Illinois Non-Compete Agreement Template
Reviewed by the Agiled editorial teamUpdated June 2026
Non-compete law is the most state-divergent area in employment contracting — four states ban these agreements outright, a dozen more impose salary floors or notice rules, and the rest apply judge-made reasonableness tests that differ in temperament. This page covers what Illinois requires; the download is our standard non-compete template, to be scoped to Illinois's rules below.
Illinois non-compete rules at a glance
| Enforceability | Enforceable above statutory salary floors (820 ILCS 90, amended 2022). |
|---|---|
| Protected workers / thresholds | Void below $75,000/year salary (rises $5,000 every 5 years to $90,000 by 2037); non-solicits floor at $45,000 |
| Required formalities | 14 calendar days to review; written advice to consult counsel; adequate consideration (2 years' employment or other value) |
| Overbroad agreements | Courts may reform, but the statute's procedural failures void agreements outright |
State laws change frequently and this summary is not legal advice. Verify current rules against the state statute or with a licensed attorney before relying on them.
How Illinois handles non-compete agreements
Illinois pairs salary floors with the 'Fifield rule': continued employment only counts as consideration after two full years on the job — short-tenure enforcement requires real money or benefits at signing. The practical drafting rule for Illinois: enforceable above statutory salary floors (820 ILCS 90, amended 2022).. Before using this template, confirm the current statute — non-compete law has changed in more than a dozen states since 2020, and the FTC's federal ban attempt keeps the area moving.
Illinois non-compete agreement FAQs
Are non-compete agreements enforceable in Illinois?
Enforceable above statutory salary floors (820 ILCS 90, amended 2022). Coverage limits matter here: void below $75,000/year salary (rises $5,000 every 5 years to $90,000 by 2037); non-solicits floor at $45,000.
What happens to an overbroad non-compete in Illinois?
Courts may reform, but the statute's procedural failures void agreements outright Draft to the narrowest restriction that protects the actual business interest — the safety net (or lack of one) above is what you're betting on.
What formalities does a Illinois non-compete require?
14 calendar days to review; written advice to consult counsel; adequate consideration (2 years' employment or other value) Procedural failures are now the most common way non-competes die — more common than substantive overbreadth in states with notice rules.
Does the FTC non-compete ban apply in Illinois?
The FTC's 2024 rule banning most non-competes was set aside by a federal court before taking effect and remains in litigation, so it is not currently in force in Illinois or any state. State law controls — which is why the state-specific rules above are the ones to draft around.
The full non-compete agreement guide
Clause-by-clause guidance, common mistakes, and the complete template text live on the main page: Non-Compete Agreement Template — full guide and download.