Can I Ask My Employee to Sign a Non-Compete in Illinois?

 Posted on October 29, 2025 in Business Law

For many Illinois business owners, protecting trade secrets and competitive advantages is a top priority. One of the most common ways to safeguard these interests is through a non-compete agreement. These contracts restrict an employee from joining a competitor or starting a similar business for a certain period after leaving your company.

However, recent changes in both Illinois state law and federal policy have significantly limited when and how employers can use non-competes. If your business operates in DuPage County, check with a Wheaton business law attorney before asking an employee to sign one.

What Does Illinois Law Say About Non-Compete Agreements?

Illinois does not prohibit non-compete agreements outright, but as of October 2025, the Illinois Freedom to Work Act (820 ILCS 90/) still places strict limitations on when they can be used.

Under the law:

• Employees earning less than $75,000 per year cannot be required to sign a non-compete agreement. This threshold increases by $5,000 every five years, rising to $80,000 in 2027.

• Non-solicitation agreements, which restrict employees from contacting former clients or coworkers, are prohibited for workers earning less than $45,000 per year, also increasing every five years.

• Employers must give employees at least 14 calendar days’ notice before asking them to sign a non-compete or non-solicitation agreement.

• The employee must be informed in writing of their right to consult with an attorney before signing.

• Employers may not enforce a non-compete clause against employees who are terminated or furloughed due to COVID-19 or similar circumstances, unless additional compensation (known as "garden leave") is provided.

Violating these provisions can expose employers to lawsuits, civil penalties, and attorney’s fees.

What Makes a Non-Compete Enforceable?

Even if your employee earns above the income threshold, a non-compete must still pass the legal test of reasonableness for it to be valid. If it comes under dispute, Illinois courts will evaluate an agreement to determine whether it is fair and necessary to protect legitimate business interests.

To be enforceable, a non-compete must protect a legitimate business interest, such as trade secrets, confidential information, or near-permanent customer relationships. It must also be reasonable in scope, including duration, geography, and the type of activity that is restricted. Finally, any valid non-compete agreement must provide adequate consideration to the employee. Illinois courts generally require at least two years of continued employment or another tangible benefit in exchange for signing the agreement.

If a non-compete is overly broad or vague, the court may refuse to enforce it. For example, a restriction that prohibits an employee from working in any capacity for a competitor anywhere in Illinois for three years is likely to be struck down.

Call a Wheaton, IL Business Lawyer Today

If your company wants to use non-compete or non-solicitation agreements, it is critical to do it right the first time. The DuPage County business law attorneys at NN Legal Group have over 30 years of legal experience. We help employers write legally sound employment contracts.

To schedule your free consultation call NN Legal Group at 630-474-0925 today. Hablamos Español.