Quick Facts — Employment Contract Lawyers (Illinois)

What is an Illinois Employment Contract?

In Illinois, an employment contract is an agreement executed between an employer and an employee that serves as the framework for the business relationship. Common terms and conditions covered in an employment contract include:

  • Job title and duties
  • Compensation
  • Benefits
  • Vacation and days off
  • Disciplinary procedures
  • Causes for termination
  • Severance packages
  • Company policies and standards

Illinois is an at will employment state. This means that employers are free to release workers from employment at any time without a reason and without advanced notice. One way to be protected from this law is to have an employment contract that outlines causes for termination and other clauses that protects an employee’s job.

Employment contracts can also protect employers through the use of restrictive covenants. A restrictive covenant is a clause that prohibits employees from certain actions like competing against the employer (non-compete clause) or revealing trade secrets (non-disclosure clause).

Are Employment Contracts Enforceable in Illinois?

Yes. Once an employment contract is agreed upon and a valid contract is formed under Illinois contract laws, an employment contract can be enforced in court. This applies to employment contracts that include agreements regarding wages, working hours, severance packages, and reasons for termination.

In January of 2022, Illinois, like many other states, revised its enforcement laws surrounding restrictive covenants like non-compete agreements. The new laws make it harder for employers to enforce these clauses against their employees.

Some changes in the new laws include:

  1. Restrictive covenants must be supported by adequate consideration if the employee has worked for the employer for at least two years after signing the agreement and the employer has provided the employee with benefits that may constitute consideration.
  2. Non-compete agreements are not enforceable if the employee makes less than $75,000 per year.
  3. Non-solicitation agreements are not enforceable if the employee makes less than $45,000 per year.
  4. Employers must provide employees with at least 14 days to review a restrictive covenant agreement

For more information on the changes to restrictive covenant enforcement laws, you can read the full Illinois Freedom to Work Act.

What Are the Legal Requirements for Illinois Employment Contracts?

According to the Illinois Employment Contract Act, employment contracts can be written, oral, express, or implied.

  • Written contract. The agreement and all terms and conditions are in writing and signed by both parties. This is the easiest contract to enforce.
  • Oral contract. An agreement created verbally without being recorded in writing.
  • Express contract. An exchange of promises where the terms are agreed upon by both parties and declared either orally or in writing.
  • Implied contract. Legally binding obligation that is formed based upon party’s actions, conduct, or circumstances.

The contracts cannot violate state or federal law and cannot go against public policy.

Types of Illinois Employment Contracts

Illinois employers use various types of employment contracts depending on the type of employee and the type of work contracted. The following contracts are most commonly used for hiring employees and workers:

  • Permanent. A more common type of employment contract used by an employer to hire a permanent employee. The employee will have regular hours and be paid regular compensation.
  • Fixed term. Used for workers who will only work for a specific period of time or to complete a specific job. At the end of the contract, employees are either brought into permanent employment or a new contract with a new term is executed.
  • Independent contractor agreement. Companies need a specific contract when hiring a contractor or a freelance worker because these workers are not company employees and will have different rights and responsibilities.

Frequently Asked Questions

How do I hire a lawyer to draft an employment contract in Illinois?
How much does it cost to hire a lawyer to draft an employment contract in Illinois?
How much does it cost to hire a lawyer to review an employment contract in Illinois?

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Charles M.

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Mr. McElvenny has extensive experience handling and developing strategy for complex commercial and real estate cases. He’s drafted hundreds of complaints ranging from simple breaches of contract to complex commercial claims including breach of fiduciary duty, constructive trusts and misappropriation of trade secrets. He has an excellent record in trial, arbitration and mediation. He also has significant experience in motion practice in both state and federal court. Through his work in corporate law, Mr. McElvenny has developed considerable experience with Limited Liability Company member disputes and general corporate governance. He’s drafted a number of industry-specific documents such as Operating Agreements (for Limited Liability Companies), commercial leases, settlement agreements and employment contracts. Mr. McElvenny has also represented criminal defendants in felony matters and assisted in the defense of civil matters arising from alleged SEC violations. He has represented individuals appearing before the Illinois Department of Professional Regulation as a result of SEC proceedings. After graduating with a B.A. in Philosophy, Mr. McElvenny proceeded from Loyola University-Chicago to DePaul University College of Law, receiving his JD from that institution in 2002. In 2010, he earned his Master’s of Science in Accounting from Loyola University-Chicago’s Graduate School of Business. Mr. McElvenny was selected to Illinois’ Super Lawyers Rising Stars in 2010, 2012 and 2013.

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2008 - Present: Sole Practitioner – Dennis W. Winkler, P.C. Practice primarily in finance and business transactions, as well as commercial real estate transactions. Represent developers, investors, lenders, and businesses, in such matters as: corporate entity selection, drafting and negotiating complex asset purchase agreements, corporate mergers and sales, stock purchase agreements, and various other business contracts for closely related businesses. Involved in a variety of real estate developments, multi-family apartment buildings, construction and acquisition financing, commercial leasing, sophisticated workout transactions, joint ventures, and tax-deferred exchanges. Advise on tax and other savings incentives available to business owners and real estate owners in Illinois. Advise companies involved in related real estate activities such as sales, leasing, property management, brokerage, and construction. Tax experience that includes the representation of taxpayers in State and Federal controversies including: sales/excess tax disputes and responsible parties’ tax assessment protest. Additionally, Dennis has experience in the protest of real estate taxes of commercial and multi-family real estate. As a legal and business advisor, Dennis is committed to helping clients find, develop, and close deals that further their business objectives. Dennis regularly advises entrepreneurs and closely held businesses on matters incidental to their day-to-day business operations as well as their capital raising and start-up needs, corporate structure, private equity raises, and operating agreements. Much like general counsel, Dennis’s breadth of experience allows him to not only provide strategic planning and routine business transactional support to companies, but he also regularly advises on a number of unique issues facing companies by spotting issues and engaging specialists when needed, such as intellectual property, environmental, and bankruptcy counsel. As such, Dennis has been actively involved in sales and acquisitions of manufacturing companies, trucking companies, and logistics companies.

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Asked on Apr 15, 2023

What should be included in my employment contract?

I am a small business owner looking to hire an employee for the first time. I have never written an employment contract before, so I am unsure of what should be included in the contract to ensure that it is legally binding and protects both the employee and me. I am looking for advice on what should be included in the contract to ensure that my interests and those of my employee are adequately protected.

Donya G.

Answered Apr 18, 2023

Hello, Congratulations on your business. Here are some things that need to be in the agreement - amount you will pay them, when you will pay, the term of the employment, confidentiality, non solicit. Since you have never done this before, I would like to suggest that you hire an attorney to get it done to ensure it is done correctly. I am a NY attorney with over 20 years of experience. I assist small businesses like yours with their employment, vendor, investment and all their contract needs. I would love to assist you. You can contact me on the Contracts Counsel website or on my personal page - Donya Gordon Looking forward to talking to and working with you Sincerely Donya Gordon

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Employment

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Washington

Asked on Jul 15, 2025

Can my employer change the terms of my employment contract without my consent?

I have been working for a company for the past three years, and my employment contract clearly outlines my job responsibilities, salary, and benefits. However, recently my employer informed me that they are planning to make changes to my contract, including reducing my salary and removing certain benefits. I am concerned about the legality of these changes and whether my employer can modify the terms of my contract without my consent.

Merry K.

Answered Jul 22, 2025

I'm sorry to hear about this proposed change. Whether or not your employer can make such changes unilaterally depends almost entirely on how your contract is written. For example, if your contract clearly states that you are an "at will" employee, your employer can not only make whatever changes it wants, but can also discipline you or terminate you with no reason at all and only a one second advance notice. If it's not an "at will" contract, there may be a paragraph or two that addresses amendments to the agreement - eg, some such contracts may say that an employer can make changes with two weeks advance written notice; another may say that changes will be negotiated in advance between employer and employee. You may want to have an employment attorney, such as myself, review your contract as well as any recent correspondence you may have received from your employer. You may also want to try to very quietly try to find out whether or not other employees are possibly in the same boat as you - it's possible that the employer is cutting back on some benefits to save money, rather than laying off or terminating some or all of their employees. Good luck to you - and if you'd like to reach out to me, you can find me through ContractsCounsel.com or on WSBA.org Please be aware that the above information is provided for educational purposes only, and no attorney/client relationship has been formed Merry A. Kogut WSBA #16153

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Contracts

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Ohio

Asked on Apr 13, 2023

What's personal leave in an employment contract?

I have recently been offered a job, and the employment contract I have been provided with states that I am entitled to personal leave. I am not sure what this is, or what it entitles me to. I would like to know what rights and responsibilities I have regarding personal leave, and what the employer's expectations are of me with regards to this leave.

Jeffrey K.

Answered Apr 14, 2023

Personal leave sometimes replaces vacation and sick time. Some employers just give employees time off for whatever reason the employee chooses. To know more about the rights and responsibilities, you should speak to HR at your new employer who will help you with the employer's expectations and your rights under the leave provision in your contract. Also, look at your contract as it may provide insight as to how to implement the leave. When in doubt, speak to HR. Thanks.

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Asked on Apr 17, 2023

What's the safety policy in an employment contract?

I recently accepted a job offer from a new employer and as part of the employment contract, I need to understand the safety policy in the workplace. I understand that safety policies in the workplace are important for the protection of both employees and employers, but I am not sure of the specific details of the safety policy included in my employment contract. I would like to know what safety policies are included in the contract in order to ensure that I have a safe working environment.

Diane D.

Answered May 2, 2023

Without seeing the contract, there is no way of knowing.

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Employment

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Asked on Oct 4, 2022

Are employment contracts confidential?

I'm considering taking a second job but would not want my first employer to know. Is there any way for them to find out? I am not sure what all of the language in the contract says and may need to get it reviewed, but I wanted to see if these contracts are kept confidential so that my employer never finds out.

Donya G.

Answered Nov 1, 2022

Typically, yes. There s generally a confidential section in your employment agreement. Is there something specific you are worried about? You can have an attorney give a consultation, review the agreement and advise you. I can do that for you. You can connect with me through the website. Thanks Donya Gordon

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