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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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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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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Asked on Nov 26, 2024

Can an employer change the terms of employee benefits without providing notice or obtaining consent?

I work for a small company that has recently made some changes to our employee benefits package without any prior notice or consultation with the employees. The changes include reducing the amount of paid time off, increasing the employee contribution for health insurance, and eliminating certain retirement benefits. I am concerned about the legality of these changes and whether the employer has the right to alter the terms of our benefits without providing any notice or obtaining our consent.

Damien B.

Answered Dec 2, 2024

If you have an employment contract, the employer must adhere to the terms of that agreement. Similarly, if the company has an employee handbook, changes to benefits must align with the policies outlined therein. Courts may consider an employee handbook as a binding contract if it creates an expectation of certain benefits. If your benefits are guaranteed in a written contract or employee handbook and the employer did not follow proper procedures to make changes, you may have a claim for breach of contract. Employers are generally encouraged to provide clear communication and advance notice of benefit changes to maintain trust and compliance with legal and policy obligations. If you have any further questions, feel free to reach out.

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Asked on Oct 4, 2021

I was recently let go after complaining about discrimination and targeted. I was termed with a severance package. I want to know if I can renegotiate the severance.

Can I get more on my severance since I was let go after complaining about discrimination to my employer?

Donya G.

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That sounds like it would depend on the reasons you were given for being let go. Did you document your grievances in an email or where they just done by word of mouth? You should consult with a GA attorney that specializes in employment law to assit. All the best Donya Gordon

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What's vacation time in an employment contract?

I recently accepted a new job and I was provided an employment contract to review. In the contract, there is a section about vacation time, but it is not very clear. I'm trying to understand what vacation time is included in the contract and what the expectations are for taking time off. I want to make sure I have a clear understanding of my rights and responsibilities regarding vacation time before I sign the contract.

Diane D.

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You can create your own will. However, having an attorney draft it for you will ensure that your wishes are carried out in all circumstances. Doing it yourself without having any experience may cause many problems after your demise.

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Asked on Apr 15, 2023

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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.

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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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