The short answer
A noncompete limits working for competitors; a nonsolicit limits pursuing customers or employees. Illinois enforces both only if they are reasonable, supported by adequate consideration, and comply with the Illinois Freedom to Work Act.
Where it fits in your case
When an employee or contractor leaves, and when drafting new agreements.
What to expect
Income thresholds. Noncompetes are void for employees earning $75,000 or less, and nonsolicits for those earning $45,000 or less; the thresholds rise on January 1, 2027.
Procedure. Employers must advise the employee in writing to consult a lawyer and allow at least 14 days to review.
Reasonableness of duration, geography, and scope is judged against the employer’s legitimate business interests.
Contractors can be bound by contract restrictions judged under general reasonableness principles.
Fees. An employee who prevails against an employer’s enforcement action can recover attorney fees.
What we need from you
The agreement, the employee’s compensation, job duties, and evidence of competitive activity.
Common misconceptions
“Noncompetes are unenforceable in Illinois.” Many are enforceable if properly drafted.
“Signing it on day one is enough.” Consideration and procedure matter.