Illinois non-compete law: the Freedom to Work Act for recruiters

Illinois regulates both non-competes and non-solicits through the Illinois Freedom to Work Act, 820 ILCS 90, and the rules that matter most to recruiters are numbers. A covenant not to compete is void unless the employee earns more than $75,000 a year, rising to $80,000 on January 1, 2027. A covenant not to solicit clients or co-workers is void unless the employee earns more than $45,000, rising to $47,500 on the same date. Either covenant is also void unless the employee was told in writing to consult a lawyer and given 14 calendar days to review it. The Attorney General enforces the Act, and staffing agencies have been among the companies it has acted against.

For general screening questions, see non-compete questions for candidates. For the agency's own client and recruiter clauses, see non-solicitation clauses for recruiters.

What the Act covers

Section 5 defines two kinds of agreement entered into after the effective date of Public Act 102-358 (January 1, 2022):

• Covenant not to compete: restricts the employee from any work for another employer for a period, any work in a geographic area, or similar work for another employer. It also includes an agreement that "imposes adverse financial consequences" on a former employee who competes. It does not include non-solicits, confidentiality agreements, trade secret and invention agreements, sale-of-business agreements, paid notice periods, or agreements not to reapply.
• Covenant not to solicit: restricts the employee from soliciting the employer's employees for employment, or from soliciting, or interfering with the employer's relationships with, its clients, prospective clients, vendors, prospective vendors, suppliers, prospective suppliers or other business relationships.

"Earnings" means W-2 compensation, including earned salary, bonuses and commissions, plus elective deferrals such as 401(k), 403(b), flexible spending and health savings contributions. Governmental bodies are excluded from the definition of employer.

The earnings thresholds

Section 10 sets the floors. A covenant entered into below them "is void and unenforceable."

The test is the employee's "actual or expected annualized rate of earnings," and it applies when the employer enters into the covenant. The January 2027 increase is less than three months away as of this writing, so client offer paperwork planned for early 2027 should be checked against the new numbers.

Section 10 also voids covenants in these situations:

• Employees terminated, furloughed or laid off because of COVID-19-related business circumstances or government orders, or similar circumstances, unless enforcement includes base-salary pay for the restricted period, less new earnings.
• Non-competes for individuals covered by a collective bargaining agreement under the Illinois Public Labor Relations Act or the Illinois Educational Labor Relations Act.
• Non-competes and non-solicits for construction employees, except those who primarily perform management, engineering, architectural, design or sales functions, or who are owners.
• For covenants entered into after January 1, 2025, enforcement against licensed mental health professionals providing services to veterans and first responders, where enforcement is likely to increase cost or difficulty for those patients.

Enforceability, notice and remedies

• Five conditions. Section 15: a covenant is "illegal and void" unless the employee receives adequate consideration, it is ancillary to a valid employment relationship, it is no greater than required to protect a legitimate business interest, it does not impose undue hardship on the employee, and it is not injurious to the public. "Adequate consideration" means at least two years of employment after signing, or other professional or financial benefits adequate by themselves or combined with a period of employment.
• Legitimate business interest. Section 7 says this is judged on "the totality of the facts and circumstances," including exposure to customer relationships and other employees, access to confidential information, and the time, place and scope of the restrictions.
• The 14-day rule. Section 20: a covenant is illegal and void unless the employer "advises the employee in writing to consult with an attorney" before entering into it and provides a copy "at least 14 calendar days before the commencement of the employee's employment" or gives "at least 14 calendar days to review" it. An employee may voluntarily sign sooner.
• Fees. Section 25: if an employer sues or counterclaims to enforce a covenant and the employee prevails, the employee recovers all costs and reasonable attorney's fees.
• Attorney General. Section 30 lets the Attorney General act against a "pattern and practice," with civil penalties of up to $5,000 per violation, or $10,000 per repeat violation within five years. Each person subject to an unlawful agreement is a separate violation.
• Reformation. Section 35 says extensive judicial rewriting may be against public policy, though a court may reform or sever provisions in some circumstances.

The sections reviewed for this page do not include a choice-of-law or venue rule like Minnesota's or Colorado's. A candidate whose agreement names another state's law is a question for counsel.

Staffing agencies are in scope

The Attorney General's 2026 Labor Day Report describes a February 2026 settlement with a medical staffing agency, Adelphi Staffing, which had required Illinois employees earning less than $45,000 to sign non-solicitation agreements. The agency paid penalties, agreed to remove the clause and told affected employees it was unenforceable.

Separately, on February 25, 2026 the Attorney General announced a $1 million settlement with Alternative Staffing, Inc. resolving allegations that it joined a no-poach agreement with other staffing agencies, part of a 2022 lawsuit against six agencies and their client. That case was brought under antitrust law rather than the Freedom to Work Act, but it is the same message: agreements between agencies not to recruit each other's workers carry real risk in Illinois.

If your agency employs Illinois recruiters or temporary workers, check your own non-solicits against the $45,000 floor and the section 20 notice. Licensing is separate; see the Illinois staffing agency license guide.

Screening an Illinois candidate

Illinois bans salary history questions, so do not ask what a candidate earns to check the thresholds; see the Illinois salary history ban guide. Ask about the paperwork instead.

ILLINOIS CANDIDATE — restrictive agreements

1. "Have you signed a non-compete, a non-solicit of clients or staff,
    or a confidentiality agreement that could affect this role?"
2. "Roughly when did you sign it: before 2022 or since?"
3. "Were you told in writing to talk to a lawyer, and did you get the
    agreement at least two weeks before starting or two weeks to
    review it?"
4. "What does each part restrict, and for how long?"
5. "Is your work in construction or under a union contract?"
6. "Could the hiring company's lawyer see it, as far as it allows?"
Always: "We don't want any confidential information or client lists
from your current employer."

• Do not tell a candidate their covenant is void because of the earnings test or the notice. Record the facts.
• Do not ask for the agreement's confidential terms or the employer's client names to judge its scope.
• Do tell the hiring company before interviews when a non-solicit covers the clients the role would serve.

When your client is the Illinois employer

A client planning a non-compete or non-solicit for the person you are placing needs the written advice to consult a lawyer and the 14-day window built into the offer timeline. Build that into the start date discussion on the offer call. For hires starting in 2027, the non-compete floor is $80,000 and the non-solicit floor $47,500.

Federal status

As of October 2026 there is no federal ban. The FTC's Noncompete Rule page records the August 20, 2024 court order; the Commission voted on September 5, 2025 to accede to the vacatur; and a February 12, 2026 notice removed it from the Code of Federal Regulations. The FTC still brings individual cases, such as its April 2026 Rollins order.

Checklist

• Signing date captured; pre-2022 agreements flagged as outside the Act.
• Written attorney advice and the 14-day window recorded as facts.
• Construction, union and mental health roles flagged.
• No pay questions asked to test the thresholds.
• Agency's own non-solicits checked against the $45,000 floor, rising to $47,500 in 2027.
• Client offer timelines planned around the 14-day rule and the 2027 thresholds.