Illinois has strong worker protections anchored by the Illinois Minimum Wage Law and the Wage Payment and Collection Act (WPCA). Workers who are underpaid have multiple state enforcement options with meaningful penalties for employers who violate the law.
Minimum Wage in Illinois (2025)
The Illinois minimum wage is $15.00 per hour as of January 1, 2025, for employees 18 and older. This applies statewide.
Youth wage. Employees under 18 who work fewer than 650 hours per calendar year may be paid $13.00 per hour.
Chicago and Cook County rates. Chicago has its own minimum wage ordinance, which exceeds the state rate. As of July 1, 2024, Chicago’s minimum wage is $16.20 per hour for large employers (21 or more employees) and $15.60 for smaller employers. The Cook County minimum wage mirrors Chicago’s rate for unincorporated areas of the county. These local rates supersede the state minimum within their jurisdictions.
Tipped employees. Illinois allows a tip credit. Tipped employees can be paid as little as $9.00 per hour if tips bring them to at least $15.00. If tips fall short, the employer must make up the difference.
Overtime Pay in Illinois
Illinois follows the federal FLSA overtime standard. Non-exempt employees earn 1.5 times their regular rate for all hours worked over 40 in a workweek. Illinois does not have a daily overtime requirement.
Exemptions. Illinois generally follows the federal FLSA exemptions. However, Illinois has narrowed certain exemptions — agricultural workers are entitled to overtime under Illinois law after 40 hours per week, broader than the federal exemption.
Illinois Wage Payment and Collection Act (WPCA)
The WPCA is Illinois’s core wage theft statute and goes beyond the FLSA in important ways.
Coverage. The WPCA covers wages, final compensation, and bonuses that have been promised or earned. “Final compensation” includes earned vacation time — unlike in many other states, Illinois requires employers to pay out all accrued and unused vacation upon termination, regardless of any company policy purporting to forfeit vacation.
Vacation payout is mandatory. This is one of the most significant features of Illinois wage law. If you have accrued vacation time when you leave a job — for any reason — your employer must pay it out. Any policy that says “vacation is forfeited upon resignation” is void under Illinois law.
Deduction restrictions. Illinois employers may not make deductions from wages except for taxes, court-ordered garnishments, and deductions the employee has expressly and voluntarily authorized in writing for their own benefit (such as health insurance premiums). Deducting for cash register shortages, damaged merchandise, or uniforms without written authorization is illegal.
Final Paycheck Rules in Illinois
| Separation Type | Deadline |
|---|---|
| Any separation (fired, laid off, or resigned) | Next scheduled payday |
Illinois requires final paychecks — including any owed vacation pay — to be paid on the next regular payday following the last day of work.
Penalties for late final paychecks. If an employer willfully refuses to pay final wages, the WPCA allows recovery of: (1) the unpaid wages, (2) 2% of the unpaid wages per month as a penalty, and (3) attorney fees and costs. Additionally, if a court finds the underpayment was “willful,” the employer owes an additional amount equal to 2% of the unpaid wages for each month the wages remain unpaid.
Chicago’s Additional Protections
Chicago has enacted several ordinances that provide protections beyond state law for Chicago workers:
Chicago Minimum Wage Ordinance. $16.20/hour for large employers, $15.60 for small employers (as of July 2024). Annual increases tied to CPI.
Chicago Paid Sick Leave Ordinance. Chicago workers earn up to 40 hours of paid sick leave per year (1 hour per 40 hours worked). Retaliation for using sick leave is prohibited.
Chicago Fair Workweek Ordinance. Large employers in hospitality, retail, and food service must provide 10 days’ advance notice of schedules and pay a premium for last-minute schedule changes.
Chicago workers who believe their rights under these ordinances have been violated can file with the Chicago Office of Labor Standards at chicago.gov/laborstandards.
Real Situations: Common Illinois Wage Disputes
Forfeited vacation. The most common WPCA violation in Illinois is employers refusing to pay accrued vacation upon termination. Illinois employers often have policies saying “use it or lose it” — these policies are void. Every day of unused vacation you have when you leave a job is owed to you in cash.
Chicago schedule premium violations. Under the Chicago Fair Workweek Ordinance, if your employer changes your schedule with less than 10 days’ notice, you are entitled to additional compensation. Many restaurant and retail workers in Chicago never receive these premiums, which accumulate over time.
Staffing agency pay disputes. Illinois has a large staffing industry, and wage disputes commonly arise when temporary workers are paid less than promised or when agencies fail to properly record hours. Under Illinois law, both the staffing agency and the client employer may be jointly liable for wage violations.
Common Mistakes Illinois Workers Make
Assuming vacation payout is optional. Many Illinois workers believe their employer’s “forfeiture of vacation upon resignation” policy is legally enforceable. It is not. If you left a job without receiving payout for accrued vacation, you may have a WPCA claim.
Not filing with the Illinois Department of Labor. The IDOL investigates wage complaints and can order payment with penalties — a free alternative to hiring an attorney. Workers who go directly to civil litigation without first exploring the IDOL route miss a faster, no-cost option.
Missing Chicago-specific ordinance deadlines. Chicago ordinance complaints often have shorter deadlines than state and federal law. The Chicago Office of Labor Standards complaint must generally be filed within 5 years of the violation, but the practical window for gathering evidence is much shorter.
How to File a Wage Claim in Illinois
Option 1 — Illinois Department of Labor (IDOL). File a wage complaint at labor.illinois.gov. The IDOL investigates violations of the WPCA, Minimum Wage Law, and other Illinois labor statutes. No attorney required. The IDOL can issue citations and order back wages plus penalties.
Option 2 — Department of Labor (FLSA). File with the federal Wage and Hour Division for claims that implicate FLSA overtime or minimum wage violations.
Option 3 — Civil lawsuit. Under the WPCA, you can sue in Illinois circuit court for unpaid wages, 2% monthly penalties, and attorney fees. Class actions are common for systemic violations such as employer-wide vacation forfeiture policies.
Chicago workers. File additional complaints with the Chicago Office of Labor Standards for Chicago-specific ordinance violations.
Statute of Limitations
| Claim Type | Limitation Period |
|---|---|
| Illinois WPCA wage claims | 3 years |
| Illinois Minimum Wage Law | 3 years |
| FLSA (federal, non-willful) | 2 years |
| FLSA (federal, willful) | 3 years |
| Chicago ordinance complaints | 5 years |
Related Guides
- Employment Rights Guide — federal wage and overtime rules that apply in Illinois alongside state law
- Illinois Small Claims Court — sue for unpaid wages up to $10,000 without a lawyer
- Illinois Eviction Notice Requirements — tenant protections for Illinois renters
- Illinois Security Deposit Laws — your rights as an Illinois renter
- Illinois Tenant Rights Guide — complete tenant rights guide for Illinois renters
This article is for informational purposes only and does not constitute legal advice. Illinois wage laws change frequently. Always verify current rates and thresholds at labor.illinois.gov or consult a licensed Illinois employment attorney. Last reviewed: March 2026.