I Signed A Non-Compete. Can I Still Get a Job in My Industry?

September 15, 2026

I Signed A Non-Compete. Can I Still Get a Job in My Industry?

You just lost your job. Your employer offered you severance—but there is a catch. The agreement says you cannot work for a competitor. Maybe you signed this when first got hired or maybe you are being asked to sign it as part of your separation.

Now you are facing a difficult decision. The company is offering money to help with the job transition, but the agreement may restrict where you can work next.

If you have built your career in a specialized industry, a non-compete can be especially concerning. You may be asking:

• If I sign this agreement, can I still work in my field?
• Can my former employer stop me from taking a job with a competitor?
• Is the non-compete enforceable?
• Should I sign the severance agreement?

The answer depends on the specific agreement, your job, your earnings, the circumstances of your separation, and Illinois law.

Do Not Look Only at the Severance Amount

When an employer offers severance, it is tempting to focus on the dollar amount.

For example: “They are offering me 12 weeks of pay. That sounds reasonable.”

But the severance amount is only one part of the agreement. You also need to understand what you may be agreeing to in exchange for that payment.

A severance or separation agreement may include provisions involving:

• A release of potential legal claims;
• Confidentiality;
• Non-disparagement;
• Non-solicitation;
• Return of company property;
• Cooperation obligations;
• References;
• Non-compete restrictions; and
• Other post-employment obligations.

A provision that limits where or how you can work after leaving may be especially important if you need another job in the same industry.

What Is a Non-Compete?

A non-compete is a contractual provision that restricts an employee from working for a competitor, performing certain work, or working in a defined geographic area after leaving an employer.

But a non-compete is not automatically enforceable just because it appears in an employment or severance agreement.

Under the Illinois Freedom to Work Act, a non-compete is generally illegal and void unless the employee receives adequate consideration, the restriction is connected to a valid employment relationship, the restriction protects a legitimate business interest of the employer, it does not impose an undue hardship on the employee, and it is not injurious to the public. 820 ILCS 90/15.

The Illinois Supreme Court has explained the same basic rule: a restrictive covenant must be no broader than necessary to protect the employer’s legitimate business interest, must not impose an undue hardship on the employee, and must not harm the public. Whether a restriction is enforceable depends on the totality of the circumstances in the particular case—not a one-size-fits-all rule. Reliable Fire Equip. Co. v. Arredondo, 2011 IL 111871, ¶¶ 17, 42–43.

That is why the details matter. A restriction that may be reasonable for one employee, job role, or industry may be unreasonable for another.

Who Cannot Be Required to Sign a Non-Compete in Illinois?

Illinois law prohibits non-competes for certain employees and in certain situations.

In 2026, an employer generally may not enter into a non-compete with an employee whose actual or expected annual earnings are $75,000 or less. The earnings threshold will increase to:

• $80,000 on January 1, 2027;
• $85,000 on January 1, 2032; and
• $90,000 on January 1, 2037.

A non-compete entered into in violation of that earnings threshold is void and unenforceable. 820 ILCS 90/10(a).

Illinois also prohibits non-competes for:

• Employees covered by collective-bargaining agreements under the Illinois Public Labor Relations Act or the Illinois Educational Labor Relations Act;
• Most employees in construction, subject to limited exceptions for individuals who primarily perform management, engineering, architectural-design, or sales functions, as well as certain owners;
• Employees terminated, furloughed, or laid off because of COVID-19-related business circumstances—or similar circumstances—unless the employer provides the compensation required by the statute during the restricted period; and
• Licensed mental-health professionals providing mental-health services to veterans or first responders when enforcement would likely increase the cost or difficulty of obtaining those services. 820 ILCS 90/10(c)–(f).

Illinois law treats non-solicitation agreements differently. A non-solicitation agreement generally cannot be entered into with an employee earning $45,000 or less in 2026. That threshold will rise over time. 820 ILCS 90/10(b).

A non-solicitation provision may restrict an employee from soliciting former coworkers, customers, clients, vendors, or other business relationships. It is not the same as a non-compete, but it can still materially affect an employee’s next career move.

Timing Matters Too

The current Illinois Freedom to Work Act provisions generally apply to non-competes and non-solicitation agreements entered into on or after January 1, 2022. An agreement signed before that date may be evaluated under earlier Illinois law, although the language of the agreement and the facts still matter. 820 ILCS 90/5.

For agreements covered by the current law, an employer must:

• Advise the employee in writing to consult with an attorney before signing; and
• Provide the employee with a copy of the proposed agreement at least 14 calendar days before the employee begins work, or give the employee at least 14 calendar days to review it.

An employee may voluntarily choose to sign before the 14-day period ends, but the employer cannot simply require an immediate decision. 820 ILCS 90/20.

Consideration matters as well. Illinois law provides that adequate consideration can include at least two years of continued employment after the employee signs the agreement. It may also consist of other professional or financial benefits sufficient to support the restriction. 820 ILCS 90/5.

This can be especially important in a severance agreement. If an employer is asking you to accept a new non-compete after your employment has ended or is about to end, the severance offered and the particular language of the agreement should be carefully reviewed.

Does Illinois Law Set a Time Limit or Mileage Limit?

Illinois law does not create a universal rule that every non-compete must last a certain number of months or apply within a particular mileage radius.

A one-year restriction is not automatically enforceable. Neither is a restriction simply because it applies within 10, 25, or 50 miles of an employer’s office.

Instead, Illinois courts look at whether the duration, geographic scope, and restricted activities are reasonable under the circumstances. The Illinois Freedom to Work Act specifically identifies time restrictions, place restrictions, and the scope of restricted activities as factors in determining whether an employer has a legitimate business interest to protect. 820 ILCS 90/7.

For example, a non-compete may state that an employee cannot work for a competitor for one year within a certain number of miles of the employer’s location. But the real questions are:

• Does the geographic area reasonably relate to where the employer actually does business?
• Does the restricted period go further than necessary to protect confidential information or customer relationships?
• Does the restriction cover work that truly competes with the former employer?
• Does the agreement prevent the employee from earning a living in the field where the employee has experience?

In Reliable Fire Equipment, the Illinois Supreme Court made clear that no single factor controls. The same restriction may be reasonable and enforceable in one set of facts but unreasonable and unenforceable in another. Reliable Fire Equip. Co. v. Arredondo, 2011 IL 111871, ¶¶ 42–43.

What If My Entire Career Is in This Industry?

This is where the practical impact of a non-compete can become especially important.

Imagine that you have spent 15 years working in a particular industry. Your employer terminates your employment and offers a severance package. You then receive another job offer from a company in the same industry—but your proposed separation agreement says you cannot work for a competitor for a stated period of time.

You may feel forced to choose between accepting severance and preserving your ability to take the next job.

That is not necessarily a decision you should make without first understanding the agreement. The fact that a non-compete would limit your ability to continue working in your chosen field may be relevant to whether it creates an undue hardship. But the answer will depend on the specific facts, including the wording of the restriction, the type of work you performed, your access to confidential information, your customer relationships, and the actual scope of the limitation.

Does Signing the Severance Agreement Change Things?

Potentially.

A severance agreement may contain terms that go beyond what was included in your original employment documents. An employer may ask an employee to agree to additional restrictions in exchange for severance pay.

That is one reason it is important to compare the proposed separation agreement with any employment agreement, restrictive-covenant agreement, non-solicitation agreement, handbook acknowledgment, equity agreement, or other document you previously signed.

Do not assume every provision is standard language that can be ignored. A restriction that was not part of your original employment agreement may be included in the proposed severance agreement.

What Should You Do Before Signing?

If your severance agreement includes a non-compete or another restrictive covenant, consider taking the following steps:

1. Read the entire agreement.
   Do not focus only on the severance amount. Pay attention to provisions that could affect your ability to work after leaving the company.
2. Find your original employment documents.
   Gather any employment agreement, non-compete, non-solicitation agreement, confidentiality agreement, equity agreement, or other restrictive covenant you signed.
3. Compare the old and new restrictions.
   Determine whether the proposed severance agreement adds a new non-compete, expands an existing restriction, extends its duration, increases its geographic scope, or adds financial penalties.
4. Review the scope of the restriction.
   Consider how long the restriction lasts, where it applies, what types of work it prohibits, and whether it applies to all competitors or only particular companies.
5. Pay attention to deadlines, but do not rush.
   An employer may set a deadline for accepting a severance offer. That does not mean you should sign before understanding what you are being asked to give up.
6. Consider having an employment attorney review the agreement.
   An attorney can evaluate the proposed agreement, compare it with your prior documents, and explain the legal and practical consequences of the restrictions.

Can I Negotiate the Non-Compete?

Depending on the circumstances, parts of a severance agreement may be negotiable.

Negotiations may involve:

• The amount of severance;
• The duration of a non-compete;
• The geographic scope of a restriction;
• The types of work or companies covered;
• Whether a non-solicitation provision is necessary;
• The wording of confidentiality or non-disparagement provisions; or
• Other terms of the agreement.

There is no guarantee that an employer will change its offer. But if a non-compete could significantly limit your ability to find your next job, it is worth understanding the restriction before deciding whether to accept it.

What If I Already Signed It?

If you already signed a severance agreement containing a non-compete, do not assume that you have no options.

The enforceability and effect of a restrictive covenant depend on the particular agreement, the circumstances under which it was signed, the employee’s earnings, the employer’s claimed business interest, the scope of the restriction, and applicable Illinois law.

An employment attorney can review the agreement and help you understand its potential effect before you accept a new position, contact customers or former coworkers, start a competing business, or make another decision that could raise concerns under the agreement.

Pietrucha Law Firm Can Help You Evaluate Your Options

At Pietrucha Law Firm, Attorney Cynthia Pietrucha handles employment matters involving severance agreements, separation agreements, restrictive covenants, and other employment disputes.

If you have been offered severance and the agreement includes a non-compete, non-solicitation provision, or another restriction that could affect your next job, having the agreement reviewed before signing may help you make a more informed decision.

Your Next Job Matters Too

A severance agreement is about more than the money being offered today.

Before you sign, make sure you understand what the agreement could mean for your next job, your career, and your ability to work in your industry.

If you have received a severance or separation agreement and want to discuss your options, visit Pietrucha Law Firm to learn more and schedule a confidential legal consultation.

Pietrucha Law Firm, LLC
1717 N. Naper Blvd., Suite 200
Naperville, IL 60563
(630) 344-6370

This article is provided for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. The enforceability of a non-compete, non-solicitation agreement, or other restrictive covenant depends on the specific facts, agreement, and applicable law. Consult an attorney regarding your individual circumstances.