Illinois non-competes and non-solicits: a short guide
The Illinois Freedom to Work Act limits when a non-compete or non-solicit agreement can be enforced. Here are the pay floors, review time and carve-outs that owners and employees ask about.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on October 29, 2026.
The Illinois Freedom to Work Act (820 ILCS 90) limits when employers can enforce non-compete and non-solicit agreements. Employees can raise it in disputes, and the Illinois Attorney General can sue over violations. It matters to owners who hire and workers who sign. Our Fortnight-and-Floor Read turns it into fact questions. The official text is on the Illinois General Assembly website.
- In 2026 a non-compete needs actual or expected annualized earnings above $75,000; a non-solicit, above $45,000.
- On January 1, 2027, they rise to $80,000 and $47,500.
- A covenant needs written advice to consult an attorney and at least 14 calendar days to review.
- Enforceability is decided case by case and needs an attorney.
Who it covers
| Group | Covered? | Note |
|---|---|---|
| Private employers | Yes | The text sets no minimum size. |
| Public-sector union workers | Non-competes void | Under the Illinois Public Labor Relations Act or Educational Labor Relations Act. |
| Construction workers | Both void | Management, engineering, architectural, design, sales and owner roles excepted. |
| Mental health professionals serving veterans and first responders | Not enforceable | Covenants entered after January 1, 2025, if enforcing would likely raise care cost or difficulty. |
| Sale-of-business covenants | Left out | Not a non-compete under the Act. For tax, one bought with a business is generally amortized over 15 years (IRC section 197). |
The numbers
Illinois rules only; statute read October 29, 2026.
| Item | Amount or rule | Year |
|---|---|---|
| Non-compete floor (must exceed) | $75,000 | 2026 |
| Non-solicit floor (must exceed) | $45,000 | 2026 |
| Employee's fees | Employee who wins an employer's enforcement case recovers costs and fees | 2026 |
| Attorney General suit penalty | Up to $5,000 per violation, $10,000 for a repeat within 5 years | 2026 |
Source: 820 ILCS 90/10
Our checklist
The Fortnight-and-Floor Read is our list of fact questions to bring to an attorney.
- Floor: do actual or expected annualized earnings exceed the 2026 figure for that covenant?
- Fortnight: was the employee advised in writing to consult an attorney and given 14 or more calendar days to review?
- Group: is the worker in a carved-out group, such as construction or a COVID-type layoff?
- Type: is it a non-compete, a non-solicit or a kind the Act leaves out?
Mistakes people make
- Reading "above $75,000" as "at least $75,000". Pay equal to the floor does not clear it.
- Counting base salary only. The Act's earnings definition is wider.
- Assuming a court will rewrite an overbroad covenant. It may decline.
Call an attorney about any covenant offered, signed or disputed, including those from before 2022 or another state.
Common questions
What is the Illinois non-compete salary threshold for 2026?
Above $75,000 for a non-compete and above $45,000 for a non-solicit. On January 1, 2027: $80,000 and $47,500.
Does Illinois require 14 days to review a non-compete?
Yes: written advice to consult an attorney and at least 14 calendar days to review. Signing sooner is allowed if voluntary.
Is the FTC non-compete ban in effect?
No. A court set it aside, the FTC dropped its appeals on September 5, 2025, and the rule left the regulations in February 2026.
Official sources
- Illinois General Assembly: Freedom to Work Act, 820 ILCS 90
- Illinois General Assembly: Minimum Wage Law, 820 ILCS 105 (employer definition)
- Federal Register: FTC removal of the Non-Compete Rule, 91 FR 6507 (February 12, 2026)
- IRS: Instructions for Form 4562, Part VI, section 197 intangibles
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