Illinois Minimum Wage Guide for 2025


Illinois Minimum Wage 

In accordance with Chapter 48 of the Illinois Compiled Statutes, all workers 18 years or older in the state of Illinois are entitled to receive the state minimum wage rate. For 2025, the Illinois minimum wage rate is $15.00 per hour if no local minimum wage applies. Under specified circumstances, a variety of employers may be exempt from its coverage.

Illinois Minimum Wage Requirements 

Effective January 1st, 2025, the hourly minimum wage rate in Illinois is $15.00 per hour. The minimum wage is applicable to most employees in the state of Illinois. However, there are limited exceptions that apply, such as tipped and minor employees.

On February 19, 2019, Governor Pritzker signed Public Act 101-0001, which included a scheduled increase for the Illinois minimum wage beginning on January 1st, 2020 up to January 1st, 2025.

There are currently no scheduled increases to the state's minimum wage after 2025 without additional legislation.

Illinois Minimum Wage - Historical Rates Table

EFFECTIVE DATE ILLINOIS MINIMUM WAGE
January 1, 2020 $9.25
July 1, 2021 $10.00
January 1, 2021 $11.00
January 1, 2022


$12.00

January 1, 2023


$13.00

January 1, 2024 $14.00
January 1, 2025


$15.00

 

Looking for minimum wage rates by state? Click here to view the minimum wage chart by state.

Local Illinois Minimum Wage

Illinois has varying minimum wage requirements depending on the locality. Here are all the minimum wage rates for localities in Illinois:

Chicago Minimum Wage

On December 2nd, 2014, the Chicago City Council passed the Chicago Minimum Wage Ordinance, which initiated a scheduled increase of the city's minimum wage on July 1st, 2015, up to July 1st, 2019. Effective July 1st, 2020, the minimum wage is tied to a cost-of-living adjustment capped at a 2.5% increase.

The Chicago minimum wage for 2025 is $16.20 per hour for employers with 4 or more employees. Chicago employers with fewer than 4 employees must adhere to Illinois's minimum wage. Employees working at least 2 hours in any 2-week period in Chicago are entitled to the local minimum wage. All domestic workers (nannies, care workers, and home cleaners) are also entitled to the Chicago minimum wage.

Chicago Minimum Wage for Tipped Employees

For tipped employees, the minimum wage for 2025 is $11.02 per hour, with the maximum tip credit an employer can claim being $5.18 per hour or 32% of the applicable minimum wage. On October 6th, 2023, the Chicago City Council approved the One Fair Wage Ordinance, which scheduled to phase-out of the tipped wage credit. The schedule outlines the following dates of tip credit changes:

  • Prior to July 1st, 2024 - tipped wage credit is 40% of the Chicago Minimum Wage
  • Effective July 1, 2024 - reduced to 32% of the Chicago Minimum Wage
  • Effective July 1, 2025 - reduced to 24% of the Chicago Minimum Wage
  • Effective July 1, 2026 - reduced to 16% of the Chicago Minimum Wage
  • Effective July 1, 2027 - reduced to 8% of the Chicago Minimum Wage
  • Effective July 1, 2028 - tipped workers will make the full Chicago Minimum Wage

Employees under the age of 18 years old have unique minimum wage amounts. For 2025, the minimum wage for minor employees in Chicago is $15.00 per hour and $10.20 per hour for tipped employees.

Overtime for all Chicago employees is one-half times the employee's regular rate of pay.

Cook County Minimum Wage

The Cook County Board of Commissioners passed the Cook County Minimum Wage Ordinance (MWO). Cook County bases its minimum wage rate on the highest rate between the Federal minimum wage, the Illinois minimum wage, or the County's own calculated rate using the Consumer Price Index (CPI). However, the Cook County minimum wage calculation cannot be used if the unemployment rate in the county is or exceeds 8.5%.

For 2025, the Cook County minimum wage mirrors the Illinois rate, which is $15.00 per hour. Tipped minimum wage is also mirrored with the state's rate being $9.00 per hour.

The MWO does not apply to minor employees or independent contractors.

Illinois Special Minimum Wage

Minimum wage exceptions for the state of Illinois mirror the Federal exceptions based on FLSA classifications. However, there are additional exceptions outlined by the state of Illinois.

Exceptions may apply to the following:

  • Tipped Employees
  • Workers receiving overtime pay
  • Employees with disabilities
  • Minor employees

Illinois Tipped Employees

Illinois state law allows businesses to pay a minimum wage of $9.00 per hour to employees receiving tips. However, tips received must at least equal the state minimum wage when added to the tipped wage. Employers may take a maximum tip credit of 40% of wages.

Overtime Pay

The state of Illinois recognizes the federal overtime regulations set forth by the FLSA. If an employee works more than 40 hours in an average seven-day workweek, the employee is to receive an overtime rate of 1.5x of the employee's regular hourly rate.

Employees exempt from overtime pay in Illinois include workers based on the Federal FLSA classifications. Additionally, Illinois exempts overtime pay for these employees:

  • Salesmen and mechanics involved in selling or servicing cars, trucks, or farm implements at dealerships
  • Agricultural labor
  • Certain employees involved in radio / television in a city with a population under 100,000
  • Employees exchanging hours in accordance to a workplace exchange agreement
  • Employees of certain educational or residential child care institutions

Illinois Minimum Wage Exemptions

Exemptions to the Illinois minimum wage vary depending on the employee and circumstances. Exemptions and special rules may apply to the following:

  • Employees with Disabilities - Employers may be allowed to pay a subminimum wage to employees with disabilities. However, effective December 31st, 2029, the Illinois Department of Labor (IDOL) cannot issue or recognize 14(c) subminimum wage certificates, requiring all employers to pay disabled workers the state minimum wage rate.
  • Minor Employees - For minor employees working less than 650 hours per calendar year, the minimum wage is $13.00 per hour.
  • Employee Training Wages - Employers may pay $14.50 per hour for an employee's first 90 days. For tipped employees, employers may pay either the $9.00 per hour tipped minimum wage if applying the 40% tip credit OR $14.50 per hour without using the tip credit.

Illinois Meal and Rest Breaks

Illinois has unique meal and rest break requirements detailed under the One Day Rest in Seven Act (ODRISA).

Meal Break Requirements

Employers must provide employees with at least a 20-minute meal break for every 7.5 hours worked and no later than 5 hours after the start of the shift. Employees working 12-hour shifts or longer must be given an additional 20-minute meal break. Employees working through a meal break must be paid.

Minor employees must have a scheduled meal break of at least 30 minutes, no later than the 5th consecutive hour of work.

Meal breaks are not granted for employees with meal breaks governed by collective bargaining agreements. Collective bargaining agreements that do not have special rules for meal breaks, the ODRISA provisions then apply to the employee.

Rest Break Requirements

As referenced in the ODRISA, every seventh consecutive day, an employee is allowed at least 24 hours of rest. Employers may request that the Illinois Department of Labor withdraw the requirement for employees to volunteer to work a seventh day.

Outside of the one day rest, Illinois does not require employers to give specific rest breaks to employees, however, employers that choose to offer such breaks must adhere to the specific guidelines set forth by the FLSA, regarding payment and length. 

Illinois Minimum Wage Posting Requirements

For compliance with Illinois labor laws, employers must visibly display the Illinois minimum wage in a conspicuous location that all employees have access to in the workplace. An all-in-one Illinois Labor Law Poster will cover all the required state and federal labor law postings.

Note that each time the minimum wage is updated, the labor law poster must be replaced in the workplace. A labor law poster subscription service will automatically provide updated mandatory notices that need to be posted for employees as additional changes take place with Illinois's state or local laws.

Penalties for Non-Compliance

Employers found to have violated the Wage Payment and Collection Act will have to incur the following penalties for non-compliance:

  • Violations for Unpaid Wages or Final Compensation - Employers must pay employees the amount of wages unpaid AND 5% of the underpayment amount per month for each month wages remain unpaid.
  • Demanded or Ordered to Pay Wages or Final Compensation from IDOL - $250 non-waivable administrative fee to IDOL.
    • The fee increases to $500 if the amount ordered by IDOL is more than $3,000 and $1,000 for orders of $10,000 or more.
  • Failure to Timely Comply with a Demand or Final Order from IDOL - Employers must pay IDOL 20% of the underpayment amount AND a 1% per day of the underpayment amount payable to the employee.

Final Thoughts on Illinois Minimum Wage

Businesses struggling to maintain minimum wage compliance or manage payroll may want to consider outsourcing payroll to an Illinois payroll services company. Areas for additional knowledge and learning include the basics of payroll and what to know about modern payroll software.  

To learn more about how Employer Pass is helping countless businesses maintain minimum wage compliance, contact us today or use the find a provider tool.

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