Illinois Non-Compete Agreement
Generate a non-compete agreement tailored to Illinois law. Our AI incorporates IL-specific statutory requirements, disclosure obligations, and legal standards into every document.
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Illinois Legal Requirements
Key IL statutes and obligations that apply to your non-compete agreement.
Requirements
- Illinois Freedom to Work Act (820 ILCS 90), effective January 1, 2022
- Minimum salary threshold: $75,000/year for non-competes; $45,000 for non-solicitation
- Employer must provide 14-day review period before employee must sign
- Employer must advise employee in writing to consult an attorney
- Must provide 'adequate consideration' — 2 years continued employment or equivalent payment
Restrictions & Limits
- Non-competes cannot exceed 2 years in duration
- Illinois courts scrutinize both duration and geographic scope
- Non-competes for workers earning under $75,000 are void and unenforceable
Official Statute References
Primary Illinois statutes governing this document type.
Illinois Non-Compete Agreement FAQ
Common questions about non-compete agreements under Illinois law.
Can an Illinois employer use a non-compete with any employee?
No. Illinois's Freedom to Work Act restricts non-competes to employees earning at least $75,000/year. For non-solicitation agreements (restricting solicitation of customers or co-workers), the threshold is $45,000/year. Non-competes for employees below these thresholds are void.
What consideration is required for an Illinois non-compete?
The Illinois Freedom to Work Act requires 'adequate consideration,' which can be: (1) continued employment for 2 or more years after signing, (2) payment equivalent to the base salary during the restricted period (garden leave), or (3) other mutually agreed consideration of value.
How does Illinois handle overbroad non-compete agreements?
Illinois courts apply the 'rule of reason' and may 'blue pencil' (modify) an overbroad non-compete to make it reasonable, or void it entirely. The Freedom to Work Act also grants courts discretion to reform unenforceable provisions rather than voiding the entire agreement.
What are the penalties for violating the Illinois Freedom to Work Act?
Employers who violate the IFWA (e.g., including non-competes for employees earning below the threshold) can be liable for employee attorneys' fees in any litigation to void the non-compete. The Illinois Attorney General can also seek civil penalties against repeat violators.
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Non-Compete Agreement by State
Laws vary significantly by state. Find the right form for your location.
Disclaimer: LegalLawDocs.com provides self-help legal documents for informational purposes only. The documents and information on this site do not constitute legal advice and are not a substitute for consultation with a licensed attorney. Laws vary by state and change frequently — review your document with a qualified professional before relying on it.