At a glance
- Minimum wage: $15.00 an hour.
- Tipped cash wage: $9.00.
- Overtime: after 40 hours in a workweek.
- Final paycheck if fired: immediately if possible, and no later than the next regular payday.
- Paid sick leave: Yes. Paid family leave program: No.
What Illinois employers need to know
Illinois reached a $15.00 minimum wage in 2025 and requires paid leave for almost every worker, usable for any reason, since 2024. Chicago and Cook County run their own minimum wage and paid leave ordinances, and Chicago phased out the tip credit by 2028 under a 2023 ordinance. Pay ranges are required in postings for employers with 15 or more employees, and Illinois employers can't make employees forfeit earned vacation.
Illinois minimum wage
| Minimum wage | $15.00 |
|---|---|
| Tipped cash wage | $9.00 |
| Next change | None scheduled |
| Local rates | Chicago and Cook County set higher local minimum wages, and Chicago is phasing out the tip credit. |
Pay the highest rate that applies where the employee works: federal, state, or local. For comparison, neighboring states pay Wisconsin ($7.25), Iowa ($7.25), Missouri ($15.00), Kentucky ($7.25), Indiana ($7.25). See every state side by side in our minimum wage by state table, and convert between hourly and annual pay with the salary to hourly calculator.
Illinois overtime rules
The federal FLSA rule applies: overtime at 1.5 times the regular rate after 40 hours in a workweek. There is no daily overtime rule.
Exempt salary test: the federal minimum of $684 a week ($35,568 a year) applies. Duties tests apply too, so job titles alone don't make someone exempt.
Work out overtime owed with our overtime calculator, compare states in overtime laws by state, and check classification with our guide to exempt vs non-exempt employees.
Illinois meal and rest break laws
Meal breaks: A 20-minute meal period, starting no later than 5 hours into the shift, for employees working 7.5 or more continuous hours. Hotel room attendants in Cook County get a 30-minute meal period and two paid 15-minute breaks.
Rest breaks: No general paid rest break rule, except for hotel room attendants in Cook County and nursing mothers.
Many states have stricter break rules for minors. Compare adult rules nationwide in break laws by state, and total up shifts with the time card calculator.
Illinois final paycheck law
| If you fire or lay off the employee | Immediately if possible, and no later than the next regular payday. |
|---|---|
| If the employee quits | No later than the next regular payday. |
| Unused vacation or PTO | Required. Earned vacation under a policy or contract must be paid at separation, and can't be forfeited. |
Build the deadline into your offboarding checklist. Our offboarding guide covers the full process, the PTO payout calculator works out the amount, and the final paycheck laws by state table compares every state.
Illinois paid sick leave and family leave
Paid sick leave: Paid Leave for All Workers Act: 1 hour for every 40 hours worked, up to 40 hours a year, usable for any reason. Chicago and Cook County have their own paid leave rules.
Paid family and medical leave: No state paid family leave program. The federal FMLA gives eligible employees of employers with 50 or more employees up to 12 weeks of unpaid, job-protected leave.
Federal FMLA: employers with 50 or more employees within 75 miles must also give eligible employees up to 12 weeks of unpaid, job-protected leave. Read our FMLA guide, and compare states in paid leave laws by state.
Hiring, pay transparency, and payroll setup
Pay transparency: Required for employers with 15 or more employees: pay scale and benefits in every posting.
New hire reporting: Report each new hire within 20 days of the hire date, the federal deadline.
State income tax withholding: Yes. Register with the state tax agency before the first payroll.
Our pay transparency laws guide explains posting rules in more depth, and our job description templates include pay data for 50 common roles.
What trips up Illinois employers
- Paid leave can be used for any reason, and employees don't have to explain why.
- Chicago and Cook County have higher minimum wages and separate paid leave rules.
- Use-it-or-lose-it vacation policies aren't allowed. Earned vacation is paid at separation.
Sources and the agency to contact
- Illinois Department of Labor (state labor agency)
- US Department of Labor: state minimum wage laws
- US Department of Labor: minimum wages for tipped employees by state
- US Department of Labor: state meal period requirements
General information for US employers, not legal advice. Laws change and have exceptions by industry, employer size, and city. Confirm current rules with the state agency or employment counsel before you rely on them.
Cite or share this data
Journalists, educators, payroll providers, and HR teams are welcome to quote these figures. Please credit HRTally with a link to this page. Copy the snippet below to add the link.
<a href="https://www.hrtally.com/state-labor-laws/illinois/">Illinois labor laws for employers (2026)</a> (source: HRTally)
Suggested citation: HRTally Research Team. "Illinois labor laws for employers (2026)." HRTally, updated October 20, 2026. https://www.hrtally.com/state-labor-laws/illinois/
Frequently asked questions
What is the minimum wage in Illinois in 2026?
When is a final paycheck due in Illinois?
Are breaks required in Illinois?
Does Illinois require paid sick leave?
Do employers have to pay out unused PTO in Illinois?
Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.