Get an overview of the Illinois labor laws small businesses should know when hiring, and updates on employment laws that could impact your business.
The state minimum wage in Illinois is $14 per hour:
Some cities in Illinois have their own wage requirements that exceed the state-wide minimum wage. Employers with potentially impacted employees should review both state and local requirements.
Below are the minimum wages in some of Illinois larger cities or localities that exceed the state rate:
Cook County - $14.05 per hour
Chicago - $16.20 per hour for employers with at least 4 employees
Please check the references for additional minimum wage requirements across localities.
References:
Illinois follows the federal minimum exempt salary requirement of $884 per week, or $43,888 per year for most exemptions from minimum wage and overtime.
References: Federal Minimum Exemption Threshold
Employees in Illinois who work at least 7.5 hours per day must receive a 20-minute break meal break within the first five hours of work.
References: One Day Rest In Seven Act
Employers in Illinois must provide reasonable unpaid break time to employees who need to pump breast milk for up to one year after childbirth. This break time can coincide with existing rest periods. Employers are prohibited from reducing compensation for employees taking lactation breaks.
References: Nursing Mothers in the Workplace Act
Keep up to date with important changes to state and local employment laws in Illinois.
The Illinois state legislature has amended the Personnel Records Review Act to include new employer obligations when receiving personnel record requests. Effective January 1, 2025, employers will be required to provide a broader range of personnel documents, including but not limited to employment-related agreements; employee handbooks; written employer policies and procedures; and personnel documents used in determining an employee’s qualifications for employment, promotion, and benefits. The amended law also requires that requests for records be submitted in writing and must follow a certain set of guidelines. Employers should review and update their current procedures to ensure compliance.
Governor Pritzker has signed the Worker Freedom of Speech Act. The new law prevents employers from disciplining, firing, penalizing, or threatening employees for refusing to attend mandatory meetings or refusing to receive or listen to communications, where the employer shares opinions on religious or political topics. Political topics include decisions about joining or supporting any labor organization. The law also prohibits employers from offering incentives, such as rewards or improved employment conditions, to encourage attendance. Employers will be required to post a notice informing employees of their rights under the Act within 30 days after it takes effect. Justworks’ compliance poster service will monitor for any model notices from the state.
Illinois has amended its Biometric Information Privacy Act (BIPA) to address concerns over high risk biometric data. The amendment includes changes such as reducing the statute of limitations for filing claims from five years to three years and capping damages for negligent violations at $1,000 per violation. Employers should review and revise their biometric data policies and practices to ensure compliance.
On August 9, 2024, Governor Pritzker agreed to amend the Day and Temporary Labor Services Act (DTLSA) to impose additional compliance requirements. The changes include new notice and paperwork obligations, notice requirements related to labor disputes, and revised standards for pay and benefits. Employers that use temporary labor service agencies should review their staffing agency contracts and update relevant policies and practices to comply with the amendments.
The Illinois Human Rights Act (IHRA) has been amended with the recent passage of several bills. Amendments going into effect on January 1, 2025 include an extension of the statute of limitations to file an employment discrimination, harassment, or retaliation charge with the state, protections for employees based on their “family responsibilities”, and discrimination protections for employees based on their reproductive health decisions. In addition, effective January 1, 2026, employers will be prohibited from using AI that has the effect of discriminating against protected classes. Employers must notify employees when AI is used in recruiting, hiring, promotion, discipline, discharge or other employment-related decisions. Given these upcoming changes, employers should review and update any related company policies and practices in consultation with legal counsel. Employers are also encouraged to monitor the Illinois Department of Human Rights website for further guidance.
On April 30, 2024, the Chicago Department of Business Affairs and Consumer Protection (BACP) published the final rules implementing the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (the “Ordinance”) that will finally take effect on July 1, 2024 (previously postponed from December 31, 2023). This new ordinance provides up to 40 hours of paid time off for any reason and 40 hours of paid sick leave for all of Chicago’s workers within an employer’s defined 12-month period.
The released guidance addresses the employer’s defined 12-month period, the distinctions between these two types of leave for accrual, carryover, approving time off, employer notice, and posting requirements. Employers should review and update their paid leave policies to meet these local requirements.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.
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