Illinois Minimum Wage 2026
⚠️Informational only — not legal or tax advice.
Last Updated: February 3, 2026
Last Reviewed: February 3, 2026
Applicable Period: 2026
Jurisdiction: State of Illinois, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter
Table of Contents
- Introduction
- Illinois Minimum Wage – 2026 Quick Reference
- Overview of Minimum Wage Law in Illinois
- Current Minimum Wage Rates in Illinois 2026
- Minimum Wage for Tipped Employees
- Local Minimum Wage Ordinances in Illinois
- Who Is Covered and Who Is Exempt
- Employer Obligations and Enforcement
- Illinois Minimum Wage vs Federal Law
- Minimum Wage Posting Requirements
- Frequently Asked Questions
- Information Verification Log
Introduction
The minimum wage in Illinois establishes the lowest hourly compensation that employers must legally provide to covered employees. For 2026, Illinois maintains a minimum wage of $15.00 per hour for workers aged 18 and older, with specific provisions for tipped employees, youth workers, and local jurisdictions with higher minimum wage ordinances in Chicago and Cook County.
Minimum wage regulations in Illinois operate under 820 ILCS 105 alongside federal requirements established by the Fair Labor Standards Act (FLSA). When state or local minimum wage rates exceed the federal standard, employers must comply with the higher applicable rate. Illinois allows tip credits, and Chicago has enacted a higher minimum wage ordinance exceeding the statewide rate, with Cook County matching the state minimum while retaining authority for future adjustments.
This page provides an authoritative overview of Illinois minimum wage law for 2026, including current rates, tipped employee provisions, local wage ordinances in Chicago and Cook County, youth and training wage provisions, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.
| Illinois Minimum Wage – 2026 Quick Reference | |||
|---|---|---|---|
| Category | Rate | Effective Date | Official Source |
| State minimum wage | $15.00/hour | January 1, 2025 | 820 ILCS 105/4 |
| Tipped minimum wage | $9.00/hour | January 1, 2025 | 820 ILCS 105/4 |
| Tip credit allowed | Yes (up to 40%) | — | Illinois Department of Labor |
| Youth minimum wage | $13.00/hour | January 1, 2025 | 820 ILCS 105/4 |
| Training wage | $14.50/hour | — | Illinois law |
| Next scheduled increase | None | N/A | No further increases scheduled |
| Rate adjustment mechanism | Fixed | — | Requires new legislation |
| Federal minimum wage | $7.25/hour | Ongoing | U.S. Department of Labor |
| Chicago minimum wage | $16.60/hour | July 1, 2025 | City of Chicago ordinance |
| Cook County minimum wage | $15.00/hour | July 1, 2025 | Cook County ordinance |
Last verified: February 3, 2026 via Illinois Department of Labor website
Overview of Minimum Wage Law in Illinois
Legal Authority
Illinois minimum wage requirements are established under the Minimum Wage Law, 820 ILCS 105/1 et seq. The Illinois Department of Labor administers and enforces minimum wage regulations in Illinois. The state minimum wage law was most recently amended through Public Act 101-0001, signed by Governor Pritzker on February 19, 2019, which established a schedule of annual increases culminating in the $15.00 per hour minimum wage that took effect on January 1, 2025.
Relationship to Federal Law
Under the Fair Labor Standards Act (FLSA), the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. Illinois law operates independently and establishes a higher state minimum wage standard. When both state and federal minimum wage laws apply, employers must pay whichever rate is higher.
Because Illinois’s minimum wage of $15.00 exceeds the federal minimum, most covered employers must comply with the state rate. However, employers not subject to state minimum wage requirements but covered by federal law must comply with FLSA standards at the federal rate of $7.25 per hour.
Coverage Scope
Illinois minimum wage law applies to all employers and employees in Illinois except those specifically exempted by statute. The law covers private sector employers regardless of size, with the exception of certain categories outlined in the exemptions provisions. Specific industries and employee types are covered or exempt under state law as detailed in Section 6 of this guide.
Higher Rate Principle
The principle of “higher prevailing rate” requires employers to pay the highest applicable minimum wage—whether federal, state, or local. In Illinois, this means employers must identify and apply whichever minimum wage rate provides employees the highest hourly compensation. For employers operating in Chicago or certain areas of Cook County, the local minimum wage may exceed both state and federal rates.
Current Minimum Wage Rates in Illinois 2026
Standard Hourly Minimum Wage
As of January 1, 2025, the standard minimum wage in Illinois is $15.00 per hour for workers aged 18 and older. This rate applies to all covered employees unless they fall within specific exemption categories. Illinois reached the $15.00 minimum wage on January 1, 2025, as the final step in a multi-year schedule of increases established by Public Act 101-0001 in 2019.
The $15.00 rate represents a nearly doubling of the Illinois minimum wage over six years, from $8.25 in 2019. No further minimum wage increases are currently scheduled in Illinois. Any future changes to the state minimum wage would require new legislation enacted by the Illinois General Assembly and signed by the Governor.
Youth Minimum Wage
Illinois establishes a lower minimum wage for certain youth workers. Employees under 18 years of age who work fewer than 650 hours for an employer during any calendar year may be paid $13.00 per hour. Once a youth employee reaches 650 hours worked during the calendar year, the employer must pay the full standard minimum wage of $15.00 per hour for all subsequent hours worked.
The 650-hour threshold is calculated on a calendar-year basis beginning from the date of hire. For example, an employee hired on April 15, 2026, would have their 650-hour limit calculated from April 15, 2026, through April 15, 2027. Employers must maintain accurate records of hours worked by youth employees to ensure proper wage payment when the 650-hour threshold is reached.
Training Wage Provisions
Illinois permits employers to pay new employees aged 18 or older a training wage during their initial employment period. The training wage is $14.50 per hour and may be paid during the first 90 consecutive calendar days of employment with a particular employer. After the 90-day training period expires, employers must pay the full standard minimum wage of $15.00 per hour.
The training wage provision does not apply to tipped employees. Employers claiming the training wage must maintain documentation of the employee’s start date and the 90-day training period. The training wage applies only to new hires and cannot be used for employees returning to work after a temporary absence or for employees transferred between locations of the same employer.
Sub-Minimum Wage Certificates
Illinois law permits employers to obtain special certificates allowing payment of sub-minimum wages to learners and certain workers with physical or mental disabilities. These certificates must be obtained from the Illinois Department of Labor before paying wages below the standard minimum wage rate.
The Dignity in Pay Act, enacted in 2025, establishes a phase-out of sub-minimum wage certificates for workers with disabilities. Beginning December 31, 2029, the Illinois Department of Labor will stop issuing and recognizing licenses to pay disabled workers less than the full minimum wage rate. This phase-out provides employers with time, resources, and technical assistance to transition toward expanded competitive, integrated employment for people with disabilities.
Minimum Wage for Tipped Employees
Tipped Employee Cash Wage
Illinois permits employers to pay tipped employees a reduced cash wage, provided that employee tips combined with the cash wage equal at least the full minimum wage. The tipped minimum wage mechanism allows employers to take a tip credit against minimum wage obligations.
Cash wage requirement: $9.00 per hour
Maximum tip credit: $6.00 per hour (40% of standard minimum wage)
Total minimum compensation: $15.00 per hour (cash wage + tips)
Employers claiming the tip credit must ensure that the combination of the $9.00 hourly cash wage plus tips received equals or exceeds $15.00 per hour. If an employee’s tips fail to bring total compensation to the full minimum wage for any pay period, the employer must pay the difference to meet the $15.00 minimum.
Who Qualifies as a Tipped Employee
Under Illinois law, a “tipped employee” is defined as an employee who customarily and regularly receives gratuities from customers as part of their compensation. To qualify for the tipped minimum wage, an employee must receive more than $20 per month in tips. Qualifying occupations typically include:
- Restaurant servers and bartenders
- Bussers and food runners
- Hotel and casino service workers
- Parking attendants and valets
- Delivery drivers who receive tips
- Hair stylists and barbers
- Spa and massage service providers
- Other customer-facing service positions where tipping is customary
Employer Obligations for Tipped Workers
Employers who claim a tip credit for tipped employees must comply with specific obligations under Illinois law:
- Inform employees of the tip credit provisions. Employers must provide notice to tipped employees that the employer is taking a tip credit and that tips received by the employee must bring total compensation to at least the full minimum wage.
- Ensure total compensation equals or exceeds the full minimum wage for all hours worked. Employers must calculate total compensation (cash wage plus tips) for each pay period to verify compliance.
- Pay the difference if tips are insufficient. When an employee’s tips combined with the cash wage fail to reach $15.00 per hour for a pay period, the employer must make up the shortfall.
- Maintain accurate records of employee tips and hours worked. Employers must document cash wages paid, tips received by employees, and total compensation to demonstrate compliance.
- Comply with overtime requirements. Tipped employees must receive overtime compensation at 1.5 times the regular rate, calculated based on the cash wage before application of the tip credit, for all hours worked beyond 40 in a workweek.
Tip Pooling and Sharing
Illinois law permits tip pooling arrangements where tipped employees share their tips with other employees who customarily and regularly receive tips. Valid tip pooling arrangements must meet the following requirements:
Eligible participants: Only employees who customarily and regularly receive tips may participate in tip pools. This typically includes servers, bartenders, bussers, food runners, and other customer-facing service staff.
Prohibited participants: Employers, managers, and supervisors may not participate in tip pools or retain any portion of employee tips. Illinois law prohibits employers from keeping tips received by employees under any circumstances.
Voluntary or mandatory: Employers may establish mandatory tip pooling arrangements requiring tipped employees to contribute a reasonable portion of their tips to a pool for distribution among eligible employees.
Distribution requirements: Tip pools must be distributed among participating employees in a fair and reasonable manner. Employers must maintain records documenting tip pool contributions and distributions.
Retention of tips: All tips, whether pooled or individual, belong to employees. Employers may not use tips to offset any business expenses or operational costs.
Service Charges and Automatic Gratuities
Service charges or automatic gratuities added to customer bills are not considered “tips” under Illinois law unless certain conditions are met. The distinction between tips and service charges affects how employers must handle these payments:
Service charges: Mandatory charges added to customer bills (such as banquet service charges or large party gratuities) are not tips and may be retained by the employer unless the employer voluntarily distributes them to employees. Service charges are considered part of the employer’s gross receipts and are not protected as employee property.
Automatic gratuities treated as tips: If the employer distributes automatic gratuities or service charges to employees and represents to customers that these charges will go to service staff, the amounts become tips belonging to employees.
Disclosure requirements: Employers should clearly disclose to customers whether automatic charges are service charges retained by the business or gratuities distributed to service staff to avoid customer confusion and potential legal issues.
Local Minimum Wage Ordinances in Illinois
In addition to the state minimum wage, two jurisdictions in Illinois have enacted their own minimum wage ordinances that establish rates and requirements: the City of Chicago and Cook County. Employers must comply with the highest applicable rate—federal, state, or local—for the jurisdiction where work is performed.
| Illinois City and County Minimum Wages (2026) | |||||
|---|---|---|---|---|---|
| City / County | Rate | Tipped Rate | Effective Date | Coverage | Official Source |
| Chicago | $16.60 | $12.62 | July 1, 2025 | 4+ employees | City ordinance |
| Cook County | $15.00 | $9.00 | July 1, 2025 | 2+ hours/week | County ordinance |
Note: More than 100 municipalities within Cook County have exercised their right to opt out of the Cook County Minimum Wage Ordinance. Employers in Cook County should verify whether their specific municipality follows the county ordinance or has opted out.
City of Chicago Minimum Wage
The City of Chicago maintains the highest minimum wage in Illinois. Chicago’s minimum wage applies to employers with four or more employees and covers employees who work at least two hours within a two-week period within the geographic boundaries of the City of Chicago.
Standard minimum wage: $16.60 per hour (effective July 1, 2025)
Tipped minimum wage: $12.62 per hour (effective July 1, 2025)
Youth minimum wage: $16.50 per hour
City contractor minimum wage: $17.80 per hour
Chicago’s minimum wage increases annually on July 1 based on changes to the Consumer Price Index (CPI), with increases capped at 2.5% per year. No increase occurs in years when the unemployment rate in Chicago equals or exceeds 8.5% as calculated by the Illinois Department of Employment Security.
Chicago One Fair Wage Ordinance
On October 6, 2023, the Chicago City Council approved the One Fair Wage Ordinance, which phases out the tipped wage credit over a five-year period. The ordinance reduces the percentage of tip credit employers may claim according to the following schedule:
| Chicago Tipped Minimum Wage Phase-Out Schedule | ||
|---|---|---|
| Effective Date | Tip Credit Percentage | Tipped Minimum Wage Calculation |
| Prior to July 1, 2024 | 40% of minimum wage | (Up to $9.96 based on 2024 rates) |
| July 1, 2024 | 32% of minimum wage | Based on standard minimum wage |
| July 1, 2025 | 24% of minimum wage | $12.62 (as of July 1, 2025) |
| July 1, 2026 | 16% of minimum wage | Amount to be announced |
| July 1, 2027 | 8% of minimum wage | Amount to be announced |
| July 1, 2028 | 0% (full elimination) | Full Chicago minimum wage |
Beginning July 1, 2028, tipped employees in Chicago must receive the full standard Chicago minimum wage with no tip credit permitted. Employers will be required to pay the entire hourly minimum wage before tips are considered.
Chicago Coverage and Exemptions
Covered employers: Any person or entity that gainfully employs at least one employee. The minimum wage ordinance applies to employers with four or more employees, except for domestic workers.
Domestic workers: All domestic workers in Chicago must receive the Chicago minimum wage regardless of the number of employees their employer has. Domestic workers include nannies, care workers, and home cleaners.
Small employer exemption: Employers with three or fewer employees (excluding domestic workers) must comply with Illinois state minimum wage requirements rather than the Chicago minimum wage.
Geographic coverage: The Chicago minimum wage applies based on where the employee physically performs work, not where the employer is located. Employees working within Chicago’s boundaries for at least two hours in a two-week period are entitled to the Chicago minimum wage.
Cook County Minimum Wage
Cook County enacted a Minimum Wage Ordinance establishing a minimum wage based on the highest rate among the federal minimum wage, Illinois state minimum wage, or the County’s calculation using the Consumer Price Index (CPI). As of July 1, 2025, the Cook County minimum wage is $15.00 per hour for non-tipped employees and $9.00 per hour for tipped employees, matching the Illinois state minimum wage.
Rate determination: Cook County may adjust its minimum wage annually on July 1 based on CPI calculations. However, the County’s CPI-based calculation may not be used when the unemployment rate in Cook County equals or exceeds 8.5%. When unemployment reaches or exceeds 8.5%, the minimum wage is set to the greater of the federal or Illinois state minimum wage.
Coverage: The Cook County ordinance requires all employers located within Cook County who gainfully employ any person for at least two hours per week to comply with the county minimum wage.
Training wage exception: Employers are not required to pay the Cook County minimum wage during the first 90 days of employment for new employees. This exception does not apply to day laborers, temporary workers, or seasonal workers, who must be paid the county minimum wage from the first hour of employment.
Minor employee exemption: The Cook County Minimum Wage Ordinance does not apply to employees under 18 years of age. However, the Illinois state minimum wage requirements for youth workers still apply.
Cook County Municipal Opt-Outs
More than 100 municipalities within Cook County have enacted ordinances opting out of the Cook County Minimum Wage Ordinance. These municipalities either establish their own minimum wage standards or default to the Illinois state minimum wage. The list of municipalities that have opted out changes frequently as local governments make decisions about wage policy.
Employers operating in Cook County must verify whether their specific municipality follows the Cook County ordinance or has opted out. The Cook County Commission on Human Rights maintains information about which municipalities are subject to the county ordinance. Employers should check with their local city, village, or township government to confirm applicable minimum wage requirements.
Cities that do not follow Cook County MWO: Employers in municipalities that have opted out of the Cook County ordinance must pay at least the Illinois state minimum wage of $15.00 per hour unless the municipality has enacted its own higher minimum wage ordinance.
How Local Minimum Wages Apply
Location of work controls: The applicable minimum wage is determined by where the employee physically performs work, not where the employer’s headquarters or main office is located. An employee working in Chicago is entitled to the Chicago minimum wage even if their employer is based outside the city.
Employees working in multiple jurisdictions: When an employee works in different jurisdictions during a single workweek (such as working some days in Chicago and other days in suburban Cook County), employers must pay the minimum wage rate applicable for each location based on hours worked there. Employers must track hours worked by location to ensure proper wage payment.
Remote work considerations: For employees working remotely from their homes, the minimum wage of the jurisdiction where the employee physically performs work generally applies. A remote worker located in Chicago is typically entitled to the Chicago minimum wage, even if the employer’s office is located elsewhere.
Enforcement of Local Minimum Wage Ordinances
Chicago enforcement: The Chicago Department of Business Affairs and Consumer Protection, Office of Labor Standards, enforces the Chicago Minimum Wage Ordinance. Employees may file complaints by calling 311, using the CHI 311 mobile app, or completing a complaint form available on the city website.
Cook County enforcement: The Cook County Commission on Human Rights enforces the Cook County Minimum Wage Ordinance. Employees may file complaints using the Commission’s online complaint system or by contacting the Commission directly.
Retaliation prohibited: Both Chicago and Cook County ordinances prohibit employers from retaliating against employees who file minimum wage complaints, cooperate with investigations, or exercise their rights under local minimum wage laws. Retaliation may result in additional penalties and remedies.
Who Is Covered and Who Is Exempt
Employees Covered by Illinois Minimum Wage
Illinois minimum wage law covers most employees working in Illinois for private employers or units of local government. Unless specifically exempted, covered employees include:
- Private sector workers: Full-time and part-time employees of private businesses regardless of employer size
- Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for executive, administrative, or professional exemptions
- Hourly employees: Workers compensated on an hourly basis across all industries
- Temporary and seasonal workers: Workers hired for limited periods or seasonal operations
- Minor employees: Workers under age 18, subject to specific youth wage provisions
- Part-time employees: Employees working fewer than 40 hours per week
- Domestic workers: Nannies, care workers, home cleaners, and similar household employees
Exemptions from Minimum Wage Requirements
The following categories of employees may be exempt from Illinois minimum wage requirements under specific conditions:
Executive, Administrative, and Professional Employees
Employees performing bona fide executive, administrative, or professional duties may be exempt from minimum wage requirements if they meet both salary and duties tests. The salary threshold generally follows federal Fair Labor Standards Act standards, requiring payment on a salary basis of at least $684 per week ($35,568 annually) and performance of exempt duties as defined by federal regulations. Employers claiming these exemptions must ensure employees meet both the salary level and the duties requirements.
Outside Sales Employees
Employees whose primary duty is making sales away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business location may be exempt from minimum wage requirements. Outside sales employees must spend more than 50% of their work time making sales or obtaining orders away from the employer’s premises.
Agricultural Workers
Agricultural employees engaged in farming operations may be subject to different minimum wage requirements or exemptions depending on the nature of their work and the size of the employer’s agricultural operations. Federal FLSA standards generally govern agricultural worker minimum wages in Illinois.
Student Workers
Full-time students employed by the college or university in which they are enrolled may be paid wages at rates determined by the educational institution, subject to certain limitations. Student workers in qualifying programs may receive compensation below the standard minimum wage under specific circumstances authorized by the Illinois Department of Labor.
Independent Contractors
Properly classified independent contractors are not employees and therefore not covered by minimum wage requirements. However, Illinois applies strict tests to determine independent contractor status. Misclassification of employees as independent contractors to avoid minimum wage obligations may result in penalties, back wages, and other remedies. The determination of employee versus independent contractor status requires fact-specific analysis of the working relationship.
State and Federal Government Employees
Employees of the State of Illinois and federal government are not covered by the Illinois Minimum Wage Law. These workers are governed by separate wage and compensation systems established by their respective government employers.
Learners and Workers with Disabilities
Employers may obtain certificates from the Illinois Department of Labor authorizing payment of sub-minimum wages to learners during initial training periods and to certain workers with physical or mental disabilities that impair their productive capacity. These certificates must be obtained before paying wages below the standard minimum wage rate. The authority to issue new certificates for workers with disabilities will expire on December 31, 2029, under the Dignity in Pay Act.
Employer Obligations and Enforcement
Employer Compliance Requirements
Employers subject to Illinois minimum wage law must fulfill specific obligations to ensure compliance:
- Pay the applicable minimum wage for all hours worked by covered employees. Employers must identify and pay the highest applicable minimum wage rate—federal, state, or local—based on where employees perform work.
- Maintain accurate payroll records documenting hours worked and wages paid. Records must include employee names, addresses, occupations, hours worked each workday and workweek, wage rates, total wages paid each pay period, and deductions from wages.
- Display required posters informing employees of minimum wage rates and labor law rights. Illinois requires employers to post the “Your Rights Under Illinois Employment Laws” poster in a conspicuous location where employees can easily see it.
- Issue compliant wage statements showing gross wages, deductions, and net pay. Pay stubs must clearly indicate the applicable hourly rate, overtime pay when applicable, and for tipped employees, the base wage and tip credit claimed.
- Provide written notice of wage rates to employees. Employers must inform employees of their wage rate and any changes to the rate before the employee performs work at the changed rate.
- Pay wages semi-monthly. Illinois law requires employers to pay wages at least twice per month, no later than 13 days after the end of the pay period in which wages were earned.
Recordkeeping requirements: Employers must maintain payroll records for at least three years. Records must be available for inspection by the Illinois Department of Labor upon request.
Enforcement of Minimum Wage Law
The Illinois Department of Labor enforces minimum wage requirements throughout Illinois. The Department’s Fair Labor Standards Division conducts investigations, resolves complaints, and ensures employer compliance with wage and hour laws.
Department authority: The Illinois Department of Labor may:
- Investigate wage complaints filed by employees
- Conduct routine compliance inspections of employers
- Issue citations for minimum wage violations
- Order payment of unpaid wages to employees
- Assess penalties against employers for violations
- Refer cases for criminal prosecution when appropriate
Filing a complaint: Employees who believe they have not been paid proper minimum wage may file a complaint with the Illinois Department of Labor through the Department’s online wage claim system. The online system guides claimants through steps to submit complete claims and allows tracking of claim status. To access the system, claimants must first create an Illinois Public ID account.
Complaints may also be filed by calling (800) 478-3998 (Minimum Wage Toll Free Hotline) or by contacting the Department at:
Illinois Department of Labor
Fair Labor Standards Division
Email: DOL.MWOT@Illinois.gov
Website: labor.illinois.gov
Time limit for filing: Employees must file wage complaints within one year after wages were due.
Retaliation prohibited: Illinois law prohibits employers from retaliating against employees who file wage complaints, cooperate with Department investigations, or exercise their rights under minimum wage law. Retaliation may constitute a separate violation subject to additional penalties.
Penalties for Minimum Wage Violations
Employers who violate Illinois minimum wage law face significant penalties designed to compensate affected employees and deter future violations:
Back wages: Employers must pay employees the difference between wages paid and the required minimum wage for all hours worked. Back wages typically extend back one year from the date the complaint was filed.
Damages equal to underpayment: Illinois law authorizes damages equal to 5% of the underpaid amount for each month wages remain unpaid. This additional compensation recognizes the harm caused by delayed payment of proper wages.
Administrative fees: Employers who are demanded or ordered by the Illinois Department of Labor to pay unpaid wages must pay a non-waivable administrative fee of $250 to the Department. The fee increases to $500 if the amount ordered exceeds $3,000, and to $1,000 for orders of $10,000 or more.
Penalties for delayed compliance: Employers who fail to timely comply with a demand or final order from the Illinois Department of Labor must pay the Department 20% of the underpayment amount plus 1% of the underpayment amount for each day the violation continues. These penalties accumulate rapidly and can exceed the original underpayment amount.
Civil penalties: Willful or repeated violations of minimum wage requirements may result in civil penalties assessed by the Illinois Department of Labor.
Criminal penalties: Willful violations of the Minimum Wage Law may constitute a Class B misdemeanor, punishable by fines and potential imprisonment.
Attorney fees and costs: Employees who prevail in private actions to recover unpaid minimum wages may recover reasonable attorney fees and costs of litigation in addition to wages and damages.
Illinois Minimum Wage vs Federal Law
The Federal Minimum Wage Floor
The Fair Labor Standards Act (FLSA) establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate sets a floor for minimum wage requirements nationwide and applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000. The FLSA also covers individual employees engaged in interstate commerce or the production of goods for interstate commerce.
When State Law Applies
Because Illinois’s minimum wage of $15.00 exceeds the federal minimum, most employees working in Illinois are entitled to the higher state rate. The federal minimum serves as a fallback only for the limited category of employers or employees covered by federal but not state law. For the vast majority of Illinois workers, the state minimum wage of $15.00 applies rather than the federal rate of $7.25.
Illinois employers subject to both state and federal minimum wage requirements must pay the higher state rate. In practice, this means nearly all employers in Illinois must pay at least $15.00 per hour to covered employees.
Higher Applicable Rate Rule
The fundamental principle governing minimum wage compliance is that employers must pay whichever rate—federal, state, or local—provides employees the highest hourly wage. This rule ensures workers receive maximum protection under applicable law.
Practical application:
- Identify all minimum wage rates that may apply (federal $7.25, state $15.00, local rates in Chicago or Cook County)
- Determine which rates cover the specific employer and employee based on location of work and employer characteristics
- Pay the highest applicable rate for all hours worked
In Illinois, this often means comparing the federal minimum of $7.25, the state minimum of $15.00, and potentially the Chicago minimum wage of $16.60 to determine which rate governs. Employers operating in multiple locations within Illinois must track where employees work to apply the correct minimum wage for each jurisdiction.
Minimum Wage Posting Requirements
Illinois law requires employers to display official minimum wage notices in conspicuous locations accessible to all employees. The primary poster is the “Your Rights Under Illinois Employment Laws” poster, which includes minimum wage information along with other labor law requirements.
Where to obtain posters:
- Download from Illinois Department of Labor website: labor.illinois.gov/employers/posters.html
- Available at no cost in multiple formats
- Available languages: English, Spanish, Polish
Posting locations: Employers must post the notice in each workplace location where employees can readily see it. Typical posting locations include near time clocks, in break rooms, employee entrances, or other prominent common areas. Employers with remote workers must make the poster available electronically, either by email or on the employer’s website.
Compliance: Failure to display required posters may result in citations from the Illinois Department of Labor. Employers must update or replace posters when minimum wage rates change or when new posters are issued by the Department. The Department typically issues updated posters annually to reflect current rates.
Additional posting requirements: Employers in Chicago must also post notices required by the Chicago Department of Business Affairs and Consumer Protection, Office of Labor Standards, including the Chicago Labor Laws Public Notice. Employers in Cook County subject to the Cook County Minimum Wage Ordinance must post notices required by the Cook County Commission on Human Rights.
Frequently Asked Questions: Minimum Wage in Illinois 2026
What is the minimum wage in Illinois in 2026?
The minimum wage in Illinois is $15.00 per hour as of January 1, 2025, and remains $15.00 throughout 2026. This rate applies to workers aged 18 and older. Youth workers under 18 who work fewer than 650 hours per year are entitled to $13.00 per hour. Higher rates of $16.60 apply in Chicago for employers with four or more employees.
When is the next minimum wage increase in Illinois?
No minimum wage increases are currently scheduled in Illinois. The rate will remain $15.00 per hour unless changed by future legislation enacted by the Illinois General Assembly. Illinois reached the $15.00 minimum wage on January 1, 2025, as the final step in a multi-year increase schedule, with no automatic adjustments built into the law.
Does Illinois allow tip credit?
Yes, Illinois permits employers to pay tipped employees a cash wage of $9.00 per hour, with up to $6.00 in tip credit (40% of the standard minimum wage), provided total compensation reaches $15.00 per hour. Employers must make up any difference if tips plus the cash wage do not equal the full minimum wage. Chicago has enacted a phase-out of the tip credit that will eliminate it entirely by July 1, 2028.
Are there different minimum wages in different cities in Illinois?
Yes, Chicago has a minimum wage of $16.60 per hour (as of July 1, 2025) for employers with four or more employees, which exceeds the state rate. Cook County maintains a minimum wage currently aligned with the state rate of $15.00 per hour but retains authority for future adjustments. Employers must pay the highest applicable rate for the location where work is performed.
Who is exempt from minimum wage in Illinois?
Common exemptions from Illinois minimum wage include executive, administrative, and professional employees meeting salary and duties tests, outside sales employees, certain agricultural workers, and properly classified independent contractors. State and federal government employees are not covered by the Illinois Minimum Wage Law. Most hourly workers, including part-time employees, are covered.
What happens if an employer pays below minimum wage in Illinois?
Employers who pay below minimum wage face back wage liability, damages equal to 5% of the underpaid amount per month, administrative fees of $250 to $1,000 depending on the amount owed, and penalties of 20% of the underpayment plus 1% per day for delayed compliance. Employees can file complaints with the Illinois Department of Labor to recover unpaid wages. Illinois law prohibits retaliation against workers who report violations.
Do small businesses have to pay minimum wage in Illinois?
Yes, all employers in Illinois must pay minimum wage regardless of size. Even businesses with one employee must comply with the $15.00 hourly rate. However, in Chicago, employers with three or fewer employees (except domestic workers) may pay the state minimum wage rather than the higher Chicago rate. Federal minimum wage may still apply if the employer is covered by the FLSA.
Is Illinois’s minimum wage higher than the federal minimum?
Yes, Illinois’s minimum wage of $15.00 is $7.75 higher than the federal minimum wage of $7.25. Employers in Illinois must pay the higher state rate. The Illinois minimum wage more than doubles the federal rate, reflecting the state’s decision to establish a higher wage floor for workers.
Can employers pay less than minimum wage during training?
Illinois permits employers to pay a training wage of $14.50 per hour during the first 90 days of employment for new employees aged 18 or older. The training wage does not apply to tipped employees. After the 90-day training period, employers must pay full minimum wage. Employers must maintain documentation of the training period.
How to file a minimum wage complaint in Illinois
Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the Illinois Department of Labor. Filing methods include:
- Online portal: Access the online wage claim system at labor.illinois.gov (requires creation of Illinois Public ID account)
- Phone: Call the Minimum Wage Toll Free Hotline at (800) 478-3998
- Email: DOL.MWOT@Illinois.gov
- Mail: Contact regional Illinois Department of Labor offices
The Illinois Department of Labor will investigate the complaint and may recover unpaid wages on behalf of the employee. Illinois law prohibits employer retaliation against workers who file wage complaints or participate in investigations.
Do remote workers in Illinois get the Illinois minimum wage?
Generally, the minimum wage of the jurisdiction where the employee physically performs work applies. Remote workers located in Illinois are typically entitled to Illinois’s minimum wage of $15.00, even if their employer is based in another state. If the remote worker is located in Chicago, the Chicago minimum wage of $16.60 may apply based on the worker’s physical work location.
What is the youth minimum wage in Illinois?
Employees under 18 years of age who work fewer than 650 hours for an employer during any calendar year may be paid $13.00 per hour. Once a youth employee reaches 650 hours worked, the employer must pay the full standard minimum wage of $15.00 per hour. The 650-hour threshold is calculated from the date of hire on a calendar-year basis. In Chicago, youth workers are entitled to $16.50 per hour.
Information Verification Log
All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.
| Primary Legal and Government Sources — Illinois (Verified) | ||
|---|---|---|
| Source | Last Verified | Access Method |
| Illinois statutes (820 ILCS 105) | February 3, 2026 | Illinois General Assembly website |
| Illinois Department of Labor | February 3, 2026 | Official website labor.illinois.gov |
| Chicago minimum wage ordinance | February 3, 2026 | City of Chicago official website |
| Cook County minimum wage ordinance | February 3, 2026 | Cook County government website |
| Fair Labor Standards Act | February 3, 2026 | U.S. Department of Labor |