Illinois employment rules for employers
Last verified Sep 24, 2026 · 11 verified rules · How we verify every rule
General information, not legal advice. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Every rule on this page links to its official source.
Minimum wage
Illinois' minimum wage is $15.00 per hour for employers of 4 or more employees (excluding family members), for employees 18 and older. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026))
What is the minimum wage?$15.00 per hourVerified Sep 24, 2026 · 2 official sources
Illinois' minimum wage is $15.00 per hour for employers of 4 or more employees (excluding family members), for employees 18 and older. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026))
“Illinois Applicable to employers of 4 or more employees, excluding family members Basic Minimum Rate (per hour): $15.00”
“Beginning January 1, 2025, the minimum wage in Illinois is $15.00 per hour for those individuals who are 18 years and older.”
Used in: How to hire your first employee
Paydays
How often do you have to pay?Semi-monthlyVerified Sep 24, 2026 · 2 official sources
Executive administrative professional: Illinois executive, administrative and professional employees may be paid monthly. (State Payday Requirements (U.S. DOL Wage and Hour Division table, January 1, 2023))
“2 Illinois, Nevada, New Mexico, and Virginia. Monthly payday requirements for Executive, Administrative, and Professional personnel.”
“Wages of executive, administrative and professional employees as defined in the Fair Labor Standards Act of 1938, may be paid once per month.”
dol.gov · labor.illinois.gov · verified Sep 24, 2026 · 2 official sources
General rule: Illinois employers must pay wages at least semi-monthly. (State Payday Requirements (U.S. DOL Wage and Hour Division table, January 1, 2023))
“Illinois X X 2”
“Every employer is required to pay all wages earned at least semi-monthly. The wages are to be paid no later than 13 days after the end of the pay period in which the wages were earned.”
dol.gov · labor.illinois.gov · verified Sep 24, 2026 · 2 official sources
Used in: How to hire your first employee
Meal breaks
Do adult employees get a meal break?20 minutesVerified Sep 24, 2026 · 2 official sources
Employees who work 7.5 continuous hours or more must get a meal period of at least 20 minutes, beginning no later than 5 hours after the start of the work period, plus an additional 20-minute meal period for every additional 4.5 continuous hours worked. (Minimum Length of Meal Period Required under State Law for Adult Employees in Private Sector (U.S. DOL WHD table, January 1, 2023))
“At least 20 minutes, no later than 5 hours after the start of the work period, to employees who work 7 ½ continuous hours or more.”
“Employees must also be given a meal period of at least 20 minutes for every 7.5-hour shift beginning no later than 5 hours after the start of the shift, with an additional 20-minute meal period for every additional 4.5 continuous hours worked.”
One more case for this topic is not verified yet. Check the official source.
Illinois break laws: full page · Break laws by state
Rest breaks
Do adult employees get paid rest breaks?Not verified yetCheck the official source
We have not verified this rule for Illinois yet. Check the official source: dol.gov.
Illinois break laws: full page · Break laws by state
Final paycheck
If you fire someone, when is the last paycheck due?Next regular paydayVerified Sep 24, 2026 · 2 official pages from the same agency
A separated employee must be paid final compensation in full at separation if possible, and no later than the next regularly scheduled payday. (Illinois Wage Payment and Collection Act, 820 ILCS 115/5 (Illinois Department of Labor FAQ))
“When an employee leaves an employer's employment, the employer is required to pay the final compensation of separated employees in full at the time of separation, if possible, but in no event later than the next regularly scheduled payday for such employee.”
“Employees must receive their final compensation, including earned wages, vacation pay, commissions and bonuses on their next regularly scheduled payday.”
If an employee quits, when is the last paycheck due?Next regular paydayVerified Sep 24, 2026 · 2 official pages from the same agency
An employee who quits must be paid final compensation in full at separation if possible, and no later than the next regularly scheduled payday. (Illinois Wage Payment and Collection Act, 820 ILCS 115/5 (Illinois Department of Labor FAQ))
“When an employee leaves an employer's employment, the employer is required to pay the final compensation of separated employees in full at the time of separation, if possible, but in no event later than the next regularly scheduled payday for such employee.”
“Employees must receive their final compensation, including earned wages, vacation pay, commissions and bonuses on their next regularly scheduled payday.”
Illinois final paycheck law: full page · Final paycheck laws by state · Final paycheck date calculator
Used in: How to fire an employee in your state · Employee no call, no show: what to do · An employee resigned: what to do next
Unused vacation (PTO) at separation
Do you have to pay out unused vacation when someone leaves?Yes, alwaysVerified Sep 24, 2026 · 2 official pages from the same agency
In Illinois, an employer that provides vacation under an employment contract or policy must pay the monetary equivalent of all earned, unused vacation to an employee who resigns or is fired. A policy cannot forfeit earned vacation at separation. Vacation pay is part of final compensation, which is due by the next regularly scheduled payday. (Illinois Dept. of Labor, Vacation FAQ (820 ILCS 115/5; 56 Ill. Adm. Code 300.520))
“If an employment policy states that an employer does not have to pay at the time of separation all unused vacation, the employment policy is not allowed to provide for a forfeiture of earned time upon separation. The employer is required to pay the monetary equivalent of all earned vacation to an employee who resigns or is terminated without having taken all vacation time earned in accordance with such individual employment contract or policy.”
“All final compensation, including bonus payments, vacation pay, wages and commissions must be paid on your next regularly scheduled payday. 820 ILCS 115/5.”
Illinois PTO payout law: full page · PTO payout laws by state
Used in: How to fire an employee in your state · An employee resigned: what to do next
Paid sick leave
Do you have to give paid sick leave?Yes, statewideVerified Sep 24, 2026 · 2 official sources
The Paid Leave for All Workers Act took effect January 1, 2024; accrual begins at the start of employment or January 1, 2024, whichever is later, and employees may start using leave after 90 days. (Illinois DOL, Paid Leave for All Workers Act FAQ)
“PLAWA went into effect on January 1, 2024. Accrual of paid leave begins upon the start of employment or January 1, 2024, whichever is later. Employees are entitled to begin using the accrued paid leave after 90 days.”
“SPRINGFIELD - Workers in Illinois will begin earning paid time off on January 1, 2024.”
labor.illinois.gov · gov.illinois.gov
2 more cases for this topic are not verified yet. Check the official source.
Illinois paid sick leave law: full page · Paid sick leave laws by state
At-will employment
Yes. Illinois follows at-will employment, with these exceptions (Ross v. May Co. (Ill. App. Ct., 1st Dist., No. 1-06-0239, 2007), quoting Duldulao v. Saint Mary of Nazareth Hospital Center, 115 Ill. 2d 482, 490 (1987)):
- Public policy: Recognized (Turner v. Memorial Medical Center, 233 Ill. 2d 494 (2009) (Ill. Sup. Ct. Docket No. 107317), quoting Barr v. Kelso-Burnett Co., 106 Ill. 2d 520 (1985))
- Implied contract: Recognized (Ross v. May Co. (Ill. App. Ct., 1st Dist., No. 1-06-0239, 2007), quoting Duldulao v. Saint Mary of Nazareth Hospital Center, 115 Ill. 2d 482, 490 (1987))
- Good faith and fair dealing: not verified yet (check the official source)
Public policy exception: recognized?RecognizedVerified Sep 24, 2026 · 2 official pages from the same agency
Illinois recognizes the tort of retaliatory discharge: an employer may fire an at-will employee for any reason or no reason, except when the discharge violates a clearly mandated public policy (Kelsay v. Motorola; Palmateer v. International Harvester). The Illinois Supreme Court describes the tort as limited and narrow. (Turner v. Memorial Medical Center, 233 Ill. 2d 494 (2009) (Ill. Sup. Ct. Docket No. 107317), quoting Barr v. Kelso-Burnett Co., 106 Ill. 2d 520 (1985))
“The common law doctrine that an employer may discharge an employee-at-will for any reason or for no reason is still the law in Illinois, except for when the discharge violates a clearly mandated public policy.”
“The common law doctrine that an employer may discharge an employee-at-will for any reason or for no reason remains the law in Illinois, except when the discharge violates a clearly mandated public policy.”
Implied contract exception: recognized?RecognizedVerified Sep 24, 2026 · 2 official pages from the same agency
Illinois recognizes that an employee handbook or other policy statement can create enforceable contractual rights that limit at-will employment when the traditional requirements for contract formation are met (Duldulao v. Saint Mary of Nazareth Hospital Center). (Ross v. May Co. (Ill. App. Ct., 1st Dist., No. 1-06-0239, 2007), quoting Duldulao v. Saint Mary of Nazareth Hospital Center, 115 Ill. 2d 482, 490 (1987))
“an employee handbook or other policy statement creates enforceable contractual rights if the traditional requirements for contract formation are present.”
“which held that "an employee handbook or other policy statement creates enforceable contractual rights" if three conditions were met”
Good faith and fair dealing exception: recognized?Not verified yetCheck the official source
We have not verified this rule for Illinois yet. Check the official source: labor.illinois.gov.
Used in: How to write up an employee (the right way, in your state) · How to put an employee on a performance improvement plan · Employee no call, no show: what to do · Insubordination: what counts, and how to handle it
Service letter (reason for termination)
Do you have to give a written reason for the termination on request?Not verified yetCheck the official source
We have not verified this rule for Illinois yet. Check the official source: labor.illinois.gov.
Used in: How to write up an employee (the right way, in your state) · How to fire an employee in your state
Separation notice
Do you have to give a separation notice when someone leaves?YesVerified Sep 24, 2026 · 2 official pages from the same agency
Illinois employers must give the IDES pamphlet 'What Every Worker Should Know About Unemployment Insurance' to each worker laid off for seven days or more or separated for any reason, at the time of separation; if that is impracticable, it must be mailed to the worker's last known address within five days of separation. (IDES pamphlet CLI111L, What Every Worker Should Know About Unemployment Insurance)
“When workers are laid off for a period of seven days or more or are separated from the payroll for any reason, employers are required to provide them with a copy of this publication. If it is not practical to provide copies at the work site, the publication should be mailed to employees’ last known address within five calendar days of separation.”
“Each employer shall deliver the pamphlet “What Every Worker Should Know About Unemployment Insurance” to each worker separated from employment for an expected duration of seven or more days. The pamphlet shall be delivered to the worker at the time of separation or, if delivery is impracticable, mailed within five days after the date of the separation to the worker’s last known address.”
Used in: How to fire an employee in your state
Illinois topic pages
Final pay after firing, neighbors
| State | Final pay after firing |
|---|---|
| Illinois | Next regular payday |
| Wisconsin | Not verified |
| Iowa | Next regular payday |
| Missouri | Not verified |
| Kentucky | Next payday or 14 days, whichever is later |
| Indiana | Not verified |
Only verified rules are shown. "Not verified" means we have not checked that state's rule yet; open its rulebook for the official source.
What an employee costs in Illinois
Beyond the salary, an employer pays these payroll taxes on each employee. Rates for 2026, from official sources:
- Social Security: 6.2% of wages, up to $184,500 per employee in 2026 (Publication 15).
- Medicare: 1.45% of all wages, with no wage base limit (Topic 751).
- Federal unemployment (FUTA): 6.0% of the first $7,000 of each employee's wages, with a credit of up to 5.4% for state unemployment taxes paid, so usually 0.6% (Topic 759).
- FUTA credit reduction: Illinois is not on the DOL list for 2025 (final) or 2026 (potential), so the full 5.4% credit is available if state unemployment taxes are paid in full and on time (U.S. DOL, FUTA credit reductions; Topic 759).
- Illinois unemployment insurance: taxes apply to the first $14,250 of each employee's wages. Rates for experience-rated employers run from 0.20% to 6.50%; the new-employer base rate is 2.80%. Source: U.S. DOL, Significant Provisions of State UI Laws, effective July 2026, page 2. The DOL notes that higher rates may apply by industry and that the table "is not an official interpretation of state UI laws". Find the Illinois unemployment agency.
A worked example: $40,000 salary
Estimate, before benefits and workers' comp; check with your payroll provider. It assumes a new employer, a full year of wages and the full FUTA credit.
| Tax on a $40,000 salary | Per year |
|---|---|
| Social Security, 6.2% (Topic 751) | $2,480 |
| Medicare, 1.45% (Topic 751) | $580 |
| Federal unemployment (FUTA), 0.6% of the first $7,000 (Topic 759) | $42 |
| Illinois unemployment insurance, new-employer rate 2.80% of the first $14,250 (DOL, July 2026) | $399 |
| Estimated total employer taxes | $3,501 |
Estimate: $3,501 is about 8.8% on top of the salary. It leaves out health insurance, retirement contributions, workers' compensation, state disability or paid leave programs and any local taxes.
Federal wage enforcement in Illinois
In FY2021 to FY2025, the U.S. Department of Labor's Wage and Hour Division concluded 1,804 cases in Illinois (n = 1,804), finding $22,982,517 in back wages owed to 20,541 employees (DOL enforcement data). Enforcement data is not a violation rate: it shows where federal investigators looked, and many states handle wage claims through their own agencies. Wage violations by industry.
Changes coming in 2027
- Minimum wage (Chicago, IL), from Jul 1, 2027: the new amount is not announced yet (chicago.gov).
Changelog
- Sep 24, 2026: first verified, 11 rules.
Questions about Illinois employer rules
What is the minimum wage in Illinois?
Illinois' minimum wage is $15.00 per hour for employers of 4 or more employees (excluding family members), for employees 18 and older. (State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026))
Is Illinois an at-will state?
Yes. Illinois follows at-will employment, with exceptions. Of the 3 common exceptions, we have verified 2, and 2 are recognized in Illinois (Ross v. May Co. (Ill. App. Ct., 1st Dist., No. 1-06-0239, 2007), quoting Duldulao v. Saint Mary of Nazareth Hospital Center, 115 Ill. 2d 482, 490 (1987)).
When is the final paycheck due after firing someone in Illinois?
A separated employee must be paid final compensation in full at separation if possible, and no later than the next regularly scheduled payday. (Illinois Wage Payment and Collection Act, 820 ILCS 115/5 (Illinois Department of Labor FAQ))
Sources (22)
- State Minimum Wage Laws (U.S. DOL Wage and Hour Division table, updated July 1, 2026)
- Illinois Department of Labor, Minimum Wage/Overtime FAQ (820 ILCS 105/4)
- State Payday Requirements (U.S. DOL Wage and Hour Division table, January 1, 2023)
- Illinois Department of Labor, Wage Payment and Collection Act FAQ (820 ILCS 115/3)
- Minimum Length of Meal Period Required under State Law for Adult Employees in Private Sector (U.S. DOL WHD table, January 1, 2023)
- Illinois Department of Labor, One Day Rest In Seven Act (ODRISA), 820 ILCS 140
- Illinois Department of Labor, Your Rights Under Illinois Employment Laws poster (2023)
- Illinois Dept. of Labor, Vacation FAQ (820 ILCS 115/5; 56 Ill. Adm. Code 300.520)
- Illinois DOL, Paid Leave for All Workers Act FAQ
- Office of the Governor, press release on the Paid Leave for All Workers Act
- Ross v. May Co. (Ill. App. Ct., 1st Dist., No. 1-06-0239, 2007), quoting Duldulao v. Saint Mary of Nazareth Hospital Center, 115 Ill. 2d 482, 490 (1987)
- Unterschuetz v. City of Chicago (Ill. App. Ct., 1st Dist., No. 1-02-2871), discussing Duldulao v. Saint Mary of Nazareth Hospital Center, 115 Ill. 2d 482, 490 (1987)
- Turner v. Memorial Medical Center, 233 Ill. 2d 494 (2009) (Ill. Sup. Ct. Docket No. 107317), quoting Barr v. Kelso-Burnett Co., 106 Ill. 2d 520 (1985)
- Illinois Pattern Jury Instructions (Civil), 250.00 Retaliatory Discharge, Comments
- IDES pamphlet CLI111L, What Every Worker Should Know About Unemployment Insurance
- IDES Notice to Employees (poster required by the Illinois Unemployment Insurance Act)
- IRS Publication 15 (2026), Circular E, Employer's Tax Guide
- IRS Topic no. 751, Social Security and Medicare withholding rates
- IRS Topic no. 759, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
- U.S. DOL, Employment and Training Administration: FUTA credit reductions
- U.S. DOL, Office of Unemployment Insurance: Significant Provisions of State Unemployment Insurance Laws, effective July 2026
- U.S. Department of Labor: State labor offices
Checked Sep 24, 2026 · How we verify every rule · Report an error