Does Illinois limit NDA non-compete clauses?

Yes. The Freedom to Work Act prohibits non-compete agreements for employees earning under $75,000/year. This threshold increases over time.

What consideration is needed for an Illinois NDA?

For NDAs signed after the start of employment, Illinois courts require at least two years of continued employment as adequate consideration.

Must employers advise employees about signing NDAs?

Yes. Under the Freedom to Work Act, employers must advise employees in writing to consult an attorney before signing restrictive covenants, with at least 14 days to review.

Non-Disclosure Agreement for Illinois

Generate an NDA that complies with Illinois law, with IL-specific clauses, legal requirements, and jurisdiction-aware protections.

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Illinois legal context

Illinois follows the Illinois Trade Secrets Act (ITSA) and has recently enacted the Illinois Freedom to Work Act, which prohibits non-compete agreements for employees earning below certain thresholds. This directly impacts NDAs that include non-compete language, requiring careful income threshold considerations.

What's required

ITSA Trade Secret Definition
765 ILCS 1065/2(d)
BIPA Biometric Data Carveout
740 ILCS 14/15 (BIPA)
DTSA Immunity Notice
18 U.S.C. § 1833(b) (DTSA Immunity)
Trade Secret Definition
18 U.S.C. § 1836 (Defend Trade Secrets Act)

What's prohibited

Waiver of BIPA rights
The Illinois Biometric Information Privacy Act provides a private right of action with statutory damages ($1,000 per negligent violation, $5,000 per intentional violation). Contractual waivers of BIPA rights are unenforceable as against public policy.

Key IL statutes

Illinois Trade Secrets Act (ITSA)
765 ILCS 1065/1-9
Governs trade secret protection and misappropriation claims in Illinois.
Illinois Freedom to Work Act
820 ILCS 90/
Prohibits non-compete clauses for employees earning under $75,000/year (increasing annually).

Illinois-specific considerations

Income Threshold for Non-Competes
Non-compete provisions are void for employees earning below the statutory threshold ($75,000, adjusted annually).
Adequate Consideration Required
Illinois requires at least two years of continued employment as adequate consideration for an NDA signed after hire.
Right to Counsel
Under the Freedom to Work Act, employers must advise employees to consult an attorney before signing restrictive covenants.