Does Illinois require a written freelance contract?

Yes, for engagements worth $500 or more. The Illinois Freelance Worker Protection Act mandates a written agreement that includes the scope of work, compensation, payment schedule, and a process for handling disputes. Both parties must retain copies of the signed contract.

Can an Illinois freelance contract include a non-compete clause?

It depends on the freelancer's earnings. Under the Illinois Freedom to Work Act, non-compete agreements are unenforceable for workers earning less than $75,000/year, and non-solicitation agreements are banned for those earning less than $45,000/year. For higher-earning freelancers, non-competes must be reasonable and the worker must be given at least 14 days to review the agreement.

When must an Illinois freelancer be paid?

Under the Freelance Worker Protection Act, payment must be made within 30 days of work completion or by the date specified in the contract, whichever is earlier. The hiring party cannot withhold payment as leverage or condition it on vague satisfaction standards.

What remedies does an Illinois freelancer have for non-payment?

Freelancers can recover the unpaid amount plus damages under the Freelance Worker Protection Act. The Act also provides for attorney's fees and costs. Freelancers may file a complaint with the Illinois Department of Labor or pursue a civil action in court.

How is worker classification determined in Illinois?

Illinois uses a multi-factor economic reality test that examines the degree of control, the nature and degree of the worker's investment, the permanence of the relationship, the skill required, and whether the work is integral to the hiring entity's business. The Illinois Department of Employment Security also applies its own test for unemployment insurance purposes.

Who owns intellectual property created by an Illinois freelancer?

Unless the contract explicitly assigns IP rights, the freelancer retains ownership. Illinois follows federal copyright law for work-for-hire determinations. The Employee Patent Act (765 ILCS 1060/) also protects employee inventions, and its principles may inform freelancer IP disputes.

Does the Illinois Freelance Worker Protection Act apply to all freelancers?

The Act applies to freelance workers performing services for a hiring party in Illinois when the engagement is worth $500 or more. It covers individuals, sole proprietors, and single-member LLCs providing services. It does not apply to government agencies, licensed professionals in certain categories, or sales representatives covered by other statutes.

Illinois Freelance Contract Template

Q: What is the 14-day review period for non-competes?

Under the Illinois Freedom to Work Act, before a worker signs a non-compete or non-solicitation agreement, the employer must provide at least 14 calendar days for the worker to review the agreement and advise them to consult an attorney. Agreements signed without this notice period may be unenforceable.

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Illinois freelance law overview

Illinois enacted the Freelance Worker Protection Act (effective 2024), joining New York and California in providing strong statutory protections for freelance workers. The law requires written contracts for engagements over $500, mandates payment within 30 days, and prohibits retaliation. Illinois also banned non-compete agreements for workers earning under $75,000/year under the Illinois Freedom to Work Act, which affects how restrictive covenants in freelance contracts are structured.

Key considerations

What makes freelance contracts in Illinois different from other states.

Written Contract Required Over $500

The Illinois Freelance Worker Protection Act requires a written contract for engagements worth $500 or more. The contract must include scope of work, compensation, payment schedule, and a process for addressing disputes.

Non-Compete Income Thresholds

Under the Illinois Freedom to Work Act, non-compete clauses are unenforceable for workers earning less than $75,000/year. Non-solicitation clauses are banned for workers earning less than $45,000/year. These thresholds adjust over time.

30-Day Payment Deadline

Hiring parties must pay freelancers within 30 days of work completion unless the contract specifies an earlier date. The Act provides remedies for late or non-payment.

Attorney Review Period for Non-Competes

Illinois requires that employers provide at least 14 calendar days for the worker to review a non-compete or non-solicitation agreement before signing, with advice to consult an attorney.

Governing statutes

Key laws that govern freelance contracts and independent contractor relationships in Illinois.

Illinois Freelance Worker Protection Act
820 ILCS 122/
Requires written contracts for freelance engagements over $500, mandates payment within 30 days, and prohibits retaliation against freelancers who assert their rights.
Illinois Freedom to Work Act
820 ILCS 90/
Bans non-compete agreements for workers earning under $75,000/year and non-solicitation agreements for workers earning under $45,000/year.
Illinois Trade Secrets Act
765 ILCS 1065/
Protects trade secrets and confidential information with provisions for injunctive relief and damages.
Illinois Wage Payment and Collection Act
820 ILCS 115/
Governs wage payments and may apply to misclassified freelancers who should have been classified as employees.