Illinois's Freedom to Work Act voids a covenant not to compete unless the employee's actual or expected annualized earnings exceed $75,000 per year, rising through 2037; a lower threshold governs covenants not to solicit.
A covenant is void without 14 days' notice and advice to consult an attorney.
Illinois has no general healthcare-practitioner non-compete statute — its only health-adjacent carve-out protects mental health professionals treating veterans and first responders, not veterinarians.
Sale-of-business and goodwill agreements are excluded from the non-compete definition; the thresholds were last set effective January 1, 2022.
Mechanics, not a verdict on your contract
At a glance
Permitted only within statutory limits
State statute — 820 ILCS 90, the Illinois Freedom to Work Act — §§ 5 (definitions), 10(a)-(b) (earnings thresholds, as amended by P.A. 102-358) and 10(f) (mental-health carve-out, added by P.A. 103-915), and § 20 (notice requirement).
Healthcare statute reaches veterinarians: No healthcare-specific non-compete statute.
820 ILCS 90/10(a) voids a covenant not to compete unless the employee's actual or expected annualized earnings exceed $75,000 per year, a floor rising to $80,000 in 2027, $85,000 in 2032, and $90,000 in 2037.
Not applicable — Illinois has no general healthcare-practitioner non-compete statute. The only health-adjacent provision, § 10(f), makes a covenant unenforceable specifically as to mental health services provided to veterans and first responders, and only for licensed mental health professionals, a category that does not include veterinarians.
Non-compete covenants: $75,000/yr, rising to $80,000 (2027), $85,000 (2032), $90,000 (2037). Non-solicitation covenants: $45,000/yr, rising to $47,500 (2027), $50,000 (2032), $52,500 (2037). A covenant below the applicable floor is void under § 10(a)-(b).
Not stated in the sources read.
Not stated in the sources read.
§ 90/5 excludes a covenant or agreement entered into by a person purchasing or selling the goodwill of a business, or otherwise acquiring or disposing of an ownership interest, from the statute's definition of "covenant not to compete" only — the § 10(a) non-compete earnings threshold does not apply to it, and the separate "covenant not to solicit" definition carries no matching exclusion.
A covenant not to solicit is a separate category under § 10(b), void unless the employee's annualized earnings exceed $45,000 per year, rising to $47,500 (2027), $50,000 (2032), and $52,500 (2037).
§ 10(a)-(b) earnings thresholds added by P.A. 102-358, effective January 1, 2022; the § 10(f) mental-health carve-out added by P.A. 103-915, effective January 1, 2025.
“No employer shall enter into a covenant not to compete with any employee unless the employee's actual or expected annualized rate of earnings exceeds $75,000 per year.”
Section 10(a) of the Freedom to Work Act bars an employer from entering into a covenant not to compete with any employee whose actual or expected annualized earnings don't exceed $75,000 per year.
That floor rises to $80,000 on January 1, 2027, $85,000 on January 1, 2032, and $90,000 on January 1, 2037.
A covenant signed with an employee below the floor in effect at signing is void and unenforceable under this subsection's own text, regardless of the covenant's duration, geography, or the activity it restrains.
Section 10(a) is one requirement among several the Act sets — § 5 separately defines "adequate consideration" as a condition for an agreement to be supported at all, and this page does not analyze every other section of the Act.
For an associate or relief veterinarian, the earnings floor in § 10(a) is a threshold question, not the whole of what the Act requires.
“No employer shall enter into a covenant not to compete with any employee unless the employee's actual or expected annualized rate of earnings exceeds $75,000 per year. This amount shall increase to $80,000 per year beginning on January 1, 2027, $85,000 per year beginning on January 1, 2032, and $90,000 per year beginning on January 1, 2037. A covenant not to compete entered into in violation of this subsection is void and unenforceable.”
Illinois has no general "health care practitioner" non-compete statute.
The one health-adjacent provision in the Freedom to Work Act, § 10(f), makes a covenant not to compete or not to solicit unenforceable specifically as to the provision of mental health services to veterans or first responders — only for covenants entered after January 1, 2025, and only where enforcing it would raise the cost or difficulty of that care.
The license types it covers — clinical psychologist, clinical social worker, marriage and family therapist, nurse, and professional counselor — do not include veterinary medicine.
A veterinarian's covenant in Illinois is governed by the same earnings-threshold rule in § 10(a) that applies to any other employee, not by this narrower, conditional carve-out.
“Any covenant not to compete or covenant not to solicit entered into after January 1, 2025 (the effective date of Public Act 103-915) shall not be enforceable with respect to the provision of mental health services to veterans and first responders by any licensed mental health professional in this State if the enforcement of the covenant not to compete or covenant not to solicit is likely to result in an increase in cost or difficulty for any veteran or first responder seeking mental health services.”
Two separate floors apply: $75,000 per year for a covenant not to compete, and $45,000 per year for a covenant not to solicit, both rising on the same schedule through 2037.
Meeting the earnings floor is not the only requirement in the sections read — § 20 separately voids a covenant unless the employer advises the employee in writing to consult an attorney before signing, and either delivers a copy of the covenant at least 14 calendar days before employment starts or gives the employee at least 14 calendar days to review it.
The earnings floor and the notice requirement each operate as independent conditions; §§ 10 and 20 do not themselves set a maximum duration or geographic radius, though other sections of the Act not read for this page may impose further requirements.
For a hiring practice, the notice paperwork carries as much statutory weight as the compensation figure covered here.
“A covenant not to compete or a covenant not to solicit is illegal and void unless (1) the employer advises the employee in writing to consult with an attorney before entering into the covenant and (2) the employer provides the employee with a copy of the covenant at least 14 calendar days before the commencement of the employee's employment or the employer provides the employee with at least 14 calendar days to review the covenant.”
Section 5 defines "covenant not to compete" for purposes of the Act, and that definition expressly excludes a covenant or agreement entered into by a person purchasing or selling the goodwill of a business or otherwise acquiring or disposing of an ownership interest.
Because that kind of agreement falls outside the "covenant not to compete" definition, the § 10(a) non-compete earnings threshold does not apply to it — but § 5's separate "covenant not to solicit" definition carries no matching exclusion, so a solicitation restriction tied to the same transaction is not automatically excluded from the § 10(b) threshold.
For a veterinarian buying into or selling out of a practice, a covenant restraining competition tied to that transaction is not measured against the $75,000 threshold, though an accompanying solicitation restriction may still be measured against the $45,000 one.
What standard, if any, applies to a sale-of-business covenant not to compete is not addressed in the sources read for this page.
“a covenant or agreement entered into by a person purchasing or selling the goodwill of a business or otherwise acquiring or disposing of an ownership interest”
Section 10(b) treats a covenant not to solicit as its own category, void unless the employee's actual or expected annualized earnings exceed $45,000 per year.
That floor rises to $47,500 on January 1, 2027, $50,000 on January 1, 2032, and $52,500 on January 1, 2037 — the same schedule of increases Illinois uses for the non-compete floor, just at a lower starting point.
A covenant restricting only solicitation of clients, vendors, or co-workers is measured against this $45,000 floor, not the $75,000 floor that applies to a covenant not to compete.
Both floors and the § 20 notice requirement apply independently of each other.
“No employer shall enter into a covenant not to solicit with any employee unless the employee's actual or expected annualized rate of earnings exceeds $45,000 per year. This amount shall increase to $47,500 per year beginning on January 1, 2027, $50,000 per year beginning on January 1, 2032, and $52,500 per year beginning on January 1, 2037. A covenant not to solicit entered into in violation of this subsection is void and unenforceable.”
The current $75,000 non-compete and $45,000 non-solicitation thresholds were added to the Freedom to Work Act by Public Act 102-358, effective January 1, 2022.
The mental-health-professional carve-out in § 10(f) was added later, by Public Act 103-915, effective January 1, 2025.
Both changes are recorded as amendments to the same Act; the sources read do not show any Illinois amendment specific to veterinary employment.
The sources read for this page cover the earnings thresholds, the notice requirement, the mental-health carve-out, and the sale-of-business exclusion; they do not cover other sections of the Act or how a court treats a covenant that clears § 10(a) but is otherwise contested.
Section 5 separately defines "adequate consideration" as at least two years of post-signing employment or another adequate professional or financial benefit — a requirement this page does not analyze in depth.
Section 10(c) also limits, rather than flatly bars, covenants for employees terminated because of business circumstances or governmental orders related to the COVID-19 pandemic or similar circumstances (unenforceable unless enforcement includes base-salary-equivalent compensation for the enforcement period), while § 10(d)-(e) void covenants for most construction workers and for employees under certain collective-bargaining agreements — categories not detailed here because they sit outside typical veterinary employment.
Those gaps, and how a covenant negotiated alongside a practice buy-in or buy-out is treated once it falls outside the § 5 sale-of-business exclusion, are left blank rather than filled in from outside these sources.
Have the agreement itself reviewed
The reasonableness test, what a radius is measured from, the access-to-care argument, and the difference between a non-compete and a non-solicitation clause are covered in the national guide to veterinary non-competes. This page covers only what is specific to Illinois.
Yes.
Under 820 ILCS 90/10(a), an employer cannot enter into a covenant not to compete with an employee whose actual or expected annualized earnings are $75,000 per year or less; that floor rises to $80,000 in 2027, $85,000 in 2032, and $90,000 in 2037.
A covenant signed below the applicable floor is void under the statute's own terms.
A separate, lower $45,000 floor applies to covenants not to solicit.
An Illinois attorney can review your compensation and the covenant against the current floor.
No. Section 10(f) makes a covenant unenforceable only as to mental health services provided to veterans and first responders, for covenants signed after January 1, 2025, and only when enforcing it would raise the cost or difficulty of that care — and only for licensed mental health professionals: psychologists, clinical social workers, marriage and family therapists, nurses, and professional counselors.
Veterinary medicine isn't among those license types.
A veterinarian's covenant is governed by the same $75,000 threshold under § 10(a) that applies to any other employee.
Ask an Illinois attorney how that threshold applies to your contract.
Only partly.
Section 5 excludes a covenant entered into by someone purchasing or selling a business's goodwill, or acquiring or disposing of an ownership interest, from the definition of "covenant not to compete" — so the $75,000 threshold in § 10(a) doesn't apply to it.
That exclusion doesn't extend to "covenant not to solicit," a separately defined term, so a solicitation restriction in the same deal isn't automatically excluded.
The sources read don't say what standard, if any, applies to a sale-of-business non-compete.
Have an Illinois attorney review that covenant separately from your employment agreement.
At least two things, under the sections read: the employee's earnings have to exceed the applicable floor — $75,000 for a non-compete, $45,000 for a non-solicit — and, under § 20, the employer must advise the employee in writing to consult an attorney and either deliver the covenant at least 14 calendar days before employment starts or give at least 14 calendar days to review it.
Skipping either voids the covenant. § 5 and other parts of the Act may impose further requirements this page doesn't cover.
Have an Illinois attorney check your full agreement before you sign.
The most recent changes recorded for this page are Public Act 102-358, effective January 1, 2022, which added the $75,000 and $45,000 earnings thresholds and their scheduled increases through 2037, and Public Act 103-915, effective January 1, 2025, which added the narrow mental-health-professional carve-out in § 10(f).
Neither act added a veterinary-specific rule.
This page was last verified in September 2026; both the earnings figures and the underlying statute can change, so confirm the current text and ask an Illinois attorney before relying on it.
Sources
Sourced from Illinois’s own statute or leading court decisions (see the citations above). Verified September 2026; the governing provision was last amended § 10(a)-(b) earnings thresholds added by P.A. 102-358, effective January 1, 2022; the § 10(f) mental-health carve-out added by P.A. 103-915, effective January 1, 2025. This page is general information, not legal advice.