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Illinois Non-Compete Requirements and Checklist

See Illinois non-compete requirements under the Freedom to Work Act: pay floors for 2026 and 2027, the 14-day review, recent changes and a fact checklist.

Last reviewed October 27, 2026 · 3 min read · General information, not legal advice

General information only, not legal advice. CPA Tax Payroll and Accounting Corp is a CPA firm, not a law firm. Laws change: confirm with the official source or a licensed attorney before you act. Read the full notice.

Illinois non-compete requirements sit in a few short sections of the Freedom to Work Act. The Act says each situation is judged on its own facts, so enforceability needs an attorney and is decided case by case. The overview page shows who the Act covers.

What are the Illinois non-compete requirements?

RequirementPlain meaningSection
Earnings floorVoid unless actual or expected annualized earnings exceed the floor10(a), (b)
NoticeWritten advice to consult an attorney; copy 14 or more calendar days before work starts, or 14 or more days to review20
ConsiderationOther professional or financial benefits, or two years of work after signing5, 15
Legitimate interestNo wider than needed to protect one; no undue hardship7, 15
Barred usesCOVID-type layoffs; non-competes under certain union contracts; construction (with exceptions); mental health care for veterans and first responders10(c)-(f)

Key numbers and dates

MeasureFigureYear
Floors (earnings must exceed)$75,000 non-compete; $45,000 non-solicit2026
Next floors$80,000 and $47,500Starting January 1, 2027
Attorney General penaltyUp to $5,000 per violation; $10,000 per repeat within 5 years2026
Non-compete earnings floor by period U.S. dollars, must be exceeded
2022 to 2026$75,000
2027 to 2031$80,000
2032 to 2036$85,000
From 2037$90,000

Source: 820 ILCS 90/10

Recent and pending changes

  • 2025: Public Acts 103-915, 103-921 and 103-1062 reshaped Section 10, adding the mental health provision, now subsection (f). We found no 2026 amendment as of October 29, 2026.
  • FTC: on September 5, 2025 the FTC voted 3-1 to drop its appeals. The national rule was removed from the federal regulations on February 12, 2026 (91 FR 6507). See also the FTC Act.

The named checklist: the Floor-and-Fortnight Read

Facts to gather for an attorney, not advice on drafting or avoiding an agreement.

  1. Note the job's actual or expected annualized earnings, W-2 items and counted deferrals.
  2. Note which promise the paper holds: non-compete, non-solicit, or something the Act leaves out.
  3. Compare the earnings with that floor in the year of signing.
  4. Note delivery and signing dates against the 14-day period, and the written attorney advice.
  5. Note what the employee received in exchange, and any Section 10 group.
  6. List facts outside Illinois or the U.S. (owner, payroll, workplace, governing law).

Common mistakes

  • Reading the floor as "at or above"; earnings must exceed it.
  • Testing base salary only; bonuses, commissions and deferrals count.
  • Using the 2026 floor for a covenant entered into on or after January 1, 2027.
  • Assuming a foreign owner or payroll settles whether the Act applies.

When to bring in an attorney

  • Signing, reviewing or enforcing a non-compete or non-solicit.
  • An agreement signed before 2022, outside Illinois or under another place's law.
  • Construction, health care or union-covered workers; a business sale with a seller's covenant.

How we can help

We handle the U.S. tax, payroll and accounting side, alongside your attorney, Canadian CPA or Indian CA. See payroll and employer compliance and business tax returns and planning.

Frequently asked questions

What is the Illinois non-compete earnings floor in 2026?

For a non-compete, annualized earnings must exceed $75,000; for a non-solicit, $45,000. Both rise on January 1, 2027.

Does the FTC ban non-competes nationwide?

No. In September 2025 the FTC dropped its appeals, and its rule left the federal regulations in February 2026.

Can a foreign-owned Illinois company use a non-compete?

The Act sets conditions, not a ban, and its employer definition names no nationality test. An attorney decides whether an arrangement fits.

What if an employer sues and loses?

An employee who prevails recovers costs and reasonable attorney's fees.

Official sources

This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.