Illinois Employment Agreement / Offer Letter (2026)

A job offer letter or full employment agreement with pay, benefits, confidentiality, IP and restrictive covenants drafted to your state's non-compete, sick-leave and pay-timing rules.

Updated September 11, 2026≈ 10 minReviewed against 820 ILCS 90/1 et seq. · 765 ILCS 1060/2 · 820 ILCS 115/3, 115/4

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What you'll get

Sample first page of the Employment Agreement / Offer Letter. Your answers fill in the blanks; the clauses required in Illinois are added automatically.

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What this document covers

Offer letter or full employment agreement in one wizard
Position, duties, location and start date
At-will or fixed term
Exempt / non-exempt status with FLSA overtime note
Salary or hourly pay, bonus and commission plan
Benefits, PTO and state paid sick leave
Confidentiality, DTSA notice and IP assignment with state carve-outs
Non-solicitation and state-compliant non-compete
Termination, final pay timing and return of property
Optional arbitration, governing law, state new-hire notices

Illinois rules that this document follows

Non-compete rule	Limited — void below $75,000.00/yr (2026); 14 calendar days' advance noticeSource: 820 ILCS 90/1 et seq. (Freedom to Work Act, as amended eff. Jan. 1, 2022)
Invention-assignment carve-out	Statute limits assignment to work-related inventions; written notice to the employee requiredSource: 765 ILCS 1060/2 (Employee Patent Act)
Pay frequency	at least semimonthly (monthly for executive, administrative and professional employees); wages due within 13 days after the period endsSource: 820 ILCS 115/3, 115/4
Final paycheck	Discharged: next regular payday. Resigned: next regular payday.Source: 820 ILCS 115/5
Paid sick leave	Paid Leave for All Workers Act — 1 hour per 40 hours worked, up to 40 hours per year (all employers (Chicago and Cook County ordinances substitute))Source: 820 ILCS 192
Pay transparency	Pay range required in job postings (15+ employees)Source: 820 ILCS 112/10(b-25)
New-hire wage notice	Notice of rate and payday: rate of pay and time and place of payment, at the time of hiring (written where possible)Source: 820 ILCS 115/10
Exempt salary floor	$684.00/week ($35,568.00/yr, 2026) — federal FLSA levelSource: 29 C.F.R. § 541.600

Rules current as of 2026-09-14. Statutes change; verify before relying on them.

How to use this Employment Agreement / Offer Letter in Illinois

Decide exempt vs. non-exempt honestly: the salary floor and the duties test both matter, and misclassification is the most expensive payroll mistake.

Give the signed offer letter or agreement before the first day, together with the Illinois new-hire wage notice (820 ILCS 115/10), and complete Form I-9 within three business days of the start date.

Non-compete timing: employer must advise the employee in writing to consult an attorney and give a copy at least 14 calendar days before signing (820 ILCS 90/20) (820 ILCS 90). Late delivery makes the covenant unenforceable; it is void anyway below $75,000.00 per year.

Pay transparency: Illinois requires the pay range in every job posting (820 ILCS 112/10(b-25)); the offer letter states the range you enter.

Frequently asked questions

Can I include a non-compete in Illinois?

Only within statutory limits (820 ILCS 90): Void for employees earning ≤ $75,000 (≤ $80,000 from Jan. 1, 2027); 14 days to review and advice to consult counsel; adequate consideration (2 years' employment or other); void if termination due to COVID-type circumstances without pay; fee-shifting to employee. The wizard omits the covenant when the employee's pay or status does not qualify and prints any required notice.

When is the final paycheck due in Illinois?

If discharged: next regular payday. If the employee resigns: next regular payday (820 ILCS 115/5). Wages must otherwise be paid at least semimonthly (monthly for executive, administrative and professional employees); wages due within 13 days after the period ends (820 ILCS 115/3, 115/4).

Does Illinois require paid sick leave?

Yes — Paid Leave for All Workers Act (820 ILCS 192): 1 hour per 40 hours worked, up to 40 hours per year; applies to all employers (Chicago and Cook County ordinances substitute). Local ordinances: Chicago, Cook County.

What salary makes an employee exempt in Illinois?

$684 per week ($35,568 per year) under the federal FLSA (29 C.F.R. § 541.600); Illinois sets no higher floor. The duties test must also be met.

Does Illinois limit invention assignment?

Yes. 765 ILCS 1060/2 (Employee Patent Act) limits assignment to work-related inventions and requires written notice of the carve-out, which the agreement prints in Section 6.

Other names

offer letter
job offer letter
employment contract
employee agreement
at-will employment agreement
executive employment agreement
hiring letter
work contract

Other states

FormsByState provides self-help document templates and general information, not legal advice. We are not a law firm. For advice about your situation consult a licensed attorney in your state.