One missed filing. One outdated handbook policy. One payroll miscalculation. Any of these missteps can trigger penalties, lawsuits, or worse under Illinois employment law. And because the state’s regulations often exceed federal law, what works elsewhere might leave you exposed here.
This guide breaks down what Illinois employers need to know in 2026—from the Illinois minimum wage and overtime rules to discrimination laws, sexual harassment training laws, and child labor laws. Whether you’re managing a team in Chicago or expanding across the state, understanding Illinois wage laws keeps your business protected and your employment practices on solid ground.
Key Takeaways
- Illinois minimum wage holds at $15/hour for 2026 (Chicago rates are higher), while Illinois overtime laws follow the federal 40-hour weekly threshold—not daily.
- The Illinois Human Rights Act now provides two years to file discrimination charges, with new protection laws covering family responsibilities and AI in hiring.
- Every employer must provide annual sexual harassment training, and child labor laws impose strict work permit and hour restrictions for minors under 16.
Illinois Minimum Wage Laws and Wage Payment Requirements
Illinois wage payment rules extend well beyond meeting the minimum hourly rate. Employers must also follow specific pay schedules, maintain detailed records, and understand how different employee categories affect compensation. Miss any of these requirements, and you’re looking at penalties under the Illinois Wage Payment and Collection Act.
Current Minimum Wage Rates
The Illinois minimum wage remains at $15 per hour for workers 18 and older in 2026. But rates vary depending on location and employee type:
- Tipped employees: $9/hour (tips must bring total to full minimum wage)
- Youth workers: $13/hour for those under 18 working fewer than 650 hours/year
- Chicago (4+ employees): $16.60/hour as of July 2025
These minimum wage laws apply regardless of citizenship status, and private employers must display current rates where all employees can see them.
Pay Frequency and Illinois Wage Payment Rules
Most employees must be paid at least twice per month under Illinois law. Executive, administrative, and professional employees can be paid monthly—but only with their consent. Regardless of schedule, wages must hit employee accounts within 13 days after the pay period ends.
Final paychecks come with even tighter deadlines. When someone leaves your company, you must issue their last check by the next regular payday. This applies to both current and former employees who are owed wages. Fall behind, and penalties start stacking—5% of the unpaid amount for each month wages remain outstanding. For a deeper dive into this critical area, check out our payroll compliance guide.
Illinois Overtime Laws: When Extra Pay Applies
Understanding Illinois overtime prevents costly wage claims down the road. The good news? Illinois follows federal and state law requirements rather than imposing daily overtime thresholds like California does. The bad news? Employee classification still trips up plenty of employers.
Weekly Overtime Threshold
Illinois overtime kicks in after 40 hours worked in a single workweek. Eligible employees must receive 1.5 times their regular rate for every hour beyond that threshold. Unlike California, there’s no daily overtime here—an employee could work 12 hours in a single day without triggering extra pay, as long as their weekly total stays at or below 40.
The workweek itself is a fixed 168-hour period that you define. Once established, though, you can’t shift it around to dodge overtime obligations or average hours across multiple weeks.
Exempt Employee Classifications and Restrictions
Not everyone qualifies for overtime, of course. As of January 2025, the federal salary threshold for exemption sits at $1,128 per week ($58,656 annually). But salary alone isn’t enough—employees must also meet specific duties tests for executive, administrative, or professional roles.
Here’s where employers stumble: job titles don’t determine status. A “manager” who spends most of their time stocking shelves or serving customers? Probably non-exempt. For detailed guidance on how duties tests actually work, see our breakdown of labor laws for salaried employees. Spoiler alert—when federal law and state requirements conflict, you follow whichever gives employees more protection.
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Illinois Discrimination Laws and Workplace Rights
The Illinois Human Rights Act offers some of the broadest discrimination protections in the country. Recent amendments have expanded protected classes, extended filing deadlines, and added new employer obligations around artificial intelligence. These additional laws mean Illinois employers can’t simply rely on federal compliance alone.
Protected Classes Under the Illinois Human Rights Act
Illinois goes well beyond federal requirements when it comes to protected characteristics. Beyond the usual categories, the state also covers arrest records, citizenship status, work authorization, and language. Employers can’t use any of these as a basis for determining qualifications for employment.
Two new categories took effect January 1, 2025. “Family responsibilities” now protects employees who provide personal care to family members—think medical appointments, daily needs, or emotional support. “Reproductive health decisions” covers choices about contraception, fertility care, and pregnancy-related healthcare. For employers with 15 or more employees, federal anti-discrimination statutes layer on even more requirements.
Extended Filing Deadlines and AI Restrictions
Employees now have two full years to file discrimination charges with the Illinois Department of Human Rights—up from just 300 days. That’s one of the longest windows in the country, which means you’ll want thorough documentation of employment decisions long after they happen. The Illinois Attorney General can also initiate enforcement actions independently.
Starting January 1, 2026, AI added another wrinkle. Using hiring tools with discriminatory effects—even unintentionally—violates the Illinois Human Rights Act. You’ll need to notify applicants and employees whenever AI factors into hiring, promotion, or discipline decisions.
Sexual Harassment Training Laws for Illinois Employers
Illinois sexual harassment training laws apply to every employer with at least one employee—no exceptions. Annual training isn’t optional, and completing it is effectively a condition of employment for your workforce.
Every employer must train all employees by December 31 each year. Training must cover sexual harassment under the Illinois Human Rights Act, examples of unlawful conduct, relevant statutory provisions, and employer responsibilities for prevention and investigation.
Chicago employers face stricter standards:
- All employees: 2 hours annually (harassment prevention + bystander intervention)
- Supervisors/managers: 3 hours annually
- Recordkeeping: Maintain training records for at least 5 years
- Penalties: $5,000–$10,000 per offense
These Chicago requirements apply to anyone working within city limits, even occasionally or remotely.
Child Labor Laws: Work Permit and Hour Restrictions
The Child Labor Law of 2024 brought significant changes to youth employment in Illinois. These child labor laws protect minors under 16 with strict work permit requirements, hour restrictions, and prohibited occupations. Both federal requirements and state rules apply—employers must follow whichever is more protective.
All minors under 16 need a work permit before starting any job. Employers must provide a “letter of intent to hire” specifying job duties and hours, then parents obtain the permit through the minor’s school district with proof of age and a physician’s certification.
Hour restrictions vary by season:
During the school year:
- Maximum 18 hours per week
- Maximum 3 hours on school days
- No work before 7 a.m. or after 7 p.m.
From June 1 through Labor Day:
- Maximum 40 hours per week
- Maximum 8 hours per day
- Evening cutoff extends to 9 p.m.
Workers aged 16–17 don’t need permits but still face restrictions on hazardous work.
Social Media Laws and Privacy Protection Laws
The Illinois Right to Privacy in the Workplace Act draws clear boundaries around employer access to personal information. Under Illinois social media laws, employers cannot request passwords or access to employees’ personal social networking accounts. The law reflects Illinois freedom principles that protect lawful off-duty conduct from employer interference.
The restrictions go further than just passwords, too. Employers can’t require employees to add them as contacts, accept friend requests, or access personal accounts in the employer’s presence. That said, you can still view publicly available information and monitor company-owned equipment. For the full picture, see our guide on the Illinois Right to Privacy in the Workplace Act.
Illinois also protects employees from adverse action for using lawful products during non-working hours. And under investigative check laws, employers cannot base hiring decisions solely on “no-match” letters from agencies like the Social Security Administration.
Leave Entitlements and Workplace Safety Rights
Illinois provides several leave protections that go beyond what federal law requires. Workers accrue one hour of paid leave for every 40 hours worked, up to 40 hours annually—and they can use it for any reason. For details on implementation, see our breakdown of the Illinois Paid Leave for All Workers Act.
For longer absences, the federal Family and Medical Leave Act provides eligible employees up to 12 weeks of unpaid leave for qualifying reasons. Illinois also provides sexual assault leave for victims of domestic and gender-based violence, along with bereavement leave and school visitation leave at larger employers.
Further, the One Day Rest in Seven Act requires at least 24 consecutive hours of rest each calendar week. Meal breaks are mandatory too—at least 20 minutes for shifts of 7.5+ hours, taken no later than 5 hours into the shift. Employers must also meet federal OSHA standards and state-specific occupational safety requirements.
Violations and Penalties for Non-Compliance
Illinois takes labor law violations seriously, and penalties can stack up fast. Under the Illinois Wage Payment and Collection Act, employers who fail to pay wages owe the full amount plus 5% per month it remains outstanding. Corporate officers who knowingly permit violations can be held personally liable.
Discrimination violations can also result in back pay, compensatory damages, and attorney fees. Recent amendments allow penalties for “each instance” of violation—not just the overall pattern. And failure to provide required sexual harassment training triggers Illinois Department of Human Rights enforcement, with 30 days to comply before civil penalties kick in.
Needless to say, for employers juggling multi-state compliance issues, understanding how Illinois penalties compare helps you prioritize resources where exposure is highest.
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Navigate Illinois Labor Laws With Mosey
Illinois employment law doesn’t stand still. New discrimination protections, AI restrictions, and evolving requirements across jurisdictions demand constant attention. For employers managing teams across the state—or across state lines—the immensity of it all only grows.
Mosey automates the tracking of state-specific requirements, from payroll compliance to employee handbook updates to help you stay current with Illinois law. Instead of scrambling to interpret every amendment, you get automated alerts and centralized visibility across every jurisdiction where you operate.
Ready to simplify Illinois labor law compliance? And to make compliance easier across the board? Schedule a demo with Mosey today and see what you’ve been missing.
Illinois Labor Laws FAQs
How many hours can an employee work without a break in Illinois?
Illinois requires a 20-minute meal break for employees working 7.5 hours or more, taken no later than 5 hours into the shift. Minors must receive a 30-minute break after 5 consecutive hours.
What is the new 40-hour law in Illinois?
Illinois requires employers to provide paid leave that employees can use for any reason. Workers accrue one hour for every 40 hours worked, up to 40 hours per year.
Is overtime over 8 hours a day or 40 hours a week in Illinois?
Illinois overtime is based on weekly hours, not daily. Non-exempt employees earn overtime (1.5x their regular rate) only after working more than 40 hours in a workweek.
What are Illinois employers required to provide for sexual harassment training?
Every employer must provide annual sexual harassment prevention training by December 31. Chicago employers face stricter requirements, including bystander intervention training and additional supervisor hours.
What protections exist under Illinois discrimination laws?
The Illinois Human Rights Act protects employees from discrimination based on race, sex, age, disability, sexual orientation, gender identity, marital status, arrest record, citizenship status, family responsibilities, reproductive health decisions, and more. Employees have two years to file charges.
