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Can a home care agency make caregivers sign a non-compete in Illinois?
Last verified October 17, 2026 · All Illinois resources
Banned below wage threshold. Illinois voids non-competes for employees earning $75,000 or less and non-solicitation covenants for employees earning $45,000 or less. A caregiver earning about $35,000 a year is below both thresholds, so neither type of covenant can be enforced. Covenants above the thresholds must be reasonable, supported by adequate consideration, and come with attorney-consultation advice and 14 days to review.
| Status | Banned below wage threshold |
|---|---|
| Wage threshold | Non-competes are void unless the employee's actual or expected annualized earnings exceed $75,000 (rising to $80,000 on 2027-01-01). Customer and employee non-solicitation covenants are void unless earnings exceed $45,000 (rising to $47,500 on 2027-01-01). |
| Healthcare-specific rule | Nurse agencies may not use non-competes with nurses or certified nurse aides placed at health care facilities on a temporary basis (225 ILCS 510/14(g)); limited long-term placement exceptions run through 2027-12-31. Since 2025-01-01, non-competes are also restricted for licensed mental health professionals serving veterans and first responders. |
| Client non-solicitation | Covenants not to solicit clients or employees are void for employees earning $45,000 or less in 2026 ($47,500 from 2027). Above that level they must meet the same reasonableness, consideration and notice rules as non-competes. |
| Notice requirements | The employer must advise the employee in writing to consult an attorney and give the covenant at least 14 calendar days before employment starts, or allow at least 14 calendar days to review it. |
| Statute | 820 ILCS 90 (Illinois Freedom to Work Act); 225 ILCS 510/14 |
| Latest change | 2025-01-01 |
What about a client hiring your caregiver directly?
That is usually handled in the client service agreement, not the caregiver's contract: some agencies charge a placement or conversion fee if a client hires a caregiver directly. Whether that clause is enforceable is a contract question, so have a local employment lawyer review it.
General information, not legal advice.
Sources
More for Illinois
Non-compete rules by state: other states
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