The Illinois Labor Law Guide

The minimum wage is the lowest hourly pay rate employers are legally required to pay most employees. While the federal minimum wage remains $7.25 per hour, Illinois and many local jurisdictions have enacted higher minimum wage rates.

Effective January 1, 2026, the statewide minimum wage in Illinois remains:

• $15.00 per hour for most employees.

• $13.00 per hour for employees under 18 who work fewer than 650 hours in a calendar year.

Local minimum wage rates

Some jurisdictions in Illinois enforce their own minimum wage ordinances:

Chicago

• $16.60 per hour for employers with 4 or more employees.

• Note: this rate remains in effect through June 30, 2026. A scheduled adjustment based on CPI may occur on July 1, 2026.

Cook County (excluding Chicago)

• Minimum wage matches the state rate: $15.00 per hour.

• Note: annual increases are reviewed for July 1 effective dates, though the rate currently mirrors the state minimum.

Evanston and Oak Park

• These municipalities currently align with Cook County/State levels.

• Minimum wage in 2026 remains $15.00 per hour, unless new local laws are adopted.

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The state minimum wage is $15.00 per hour. Employers may take a tip credit of up to 40% of the state minimum wage, resulting in a tipped minimum wage of $9.00 per hour. Employers must ensure that the tipped wage plus tips equals at least the full minimum wage of $15.00 per hour, and they must provide evidence that employees received the claimed tips.

Chicago

• Current rate: As of July 1, 2025, the full minimum wage is $16.60 per hour, and the tipped minimum wage is $12.62 per hour for employers with four or more employees. This rate remains in effect during the first half of 2026. 

• Phase-out adjustment: Under Chicago’s “One Fair Wage” ordinance, the city is phasing out the tipped wage credit. Effective July 1, 2026, the maximum allowable tip credit drops to 16% of the full minimum wage. 

• Practical impact: Starting July 1, 2026, employers must pay at least 84% of the full minimum wage in cash wages (subject to any CPI adjustments to the base rate announced by the city), plus the tips employees earn. If the tipped wage plus tips do not equal the full minimum wage, the employer must make up the difference. 

• Future outlook: The tip credit will decrease by 8% annually until July 1, 2028, when the tipped minimum wage will equal the city’s full minimum wage.

Cook County (excluding Chicago)

• Current rate: The tipped minimum wage is $9.00 per hour, based on a 40% tip credit from the county's minimum wage of $15.00 per hour. This continues into 2026, unless increased due to CPI-based adjustments or a new ordinance.

• Practical impact: Employers must ensure that the tipped wage plus tips meet or exceed the full minimum wage of $15.00 per hour. Note: Certain municipalities within Cook County may opt out of the county ordinance, but in those cases, the identical state rate ($15.00 / $9.00) generally applies.

Evanston and Oak Park

These municipalities follow the Cook County and state minimum wage structure for tipped workers. The tipped minimum wage in Evanston and Oak Park remains at $9.00 per hour in 2026, absent any local ordinances setting a higher rate.

Under the Illinois Minimum Wage Law, non-exempt employees must be paid 1.5 times their regular rate of pay for all hours worked over 40 in a single workweek.

Meal periods standard requirement

Employers must provide an unpaid meal period of at least 20 minutes to employees who work 7.5 continuous hours or more. This break must begin no later than 5 hours after the start of the work period.

Extended shifts 

Employees are entitled to an additional 20-minute meal period for every additional 4.5 continuous hours worked beyond the initial 7.5 hours. Note that reasonable time spent using restroom facilities does not count toward these mandatory meal periods.

Day of rest standard requirement

Employers must allow employees at least 24 consecutive hours of rest in every consecutive 7-day period. This is a rolling requirement, meaning an employee generally cannot be scheduled to work more than six consecutive days, regardless of how those days align with a standard calendar week.

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Paid Leave for All Workers Act (statewide) 

Under the Illinois Paid Leave for All Workers Act (PLAWA), most employers must provide eligible employees with up to 40 hours of paid leave during a 12-month period.

• Accrual and usage: Employees accrue at least one (1) hour of paid leave for every 40 hours worked. Employers also have the option to frontload the entire 40 hours at the beginning of the year.

• Practical impact: Crucially, this leave can be used for any reason, including vacation, personal days, or illness.

• Exemptions: Employers located in municipalities with their own qualifying paid leave ordinances (such as Chicago and Cook County) are generally exempt from PLAWA but must strictly adhere to their local laws.

Chicago Paid Leave and Paid Sick & Safe Leave 

Chicago employers are subject to a dual-accrual system. Employees do not just earn general paid leave; they earn two distinct types of leave simultaneously.

• Accrual rate: For every 35 hours worked, an employee accrues one (1) hour of general Paid Leave and one (1) hour of Paid Sick Leave.

• Practical impact: Employees can accrue up to 40 hours of Paid Leave and up to 40 hours of Paid Sick Leave per year (80 hours total). Paid Leave can be used for any reason, while Paid Sick Leave is reserved for illness, injury, or safe leave (e.g., domestic violence situations).

Cook County Paid Leave 

The Cook County Paid Leave Ordinance aligns closely with the state's PLAWA but is enforced locally. Employers must provide workers with up to 40 hours of paid leave annually, accrued at a rate of one (1) hour for every 40 hours worked. This time can be used for any reason.

Paid Sick Leave & The Employee Sick Leave Act (ESLA)

While PLAWA provides time off that can be used for illnesses statewide, Illinois also enforces the Employee Sick Leave Act (ESLA). If an employer voluntarily provides dedicated "sick leave" benefits, ESLA requires that employees be allowed to use that time to care for covered family members on the same terms they would use it for their own illness.

Other protected leaves 

Illinois mandates several other specific forms of unpaid leave that employers must accommodate, including:

• Family Bereavement Leave Act: Up to 10 unpaid days for FMLA-covered employers following the loss of a family member or certain pregnancy-related events.

• Child Extended Bereavement Leave Act: Up to 12 weeks of unpaid leave for the loss of a child by suicide or homicide.

• Civic Leave: Mandatory leave for jury duty and voting.

Holidays 

Illinois state law does not require employers to provide paid or unpaid holiday leave. The state also does not require premium pay for employees who work on a holiday, unless working on that holiday pushes the employee over 40 hours worked for the week, triggering standard overtime laws. If an employer voluntarily provides paid holidays, they must be administered in accordance with the employer's established, written policy.

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The Illinois Child Labor Law regulates the employment of minors under the age of 16 to prioritize their health, safety, and education. Employers are strictly prohibited from hiring children under 16 years of age who fail to present an approved Employment Certificate (work permit) issued by their school.

Working hours for minors (under 16) 

Illinois strictly limits the hours a minor can work based on the school calendar. Minors may not work more than 8 hours in any single 24-hour period.

• When school is in session: Minors may work up to 3 hours per day (and no more than 8 hours of combined school and work hours in a single day). They may work a maximum of 18 hours per week.

• When school is not in session (summer/holidays): Minors may work up to 8 hours per day and a maximum of 40 hours per week.

• Time-of-day restrictions: Minors may only work between 7:00 AM and 7:00 PM. From June 1st through Labor Day, these hours are extended to 9:00 PM.

Year-round school exceptions 

For minors enrolled in year-round schools, alternative rules apply:

• They may work from 7:00 AM to 10:00 PM when school is not in session.

• On school days, they may work until 9:00 PM provided they do not work more than 3 hours per day, do not work more than 2 school days in that week, and do not exceed 24 hours outside of school hours for the week.

Meal break requirements 

Employers must schedule and provide a meal period of at least 30 minutes for the minor no later than their 5th consecutive hour of work.

Employer recordkeeping & administrative requirements 

To legally hire a minor under 16, employers must:

1. Notice of intent: Provide the minor with a "Letter of Intent to Hire" outlining the anticipated hours, days, and nature of the job, which the minor uses to apply for their work permit.

2. Record retention: Maintain records of employed minors, including their employment certificates, on the premises where the minor is working.

3. Supervision: Ensure proper supervision of minors at all times and adhere to all labor law restrictions.

Prohibited occupations & locations 

Minors are prohibited from working in hazardous occupations and locations. This includes, but is not limited to: mechanic garages, factories, construction, slaughtering/meat packing, operations involving elevated surfaces (ladders/scaffolds), adult entertainment facilities, cannabis business establishments, and establishments where the primary activity is the sale of alcohol or tobacco.

Exemptions 

The Child Labor Law does not apply to:

• Sale and distribution of magazines and newspapers outside of school hours.

• Domestic work in and around an employer’s home outside of school hours.

• Caddying at a golf course (for minors 13 years of age or older).

• Officiating at certain youth sports activities (for minors 12 and 13 years of age).

Federal overlap 

Where both the Illinois Child Labor Law and the federal Fair Labor Standards Act (FLSA) cover the establishment, employers must comply with whichever law is stricter.

Hiring
The Illinois Human Rights Act (IHRA) prohibits discrimination based on the following:

• Race

• Color

• Religion

• National origin

• Ancestry

• Sex

• Sexual orientation

• Age

• Martial status

• Disability

• Military status 

Employers must attain written consent from candidates before performing background checks. They also must verify that employees can work in the U.S. using Form I-9 and keep records for at least three years after the employee has been hired or at least one year after their employment has ended, depending on which occurs later. Illinois law prohibits employers from asking about criminal history and a candidate’s salary expectations during the hiring process. 

Firing
Illinois employers have the right to terminate employees at will for nearly any reason, including no reason at all provided the reason is not unlawful. However, they cannot fire an employee for public policy reasons.