Yes, Illinois allows mandatory overtime as long as it complies with the One Day Rest in Seven Act. This act requires employers to provide employees with at least one full day off (24 consecutive hours) each calendar week. If employers want employees to voluntarily work on their day of rest, they must apply for a permit from the Illinois Department of Labor.
Illinois Labor Laws
Illinois Minimum Wage
As of January 1, 2021, the minimum wage in Illinois is $11 per hour. This rate is set to increase incrementally, reaching $15 per hour by 2025.
Illinois Labor Law Posters
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History of Illinois Labor Laws
Illinois has a rich labor union history and was among the first states to enact worker protection laws. In 1903, it passed its first child labor laws limiting hours worked by minors, and in 1909, it introduced its first safety and health regulations.
Despite changes in federal labor union rules, such as the Taft-Hartley Act of 1947, Illinois has remained a strong labor state. Today, it continues to protect workers through various laws, including:
- Raising the minimum wage ahead of the federal level
- Banning employers from asking about salary history
- Codifying the right of workers to discuss salaries with colleagues
- Increasing penalties for discrimination
Additionally, the Workplace Transparency Act (WTA), effective January 1, 2020, bans or severely restricts certain clauses in employment contracts, such as non-disclosure and non-disparagement sections, to prevent silencing employees from making truthful statements.
Municipality Minimum Wage Laws
Illinois allows counties and cities to set their own minimum wage laws, provided the local rate does not fall below the federal minimum. The more favorable rate for the employee always prevails.
Cook County passed a minimum wage law in 2016. As of July 1, 2020, the minimum wage in the county is $13 per hour. Starting July 1, 2021, this rate is indexed to the Consumer Price Index (CPI) for future adjustments, capped at 2.5% per year. The rate will not increase if the county’s unemployment rate was at least 8.5% the previous year.
Chicago enacted a minimum wage ordinance in 2014. As of July 1, 2020, the minimum wage is $13.50 per hour for employers with 4 to 20 workers and $14 per hour for employers with 21 or more workers. From July 2020, the Chicago minimum wage is also indexed to the CPI for future adjustments, with a similar cap of 2.5% per year and no increase if the city’s unemployment rate was at least 8.5% the previous year.
Illinois Minimum Wage Exemptions
Illinois has several minimum wage law exemptions in addition to the federal Fair Labor Standards Act (FLSA) rules. Generally, the more advantageous rule for the worker prevails.
Job Duty Exemptions:
- Executives
- Learned and creative professionals
- Computer workers
- Administrative workers
- Outside sales workers
Alternative minimum pay rates vary for each category.
Tip Credit: Illinois allows a tip credit for tipped employees, but the combined tip credit and direct pay must at least match the highest applicable minimum wage rate.
New Workers: New employees over 18 years old may be paid up to 50 cents per hour less for their first 90 days of employment.
Minors: While the state minimum wage typically does not cover minor workers, there is an hourly exemption. As of January 1, 2020, minors under 18 who work at least 650 hours in a given employment year (from their date of hire) must be paid the standard minimum wage for those over 18 moving forward. Otherwise, the state minimum wage for minors is $8 per hour.
Special Permissions: Employers can request special permission to employ certain mentally or physically handicapped workers at sub-minimum wage rates, subject to state approval.
Meals and Lodging: Meals and lodging can be considered part of minimum wage pay, but only under very limited circumstances.
Illinois Posting Requirements
Illinois mandates several state-related wage and labor law posters. It allows the posters for the Child Labor Law, Minimum Wage Law, Wage Payment and Collection Act, Equal Pay Act, Victims’ Economic Security and Safety Act, and the One Day Rest in Seven Act to be combined, reducing the number of required posters.
Some employers may have additional posting requirements based on their industry. For instance, day and temporary labor agencies must display information about the Day and Temporary Labor Services Act.
General Required Posters:
- Minimum Wage
- Job Discrimination and Sexual Harassment
- Workers’ Compensation
- Unemployment Insurance
- Servicemember Employment and Reemployment
- Pregnancy Rights
- Payday Notice
- Emergency Care for Choking
- No Smoking
Additional Posters:
- Employee Classification Act – Required for all construction contractors utilizing independent contractors
- Safety and Health Protection on the Job – Required for public sector employers
Tipped Wage in Illinois
Illinois adheres to the Federal Fair Labor Standards Act (FLSA) rules regarding tip credits but caps the tip credit amount at 40% of the state minimum wage. The most advantageous law for employees applies.
As of January 1, 2021, the tipped wage direct rate in Illinois is $6.60 per hour. In Cook County, the tipped minimum wage will be adjusted for inflation by July 2021. In Chicago, the tipped minimum wage is $8.40 per hour for employers with 4 to 20 workers and $9 per hour for employers with 21 or more workers (as of July 1, 2021).
These rates will increase as the standard minimum wages in these areas rise.
State law allows the state training wage discount to be applied to tipped employees, using the 40% tip credit level from the state training minimum wage rate for the first 90 days of employment.
Illinois state laws do not address tip pooling, so it falls under FLSA rules.
Overtime Wage in Illinois
In Illinois, overtime wage regulations are part of the state minimum wage laws rather than a separate law. Generally, employees must be paid time and a half their regular rate for any hours worked over 40 in a workweek, with some exceptions.
Comp Time: Compensatory time in lieu of overtime pay is prohibited for non-government companies in Illinois.
Workweeks: Workweeks are fixed based on the employee’s usual schedule and do not have to align with the calendar week. Once established, the workweek remains consistent and cannot be adjusted weekly based on the work schedule.
Regular Pay Rate Calculations: Specific premiums paid to employees are excluded from regular pay rate calculations as outlined in state law.
Pay Types: All pay types, including piece rates, flat fees with fluctuating hours, salary, and day rates, are subject to overtime rules unless specifically exempted. Each pay type has a unique calculation to determine when overtime is due and what constitutes the regular rate of pay.
Job Duty Exemptions: Overtime exemptions in Illinois often align with state minimum wage exemptions and include:
- Executives
- Learned and creative professionals
- Computer workers
- Administrative workers
- Outside sales workers
Additional Exemptions:
- Agricultural workers
- Some vehicle dealership salesmen and mechanics
- Certain radio or television employees
- Participants in workplace hour exchange programs
- Employees in some residential or educational child care facilities
Each category has specific requirements that must be met for the exemption to apply.
Child Labor Laws in Illinois
Illinois, like most states and the federal Fair Labor Standards Act (FLSA), limits the types of jobs minors can do, their working hours, and requires work permits. Illinois minor labor rules address wage-and-hour issues.
Work Permits and Certificates: All minors under 16 must obtain both work permission permits and physical fitness to work certificates, including those involved in modeling, acting, or other entertainment work.
Hazardous Jobs: In addition to FLSA prohibited and hazardous work designations, Illinois has 26 jobs deemed too hazardous for minors.
Training Minimum Wage: A special state training minimum wage of $8 per hour (as of January 1, 2020) is allowed for minors under 18, unless another law provides a higher rate. Once a minor works at least 650 hours in an employment year (12 months from the date of hire), they must be paid the adult minimum wage.
Trust Fund for Performers: Minors working as performers must have a trust fund established, with at least 15% of their gross earnings deposited into it.
Exceptions: Certain occupations have exceptions to minor work restrictions, including:
- Agricultural work for parents on family-owned farms (age 12 and up)
- In-home work outside school hours and non-business related
- Golf caddies (over age 13)
- Sports officials (12- and 13-year-olds)
Working Hours: Minors cannot work during school hours (with some government-sponsored work program exceptions) and may not work before 7 a.m. or after 7 p.m., except during the summer break (June 1 to Labor Day) when they can work until 9 p.m.
Meal Breaks: Minors must receive at least a 30-minute meal break no later than five hours into their shift.
Employer Recordkeeping Requirements in Illinois
Illinois recordkeeping requirements vary by industry and the age of the employee.
General Requirements: Employers must retain employee information (name, address, Social Security number, etc.), pay rate, payment dates, hours worked, and other standard payroll information for at least three years.
Employing Minors: Employers must keep work and fitness certificates, employee schedules showing break times, and detailed records of hours and days worked, along with payment information.
E-Verify Program: Employers participating in the E-Verify program have additional recordkeeping requirements and may need to consider the state’s Right to Privacy in the Workplace Act.
Day and Temporary Labor Industry: Employers must keep records regarding the third-party employer and make these records available to the employee within five days upon request.
Illinois Labor Law Questions & Answers
Illinois restricts working hours for minors based on age:
- Under 16: When school is not in session (including weekends and holidays), minors can work up to 8 hours a day, 6 days a week, and 48 hours a week.
- Ages 14 and 15: During school sessions, minors can work up to 3 hours per day and 24 hours per week. The combined time of work and school cannot exceed 8 hours in a day.
Yes, under the One Day Rest in Seven Act, employees must receive a meal break of at least 20 minutes for every 7.5-hour shift, provided no later than 5 hours into the shift. Certain industries may have additional break requirements:
- Hotel attendants: Must receive two paid 15-minute breaks and a 30-minute unpaid meal break for shifts of at least 7 hours.
- Minors: Additional break requirements apply.
Illinois does not specifically address tip pooling in state law, so it follows the Fair Labor Standards Act (FLSA) guidelines. The FLSA allows tip pooling, provided customers and employees are informed in advance, and the pool is limited to those in the chain of service. The 2018 HR 1625 amendments to the FLSA prohibit tip sharing with employers, managers, or supervisors, regardless of whether a tip credit is taken.
Illinois Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.