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Threshold regime

Non-compete enforceability in Illinois

Freedom to Work Act voids non-competes for employees earning ≤ $75,000 and non-solicits for those ≤ $45,000. 14-day review + counsel-advisory required.

What this means for you

Illinois is a threshold state: a non-compete is void below a statutory income floor and only potentially enforceable above it — and even above the floor it must still be reasonable in time, geography, and scope.

Controlling case-law

  • Reliable Fire Equipment Co. v. Arredondo, 2011 IL 111871, 965 N.E.2d 393

    Three-prong reasonableness test: legitimate business interest + no undue hardship + not injurious to public.

Doctrine

Blue-pencil discretionary. Courts may strike specific over-broad terms but the practice varies — over-broad covenants drafted in bad faith are often refused enforcement entirely.

Salary / wage threshold

$75,000

2022 value

Non-compete: void if earnings ≤ $75,000/yr (escalates by $5,000 every 5 years; $90,000 by 2037). Non-solicit: void if ≤ $45,000/yr (escalates by $2,500 every 5 years; $52,500 by 2037).

Garden leave / consideration

Adequate consideration required: ≥ 2 years continued employment after signing OR 'professional or financial benefits adequate by themselves.' NOT garden leave.

820 ILCS 90/15

Gotchas

  • COVID-furloughed-employee carve-out under 820 ILCS 90/10(b).
  • Full statutory recovery of attorney's fees by employees who prevail.
  • 14-day review period + written advice-to-consult-counsel required.

Federal context

The FTC's 2024 federal non-compete ban was vacated nationwide in Ryan v. FTC and removed from the Code of Federal Regulations in February 2026. There is no federal ban in force — so Illinois's state law controls. Read the federal status.

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