Illinois non-compete law (Freedom to Work Act and Fifield rule)

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Short answer: Illinois non-competes are governed by the Illinois Freedom to Work Act (820 ILCS 90), which sets a salary threshold of $75,000 ($45,000 for non-solicits), requires 14 days for review with right to counsel, and demands adequate consideration. Under Fifield v. Premier Dealer Services (2013), continued employment of less than 2 years is generally insufficient consideration without additional benefit. The thresholds index up over time, reaching $90,000 by 2037.

Salary thresholds

The Illinois Freedom to Work Act (820 ILCS 90), as amended in 2022, sets salary thresholds for the enforceability of restrictive covenants:

For non-competes:

2024-2026: $75,000 annual earnings
2027-2031: $80,000
2032-2036: $85,000
2037 and later: $90,000

For non-solicits (customer or employee):

2024-2026: $45,000
2027-2031: $47,500
2032-2036: $50,000
2037 and later: $52,500

Earnings include base salary, earned commissions, and bonuses actually paid. If actual earnings fall below the threshold, the non-compete is unenforceable regardless of any other factor.

Procedural requirements

For any restrictive covenant signed on or after January 1, 2022, the employer must:

Provide the agreement in writing at least 14 calendar days before the employee's start date or before the agreement becomes effective, whichever is earlier
Advise the employee in writing of the right to consult with counsel before signing

Many agreements fail these procedural requirements. The 14-day window is often missed when an employee receives offer paperwork less than two weeks before start date. The right-to-counsel notice is often missing entirely from offer letters.

Either failure renders the restrictive covenant unenforceable. The defect cannot be cured retroactively.

The Fifield consideration rule

Illinois case law adds another layer. In Fifield v. Premier Dealer Services, 2013 IL App (1st) 120327, the Illinois Court of Appeals held that continued employment of less than two years is insufficient consideration for a restrictive covenant signed after the employee starts work.

The rule applies when:

The non-compete is signed mid-employment (not at hire)
The only consideration is continued at-will employment
The employment ends within two years of signing

If all three conditions apply, the non-compete is unenforceable for lack of consideration.

Additional consideration beyond continued employment cures the Fifield problem. Acceptable forms include: a meaningful raise tied to signing, a promotion, a bonus, equity, or some other specific benefit. The benefit must be more than nominal.

The two-year period is computed from the signing date. If the employee voluntarily resigns or is terminated within two years of signing, the non-compete is void. If the employment continues for more than two years past signing, continued employment alone may be sufficient consideration.

Fifield has been applied broadly by Illinois state and federal courts. Some federal courts have declined to follow it, but Illinois state court enforcement actions are bound by it.

Activity and geographic scope

For agreements that pass the threshold, procedural, and consideration tests, Illinois applies a reasonableness standard:

The restriction must protect a legitimate business interest
The scope (duration, geography, activity) must be no broader than necessary

Illinois courts will blue-pencil overbroad provisions or void them entirely, depending on the agreement's severability language and the court's discretion. Some districts strictly enforce; others apply reformation liberally.

Low-income worker carve-outs

The act explicitly bars non-competes for several categories regardless of any other factor:

Workers earning less than the salary threshold
Construction workers covered by collective bargaining agreements
Public sector workers in certain roles

For these categories, the prohibition is absolute. Even with full procedural compliance and adequate consideration, the non-compete is void.

What to do next

If you're an Illinois employee under a non-compete, the four-part diagnostic is: (1) check your earnings against the salary threshold, (2) check whether you got 14 days notice and right-to-counsel language, (3) check whether you signed mid-employment with new consideration, (4) check the reasonableness of the scope.

Many Illinois non-competes fail at least one of these tests. If you want a delivered analysis of your specific agreement, with citations to the act and Fifield case law, we deliver one in 24 hours for $199. See Non-Compete Review.

Sources

820 ILCS 90 (Illinois Freedom to Work Act)
Fifield v. Premier Dealer Services, 2013 IL App (1st) 120327
Reliable Fire Equipment Co. v. Arredondo, 2011 IL 111871 (Illinois Supreme Court on legitimate business interest)

Get your contract reviewed

If you want a delivered review of your specific document with cited authority and counter language, see https://trycounteroffer.com/non-compete.

Last updated: Sun May 31 2026 00:00:00 GMT+0000 (Coordinated Universal Time)

Counteroffer is a contract analysis service, not a law firm. This page is informational, not legal advice.