The 30-Second Answer
In Illinois, non-compete agreements are governed by the Illinois Freedom to Work Act (820 ILCS 90/), as substantially amended in 2022 — and most workers earning under $75,000 per year cannot be bound by them at all. For those who do earn above the threshold, the agreement must be supported by adequate consideration, include 14 days’ advance notice before signing, and be reasonable in scope, duration (capped at two years), and geographic reach. Courts that void non-compete agreements in Illinois can now award attorney’s fees to the employee. The balance of power in non-compete law shifted materially in 2022.
The Story
Nadia Kowalski was a veterinary technician in Wheaton, DuPage County. She loved her work, her patients, and her clients. When a better-paying clinic three miles away offered her a job, she told her employer she was leaving. Her employer responded with a letter from their law firm, reminding her of the non-compete agreement she had signed on her first day of work — a document buried in a stack of onboarding paperwork — which prohibited her from working in any veterinary practice within a 15-mile radius for two years.
Nadia was earning $42,000 a year. She was a vet tech, not a senior partner with client relationships worth millions.
Under the Illinois Freedom to Work Act as amended in 2022, that agreement was void. Illinois law prohibits non-compete agreements for employees earning $75,000 or less annually. Nadia’s agreement was unenforceable from the moment it was signed. The law firm’s letter was a scare tactic — and an informed worker would never have been scared by it.
Nadia took the job. Nobody sued her. The law protected her the entire time.
The Details
The Illinois Freedom to Work Act (820 ILCS 90/) governs non-compete and non-solicitation agreements in Illinois. The 2022 amendments fundamentally restructured the law, introducing salary thresholds, procedural requirements, and attorney’s fee-shifting that did not previously exist.
Income thresholds: Non-compete agreements are void and unenforceable against any employee earning $75,000 or less annually. Non-solicitation agreements (which prohibit recruiting former colleagues or contacting former customers) are void against employees earning $45,000 or less annually. These thresholds are scheduled to increase incrementally — the non-compete threshold rises to $80,000 in 2027, $85,000 in 2032, and $90,000 in 2037.
Adequate consideration: An employee must receive adequate consideration in exchange for signing a non-compete. Under Illinois case law as codified in the Act, employment for at least two years after signing constitutes adequate consideration. Other forms of consideration — signing bonuses, equity grants, specialized training, access to confidential information — may also satisfy this requirement. Simply continuing to employ an existing employee for a few weeks after presenting them with a non-compete is insufficient.
The 14-day advance notice requirement: Before asking an employee to sign a non-compete or non-solicitation agreement, the employer must provide the agreement to the employee at least 14 days in advance. The employee must also be advised in writing to consult an attorney before signing. Agreements presented on the first day of work, at the signing of an offer letter with an immediate start date, or in a “sign this now or you can’t start” context violate this requirement.
Reasonableness requirements: Even for employees above the income threshold, the agreement must be reasonable in scope, duration, and geographic reach. Illinois courts apply a “partial enforcement” (blue-penciling) doctrine in some cases — modifying an overbroad agreement rather than voiding it entirely. However, the 2022 amendments limit this by indicating courts “may” but are not required to modify unreasonable agreements. Two years is generally the maximum enforceable duration in Illinois. Geographic restrictions must bear a relationship to the employer’s actual business territory.
Attorney’s fee-shifting: If an employer seeks to enforce a non-compete agreement and the court finds the agreement unenforceable, the court may award the employee their reasonable attorney’s fees and costs. This is a powerful deterrent against employers who use non-compete agreements as scare tactics — and a powerful incentive for employees with valid unenforceability defenses to fight back.
The “garden leave” alternative: Illinois is one of a growing number of states to explicitly recognize “garden leave” clauses — agreements where the employer pays the employee during the non-compete period. A garden leave clause where the employer pays at least 50% of the employee’s highest annualized base salary during the restricted period is considered a legitimate alternative to traditional non-compete enforcement.
The Toolkit
| Concept | What It Means | Why It Matters to You |
|---|---|---|
| $75,000 Non-Compete Threshold | Non-compete agreements are void for employees earning $75,000/year or less | Most hourly workers, technicians, and mid-level employees are fully exempt |
| $45,000 Non-Solicitation Threshold | Non-solicitation agreements are void for employees earning $45,000/year or less | A broad class of Illinois workers cannot be bound by customer or colleague restrictions |
| 14-Day Advance Notice | Employer must provide the agreement 14 days before execution and advise you to consult counsel | Agreements presented at onboarding without advance notice are procedurally defective |
| 2-Year Duration Cap | Non-compete terms longer than two years are presumptively unreasonable | A 3-year or 5-year non-compete has serious enforceability problems in Illinois courts |
| Attorney’s Fee Shifting | If the employer loses on enforceability, the court may award you attorney’s fees | Makes it economically viable to challenge overbroad non-competes with legal representation |
The Algorithmic Shadow
Non-compete agreements are increasingly being built into AI-assisted employment contract generation tools. In 2026, many Illinois small and mid-size employers use SaaS platforms to generate employment agreements — and those platforms often include non-compete provisions as default terms, regardless of the employee’s salary or role. The platform was not updated for Illinois’s 2022 amendments. The employer accepted the default. The employee signed without reading.
Ahmad Sulaiman has seen a growing number of cases where technically void non-compete agreements — unenforceable under Illinois’s income thresholds or procedural requirements — are being sent to employees by automated contract systems that have not been updated to reflect current law. The employer does not know the agreement is void. The employee does not know the agreement is void. But the law knows. Atlas Law Center reviews non-compete agreements for Illinois workers and advises them on enforceability before they make career decisions based on agreements that may have no legal force whatsoever.
Frequently Asked Questions
I signed a non-compete when I was hired. Is it automatically enforceable in Illinois?
No. A signed agreement is just the starting point. Illinois courts evaluate whether the agreement meets the income threshold, whether there was adequate consideration, whether the 14-day notice requirement was met, and whether the restrictions are reasonable. An agreement that fails on any of these grounds is unenforceable regardless of your signature.
My employer threatened to sue me if I take a job at a competitor. What should I do?
First, have an attorney review your non-compete before making any decisions. Many non-compete threats are exactly that — threats. Employers often send cease-and-desist letters knowing the agreement is overbroad, hoping the employee will comply out of fear. If your income is below $75,000 or the agreement fails on procedural grounds, the threat has no legal basis. Do not make a major career decision based on a letter that an attorney could render meaningless.
Does the Illinois Freedom to Work Act apply to agreements I signed before 2022?
The 2022 amendments apply to agreements entered into on or after January 1, 2022. Agreements signed before that date are governed by prior Illinois case law and the original 2016 version of the Act. However, even pre-2022 agreements are subject to common law enforceability requirements — they must be reasonable in scope, supported by adequate consideration, and necessary to protect a legitimate business interest.
Can my employer enforce a non-solicitation agreement but not a non-compete?
Potentially. Non-solicitation agreements have a lower income threshold ($45,000) and may have different enforceability factors. An employee who earns $60,000 may be exempt from a non-compete but still bound by a valid non-solicitation agreement if it was properly executed. The two types of agreements are evaluated separately under the IFWA.
What is a “legitimate business interest” in Illinois non-compete law?
Illinois courts have recognized that enforceable non-compete agreements must protect a legitimate business interest. These include: near-permanent customer relationships, trade secrets and confidential information, and special skills or training provided by the employer that the employee would not have otherwise obtained. Courts are skeptical of non-competes for employees with no access to confidential information or proprietary relationships — a cashier or a warehouse worker rarely has a “legitimate business interest” in being restricted.
If my employer paid me a severance, does that make my non-compete enforceable?
A severance payment offered in exchange for signing a non-compete upon separation may constitute adequate consideration for a post-employment restriction — but it still must satisfy all other Illinois requirements, including reasonableness. Accepting severance does not mean you have waived all defenses to a non-compete. An attorney should review the specific severance agreement before you sign anything.
Ahmad Sulaiman and Atlas Law Center advise Illinois workers on non-compete enforceability throughout Cook County, DuPage County, and the greater Chicago area. Before you turn down a job, switch careers, or start a business because of a non-compete, get a second opinion. That agreement may not mean what your former employer says it does.
Contact Atlas Law Center for a free consultation — Employment Law: (630) 394-6350 | Consumer Law: (331) 321-4748. Care first. Justice always.