Illinois Employment Laws for Employers
Reviewed Sep 27, 2026 10 of 13 rules verified against official sources How we verify
Not a substitute for the advice of an attorney. General information; laws vary by state. Terms of use
Final pay and unused vacation
Final paycheck
If you fire someone, when is the last paycheck due?Next regular paydayVerified Sep 27, 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.”
labor.illinois.gov · labor.illinois.gov
Put it in writing with the termination letter template for Illinois.
If an employee quits, when is the last paycheck due?Next regular paydayVerified Sep 27, 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))
Same official text as quoted above (see the quote; Illinois Wage Payment and Collection Act, 820 ILCS 115/5 (Illinois Department of Labor FAQ) · labor.illinois.gov).
“Employees must receive their final compensation, including earned wages, vacation pay, commissions and bonuses on their next regularly scheduled payday.”
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.”
Wages, paydays and breaks
Minimum wage
What is the minimum wage?$15.00 per hourVerified Sep 27, 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.”
Paydays
How often do you have to pay?Semi-monthlyVerified Sep 27, 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 27, 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 27, 2026 · 2 official sources
Meal breaks
Do adult employees get a meal break?20 minutesVerified Sep 27, 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 pending verification. Official source.
Pending verification. Not verified for Illinois yet, so no answer is shown. Each link opens the official source to check.
Paid sick leave
Do you have to give paid sick leave?Yes, statewideVerified Sep 24, 2026 · 2 official pages from the same agency
Accrual: Where the Illinois Paid Leave for All Workers Act applies (it does not cover the City of Chicago or Cook County, which have their own paid leave ordinances), employees earn at least 1 hour of paid leave (usable for any reason, including sickness) for every 40 hours worked; employers may front-load instead. (Illinois DOL, Paid Leave for All Workers Act FAQ)
“Under the Act, employees can earn at least 1 hour of paid time off for every 40 hours worked, up to 40 hours in a 12-month period.”
“The law entitles employees to earn 1 hour of paid leave for every 40 hours worked, up to 40 hours per year,”
labor.illinois.gov · labor.illinois.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Annual cap: Where the Illinois Paid Leave for All Workers Act applies (not in the City of Chicago or Cook County, which have their own paid leave ordinances), employees can earn and use up to 40 hours of paid leave per 12-month period (employers may provide more). (Illinois DOL, Paid Leave for All Workers Act FAQ)
Same official text as quoted above (see the quote; Illinois DOL, Paid Leave for All Workers Act FAQ · labor.illinois.gov).
Same official text as quoted above (see the quote; Illinois DOL, Paid Leave for All Workers Act fact sheet · labor.illinois.gov).
labor.illinois.gov · labor.illinois.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Effective date: The Illinois Paid Leave for All Workers Act took effect January 1, 2024 (it does not cover the City of Chicago or Cook County, which have their own paid leave ordinances); 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 · verified Sep 24, 2026 · 2 official pages from the same agency
Note: The Illinois Paid Leave for All Workers Act does not apply to workers and employers in the City of Chicago or Cook County. Chicago and Cook County have their own paid leave ordinances; check the local rule there. (Illinois Paid Leave for All Workers Act (820 ILCS 192); Illinois DOL PLAWA FAQ)
Ending employment
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: pending verification (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); Illinois Pattern Jury Instructions (Civil), 250.00 Retaliatory Discharge, Comments)
“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); 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))
“Our supreme court crafted an exception to this rule where " 'an employee handbook or other policy statement creates enforceable contractual rights if the traditional requirements for contract formation are present.' "”
“For example, plaintiff notes the supreme court's decision in Duldulao v. Saint Mary of Nazareth Hospital Center, 115 Ill. 2d 482, 490 (1987), which held that "an employee handbook or other policy statement creates enforceable contractual rights" if three conditions were met: (1) it contains "a promise clear enough that an employee would reasonably believe that an offer has been made"; (2) "the employee is aware of its contents and reasonably believes it to be an offer"; and (3) the employee accepts the offer "by commencing or continuing to work after learning of the policy statement."”
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.”
Illinois and its neighbors
| State | Final pay after firing | Final pay after quitting | Minimum wage | Paid sick leave |
|---|---|---|---|---|
| Illinois | Next regular payday | Next regular payday | $15.00 per hour | Yes, statewide |
| Wisconsin | Pending verification. Official source (dwd.wisconsin.gov). | Pending verification. Official source (dwd.wisconsin.gov). | $7.25 per hour | No statewide law |
| Iowa | Next regular payday | Next regular payday | $7.25 per hour | No statewide law |
| Missouri | Day of discharge | Pending verification. Official source (revisor.mo.gov). | $15.00 per hour | No statewide law |
| Kentucky | Next payday or 14 days, whichever is later | Next payday or 14 days, whichever is later | $7.25 per hour | Pending verification. Official source (elc.ky.gov). |
| Indiana | Next regular payday | Next regular payday | $7.25 per hour | Pending verification. Official source (in.gov). |
Verified rules only; open a state for its sources.
What an employee costs in Illinois
Every employer pays Social Security 6.2% (Publication 15), Medicare 1.45% (Topic 751) and FUTA (Topic 759). Illinois adds its unemployment insurance tax:
| Illinois payroll tax, 2026 | Amount |
|---|---|
| Taxable wage base per employee | $14,250 |
| Rates for experience-rated employers | 0.20% to 6.50% |
| New-employer rate | 2.80% |
| FUTA credit reduction | None for 2025 or 2026 |
| Estimated employer taxes on a $40,000 salary | $3,501 (8.8%) |
Of the $3,501, $399 is Illinois unemployment insurance tax (2.80% on the first $14,250 of wages) and $3,102 is federal tax.
The estimate counts FUTA at 0.6% of the first $7,000 ($42 per employee), which assumes the full FUTA credit (Topic 759).
Estimate for a new employer and a full year; check with your payroll provider. Sources: U.S. DOL, State UI Laws, July 2026, page 2; U.S. DOL, FUTA credit reductions.
Federal wage enforcement in Illinois
In FY2021 to FY2025, the federal Wage and Hour Division concluded 1,804 cases in Illinois (n = 1,804), 1,377 with violations, finding $22,982,517 in back wages owed to 20,541 employees and assessing $1,970,600 in civil money penalties (DOL enforcement data). Overtime back wages were part of 50% of the violation cases. OSHA opened 14,181 inspections in the same years (OSHA data). Enforcement data is not a violation rate: it shows where federal investigators looked. Wage violations by industry.
Illinois has no OSHA-approved State Plan for private workplaces, so federal OSHA enforces workplace safety for private employers in Illinois (OSHA: State Plans).
By industry in Illinois
| Industry | WHD cases | Back wages | Violation cases with minimum-wage back wages | Most-cited safety standard |
|---|---|---|---|---|
| Restaurants and food service | 544 | $5,416,119 | 13.4% | Hazard communication: chemical labels, safety data sheets and training (29 CFR 1910.1200) |
| Retail | 99 | $835,222 | 9.1% | Forklifts and other powered industrial trucks (29 CFR 1910.178) |
| Construction | 224 | $2,799,979 | 5.1% | Fall protection: when it is required (29 CFR 1926.501) |
| Health care (incl. home care) | 267 | $5,213,381 | 4.2% | Respirators and fit testing (29 CFR 1910.134) |
| Home health and home care (subset of health care) | 91 | $1,641,091 | 4.5% | Bloodborne pathogens: needles, blood and body fluids (29 CFR 1910.1030) |
| Child care | 12 | $31,626 | n/a | n/a |
Federal fiscal years 2021 to 2025; WHD enforcement data. Industries overlap (home health is part of health care). Illinois detail and method.
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, 13 rules.
Questions about Illinois employment laws
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 (18)
- 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
- Illinois DOL, Paid Leave for All Workers Act fact sheet
- 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)
- U.S. Department of Labor: State labor offices
Checked Sep 27, 2026 · How we verify every rule · Report an error
General information, not legal advice. Not a substitute for the advice of an attorney. 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. Report an error