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Illinois Non-Compete Agreement Template
Illinois sets pay floors before a non-compete or non-solicit can apply: non-competes are void for employees earning $75,000 or less, and non-solicits for those earning $45,000 or less, with both thresholds rising on January 1, 2027. Employers must also follow procedural steps, and those who lose an enforcement suit can end up paying the employee's attorney's fees.
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Illinois rules to know
Salary thresholds apply
Non-competes are void for employees earning $75,000 or less per year, and non-solicits are void for those earning $45,000 or less. These thresholds rise to $80,000 and $47,500 on January 1, 2027.
Illinois Freedom to Work Act, 820 ILCS 90/10
14 days and advice to see a lawyer
The employer must advise the employee in writing to consult an attorney before signing and give at least 14 calendar days to review the agreement. Skipping these steps can make the covenant unenforceable.
820 ILCS 90/20
Adequate consideration is required
The employee must receive adequate consideration, meaning at least two years of continued employment after signing or other real benefits such as a bonus or added pay. The covenant must also protect a legitimate business interest.
820 ILCS 90/5, 90/7
Employers risk paying legal fees
An employee who wins a lawsuit to enforce a non-compete or non-solicit can recover attorney's fees from the employer, and the Attorney General can investigate patterns of violations. Courts may, but are not required to, reform overbroad terms.
820 ILCS 90/25, 90/30, 90/35
Last updated 2026-10-05
Download the free template
Our Illinois Non-Compete Agreement template as a Word document — a general starting point you fill in yourself. Sign in free to download it.
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What a non-compete agreement covers
- Restricted activities and competitors
- Duration and geographic scope
- Non-solicitation of customers and employees
- Consideration given for the restriction
- Remedies and reformation
- Governing law and venue
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Frequently asked questions
- How much must an Illinois employee earn before they can sign a non-compete?
- Non-competes are void for Illinois employees earning $75,000 or less per year, and non-solicits are void for those earning $45,000 or less. On January 1, 2027, those thresholds rise to $80,000 and $47,500. Check each employee's earnings against the current figures before using the template.
- What notice must Illinois employers give before an employee signs?
- The employer must advise the employee in writing to consult an attorney before signing and give at least 14 calendar days to review the agreement. Skipping these steps can make the covenant unenforceable, so build the attorney advisement into the document and keep a record of when you delivered it.
- What counts as adequate consideration for an Illinois non-compete?
- Illinois requires adequate consideration, meaning at least two years of continued employment after signing, or other real benefits such as a bonus or added pay. The covenant must also protect a legitimate business interest. Offering a concrete benefit at signing avoids relying solely on the employee staying for two years.
- Are non-competes enforceable?
- It depends heavily on the state. A few states ban most employee non-competes outright, others cap them by salary, duration or industry, and many enforce only restrictions that are reasonable in time, area and scope.
- What's the difference between a non-compete and a non-solicit?
- A non-compete stops someone working for a competitor or starting a competing business. A non-solicit only stops them from poaching your customers or staff. Non-solicits are enforceable in more places, but not everywhere.
- Can I use a non-compete when selling my business?
- Usually yes. Sale-of-business non-competes are treated much more favourably than employee ones, even in states that otherwise ban non-competes.
Non-Compete Agreement in other states
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