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If you earn more than $75,000 in Illinois, your non-compete might still apply—but that doesn’t always mean it’s enforceable.
If you’re a physician, therapist, or other healthcare professional who earns more $75,000 per year, your employment contract likely includes a non-compete clause. And you’ve probably heard conflicting news about whether these agreements are still valid.
Illinois law has placed some limits on these contracts, and recent federal developments have added to the confusion. Here’s what healthcare workers in Illinois need to know now.
Where Illinois Stands on Non-Competes
Since 2022, Illinois has barred the formation of new non-compete agreements for employees earning $75,000 or less per year. The law also prohibits non-solicitation clauses for those earning $45,000 or less. These thresholds will increase slightly every five years.
However, if you earn above those limits, or your agreement was signed before January 1, 2022, a non-compete may still apply. That said, it must meet specific legal standards to be enforceable.
Notice, Transparency, and Time to Review
If you’re offered a contract that includes a non-compete, your employer must give you at least 14 days to review it. They also must advise you in writing to consult with an attorney.
This gives you a chance to fully understand what you’re agreeing to and push back on any provisions that could affect your long-term career. If your employer skipped these steps, the clause may already be on shaky ground.
Clauses Must Be Reasonable
Even for high earners, Illinois courts have never given non-competes a free pass. The updated law reinforces earlier case law that says non-compete and non-solicitation clauses must meet several criteria to be enforceable:
- They must protect a legitimate business interest. This could include preventing unfair competition or protecting patient relationships, but it cannot just be about limiting your future job options.
- They must be limited in time, geography, and scope. Courts look closely at whether the terms are truly necessary. For example, a restriction that prevents you from practicing anywhere in the state for three years may be overly broad.
- They must not cause undue hardship. If the restriction makes it unreasonably difficult for you to continue working in your field, it may not hold up.
- They must be supported by adequate consideration. In other words, you must have received something meaningful in exchange for agreeing to the clause. Continued employment may not be enough, especially if you did not stay in the role for at least two years or weren’t offered a signing bonus, promotion, or other added benefit.
See our related video, “Non-competition Agreements in Healthcare.”
If Your Employer Loses, You May Recover Legal Fees
Under Illinois law, if your employer tries to enforce a non-compete and loses, they may be required to cover your attorney’s fees. That means your employer could face real costs for pursuing a restriction that isn’t legally valid. The law also authorizes the Illinois Attorney General to investigate and take action against employers that misuse non-compete clauses more broadly.
What About the Federal Ban on Non-Competes?
You may have heard that the Biden Administration ordered a ban on non-compete agreements. While the Federal Trade Commission (FTC) did issue a rule to that effect in May 2024, it has not gone into effect. A federal judge issued an injunction in August 2024, blocking the rule from being enforced nationwide. So far, the Trump administration has not taken steps to challenge that injunction.
For now, the FTC’s non-compete ban is not in force. In Illinois, the state’s existing law continues to govern whether your agreement holds up.
Considering a Job Change? Start with a Review
If you’re planning to leave your current role, don’t assume your non-compete will either hold up or fall apart. The outcome depends on the specific terms of your agreement and whether your employer followed the law at each step.
An attorney familiar with Illinois healthcare employment contracts can help you assess whether your clause is likely to be enforced and what options you may have if you’re ready to move on.
See our related video, “Employment Contract Reviews in Healthcare: The Nuts and Bolts.”
Get Legal Support
If you’re a licensed healthcare professional in Illinois and want to understand your non-compete or plan your next step with confidence, our experienced healthcare attorneys can help. Book a consultation with our team to review your agreement and explore your options.
This blog is made for educational purposes and is not intended to be specific legal advice to any particular person. It does not create an attorney-client relationship between our firm and the reader. It should not be used as a substitute for competent legal advice from a licensed attorney in your jurisdiction.
