Illinois made major changes to its non-compete law in 2022 that significantly strengthened employee protections. If you work in Illinois, your salary level now plays a critical role in whether your non-compete can be enforced at all.
Illinois's 2022 Non-Compete Law Changes
The Illinois Freedom to Work Act, amended in 2022, created important new restrictions on non-compete enforcement:
- Non-compete agreements are only enforceable for employees earning more than $75,000 per year
- Non-solicitation agreements are only enforceable for employees earning more than $45,000 per year
- These salary thresholds increase by $5,000 every five years
✅ If you earn $75,000 or less per year, your non-compete agreement is void and unenforceable under Illinois law — regardless of what the contract says. This is a hard threshold, not a factor to be weighed.
Additional Requirements for Illinois Non-Competes
Even for employees above the salary threshold, Illinois non-competes must meet additional requirements to be enforceable:
- Adequate consideration: The employee must have received something of value. Illinois law specifies that employment of less than 2 years is not sufficient consideration by itself
- Reasonable scope: The restriction must be no greater than necessary to protect a legitimate business interest
- Reasonableness overall: Courts balance the hardship on the employee against the employer's legitimate interest
- Attorney consultation: Employers must advise employees in writing to consult with an attorney before signing, and provide at least 14 calendar days to review the agreement
What Illinois Considers a Legitimate Business Interest
Illinois courts recognize legitimate business interests including:
- Confidential information and trade secrets
- Relationships with specific customers or clients
- Specialized training or education provided by the employer
Illinois and the Blue Pencil Rule
Illinois courts have discretion to enforce non-competes in part — modifying overbroad terms — or to void the agreement entirely. Unlike states that must reform overbroad agreements, Illinois courts have the option to void them entirely if they find the employer acted in bad faith or that the agreement is unreasonably broad.
⚠️ If you were employed for less than 2 years before being asked to sign a non-compete, and you received no other form of consideration beyond employment itself, this is a strong argument against enforceability in Illinois.