My nonlawyer friends often assume non-compete agreements are not enforceable, usually because they had read an old headline about the Federal Trade Commission’s (FTC’s) proposed rule banning non-competes or an article suggesting that non-competes are “under attack.” Many times, my colleagues and I ultimately have to tell these folks that non-competes are enforceable, but often we can’t do so until it is too late. So, are non-competes still enforceable in Illinois?
The Short Answer Is Yes, for Now.
In Illinois, non-compete agreements remain enforceable, but the legal landscape is rapidly shifting. Currently, employers can use these agreements to protect legitimate business interests, but there is pending legislation that could soon change everything.
Current Law: The Illinois Freedom to Work Act
Under the Illinois Freedom to Work Act (820 ILCS 90/1 et seq.), currently, non-compete agreements are enforceable if they meet strict criteria:
- Income thresholds: Non-competes are only enforceable against employees earning more than $75,000, and non-solicitation provisions are only enforceable against employees earning more than $45,000. The income thresholds increase every five years.
- Notice and review: Employers must give a copy of the covenant to the employee at least 14 days before the commencement of employment to allow the employee time to review it. Illinois also requires the employer to inform the employee in writing to consult an attorney before entering into the covenant.
- Enforceability: Non-compete and non-solicit provisions are only enforceable if the employee receives adequate consideration, the covenant is ancillary to a valid employment relationship, the covenant is no greater than necessary to protect a legitimate business interest of the employer, the covenant does not impose undue hardship on the employee, and the covenant does not injure the public.
- Adequate consideration: Illinois courts generally require two years of continued employment after the employee signs the agreement or some additional tangible benefits to satisfy consideration. Titan Security Services, LLC v. Saylor, 2025 WL 2453805, at *2 (N.D.Ill., 2025)
Pending Legislation: House Bill 3213
However, the future of restrictive covenant enforceability in Illinois may look very different in the near future. House Bill 3213, introduced in March 2025, proposes a complete ban on non-compete and non-solicitation agreements for employees.
Key Provisions of HB3213
- Total ban: All non-compete and non-solicitation agreements entered into on or after January 1, 2026, will be illegal and void, regardless of where they were signed or enforced.
- No exceptions for income: Unlike current law, the bill eliminates income-based thresholds—the ban applies to all employees.
- No legitimate business interest defense: The bill repeals provisions that allow employers to justify non-competes based on the protection of legitimate business interests.
- Retroactive enforcement bar: Employers will be prohibited from enforcing any such agreements, even if signed outside Illinois.
- Preserved protections: Non-disclosure, trade secret, and invention assignment agreements would not be affected by the bill.
If passed, this legislation would make Illinois one of the most restrictive states in the country regarding post-employment covenants.
What This Means for Employers and Employees
- For employers: You can still use non-competes—for now. But you should begin reviewing your agreements and consider alternative provisions like non-disclosure provisions, garden leave and/or notice provisions, and narrowly tailored non-solicitation provisions so you can still protect your confidential information, trade secrets, and other protectable interests.
- For employees: If you’re asked to sign a non-compete, know your rights. If HB3213 becomes law, such agreements will likely no longer be enforceable.
Conclusion
Yes, Illinois still enforces non-competes today. But with the possibility that House Bill 3213 becomes law, that may dramatically change in the near future. Both employers and employees should stay informed and prepare for a potential shift toward increased workforce mobility and reduced contractual restrictions.
