Non-Competes in Illinois: What Changed and What It Means for You

Illinois significantly amended its non-compete law in 2022, creating income thresholds, strengthening consideration requirements, and adding new procedural obligations for employers. If you work in Chicago or anywhere in Illinois and have a non-compete in your employment agreement, the 2022 changes likely affect what you're actually bound by. Here's the current state of the law.

The Illinois Freedom to Work Act

The Illinois Freedom to Work Act, as amended effective January 1, 2022, is the governing statute for post-employment non-compete and non-solicitation restrictions in Illinois. The amendments made several structural changes to when non-competes are enforceable:

• Created income thresholds below which non-competes are void
• Strengthened the consideration requirement beyond mere employment
• Required 14-day advance notice before the restriction takes effect
• Added attorney fee shifting for employees who successfully challenge invalid restrictions

The prior law had similar provisions but looser requirements. The 2022 amendments tightened each of these elements, making Illinois one of the more protective states for employees.

Income Thresholds

The 2022 amendments created separate income thresholds for non-compete agreements and non-solicitation agreements:

• Non-compete agreements: Only enforceable against employees earning more than $75,000 per year in total compensation at the time of enforcement.
• Non-solicitation agreements: Only enforceable against employees earning more than $45,000 per year at the time of enforcement.

The income thresholds are set to increase over time — the non-compete threshold rises to $80,000 by 2027 and $90,000 by 2032.

"Total compensation" includes salary, commissions, bonuses, and other forms of compensation — not just base salary. This matters for roles where variable compensation is a significant component.

If you earn below the applicable threshold, the restriction is void. This is a statutory bright line, not a factor in a reasonableness analysis.

The Consideration Requirement

Illinois's 2022 amendment strengthened the consideration requirement beyond what was previously required. Mere employment — the offer of a job — is no longer sufficient consideration to support a post-employment non-compete in Illinois.

Valid consideration under the amended Act requires something more. The statute specifically states that adequate consideration includes: employment for at least two years after the agreement is signed, or other professional or financial benefits (such as specialized training, business contacts, or a promotion). Simply signing a non-compete as a condition of your first day of employment, with employment continuing at-will, may not satisfy the consideration requirement unless employment actually continues for at least two years.

This consideration requirement has practical implications: non-competes presented to existing employees as a condition of continued employment — without additional consideration beyond the continuation of at-will employment — are likely void in Illinois.

14-Day Advance Notice

Like Colorado, Illinois requires 14 days advance notice before a non-compete agreement can take effect. The employer must provide the prospective employee with the non-compete agreement at least 14 days before the individual's first day of employment.

The statute also requires employers to advise prospective employees in writing to consult with an attorney before signing.

If you received your non-compete on your first day of work, or at any point less than 14 days before your start date, the advance notice requirement was not met. This is a specific, checkable fact about when you received the document.

Attorney Fee Shifting

The 2022 amendments added meaningful financial consequences for employers who include or attempt to enforce invalid non-competes. If an employee successfully challenges a non-compete on the grounds that it violates the Freedom to Work Act, the employee is entitled to recover attorney fees from the employer.

This fee-shifting provision makes it economically viable for an employee to fight an invalid non-compete. It also creates real risk for employers who include void restrictions or threaten enforcement — the downside of losing includes the employee's attorney fees.

What Chicago Tech Workers Should Know

Chicago has a growing tech ecosystem, including major offices of companies like Motorola, Salesforce, Groupon, and numerous startups, as well as large financial services technology firms. The 2022 amendments have real practical effects in this market:

For most individual contributors and engineers earning between $75,000 and the 2-year employment threshold: the consideration analysis matters most. If you received a non-compete in your initial offer package and haven't been employed for two full years since signing, the consideration requirement may not be satisfied.

For senior employees earning above $75,000 with more than two years of employment: the full reasonableness analysis still applies. A non-compete must be no broader than reasonably necessary to protect a legitimate interest.

The Bottom Line

Illinois's amended Freedom to Work Act creates clear, checkable requirements — income threshold, consideration adequacy, and advance notice timing. If you're an Illinois employee wondering whether your non-compete is enforceable under the current law, paste your employment agreement into dott.legal for a free AI risk analysis. For situations where enforcement is threatened or you're weighing a career move, attorney-validated review is $349 with 24-hour turnaround.