Illinois enacted one of the nation’s strongest worker protections against non-competes with the Freedom to Work Act (820 ILCS 90/), passed in 2022. The law automatically voids non-competes for workers earning less than $75,000 per year and imposes strict procedural requirements on employers. If you work in Illinois or are considering a move there, understanding these protections is essential.
The law also protects workers who are laid off or terminated without cause—employers cannot enforce a non-compete unless they continue paying the worker’s full salary during the restriction period. This “garden leave” requirement fundamentally shifts power back to workers and creates real consequences for employers who try to enforce broad restrictions.
Key Facts
| Factor | Details |
|---|---|
| Enforceability | Void for workers earning < $75,000/year; strict requirements for others |
| Max Duration | 2 years (measured from end of employment) |
| Income Threshold | $75,000/year (employees below threshold = non-compete void) |
| Blue-Pencil Reform | Unclear; reform focus on threshold and consideration |
| Garden Leave | Required—if laid off/terminated without cause, employer must pay full salary |
What Makes a Non-Compete Enforceable in Illinois
Under the Freedom to Work Act, a non-compete is enforceable only if: (1) the employee earns at least $75,000 per year; (2) the agreement is based on “adequate consideration” (typically, at least two years of employment after signing or other legitimate business value); (3) the agreement provides the employee with a written copy at least 14 days before signing; (4) the restriction is limited to two years after employment ends; and (5) if the employee is terminated without cause, the employer continues paying the employee’s full salary during the non-compete period.
Courts evaluate “adequate consideration” strictly. Simply continuing employment may not be sufficient if the employee was already entitled to continued employment anyway. The employer must provide something of value—a promotion, raise, bonus, or other concrete benefit—at or around the time of signing.
The Act also requires that any non-compete agreement be reasonable in scope, time, and area of business. The two-year cap applies strictly; agreements exceeding two years are void.
Income Thresholds and Worker Exemptions
Illinois’s $75,000 income threshold is the most important protection in the statute. If you earn less than $75,000 per year, your non-compete is automatically void, regardless of any other terms or circumstances. This covers the majority of Illinois workers—retail staff, warehouse workers, administrative assistants, customer service representatives, junior technicians, and many mid-level professionals.
Employees earning at or above $75,000 are not automatically protected, but the law still provides strong safeguards. They can sue under the Act, claim damages, recover attorney fees, and argue that the employer failed to meet statutory requirements. The Attorney General can also enforce the Act on behalf of workers statewide.
What Happens If You Violate One
If you violate a non-compete that meets all statutory requirements, your employer can seek an injunction and sue for damages. However, the Act provides significant protections: you can countersue, argue that the non-compete is void, and recover attorney fees if you prevail. The Attorney General can also intervene on behalf of workers.
If your employer laid you off or terminated you without cause and did not pay your full salary during the non-compete period, the entire restriction is unenforceable. You are free to work for a competitor.
Real Situations in Illinois
A warehouse coordinator in Chicago earning $52,000 per year was asked to sign a non-compete prohibiting work for any logistics company within Illinois for two years. She refused, citing the Freedom to Work Act. Her employer insisted the restriction was necessary to protect customer lists. Illinois law made the refusal simple—the agreement is void because her income falls below the $75,000 threshold. No valid non-compete exists, regardless of the employer’s concerns.
A marketing director earning $85,000 annually in Springfield signed a non-compete after receiving a $10,000 raise. The agreement restricted her from working for any marketing firm in Illinois for two years. Six months later, she was laid off in a round of corporate cuts, with no severance. She immediately took a position with a competitor. The former employer sued. The court found the non-compete was enforceable regarding duration and consideration (the raise provided adequate consideration), but the employer failed to pay her full salary during the restriction period. Because she was terminated without cause and not paid, the non-compete was unenforceable. She was free to work for the competitor.
A pharmaceutical sales manager earning $110,000 in Peoria signed a non-compete that was presented to her two days before her start date, rather than 14 days in advance. The agreement restricted her from working for rival pharmaceutical companies within 50 miles for 18 months. When she left after three years to join a competitor, the former employer sued for breach. She argued the non-compete was void because she was not given 14 days’ written notice before signing. The court agreed—the procedural violation rendered the entire non-compete unenforceable. The statutory requirement exists to ensure employees have time to seek counsel.
Common Mistakes Illinois Employees Make
Not knowing the $75,000 threshold applies to you: Many lower-wage workers worry about non-competes when Illinois law automatically voids them. Do not sign or be intimidated by an agreement you cannot legally be held to. Know your income and use that protection.
Failing to demand the 14-day notice requirement: Illinois law is clear—employers must provide written notice of the non-compete at least 14 days before you sign. If they don’t, the agreement is void. Do not accept same-day or short-notice agreements without legal review.
Accepting termination without documenting lack of cause: If you’re laid off or terminated, ask your employer in writing whether the separation is “with cause” or “without cause.” If without cause, the employer must pay your full salary during any non-compete restriction. Document this conversation; it protects your right to work.
What to Do If You Have a Non-Compete
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Determine your income and check the threshold immediately. If you earn less than $75,000 per year, your non-compete is void under Illinois law. Document this and do not be intimidated by employer threats.
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Review the date you received the agreement. If it was provided fewer than 14 days before you signed, the non-compete is void due to procedural violation. Keep records of when you received written notice.
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Identify whether the agreement was supported by adequate consideration. Did you receive a promotion, raise, or other benefit around the time of signing? If you signed the non-compete as a condition of continued employment with no additional benefit, argue the consideration is inadequate.
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Before changing jobs, consult an Illinois employment attorney. If your non-compete meets all statutory requirements, review the risk with counsel. Your new employer may agree to indemnify you or wait out the restriction period.
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File a complaint with the Illinois Attorney General’s office if you believe the non-compete violates the Act. The AG can investigate and enforce the statute on your behalf. Visit cyberdriveillinois.com/Attorney-General.
Illinois Attorney General (Employment Law Division): cyberdriveillinois.com/attorney-general
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Disclaimer
This article provides general information about non-compete laws in Illinois and is not a substitute for legal advice. Employment law is complex and varies by situation. If you face a non-compete dispute, consult a qualified employment attorney licensed in Illinois who can review your specific agreement and circumstances.