Illinois Freedom to Work Act: Non-Compete Law Guide
See how the Illinois Freedom to Work Act limits non-competes and non-solicits, who it covers and the 2026 earnings floors, with slides, tables and a checklist.
Last reviewed October 29, 2026 · 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.
The Illinois Freedom to Work Act (820 ILCS 90) is the state's non-compete law. It sets limits on two kinds of promises an employee can be asked to sign: a non-compete, which restricts who the person may work for after leaving, and a non-solicit, which restricts contact with the employer's clients or coworkers. This page is for owners, professionals and employees who want the basics in plain words. Whether any particular agreement is enforceable is decided case by case and needs an attorney.
Slide show: The Freedom to Work Act in seven slides
What the law does
It limits the non-competes and non-solicits that Illinois employers sign with employees.
Who it covers
Private employers that have employees; the text sets no minimum size. Government bodies are left out.
The rule
A covenant is void unless pay clears a set floor, the employee gets written notice and review time, and other tests are met.
The numbers
In 2026 annualized earnings must exceed $75,000 for a non-compete and $45,000 for a non-solicit.
The deadline
The employee gets a copy at least 14 calendar days before starting work, or at least 14 days to review it.
The penalty
An employee who defeats an employer's enforcement claim recovers costs and attorney's fees.
The tip
The FTC's national ban is not in effect, so this Illinois Act is the rule this page covers.
Who is covered
Question
Answer
Employer
Any individual, partnership, corporation or LLC with employees. Government and quasi-government bodies are excluded
Employee
Any individual permitted to work by an employer in an occupation
Non-compete floor
Actual or expected annualized earnings must exceed $75,000 (2026)
Non-solicit floor
Actual or expected annualized earnings must exceed $45,000 (2026)
Union employees
A non-compete is void for workers covered by a collective bargaining agreement under the state's public-sector or education labor relations acts
Construction employees
Non-competes and non-solicits are void, with exceptions for management, engineering, design and sales roles, and for owners
The earnings test uses the wages, tips and other compensation shown on Form W-2, plus elective deferrals such as 401(k), 403(b), FSA, HSA and commuter amounts. See our guides to Form W-2 filing and fringe benefits and taxable wages. Federal tax law treats a covenant not to compete entered into in connection with buying a business as an intangible that is amortized over 15 years (IRC section 197). Covenants made when buying or selling a business's goodwill or an ownership interest are left out of the Act's definition of a non-compete.
If you want to organize your facts before seeing a lawyer, the Pay-Line Fact Pack on the checklist page is one way to do it. See also the Illinois Wage Payment and Collection Act and our Illinois page.
