuals covered by a collective bargaining agreement under the Illinois Public Labor Relations Act or the Illinois Educational Labor Relations Act. (820 ILCS 90/10(d)).