Non-compete laws · IL

Illinois physician non-compete law

As of October 21, 2026, Illinois has no statute specific to physician non-competes; general non-compete law and court decisions apply.

No physician-specific statuteChecked 2026-10-21

No physician-specific rule. Under the Freedom to Work Act, noncompetes are void for employees earning $75,000 a year or less and also require adequate consideration, written advice to consult an attorney and 14 days' review. The threshold rises to $80,000 on January 1, 2027. (Illinois Freedom to Work Act, 820 ILCS 90)

Scheduled change, 2027-01-01: Freedom to Work Act earnings threshold for covenants not to compete rises from $75,000 to $80,000 (non-solicit threshold from $45,000 to $47,500), per 820 ILCS 90/10 as already enacted.

Limits in the law

  • Pay threshold: Noncompete: earnings must exceed $75,000/yr ($80,000 from 2027-01-01; $85,000 from 2032-01-01; $90,000 from 2037-01-01). Non-solicit: must exceed $45,000/yr ($47,500 from 2027-01-01; $50,000 from 2032; $52,500 from 2037).
  • Employer must advise the employee in writing to consult an attorney and give a copy at least 14 calendar days before employment starts or at least 14 days to review
  • Adequate consideration required: at least 2 years of employment after signing, or other professional or financial benefits
  • Covenant must be ancillary to valid employment, no greater than needed for a legitimate business interest, not unduly harsh on the employee, and not injurious to the public
  • Void for employees terminated, furloughed or laid off due to COVID-19 or similar circumstances unless enforcement includes pay equal to base salary minus subsequent earnings
  • Employee who prevails against an employer's enforcement claim recovers costs and reasonable attorney's fees
  • Courts have discretion to reform or sever rather than void, but extensive judicial rewriting may be against public policy

Who it covers

All private-sector employees; governmental and quasi-governmental employers are excluded from the Act's definition of employer. Applies to covenants entered after 2022-01-01. No physician-specific statute.

Exceptions

  • Definition excludes covenants in purchase or sale of business goodwill or acquisition/disposition of an ownership interest
  • Definition excludes confidentiality, trade secret and invention-assignment agreements, garden-leave notice clauses, and no-rehire agreements
  • Noncompetes and non-solicits entered after 2025-01-01 are unenforceable as to mental health services to veterans and first responders by licensed mental health professionals (psychologists, social workers, MFTs, professional counselors, Nurse Practice Act licensees) if enforcement would likely increase cost or difficulty of care; physicians licensed under the Medical Practice Act are not listed
  • Non-competes (not non-solicits) are void for employees covered by collective bargaining under the Illinois Public Labor Relations or Educational Labor Relations Acts; both are void for most construction employees

Effective date

The current rule took effect 2022-01-01.

Notes

Applies to covenants entered after Jan. 1, 2022. A 2024 amendment (P.A. 103-915, effective Jan. 1, 2025) limits noncompetes for licensed mental health professionals serving veterans and first responders; physicians are not listed. 2026 health care bills (HB 4565, HB 4221, SB 3607) were not enacted.

Bills that have not become law

Non-compete bills from the 2025 and 2026 sessions that had not become law as of 2026-10-21, furthest along first. A bill that died has to be filed again to move in 2027. The 2027 session starts 2027-01-13 and ends no fixed date (spring session customarily ends May 31).

  • HB 3213 (2025–2026) · All workers

    Would ban all new employee noncompetes and nonsolicits from 2026-01-01

    Committee action · Still pending. Labor & Commerce Do Pass 16-3 (2025-03-19); Rules approved for consideration 3-2 (2026-02-17); floor amendment 2 recommended 18-7 (2026-04-15); Rule 19(a) re-referred to Rules 2026-04-17

  • HB 4565 (2025–2026) · Health care workers, some physicians

    Would bar noncompetes and nonsolicits for physicians, APRNs and PAs employed by health care facilities; ASCs removed by amendment

    Committee action · Still pending. Labor & Commerce Do Pass as Amended 18-9 (2026-03-19); 2nd reading 2026-04-10, held; Rule 19(a) re-referred to House Rules Committee 2026-04-17

  • HB 2561 (2025–2026) · Health care workers, some physicians

    Would bar health professional noncompetes/nonsolicits that likely reduce availability of reproductive or maternity care

    Committee action · Still pending. Labor & Commerce Do Pass 19-8 (2025-03-19); 2nd reading 2025-03-26, held; floor amendment 1 recommended 18-8 (2025-04-07); Rule 19(a) re-referred to Rules 2025-04-11

  • HB 1642 (2025–2026) · All workers, some physicians

    Would raise the Freedom to Work Act earnings floor for noncompetes and nonsolicits to $300,000

    Introduced · Still pending. Filed 2025-01-23; assigned to Labor & Commerce 2026-03-12; Rule 19(a) re-referred to Rules 2026-03-27

  • HB 4221 (2025–2026) · Health care workers

    Would make noncompetes and nonsolicits unenforceable for employed health care professionals (physicians, APRNs, PAs); effective 2027-01-01

    Introduced · Still pending. Filed 2025-12-08; first reading 2026-01-14; assigned to Labor & Commerce 2026-02-11 (hearing canceled); Rule 19(a) re-referred to Rules 2026-03-27

  • SB 3607 (2025–2026) · Health care workers

    Would void health care practitioner noncompetes except covenants of 1 year or less where practitioner was not dismissed

    Introduced · Still pending. Assigned to Senate Judiciary 2026-02-17; postponed 2026-03-04 and 2026-03-11; Rule 3-9(a) re-referred to Assignments 2026-03-27

Sources

Questions to ask about your contract

  • Is the radius measured from your practice site or from every location the employer owns?
  • Does the restriction apply if the employer terminates you without cause?
  • Is there a buyout, and how is the amount calculated?
  • What does your state's law say about physician non-competes?

Outlook for Illinois

Dated forecasts, scored when they resolve. All forecasts and the track record →

15%

Will Illinois enact a law limiting physician non-competes by December 31, 2027?

Forecast 2026-10-21 · resolves by 2027-12-31

Reasoning and sources →

Check a contract against Illinois lawAll states

Not legal advice. This page summarizes the law as written. Whether a particular agreement is enforceable depends on its wording, when it was signed and court decisions. Ask an attorney licensed in Illinois.