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?
| Requirement | Plain meaning | Section |
|---|---|---|
| Earnings floor | Void unless actual or expected annualized earnings exceed the floor | 10(a), (b) |
| Notice | Written advice to consult an attorney; copy 14 or more calendar days before work starts, or 14 or more days to review | 20 |
| Consideration | Other professional or financial benefits, or two years of work after signing | 5, 15 |
| Legitimate interest | No wider than needed to protect one; no undue hardship | 7, 15 |
| Barred uses | COVID-type layoffs; non-competes under certain union contracts; construction (with exceptions); mental health care for veterans and first responders | 10(c)-(f) |
Key numbers and dates
| Measure | Figure | Year |
|---|---|---|
| Floors (earnings must exceed) | $75,000 non-compete; $45,000 non-solicit | 2026 |
| Next floors | $80,000 and $47,500 | Starting January 1, 2027 |
| Attorney General penalty | Up to $5,000 per violation; $10,000 per repeat within 5 years | 2026 |
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.
- Note the job's actual or expected annualized earnings, W-2 items and counted deferrals.
- Note which promise the paper holds: non-compete, non-solicit, or something the Act leaves out.
- Compare the earnings with that floor in the year of signing.
- Note delivery and signing dates against the 14-day period, and the written attorney advice.
- Note what the employee received in exchange, and any Section 10 group.
- 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
- Illinois General Assembly: Freedom to Work Act, 820 ILCS 90
- Federal Trade Commission: FTC files to accede to vacatur of the Non-Compete Clause Rule (September 5, 2025)
- Federal Register: Removal of the Non-Compete Rule, 91 FR 6507 (February 12, 2026)
- Illinois General Assembly: Public Act 103-0915
- Illinois General Assembly: HB 3213 bill status
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.