🇺🇸 ILLINOIS STATE LAW – 2026 UPDATE

Illinois Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in Hawaii

Illinois remote work laws and employment regulations guide

Table of Contents

Click any item below to jump to the relevant section

Overview

Illinois is generally considered a worker-protective state with comprehensive employment regulations. According to official state sources, Illinois has enacted substantial employment protections that extend to most workers in the state, including those working remotely.

General Characteristics (as of December 2025):

  • State minimum wage: $15.00/hour (effective January 1, 2025)
    • Source: Illinois Department of Labor (820 ILCS 105/)
    • Note: Chicago and Cook County have separate, higher minimum wage ordinances
  • Paid leave: Generally required under the Paid Leave for All Workers Act (effective January 1, 2024)
    • Workers may accrue up to 40 hours per year
    • Applies to most employers, with certain local exceptions
  • State income tax: Flat rate of 4.95% (as of 2025)
    • Source: Illinois Department of Revenue
    • No local income taxes
  • Meal/rest breaks: Generally required under the One Day Rest in Seven Act (820 ILCS 140/)
    • 20-minute meal break for shifts of 7.5+ hours
    • Additional requirements for certain workers
  • Overtime rules: Generally follows federal FLSA standards
    • Overtime after 40 hours per week at 1.5x regular rate
    • Source: Illinois Minimum Wage Law (820 ILCS 105/)
  • Workers’ compensation: Generally required for most employers
    • Administered by Illinois Workers’ Compensation Commission
    • Source: Illinois Workers’ Compensation Act (820 ILCS 305/)

Sources:

Official State Agency Information

The Illinois Department of Labor (IDOL) administers and enforces most employment laws in Illinois.

Contact Information:

  • Website: https://labor.illinois.gov
  • Main Office (Chicago): 160 N. LaSalle Street, Suite C-1300, Chicago, IL 60601
  • Phone: (312) 793-2800
  • Springfield Office: 1 West Old State Capitol Plaza, Room 300, Springfield, IL 62701
  • Phone: (217) 782-6206
  • Languages: Services available in English, Spanish, and Polish

Note: The Illinois Department of Labor can provide official interpretations of state employment statutes and regulations. For legal advice on how laws apply to specific situations, consult a licensed attorney in Illinois.

Other Relevant Agencies:

Major State Employment Statutes

The following statutes are commonly cited in employment matters. This is general information only and does not constitute legal interpretation. All citations refer to the Illinois Compiled Statutes (ILCS).

1. Illinois Minimum Wage Law

Statutory Citation: 820 ILCS 105/1-15
Official Source: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2402

General Provisions (as stated in the statute):

According to the Illinois Minimum Wage Law, the statute generally addresses:

  • Minimum wage requirements for workers 18 years and older
  • Overtime compensation requirements
  • Provisions for tipped workers
  • Exemptions and special provisions

Current Rate (as published by IDOL):

  • Effective January 1, 2025: $15.00 per hour for workers 18 years and older
  • Tipped workers: $9.00 per hour (60% of minimum wage), provided tips bring total to at least full minimum wage
  • Youth workers (under 18, working less than 650 hours annually): $13.00 per hour

Application to Remote Work: Minimum wage provisions generally apply based on where work is physically performed. According to general legal principles, a worker performing work from a location in Illinois would typically be subject to Illinois minimum wage requirements, regardless of employer location. Specific situations may require consultation with the Illinois Department of Labor or legal counsel.

Source: Illinois Department of Labor – https://labor.illinois.gov/laws-rules/fls/minimum-wage-law.html

2. Paid Leave for All Workers Act

Statutory Citation: 820 ILCS 192/
Effective Date: January 1, 2024
Official Source: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=4351

General Overview:

According to the Illinois Department of Labor, this law generally requires covered employers to provide workers with earned paid leave. Key provisions described in official guidance include:

  • Accrual: Workers generally accrue 1 hour of paid leave for every 40 hours worked
  • Cap: Minimum of 40 hours per 12-month period
  • Use: Workers may use leave for any reason after 90 days of employment or 90 days from January 1, 2024, whichever is later
  • Carryover: Unused leave generally carries over, up to 40 hours
  • No payout required: Unless credited to existing PTO bank subject to Illinois Wage Payment and Collection Act

Coverage Typically Includes:

  • Most employees working in Illinois
  • Part-time, seasonal, and temporary workers
  • Domestic workers meeting specified criteria

Exemptions May Include:

  • Federal employees
  • School district and park district employees
  • Independent contractors
  • Certain higher education employees
  • Railroad employees subject to Railway Labor Act

Local Exceptions: The Paid Leave for All Workers Act generally does not apply to employers already covered by paid leave ordinances enacted before January 1, 2024, such as:

  • City of Chicago Paid Leave and Paid Sick and Safe Leave Ordinance
  • Cook County Paid Leave Ordinance

For employers in these jurisdictions, the local ordinance requirements apply. Employers should verify requirements with the appropriate local agency.

Note: Actual coverage and obligations depend on specific circumstances including employer size, employee work location, and local ordinances. Employers should consult official IDOL guidance and legal counsel for compliance requirements.

Source: Illinois Department of Labor – https://labor.illinois.gov/laws-rules/paidleave.html

3. One Day Rest in Seven Act (ODRISA)

Statutory Citation: 820 ILCS 140/
Official Source: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=1586

General Provisions:

According to the statute, ODRISA generally requires:

  • Employees receive at least 24 consecutive hours of rest in every consecutive 7-day period
  • Meal periods for employees working 7.5 or more continuous hours
  • Additional meal periods for employees working 12+ hour shifts

Meal Break Requirements (as stated in regulations):

  • 20-minute meal period for employees working 7.5+ continuous hours
  • Must be provided no later than 5 hours after start of shift
  • Additional 20-minute meal period for shifts of 12+ hours
  • Reasonable restroom breaks in addition to meal breaks

Employers may apply for permits from the Illinois Department of Labor to allow employees to work on the 7th day, provided certain conditions are met including voluntary agreement and proper overtime compensation.

Application to Remote Workers: Meal break and rest day requirements generally apply to remote workers in the same manner as on-site workers. Specific compliance mechanisms for remote work arrangements may require consultation with legal counsel.

Source: Illinois Department of Labor – https://labor.illinois.gov/laws-rules/fls/one-day-rest-in-seven-act.html

Employee Classification Standards in Illinois

Illinois Classification Framework

Illinois uses different tests for different purposes. The classification standard that applies depends on the context (e.g., unemployment insurance, workers’ compensation, wage and hour law, construction industry).

Key Illinois Statutes Related to Classification:

  • Employee Classification Act (820 ILCS 185/) – Construction industry
  • Illinois Unemployment Insurance Act (820 ILCS 405/)
  • Workers’ Compensation Act (820 ILCS 305/)
  • Various provisions of wage and hour laws

Important Note: There is no single, universal test for worker classification in Illinois. Different laws may yield different results for the same working relationship. This complexity underscores the importance of professional guidance.

Employee Classification Act (Construction Industry)

Statutory Authority: 820 ILCS 185/
Official Source: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2898

Scope: This Act specifically addresses classification in the construction industry.

General Framework (As Described by Illinois DOL):

According to the Employee Classification Act, for construction work, an individual performing services for a contractor is generally deemed to be an employee unless certain conditions are met.

Criteria for Independent Contractor Status:

To potentially be classified as an independent contractor under this Act, evidence may need to show that:

  1. Control Factor: The individual has been and will continue to be free from control or direction over the performance of services, both under contract and in fact
  2. Business Relationship: The service performed is outside the usual course of services performed by the contractor
  3. Independent Business: The individual is engaged in an independently established trade, occupation, profession, or business, OR qualifies as a legitimate sole proprietor or partnership under specific criteria

Legitimate Sole Proprietor/Partnership Criteria:

For a sole proprietor or partnership performing services as a subcontractor to potentially qualify, factors that may be relevant include (from statute):

  • Performing service free from direction or control over means and manner
  • Business not subject to cancellation upon severance of relationship
  • Substantial investment of capital beyond ordinary tools and equipment
  • Owns capital goods and bears profits/losses
  • Makes services available to general public or business community
  • Includes services rendered in federal or state income tax filing
  • Performs work under own name
  • Obtains and pays for required business licenses
  • Maintains liability insurance
  • Maintains separate business location or business phone listing

⚠️ Critical Note: Meeting one or more factors does not automatically establish independent contractor status. The determination is fact-specific and requires analysis of the complete circumstances. This list is from the statute but does not constitute a determination.

Verification: Employers should consult Illinois DOL and legal counsel to determine proper classification under this Act.

Source: Illinois Department of Labor – https://labor.illinois.gov/laws-rules/conmed/employee-classification-act.html

General Employee vs. Independent Contractor Considerations

⚠️ COMPLEX AND FACT-SPECIFIC: The following represents general background information on factors that may be considered in classification analysis. This is NOT a complete legal analysis and does NOT constitute classification guidance.

Factors That May Be Relevant:

Classification analysis under various Illinois laws may consider factors such as:

Control and Independence:

  • Whether the employer controls or has the right to control how work is performed
  • Whether the worker sets their own schedule
  • Whether the worker can work for other clients
  • Whether the employer provides training

Financial Relationship:

  • How the worker is paid (hourly, project-based, commission)
  • Whether the worker has significant investment in equipment or facilities
  • Whether the worker has unreimbursed business expenses
  • Whether the worker can realize profit or loss

Nature of Relationship:

  • Whether there is a written contract describing the relationship
  • Whether the employer provides benefits
  • Whether the relationship is ongoing or project-specific
  • Whether the work performed is key to the business

Business Reality:

  • Whether the worker markets services to others
  • Whether the worker has their own business location
  • Whether the worker carries liability insurance
  • Whether the worker files Schedule C for tax purposes

⚠️ Important Limitations:

  • No single factor is determinative
  • Different agencies may weigh factors differently
  • The actual work relationship matters more than contractual labels
  • Classification analysis is highly fact-specific

Remote Work Classification Considerations

For remote workers, classification analysis may involve additional complexities:

Location Factors:

  • Physical work location vs. business location
  • Whether worker has dedicated business location or uses employer space
  • State where work is physically performed

Control in Virtual Environment:

  • How employer monitors or supervises remote work
  • Whether employer provides remote access tools and equipment
  • Level of independence in virtual setting
  • Required work hours vs. flexible scheduling

Economic Realities:

  • Who provides computers, software, internet connection
  • Whether worker maintains home office at own expense
  • Whether worker performs services for multiple clients remotely

⚠️ Critical Note: These factors do not change the legal tests but may affect how tests are applied. Classification of remote workers should be reviewed with legal counsel familiar with Illinois law and the specific circumstances.

Illustrative Scenarios (For General Understanding Only)

The following scenarios are provided for general educational purposes only. They do NOT constitute:

  • Legal determinations of worker status
  • Predictions of how agencies would classify workers
  • Recommendations for classification decisions
  • Exhaustive analysis of relevant factors

Scenario Category: Technology Worker Performing Remote Services

Example Situation 1: A software developer works exclusively for one Illinois company from their home. The company provides laptop, software licenses, and specifies work hours of 9am-5pm Monday-Friday. The company reviews code daily and provides detailed specifications for all projects. The developer receives hourly pay with tax withholding.

General Observations: This scenario may share some characteristics commonly associated with employee relationships, such as:

  • Exclusive relationship with one company
  • Company provision of tools and equipment
  • Set work hours determined by company
  • Regular oversight and direction
  • Hourly payment with withholding

However, actual classification depends on complete factual analysis including written agreements, financial arrangements, degree of control, integration into business, and other factors. This is not a determination.

Example Situation 2: A graphic designer maintains their own business, serves multiple clients, uses their own equipment and software, sets their own rates and hours, invoices for completed projects, maintains business liability insurance, and files Schedule C. They complete occasional projects for an Illinois company on a project-by-project basis with payment upon completion.

General Observations: This scenario may share some characteristics commonly associated with independent contractor relationships, such as:

  • Serves multiple clients
  • Owns business tools and equipment
  • Sets own rates and schedule
  • Project-based relationship
  • Maintains business infrastructure
  • Independent business tax treatment

However, actual classification requires analysis of factors such as nature of control, economic dependence, skill level required, permanence of relationship, and integration into business operations. Meeting some factors does not establish independent contractor status. This is not a determination.

Minimum Wage Information for Illinois

Current Rate Information (As Published by Illinois DOL)

According to the Illinois Department of Labor, the state minimum wage rates as of December 2025 are:

Minimum Wage Categories (2025)

Effective Date Worker Category Hourly Rate Notes
January 1, 2025 Adults (18+) $15.00 Standard rate
January 1, 2025 Tipped Workers (18+) $9.00 Must reach $15.00 with tips
January 1, 2025 Youth (under 18) $13.00 If working <650 hours/year

Source: Illinois Department of Labor – https://labor.illinois.gov/laws-rules/fls/minimum-wage-law.html

Important Notes:

  • The minimum wage for workers 18 and older reached $15.00 on January 1, 2025
  • There are currently no scheduled state-level increases beyond 2025 without additional legislation
  • Youth workers (under 18) who work 650 hours or more in a calendar year must be paid the full minimum wage of $15.00/hour
  • Tipped workers must receive the full minimum wage when tips are added to the base pay

Application to Remote Workers

According to general legal principles:

Primary Rule: Minimum wage typically applies based on where work is physically performed, not where the employer is located.

What this generally means for remote work:

  • A worker performing work from a location in Illinois would generally be subject to Illinois minimum wage requirements
  • An Illinois employer with a worker in another state would generally need to comply with that state’s minimum wage for that worker
  • Employer location is generally not the determining factor

Complex Situations:

  • Workers who split time between multiple states
  • Workers who travel for work
  • Workers whose work location changes frequently

These situations may require case-by-case analysis. Employers should consult the Illinois Department of Labor or legal counsel for guidance on specific circumstances.

Source: General employment law principles; for official guidance, consult Illinois DOL

Local Minimum Wages (Higher Rates Apply)

Several jurisdictions within Illinois have enacted local minimum wages that exceed the state rate. When a local minimum wage applies, employers generally must pay the higher rate.

City of Chicago Minimum Wage

According to the City of Chicago Department of Business Affairs and Consumer Protection:

Minimum Wage by Employer Size (Effective July 1, 2025)

Effective Date Employer Size Non-Tipped Tipped Workers Youth (under 18)
July 1, 2025 4–20 employees $16.20/hour $12.16/hour $16.10/hour
July 1, 2025 21+ employees $16.20/hour $12.16/hour $16.10/hour

Coverage: Generally applies to employers with 4 or more employees performing work in Chicago.

Source: City of Chicago – https://www.chicago.gov/city/en/depts/bacp/supp_info/minimumwageinformation.html

Cook County Minimum Wage

According to Cook County:

Effective Date Rate Notes
As of 2025 $15.00/hour Mirrors Illinois state rate
As of 2025 $9.00/hour Tipped workers

Note: Cook County’s minimum wage calculation generally uses the higher of federal minimum wage, Illinois minimum wage, or the County’s CPI-calculated rate, unless unemployment exceeds 8.5%.

Coverage: Generally applies to employers with 4 or more employees working in Cook County (outside of Chicago, which has separate ordinance).

Exemptions: Certain categories of employees and employers may be exempt. Consult Cook County Human Rights Commission for specific guidance.

Source: Cook County Commission on Human Rights

Tipped Workers

Illinois Law on Tip Credits:

According to Illinois Minimum Wage Law (820 ILCS 105/4):

  • Tipped Minimum Wage: $9.00/hour (60% of standard minimum wage)
  • Tip Credit: Employers may take a maximum tip credit of 40% (or $6.00 per hour)
  • Critical Requirement: Tips plus base wage must equal at least $15.00/hour

What this generally means:

  • If an employee’s tips plus the $9.00 base wage do not reach $15.00/hour, the employer must make up the difference
  • Employers must track tips to ensure compliance
  • The tip credit is available to employers where gratuities are customarily paid to employees

Chicago and Cook County: Have separate tipped minimum wage rates (see tables above).

Reporting and Documentation: Employers utilizing tip credits generally should maintain records of tips reported and wages paid to demonstrate compliance.

Note: Federal Fair Labor Standards Act (FLSA) also has tip credit provisions. Employers must comply with both state and federal requirements.

⚠️ Important: Tipped wage provisions are complex and fact-specific. Employers should consult Illinois Department of Labor and legal counsel for guidance on proper application of tip credits, tip pooling, and related requirements.

Source: Illinois Department of Labor – 820 ILCS 105/

Exemptions and Special Provisions

According to Illinois Minimum Wage Law, certain variations or exemptions may apply in specific circumstances:

Learners and Apprentices:

  • Employers may apply for licenses from Illinois DOL to pay sub-minimum rates to learners under certain conditions
  • Application and approval required before implementing
  • Specific criteria must be met

Workers with Disabilities:

  • Historically, employers could obtain certificates (similar to federal 14(c) certificates) to pay sub-minimum wages
  • Important Change: Under the Dignity in Pay Act (2025), Illinois will phase out sub-minimum wage certificates
  • Timeline: Certificates will not be issued or recognized after December 31, 2029
  • Current certificate holders should plan for transition to competitive wages

Students:

  • Federal law allows sub-minimum wages for certain student workers
  • Illinois follows federal provisions for students employed by colleges/universities

⚠️ Critical Note: Exemptions are narrowly construed and fact-specific. Do not assume an exemption applies without verification from Illinois DOL and legal counsel. Misapplication of exemptions can result in wage claims and penalties.

Source: Illinois Department of Labor – https://labor.illinois.gov/laws-rules/fls/minimum-wage-law.html

Comparison with Neighboring States (For Reference Only)

State 2025 Minimum Wage Notes
Illinois $15.00 Effective January 1, 2025
Indiana $7.25 Federal minimum
Iowa $7.25 Federal minimum
Wisconsin $7.25 Federal minimum
Missouri $12.30 January 1, 2025
Kentucky $7.25 Federal minimum

Note: This comparison is for general reference only. Each state’s laws apply based on where work is performed. Local minimum wages within states may vary.

Resources for Current Information

Overtime and Break Requirements in Illinois

A. Overtime Standards

Governing Framework:

Illinois generally follows the federal Fair Labor Standards Act (FLSA) for overtime requirements, with provisions in the Illinois Minimum Wage Law.

Statutory Authority: 820 ILCS 105/4a
Official Source: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2402

General Overtime Threshold (as stated in statute):

According to Illinois law:

  • Trigger: Overtime generally required after 40 hours worked in a workweek
  • Rate: Time and one-half (1.5x) the regular rate of pay
  • No Daily Overtime: Illinois does not generally require overtime for work beyond a certain number of hours in a single day (unlike California)

What this generally means:

  • An employee working 45 hours in a week would typically be entitled to 5 hours of overtime pay
  • Overtime is calculated weekly, not daily or biweekly
  • The “regular rate of pay” may include base wage plus certain other compensation

Application to Remote Workers:

Overtime regulations typically apply based on the nature of work and employment relationship, not work location. General observations:

  • Remote workers performing non-exempt work would generally be subject to the same overtime requirements as on-site workers
  • Employer must track hours worked, even for remote workers
  • Remote workers should generally report all hours worked

Complex Issues for Remote Work:

  • After-hours email responses
  • Virtual meetings outside regular hours
  • On-call time
  • Work performed at irregular hours

These situations require careful analysis of what constitutes “hours worked” under wage and hour law.

⚠️ Important: Determining compensable time for remote workers can be challenging. Employers should consult wage-hour counsel for guidance on tracking and paying remote workers accurately.

Calculating “Hours Worked”

According to federal and Illinois guidance, “hours worked” for overtime calculation purposes may include:

Generally Compensable:

  • Time actually performing work duties
  • Required meetings and training (including virtual)
  • Time waiting to perform work (in some circumstances)
  • Short breaks (typically under 20 minutes)
  • Travel time during work hours (in certain circumstances)

Generally Not Compensable:

  • Commuting time from home to work
  • Bona fide meal periods (typically 30+ minutes, completely relieved of duties)
  • Time outside work hours not performing work tasks

Gray Areas for Remote Workers:

  • Checking work email at home after hours
  • Being “on call” from home
  • Brief work tasks outside regular hours
  • Travel between remote work location and other locations

⚠️ Critical Note: These determinations are highly fact-specific. What counts as “hours worked” depends on many factors including employer policies, nature of work, employee freedom, and specific circumstances. Employers should consult wage-hour attorneys for guidance.

Sources:

  • Federal Department of Labor regulations (29 CFR Part 785)
  • Illinois Minimum Wage Law (820 ILCS 105/)

Overtime Exemptions

⚠️ EXTREMELY COMPLEX AREA: Overtime exemptions are among the most technical and frequently litigated areas of employment law. This information is general background only. Classification errors can result in significant liability.

Illinois recognizes certain exemptions from overtime requirements, generally following federal FLSA exemptions.

Executive, Administrative, and Professional (EAP) Exemptions

To potentially qualify for EAP exemptions, employees generally must meet ALL of the following tests:

1. Salary Basis Test:

  • Paid a predetermined salary not subject to reduction based on quality or quantity of work
  • Salary paid regardless of hours worked (with limited exceptions)

2. Salary Level Test:

  • Meets minimum salary threshold

Federal Salary Threshold (2025):

  • As of December 2, 2025: $684/week ($35,568 annually)
  • Note: Proposed increases to $844/week (July 2024) and $1,128/week (January 2025) were blocked by federal court ruling in November 2024

Illinois Note: Illinois follows federal salary thresholds. As of December 2025, the threshold remains $684/week due to court ruling.

3. Duties Test:

  • Performs exempt-level duties as defined by FLSA regulations

Executive Exemption – General Duties Framework: According to DOL regulations, executive duties generally involve:

  • Primary duty is management of enterprise or recognized department
  • Customarily and regularly directs work of two or more employees
  • Authority to hire/fire or recommendations given particular weight

Administrative Exemption – General Duties Framework: According to DOL regulations, administrative duties generally involve:

  • Primary duty is office or non-manual work directly related to management or general business operations
  • Exercise of discretion and independent judgment on significant matters

Professional Exemption – General Duties Framework: According to DOL regulations, professional duties generally involve:

  • Primary duty is work requiring advanced knowledge in a field of science or learning
  • Advanced knowledge customarily acquired by prolonged specialized education

⚠️ Critical Warnings:

  • Job title alone does not determine exemption status
  • Meeting salary threshold alone is insufficient – duties test must also be met
  • All three tests (salary basis, salary level, duties) must be satisfied
  • Exemptions are narrowly interpreted by courts and agencies
  • Partial performance of exempt duties may not qualify
  • Specific industries may have additional requirements

Actual determination requires detailed analysis of:

  • Complete job responsibilities
  • How time is spent
  • Level of discretion exercised
  • Organizational structure
  • Other factors

Computer Professional Exemption

Special Provision for Computer Workers:

According to federal FLSA regulations, computer professionals may be exempt if:

Compensation:

  • Paid on salary or fee basis at minimum of $684/week, OR
  • Paid on hourly basis at minimum of $27.63/hour (as of 2025)

Duties:

  • Primary duty is computer systems analysis, programming, software engineering, or similar
  • Work requires theoretical and practical application of specialized knowledge
  • Consistent exercise of discretion and judgment

Activities that may qualify (from DOL guidance):

  • Application of systems analysis techniques
  • Design, development, documentation, analysis, testing of computer systems or programs
  • Design, documentation, testing, creation of computer programs

⚠️ Important: Not all computer work qualifies. Help desk, routine troubleshooting, or following technical manuals may not meet duties test. Consult legal counsel for classification decisions.

Other Common Exemptions

Outside Sales Exemption:

  • Primary duty is making sales or obtaining orders
  • Customarily and regularly engaged away from employer’s place of business
  • No minimum salary requirement

Highly Compensated Employees (HCE):

  • Paid $107,432 or more annually (as of 2025)
  • Performs office or non-manual work
  • Customarily and regularly performs at least one exempt duty

Note: HCE threshold was also subject to proposed increases that were blocked by court.

Remote Work Classification Considerations

For remote workers, exemption analysis may involve additional considerations:

Control and Supervision:

  • How work is monitored remotely
  • Level of independence in decision-making
  • Availability of supervision and guidance

Nature of Duties:

  • Whether duties remain unchanged in remote setting
  • Whether administrative or professional work continues
  • Impact of virtual environment on exemption factors

⚠️ Critical Note: Remote work does not automatically change exemption status, but the actual duties performed and how work is controlled must be examined. Employers should review exemption classifications when transitioning to remote work.

Consequences of Misclassification

According to federal and Illinois law, improper exemption classification may result in:

For Employers:

  • Back payment of unpaid overtime (typically 2-3 years)
  • Liquidated damages (equal to unpaid wages)
  • Attorney’s fees and costs
  • Department of Labor penalties and assessments
  • Collective or class action exposure

For Employees:

  • May be entitled to recover unpaid overtime
  • Protection against retaliation for asserting rights

⚠️ Note: The specific consequences depend on many factors including willfulness, amount owed, and forum. This is general information only.

Sources:

  • Fair Labor Standards Act (29 USC 201 et seq.)
  • DOL Regulations (29 CFR Part 541)
  • Illinois Minimum Wage Law (820 ILCS 105/)

B. Meal and Rest Break Requirements

Illinois has specific requirements for meal breaks under the One Day Rest in Seven Act (ODRISA).

Statutory Authority: 820 ILCS 140/
Official Source: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=1586

Meal Break Requirements

General Framework (as described by Illinois DOL):

According to ODRISA, employers generally must provide:

20-Minute Meal Break:

  • Who: Employees working 7.5 or more continuous hours
  • When: Must begin no later than 5 hours after start of shift
  • Paid/Unpaid: Generally unpaid if completely relieved of duties
  • Requirements: Employee must be completely relieved of duties

Additional 20-Minute Meal Break:

  • Who: Employees working 12 or more continuous hours
  • When: For each additional 4.5 hours worked
  • Paid/Unpaid: Generally unpaid if completely relieved of duties

Example (Illustrative Only):

  • Employee works 8-hour shift starting at 9am
  • Must receive 20-minute meal break by 2pm (5 hours after start)
  • If employee works 9am-9pm (12 hours), must receive second 20-minute break

⚠️ Important: Employees cannot be required to work during meal breaks. If work is performed during break, the time generally must be compensated.

Rest Break Requirements

General Standard:

According to ODRISA:

  • “Reasonable” restroom breaks must be provided in addition to meal breaks
  • Illinois does not mandate specific paid rest breaks (like 15-minute breaks)

Federal Standards:

Under federal FLSA interpretations:

  • Short breaks (5-20 minutes) are generally compensable work time if provided
  • Bona fide meal periods (30+ minutes) may be unpaid if employee is completely relieved

Special Requirements:

Hotel Room Attendants: According to Illinois law, hotel room attendants are entitled to:

  • Two 15-minute paid rest breaks (if working at least 7 hours)
  • In addition to required meal break(s)

Application to Remote Workers

General Principle: Meal break and rest day requirements generally apply to remote workers in the same manner as on-site workers.

Potential Challenges for Remote Work:

  • Verifying breaks are actually taken
  • Ensuring workers do not work during unpaid meal periods
  • Documenting compliance
  • Handling interruptions during breaks
  • Monitoring hours in unsupervised setting

Compliance Considerations: Employers may wish to consider (in consultation with legal counsel):

  • Clear written policies on break requirements
  • Time tracking systems that require meal break documentation
  • Training on break requirements
  • Procedures for reporting missed breaks
  • Systems to prevent work during unpaid meal periods

⚠️ Note: These are general considerations, not legal requirements or recommendations. Specific compliance mechanisms should be developed with legal counsel.

Exemptions and Special Situations

Voluntary Waiver: In limited circumstances, employees may voluntarily waive meal breaks, but:

  • Must be truly voluntary
  • May be restricted by employer policy or labor agreements
  • Generally should be documented

Emergency Situations: Breaks may be interrupted or delayed for emergency situations, but:

  • Should be rare exceptions
  • May still require compensation if work performed
  • Employers should document circumstances

⚠️ Important: Break requirements cannot be routinely ignored. Consistent failure to provide required breaks may result in penalties and wage claims.

Resources and Guidance

For specific questions about overtime and breaks:

  • Illinois Department of Labor: (312) 793-2800 | https://labor.illinois.gov
  • U.S. Department of Labor Wage and Hour Division: (866) 487-9243 | https://www.dol.gov/agencies/whd
  • Employment Attorney: For classification decisions and policy development
  • HR Counsel: For implementation of compliant practices

Paid Leave for All Workers Act - Detailed Information

Legal Framework

Statutory Authority: 820 ILCS 192/
Effective Date: January 1, 2024
Administering Agency: Illinois Department of Labor
Official Resource: https://labor.illinois.gov/laws-rules/paidleave.html
Regulations: 56 Ill. Admin. Code 200

General Program Description (Based on Official Sources)

According to the Illinois Department of Labor, the Paid Leave for All Workers Act (PLAWA) generally:

  • Allows workers to earn up to 40 hours of paid leave per 12-month period
  • Workers can use paid leave for any reason
  • Employers may not require workers to provide a basis for their time off request
  • Applies to most employees working in Illinois

Key Principle: This is “paid leave for any reason” – distinct from paid sick leave which may be limited to specific purposes.

Coverage Framework

Employer Coverage

According to Illinois DOL guidance, the law generally applies to employers who:

  • Have employees working in Illinois
  • Are subject to the Illinois Wage Payment and Collection Act

Exemptions May Include:

  • Employers covered by pre-existing local ordinances (Chicago, Cook County)
  • Certain unionized workplaces (if waived in collective bargaining agreement)

Local Ordinance Exception:

The Act generally does not apply to employers covered by municipal or county paid leave ordinances in effect before January 1, 2024. This includes:

  • City of Chicago: Covered by Chicago Paid Leave and Paid Sick and Safe Leave Ordinance
  • Cook County: Covered by Cook County Paid Leave Ordinance

For employers in these jurisdictions: Contact the local agency for requirements:

⚠️ Important: If a local ordinance was enacted AFTER January 1, 2024, the state law may apply unless the local ordinance provides greater benefits. Employers should verify requirements with Illinois DOL.

Employee Eligibility

According to Illinois DOL, the law generally covers employees who:

  • Work in Illinois
  • Are not specifically exempted by the Act

Coverage Includes:

  • Full-time, part-time, seasonal, and temporary workers
  • Workers employed through staffing agencies
  • Domestic workers (meeting specified criteria)

Exemptions May Include:

  • Federal employees
  • School district and park district employees
  • Independent contractors
  • Railroad employees subject to Railway Labor Act
  • Part-time students employed by colleges/universities
  • Short-term employees at institutions of higher education

Domestic Workers: According to PLAWA, domestic workers are covered if they work:

  • At least 8 hours per week in the aggregate
  • These hours may be accumulated across multiple households
  • All employers are jointly responsible for accrued paid leave

⚠️ Note: The Illinois Department of Labor has indicated that if an employee primarily performs work in Illinois for a company that does business in Illinois, they are likely entitled to paid leave under the Act. Specific situations should be verified with Illinois DOL.

Accrual Provisions (As Described in Statute/Regulations)

According to official sources, the general accrual framework includes:

Accrual Rate:

  • 1 hour of paid leave for every 40 hours worked
  • Accrual must be calculated on a fractional basis
  • May be rounded on a minute-by-minute basis OR in 15-minute increments (if favorable to employee)

When Accrual Begins:

  • Upon start of employment, OR
  • January 1, 2024 (for existing employees)
  • Whichever is later

Annual Cap:

  • Minimum of 40 hours per 12-month period
  • Employers may provide more generous policies

Carryover:

  • Unused leave generally must carry over to next 12-month period
  • Carryover may be limited to 40 hours
  • Employers who front-load may have different carryover rules

12-Month Period: Employers may define the 12-month period as:

  • Calendar year
  • Anniversary of employee hire date
  • Any other consecutive 12-month period
  • Must be clearly communicated to employees

Example Calculation (Illustrative Only):

An employee working 40 hours per week would generally accrue:

  • 1 hour of paid leave per week
  • Approximately 52 hours per year (if working full year)
  • But only required minimum is 40 hours per year

An employee working 20 hours per week would generally accrue:

  • 0.5 hours of paid leave per week
  • Approximately 26 hours per year (if working full year)
  • Prorated based on actual hours worked

⚠️ Important: These are simplified examples for illustration only. Actual accrual depends on specific hours worked, accrual method used, and employer policy. This is not a determination.

Source: Illinois DOL FAQs – https://labor.illinois.gov/faqs/paidleavefaq.html

Usage Provisions (As Stated in Law)

Permitted Uses

According to Illinois law, sick leave may generally be used for ANY REASON. Key provisions:

  • Employees are NOT required to provide a reason
  • Employers may NOT require documentation or explanation
  • Leave is at employee’s discretion after waiting period

Waiting Period:

  • Employees may begin using leave after 90 days
  • 90 days from start of employment, OR
  • 90 days from January 1, 2024
  • Whichever is later

Example Timelines (Illustrative Only):

  • Employee hired July 1, 2024: Can use leave September 29, 2024 (90 days later)
  • Employee hired before January 1, 2024: Could use leave March 31, 2024 (90 days after Act effective date)

Notice Requirements

According to regulations, employers may establish reasonable notice requirements:

Foreseeable Leave:

  • Employer may require up to 7 calendar days’ notice before leave begins
  • Must be in writing policy provided to employees

Unforeseeable Leave:

  • Employer may require notice as soon as practicable
  • Employee should notify as soon as aware of need for leave

Important Limitations:

  • Employers CANNOT require employee to find replacement worker
  • Employers CANNOT require documentation of reason for leave
  • Employers CANNOT deny leave if proper notice given and time accrued

⚠️ Note: Notice requirements must be reasonable and clearly communicated in written policy. Employers should consult Illinois DOL guidance for details.

Employer Obligations (From Statute and Regulations)

According to PLAWA and implementing regulations, employers generally must:

1. Provide Written Notice:

  • At time of hire
  • Include information about paid leave rights
  • Explain how to request leave
  • Describe employer’s paid leave policy

2. Track Accrual:

  • Maintain accurate records of hours worked
  • Calculate accrued paid leave
  • Track leave used
  • Provide balance information upon employee request

3. Post Notice:

  • Illinois DOL provides official notice poster
  • Must be posted in workplace or provided electronically for remote workers
  • Available in multiple languages

4. Pay at Regular Rate:

  • Paid leave must be paid at employee’s regular rate
  • For tipped workers: must be paid at least full minimum wage (not tipped minimum)
  • Payment timing follows regular payroll schedule

5. Non-Retaliation:

  • Cannot retaliate against employees for using leave
  • Cannot discipline, terminate, or take adverse action because of leave use

Front-Loading Options

According to regulations, employers may choose to “front-load” paid leave:

What Front-Loading Means:

  • Providing full 40 hours (or prorated amount) at beginning of 12-month period
  • Instead of accrual throughout year

Requirements for Front-Loading:

  • Must provide at least the minimum required hours
  • For part-time workers, may prorate based on expected hours
  • Must provide written notice of front-loading policy
  • If employee works more than anticipated, additional accrual may be required

Advantage: Simplifies tracking and administration

⚠️ Note: Even with front-loading, employers must track to ensure employee receives at least minimum required leave based on actual hours worked.

Relationship with Other Leave

Separate from Other Leave: Paid leave under PLAWA generally operates separately from:

  • Paid sick leave required by local ordinances
  • Federal FMLA leave
  • State family and medical leave
  • Employer PTO or vacation policies

May Be Combined: Employers may combine PLAWA leave with existing policies if:

  • The policy provides at least 40 hours usable for any reason
  • Employees can use time without providing a reason
  • Policy meets all PLAWA requirements
  • Proper notice provided to employees

Payout Upon Separation:

  • Employers are NOT required to pay out unused PLAWA leave upon separation
  • EXCEPTION: If leave is credited to a paid time off bank subject to Illinois Wage Payment and Collection Act payout requirements

⚠️ Complex Area: Integration of PLAWA with existing policies requires careful analysis. Consult legal counsel for policy coordination.

Enforcement and Penalties

According to the Act, violations may result in:

For Employees:

  • File complaint with Illinois Department of Labor
  • May recover unpaid leave wages
  • May recover penalties
  • Protected from retaliation

For Employers:

  • Civil penalties up to $500 per violation
  • Required to pay unpaid wages
  • Payment of fees and costs
  • Possible additional damages

Retaliation Prohibited: It is a violation for employers to:

  • Discharge, threaten, or discriminate against employee for exercising rights
  • Interfere with employee’s use of leave
  • Deny leave improperly

⚠️ Important: Taking paid leave is protected conduct. Poor performance reviews, discipline, or termination shortly after leave use may raise retaliation concerns. Employers should document legitimate business reasons for employment decisions.

Remote Work Application

General Principle: Paid leave requirements generally apply to remote workers in the same manner as on-site workers.

Specific Considerations:

  • Hours worked remotely count toward accrual
  • Remote workers have same right to take leave
  • Notice requirements apply equally
  • Electronic posting acceptable for fully remote workers

Employer Responsibilities:

  • Track remote workers’ hours
  • Calculate accrual for remote workers
  • Process leave requests from remote workers
  • Provide electronic notice if no physical workplace

Resources for Compliance

Other Leave Entitlements in Illinois

Employee Sick Leave Act

Statutory Authority: 820 ILCS 191/
Effective Date: January 1, 2017

General Provisions:

According to the Employee Sick Leave Act:

  • Applies to employers who provide sick leave benefits
  • If employer provides sick leave, employees may use it to care for certain family members
  • Does NOT require employers to provide sick leave (unless required by other law)

Covered Family Members May Include:

  • Spouse
  • Children (biological, adopted, foster, stepchild, legal ward)
  • Spouse’s children
  • Parents (biological, adoptive, foster, stepparent, legal guardian)
  • Spouse’s parents
  • Grandparents
  • Grandchildren
  • Siblings

What this generally means:

  • Employers who offer sick leave cannot restrict it to employee’s own illness only
  • Must allow use for care of covered family members
  • Subject to same conditions as employee’s own sick leave use

⚠️ Note: This law requires expansion of existing sick leave policies but does not mandate providing sick leave in the first place.

School Visitation Rights Act

Statutory Authority: 820 ILCS 147/

General Provisions:

According to the Act, employees may be entitled to:

  • Up to 8 hours per school year (no more than 4 hours per day)
  • To attend school conferences, behavioral meetings, or academic activities
  • For employee’s child
  • After exhausting comp time, personal time, and other discretionary leave

Employer Requirements:

  • Must allow time off if employee makes reasonable effort to schedule during non-work hours
  • May require documentation of attendance
  • Applies to employers with 50 or more employees

⚠️ Note: Remote work may make it easier for some parents to attend virtual school events without taking formal leave, but employees retain rights under this Act.

Victims’ Economic Security and Safety Act (VESSA)

Statutory Authority: 820 ILCS 180/

General Provisions:

According to VESSA, employees may be entitled to unpaid leave:

  • Up to 12 workweeks per 12-month period
  • For victims of domestic or sexual violence
  • To seek medical attention, services from victim services organizations, counseling, safety planning, legal assistance, or other purposes

Coverage:

  • Applies to employers with 15 or more employees
  • Employees must have worked 6 months and 1,250 hours

Protections:

  • Cannot discriminate or retaliate against victims
  • Must maintain health insurance during leave
  • Job restoration rights similar to FMLA

Family Bereavement Leave Act

Statutory Authority: 820 ILCS 154/

General Provisions:

According to this Act:

  • Up to 2 weeks (10 working days) of unpaid leave
  • Following death of covered family member
  • Applies to employers with 50 or more employees in Illinois
  • Employees must have worked 6 months and 1,000 hours

Covered Family Members May Include:

  • Spouse
  • Children and their spouses
  • Parents and their spouses
  • Siblings and their spouses
  • Grandparents and their spouses
  • Grandchildren and their spouses

Child Extended Bereavement Leave Act

Statutory Authority: 820 ILCS 156/

Applies specifically to:

  • Death of more than one child in a single incident
  • Provides up to 6 weeks (30 working days) leave in that circumstance
  • Otherwise similar requirements to Family Bereavement Leave Act

Illinois Service Member Employment and Reemployment Rights Act (ISERRA)

Statutory Authority: 820 ILCS 336/

General Provisions:

Provides protections similar to federal USERRA but with broader coverage:

  • Protects service members in state military service
  • Broader definition of “employer”
  • Additional protections beyond federal law

Federal Family and Medical Leave Act (FMLA)

Federal Law – 29 USC 2601 et seq.

While not an Illinois law, FMLA provides important protections:

Coverage:

  • Employers with 50+ employees
  • Employees who have worked 1,250 hours in past 12 months

Provides up to 12 weeks unpaid leave for:

  • Birth/adoption/foster care placement
  • Care for family member with serious health condition
  • Employee’s own serious health condition
  • Military family leave

⚠️ Note: This is federal law. For details, consult U.S. Department of Labor or legal counsel.

Workers' Compensation Overview for Illinois

Legal Framework

Statutory Authority: 820 ILCS 305/ (Illinois Workers’ Compensation Act)
Administering Agency: Illinois Workers’ Compensation Commission (IWCC)

Contact Information:

  • Website: https://iwcc.illinois.gov
  • Phone: (312) 814-6611 | Toll-free: (866) 352-3033
  • Chicago Office: 100 West Randolph Street, Suite 8-200, Chicago, IL 60601
  • Springfield Office: 701 South 2nd Street, Springfield, IL 62704
  • Insurance Compliance Division: inscompquestions.wcc@illinois.gov | (866) 352-3033

General Coverage Requirements (As Stated in Law)

According to Illinois Workers’ Compensation Act:

Coverage Generally Required For:

  • Most employers with employees in Illinois
  • Employees “hired, injured, or whose employment is localized in Illinois”
  • Covers approximately 91% of Illinois workers

What this generally means:

  • If you employ people in Illinois, you likely need workers’ compensation insurance
  • Coverage applies regardless of employer fault
  • It’s a “no-fault” system

Exemptions May Include:

  • Sole proprietors without employees
  • Certain business partners
  • Corporate officers who elect to be excluded
  • Some agricultural workers
  • Certain real estate agents
  • Some casual workers

⚠️ Important: Coverage requirements are fact-specific. Employers uncertain about obligations should consult IWCC or legal counsel.

Penalties for Non-Compliance:

According to the Act, failure to maintain coverage can result in:

  • Class A misdemeanor (negligent failure): up to 12 months imprisonment, $2,500 fine per day
  • Class 4 felony (knowing failure): 1-3 years imprisonment, $25,000 fine per day
  • Civil penalty of $500+ per day without coverage
  • Loss of Act’s liability protections
  • Citations with fines from $500-$2,500

⚠️ Critical: These are serious penalties. Employers must maintain continuous coverage.

Illinois Workers’ Compensation System

Illinois operates a private insurance system with state oversight.

What this generally means:

  • Employers purchase insurance from private carriers OR
  • Employers may self-insure if they meet requirements
  • Illinois Workers’ Compensation Commission oversees system and resolves disputes

How to Obtain Coverage:

  1. Contact insurance carrier or agent
  2. Provide information about business and employees
  3. Purchase appropriate policy
  4. Maintain continuous coverage

Verification: The Insurance Compliance Division maintains database of coverage. They verify employer compliance.

Covered Injuries and Diseases

According to the Illinois Workers’ Compensation Act:

General Standard: “Accidents that arise out of and in the course of employment” are eligible for benefits.

What this generally means:

  • The Act covers injuries that result in whole or in part from the employee’s work
  • Must show injury arose out of employment (work-related)
  • Must show injury occurred in course of employment (during work time/activity)

Both elements typically required. These are fact-specific determinations made by IWCC.

May Cover:

  • Sudden injuries from specific incidents
  • Repetitive stress injuries (e.g., carpal tunnel syndrome)
  • Occupational diseases
  • Aggravation of pre-existing conditions
  • Some mental health conditions

Generally Does NOT Cover:

  • Injuries from horseplay or fighting
  • Self-inflicted injuries
  • Injuries while committing a crime
  • Injuries due to intoxication
  • Purely personal activities unrelated to work
  • Commuting injuries (with exceptions)

⚠️ Note: These are general principles. Actual coverage depends on specific facts and IWCC determination.

Remote Worker Coverage Considerations

⚠️ EXTREMELY COMPLEX AND FACT-SPECIFIC: Coverage of home office injuries involves detailed factual analysis. The following is general background only.

General Legal Standard:

According to case law and IWCC guidance, the “arising out of and in the course of employment” standard applies to remote workers. Factors that may be considered include:

Work-Relatedness Factors:

  • Whether employee was engaged in work activity at time of injury
  • Whether injury occurred in designated work area
  • Whether injury occurred during work hours
  • Whether activity was authorized or expected by employer
  • Whether activity served employer’s interests
  • Nature of the work being performed

⚠️ Important: This list is not exhaustive and no single factor is determinative. Each claim requires individual analysis.

Illustrative Scenarios (For General Understanding Only)

Scenario Category: Work-Related Activities in Home Office

Example Situation 1: Employee trips over equipment cables in designated home office while walking to retrieve work documents during scheduled work hours.

General Observations: This type of scenario may share some characteristics with situations that have historically been found compensable, such as:

  • Activity was work-related (retrieving work documents)
  • Occurred in designated work area (home office)
  • During work hours
  • Performing work duties

However, compensability would depend on complete factual analysis including:

  • Whether home office was authorized and known to employer
  • Specific arrangement of workspace
  • What the employee was doing when injury occurred
  • Other relevant circumstances

⚠️ This is not a coverage determination. Actual determination would be made by IWCC based on all facts.

Example Situation 2: Employee develops carpal tunnel syndrome from extended computer use performing work duties at home office over period of months.

General Observations: Repetitive stress injuries from work activities may potentially be compensable in some circumstances. Factors that may be relevant include:

  • Medical documentation linking condition to work activities
  • Duration and nature of work activities
  • Whether condition arose from employment duties
  • Other contributing factors

Determination depends on medical evidence, nature of work, and other factors.

⚠️ This is not a coverage determination. Consult medical professionals and IWCC for actual determinations.

Scenario Category: Personal Comfort Activities at Home

Example Situation: Employee injured while preparing personal lunch in kitchen during unpaid lunch break.

General Observations: Personal comfort activities unrelated to work duties may be less likely to be considered work-related. Factors that may be relevant:

  • Whether employee was completely relieved of duties
  • Whether kitchen is part of designated work area
  • Nature of activity (personal vs. work-related)
  • Other specific circumstances

⚠️ This is general background only. Not a coverage determination.

Example Situation: Employee injured in car accident while driving to pick up supplies for work project at employer’s request.

General Observations: Travel for work purposes during work hours may share characteristics with compensable situations. Factors include:

  • Whether travel was at employer’s direction
  • Whether activity was within scope of employment
  • Specific circumstances of accident

Commuting is generally not covered, but work-related travel may be different.

⚠️ This is not a coverage determination. Actual analysis requires complete facts.

Benefits Generally Available (From Statute)

According to Illinois Workers’ Compensation Act, benefits may include:

Medical Benefits:

  • All reasonable and necessary medical treatment
  • Hospital care
  • Medications
  • Medical devices
  • Rehabilitation
  • No deductibles or copays (employer/insurer pays)

Wage Replacement Benefits:

Temporary Total Disability (TTD):

  • While employee completely unable to work during recovery
  • Generally 2/3 of average weekly wage
  • Subject to maximum rates set by statute

Temporary Partial Disability (TPD):

  • While employee able to work light duty for reduced wages
  • Compensation for wage differential

Permanent Partial Disability (PPD):

  • For permanent impairment that does not prevent all work
  • Based on nature and extent of injury

Permanent Total Disability (PTD):

  • When injury prevents all gainful employment
  • Lifetime benefits in many cases

Vocational Rehabilitation:

  • Services to help return to work if available

Death Benefits:

  • To dependents if work injury results in death

⚠️ Note: Specific benefit amounts and eligibility depend on injury circumstances, wages, and statutory formulas. Consult IWCC or claims administrator for specific calculations.

Source: Illinois Workers’ Compensation Handbook – https://iwcc.illinois.gov

Reporting and Claim Process (General Framework)

According to Illinois Workers’ Compensation Act and regulations:

For Employees:

  1. Report Injury Promptly:
    • Notify employer as soon as possible
    • Preferably in writing
    • Include date, time, location, how injury occurred
  2. Seek Medical Attention:
    • Get necessary medical treatment
    • Inform medical provider injury is work-related
    • Employer/insurer may have preferred provider list
  3. File Claim:
    • File Application for Adjustment of Claim with IWCC if dispute
    • Typically need attorney assistance
    • Statute of limitations applies (generally 3 years)

For Employers:

  1. Report to Insurance Carrier:
    • Immediately upon notice of injury
    • Provide all relevant information
  2. Report to IWCC:
    • File Form 45 (First Report of Injury) within specified timeframe
    • Serious injuries require immediate reporting
  3. Investigate:
    • Document circumstances
    • Preserve evidence
    • Interview witnesses
  4. Cooperate with Adjudication:
    • Respond to claim if filed
    • Participate in proceedings

⚠️ Critical for Employees: Deadlines are strictly enforced. Late reporting may affect claim. When in doubt, report promptly and seek guidance.

⚠️ Critical for Employers: Timely reporting is required by law. Failure to report can result in penalties.

Best Practices for Remote Work (General Recommendations)

The following are general considerations compiled from various sources. They do not constitute legal requirements and may not be suitable for all situations. Consult legal counsel and safety professionals.

For Employers (Consider with Legal Counsel):

  • Provide clear policies on remote work expectations
  • Consider ergonomic guidance or equipment for remote workers
  • Consider documenting remote work location and setup
  • Develop clear injury reporting procedures
  • Provide safety training for remote work
  • Maintain workers’ compensation insurance for all employees
  • Report injuries promptly to carrier and IWCC

For Employees (General Guidance):

  • Set up safe, designated work area
  • Use ergonomic practices
  • Report injuries promptly to employer
  • Maintain clear work hour boundaries
  • Follow employer safety guidelines
  • Seek medical attention for work injuries
  • Document work-related injuries

⚠️ Note: These are general suggestions only, not legal requirements. Specific practices should be developed with professional guidance.

Resources and Contacts

Illinois Workers’ Compensation Commission:

Insurance Compliance:

For Legal Representation:

  • Workers’ compensation attorney
  • Illinois State Bar Association: https://www.isba.org | (800) 252-8908

Anti-Discrimination Laws in Illinois

Illinois Human Rights Act – General Framework

Statutory Authority: 775 ILCS 5/
Administering Agency: Illinois Department of Human Rights (IDHR)
Official Source: https://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=2266

Contact Information:

  • Website: https://dhr.illinois.gov
  • Chicago Office: (312) 814-6200 | 100 West Randolph Street, 10th Floor, Chicago, IL 60601
  • Springfield Office: (217) 785-5100 | 222 South College, Room 101-A, Springfield, IL 62704

Employer Coverage

According to the Illinois Human Rights Act:

General Coverage (as of July 1, 2020):

  • Any person employing one or more employees in Illinois during 20 or more calendar weeks within the calendar year of or preceding the alleged violation

Broader Coverage for Certain Claims:

  • Disability discrimination claims: Applies to employers with one or more employees regardless of weeks
  • Sexual harassment claims: Applies to employers with one or more employees regardless of weeks
  • Pregnancy discrimination claims: Applies to employers with one or more employees regardless of weeks

Government Employers:

  • State and local government entities covered regardless of number of employees

⚠️ Note: Coverage thresholds are important. Employers should verify their obligations with IDHR or legal counsel.

Protected Categories (Unlawful Discrimination Defined)

According to the Illinois Human Rights Act, it is generally unlawful to discriminate based on:

  1. Race
  2. Color
  3. Religion
  4. Sex (including pregnancy)
  5. National Origin
  6. Ancestry
  7. Age (40 and older)
  8. Order of Protection Status
  9. Marital Status
  10. Disability (physical or mental, unrelated to ability)
  11. Military Status (including veterans)
  12. Sexual Orientation (actual or perceived)
  13. Pregnancy (specific protections)
  14. Citizenship Status (with limitations)
  15. Work Authorization Status
  16. Unfavorable Discharge from Military Service

Important Notes:

  • These categories are broader than federal protections in some areas
  • “Sex” discrimination includes pregnancy, childbirth, and related conditions
  • “Sexual orientation” includes actual or perceived sexual orientation and gender-related identity

Prohibited Employment Practices

According to 775 ILCS 5/2-102, it is generally a civil rights violation for employers to:

Hiring and Employment Decisions:

  • Refuse to hire based on protected category
  • Discharge or discriminate in compensation, terms, conditions, or privileges of employment
  • Segregate, classify, or limit in a way that deprives opportunities

Retaliation:

  • Retaliate against person for opposing unlawful discrimination
  • Retaliate for filing a charge or participating in investigation

Harassment:

  • Sexual harassment by employers, employees, or agents
  • Harassment based on other protected categories

Advertising:

  • Print or circulate statements or advertisements that express limitation based on protected category
  • Exception: Bona fide occupational qualifications

⚠️ Note: These are general provisions. Specific applications depend on facts and circumstances. Consult IDHR or legal counsel for guidance.

Sexual Harassment – Specific Provisions

Illinois Human Rights Act Prohibits:

Sexual harassment by employers, employees, or agents. According to the Act:

Employer Liability:

  • Employers are generally liable for sexual harassment by supervisors
  • For harassment by non-supervisors or non-employees: Employer liable if becomes aware and fails to take reasonable corrective measures

Required Training: Illinois law requires sexual harassment prevention training:

  • Must be provided to all employees
  • At time of hire and annually thereafter
  • Applies to employers with employees in Illinois
  • Training must meet certain minimum standards

⚠️ Important: Training requirements are mandatory. Employers should ensure compliance.

Pregnancy Discrimination and Accommodations

Illinois provides strong protections for pregnancy:

Prohibitions:

  • Cannot discriminate based on pregnancy, childbirth, or related conditions
  • Cannot refuse to hire or terminate based on pregnancy
  • Cannot force leave if able to work

Reasonable Accommodations Required:

According to Illinois Human Rights Act, employers must provide reasonable accommodations for pregnancy-related conditions, including:

  • More frequent or longer breaks
  • Time off for medical appointments
  • Modified work schedule or duties
  • Seating modifications
  • Limits on lifting
  • Temporary transfer

Process:

  • Employee requests accommodation
  • Employer must engage in interactive process
  • Accommodation required unless undue hardship

⚠️ Note: Illinois law on pregnancy accommodations is more protective than federal law. Employers should be familiar with requirements.

Disability Discrimination and Accommodations

Definition of Disability:

According to 775 ILCS 5/1-103(I), “disability” means:

  • A determinable physical or mental characteristic
  • May result from disease, injury, congenital condition, or functional disorder
  • Unrelated to person’s ability to perform duties of particular job
  • History of such characteristic, or perception of such characteristic

Protections:

  • Cannot discriminate in hiring, firing, or terms of employment based on disability unrelated to ability
  • Must provide reasonable accommodations

Reasonable Accommodations: May include:

  • Job restructuring
  • Modified work schedules
  • Reassignment to vacant position
  • Acquisition of equipment or devices
  • Other modifications

Undue Hardship Exception: Accommodation not required if it would impose undue hardship on employer operations

⚠️ Note: Illegal use of drugs or alcohol is not a disability under Illinois law.

Military Status Protections

Illinois Service Member Employment and Reemployment Rights Act (ISERRA):

Statutory Authority: 820 ILCS 336/

Provides protections for service members, including:

  • Reemployment rights after military service
  • Protection from discrimination based on military status
  • Benefits continuation during service
  • Protections broader than federal USERRA in some respects

Military Status Defined:

  • Active duty or veteran status
  • Reserve component membership or veteran status
  • Illinois National Guard membership or veteran status

Application to Remote Workers

General Principle: Anti-discrimination laws generally apply to remote workers in the same manner as on-site workers.

Specific Considerations:

Virtual Harassment:

  • Harassment can occur in virtual meetings, emails, chat platforms
  • Employers must prevent and address virtual harassment
  • Same standards apply to remote and on-site environments

Accommodations for Remote Work:

  • Disability accommodations may include remote work arrangements
  • Pregnancy accommodations may include flexible remote schedules
  • Employers should engage in interactive process for remote accommodations

Equal Opportunities:

  • Remote workers entitled to same opportunities as on-site workers
  • Cannot exclude from promotions, training, or opportunities based on protected category
  • Remote work policies should be applied consistently

⚠️ Important: Remote work does not diminish discrimination protections. Employers must maintain non-discriminatory practices in virtual environments.

Filing Discrimination Complaints

Process for Employees:

  1. File Charge with IDHR:
    • Must file within 300 days of alleged discrimination (generally)
    • Can file online, by mail, or in person
    • Include relevant details and documentation
  2. IDHR Investigation:
    • IDHR investigates charge
    • May attempt conciliation
    • Issues determination
  3. Illinois Human Rights Commission:
    • If no resolution, may proceed to Commission
    • Administrative hearing
    • Commission issues decision
  4. Court Review:
    • Appeals process available

Remedies May Include:

  • Back pay and front pay
  • Compensatory damages
  • Injunctive relief
  • Reinstatement
  • Attorney’s fees

⚠️ Important: Strict deadlines apply. Employees should consult with IDHR or attorney promptly if they believe they experienced discrimination.

Resources

Data Privacy Considerations for Remote Workers

Illinois Privacy Laws Relevant to Employment

Biometric Information Privacy Act (BIPA)

Statutory Authority: 740 ILCS 14/
Effective: 2008

General Provisions:

BIPA regulates collection and use of biometric identifiers and information, including:

  • Fingerprints
  • Retina or iris scans
  • Voiceprints
  • Hand or face geometry scans

Requirements for Employers:

If collecting biometric information from employees:

  1. Develop and make available written policy
  2. Provide written notice to employee
  3. Obtain written consent
  4. Cannot sell, lease, trade biometric information
  5. Must use reasonable security measures
  6. Must establish retention and destruction schedule

Penalties:

  • Private right of action
  • Liquidated damages per violation
  • Attorney’s fees

Remote Work Relevance:

  • Some remote monitoring systems use facial recognition
  • Voice recognition systems may implicate BIPA
  • Biometric time clocks for remote workers
  • Employers must comply with BIPA if collecting biometric data

⚠️ Important: BIPA has strict requirements and significant penalties. Employers using biometric systems should consult legal counsel.

Right to Privacy in the Workplace Act

Statutory Authority: 820 ILCS 55/

General Provisions:

According to this Act, employers generally cannot:

  • Request or require employee or applicant to provide password or account information for personal social media accounts
  • Discharge, discipline, or discriminate for refusing to provide such information
  • Require employee to access personal social media in employer’s presence

Exceptions:

  • Employer may investigate violations of law or work rules based on specific information
  • May require disclosure if relevant to investigation

Remote Work Relevance:

  • Protects personal social media accounts of remote workers
  • Employers cannot monitor personal social media as condition of employment
  • Applies equally to remote and on-site workers

Employee Monitoring Considerations

No Comprehensive Illinois Law on Employee Monitoring:

Illinois does not have a comprehensive statute specifically regulating general workplace monitoring. However:

General Legal Principles:

  • Employers generally may monitor business-related activities
  • Employees may have reduced privacy expectations in work context
  • Personal activities and communications may have greater protections

Federal Law:

  • Electronic Communications Privacy Act (ECPA) restricts certain monitoring
  • Stored Communications Act (SCA) provides some protections
  • These are federal laws – consult federal guidance or counsel

Best Practices (Not Legal Requirements):

  • Provide clear notice of monitoring policies
  • Limit monitoring to legitimate business purposes
  • Be transparent about what is monitored and how
  • Consider employee privacy in personal matters
  • Consult legal counsel before implementing monitoring

Illinois Personal Information Protection Act

Statutory Authority: 815 ILCS 530/

General Provisions:

Requires notification of data breaches involving personal information:

  • Applies to entities that own or license personal information of Illinois residents
  • Must notify affected individuals of breach
  • Must notify Attorney General if 500+ Illinois residents affected

Personal Information Defined:

  • Social Security number
  • Driver’s license number
  • Account or credit card numbers (with access codes)

Remote Work Relevance:

  • Employers handling employee personal information remotely
  • Security of remote work systems
  • Breach notification if employee data compromised

Remote Work Privacy Considerations

General Areas of Concern:

1. Video Monitoring:

  • Recording video meetings
  • Always-on video requirements
  • Virtual background policies
  • Facial recognition

2. Computer Monitoring:

  • Keystroke logging
  • Screen capture
  • Activity monitoring software
  • Time tracking

3. Communications Monitoring:

  • Email monitoring
  • Chat monitoring
  • Call recording
  • Content analysis

4. Location Tracking:

  • GPS monitoring of remote workers
  • Location data from devices

5. Home Privacy:

  • Video meetings showing home environment
  • Entry into home for equipment
  • Employer knowledge of home situation

General Recommendations (Consult Counsel):

  • Develop clear written monitoring policies
  • Provide notice to employees about monitoring
  • Limit monitoring to business purposes
  • Consider employee privacy expectations
  • Obtain consent where appropriate
  • Secure monitored data
  • Train managers on privacy considerations

⚠️ Critical: Employee privacy in remote work is complex and evolving. Employers should consult privacy attorneys before implementing monitoring systems.

Remote Work Specific Considerations

Expense Reimbursement for Remote Workers

Illinois Wage Payment and Collection Act – Expense Reimbursement Provision:

Statutory Authority: 820 ILCS 115/9.5

General Requirement:

According to the statute, employers must reimburse employees:

  • “For all necessary expenditures or losses incurred within the employee’s scope of employment and directly related to services performed for the employer”

“Necessary Expenditures” Defined:

  • “All reasonable expenditures or losses required of the employee in the discharge of employment duties”
  • That “inure to the primary benefit of the employer”

Important Limitations:

  • Employers cannot have policy of “no reimbursement or de minimis reimbursement”
  • Applies to expenses that are “necessary” and “required”

Application to Remote Work:

Complex Issue: Whether employers must reimburse for home internet, cell phones, home office equipment depends on:

  • Whether expense is “necessary”
  • Whether it’s “required” for employment duties
  • Whether it “inures to primary benefit of employer”
  • Whether work is voluntary remote or required remote

Relevant Case Law Principles:

According to California case law (similar statute), courts have considered:

  • Whether remote work is voluntary or required
  • Whether employer provides alternatives (office space, equipment)
  • Whether employee would have expense anyway for personal use

If Remote Work is Voluntary:

  • And employer provides office space/equipment option
  • Expenses may not be “required” for employment

If Remote Work is Required:

  • And employer requires employee to use own equipment
  • Expenses may be “necessary” and “required”

⚠️ Critical: This is a developing area of law. Employers should consult legal counsel about reimbursement obligations for remote workers. Illinois courts have not extensively addressed this issue in the remote work context.

Recommended Approach (Consult Counsel):

  • Clear written policy on remote work expenses
  • Identify which expenses will be reimbursed
  • Provide necessary equipment for required remote work
  • Document business vs. personal use
  • Seek legal guidance on policy development

Unemployment Insurance – Remote Work Issues

Illinois Unemployment Insurance Act:

General Principles:

Unemployment insurance eligibility for remote workers may involve:

Suitable Work Analysis:

  • Whether remote work opportunity is “suitable work”
  • Geographic considerations for remote positions
  • Pay and working conditions compared to previous work

Voluntarily Leaving Work:

  • Whether relocation for remote work was voluntary
  • Whether refusal of remote work was justified
  • Personal circumstances affecting remote work ability

Availability for Work:

  • Whether seeking remote work only affects availability
  • Whether geographic restrictions limit opportunities
  • Whether can perform remote work

⚠️ Note: These are complex, fact-specific determinations made by Illinois Department of Employment Security.

Workers’ Compensation and Remote Work

Covered in Detail in Part 3:

  • Home office injury coverage principles
  • “Arising out of and in the course of employment” standard
  • Factors considered for remote work injuries
  • Reporting requirements

See Part 3 for comprehensive information.

Remote Work Agreements and Policies

General Considerations for Employers:

While not legally required, remote work agreements may address:

Work Location and Setup:

  • Designated work location
  • Home office safety requirements
  • Equipment provision and maintenance

Work Hours and Availability:

  • Expected work schedule
  • Availability expectations
  • Response time requirements

Performance and Communication:

  • Performance standards
  • Communication methods
  • Meeting participation requirements

Data Security:

  • Security requirements for home network
  • Device security measures
  • Confidentiality obligations

Expenses:

  • What employer will provide
  • What employee is responsible for
  • Reimbursement procedures

Equipment:

  • Employer-provided equipment list
  • Maintenance and return requirements
  • Personal use policies

⚠️ Note: These are general considerations, not legal requirements. Specific policies should be developed with legal and HR counsel.

Multi-State Remote Work Considerations

When Illinois Employer Has Remote Workers in Other States:

Complex Compliance Issues:

  • Which state’s wage laws apply?
  • Which state’s leave laws apply?
  • Which state’s discrimination laws apply?
  • Income tax withholding requirements
  • Unemployment insurance jurisdiction
  • Workers’ compensation coverage state

General Principle:

  • Laws typically apply based on where work is performed
  • Illinois employer with worker in California must follow California law for that worker
  • May need to register to do business in other state
  • May need separate workers’ compensation coverage
  • May need to withhold other state’s income tax

⚠️ Critical: Multi-state remote workforce creates significant compliance complexity. Employers should consult:

  • Employment attorney in each state
  • Tax professionals familiar with multi-state issues
  • HR compliance specialists
  • Insurance advisors for workers’ compensation

Right to Disconnect Considerations

Illinois Has No “Right to Disconnect” Law:

Unlike some jurisdictions (e.g., New York City proposed legislation, California discussions):

  • Illinois does not currently require off-hours disconnection rights
  • Employers not required to limit after-hours communications
  • However, wage and hour considerations still apply

Wage and Hour Implications:

  • Off-hours work may be compensable time
  • Non-exempt employees must be paid for work performed
  • After-hours emails may constitute “hours worked”
  • Employers should have clear policies

Best Practices (Not Legal Requirements):

  • Clear expectations about off-hours availability
  • Policies on after-hours communications
  • Training for managers on wage and hour issues
  • Culture that respects work-life boundaries

⚠️ Note: While not legally required, clear policies help manage expectations and avoid wage and hour issues.

Recordkeeping Requirements for Remote Workers

Illinois and Federal Requirements:

Employers must maintain employment records, including for remote workers:

Fair Labor Standards Act (FLSA) Requirements:

  • Employee personal information
  • Hours worked each day and week
  • Regular rate of pay
  • Overtime hours and pay
  • Deductions and additions to wages
  • Total wages paid each pay period

Illinois Requirements:

  • Wage payment records (3 years)
  • Personnel files
  • Time records
  • Leave usage records
  • Safety training records

Paid Leave for All Workers Act:

  • Hours worked
  • Paid leave accrued
  • Paid leave used
  • Available balance

Remote Work Specifics:

  • May need time tracking systems for remote workers
  • Electronic records acceptable
  • Must be accessible for audit/inspection
  • Employee access rights apply

⚠️ Important: Proper recordkeeping essential for remote workers. Systems should accurately capture remote work hours.

Tax Information for Illinois Remote Workers

Illinois State Income Tax – General Framework

Administering Agency: Illinois Department of Revenue
Official Source: https://tax.illinois.gov
Phone: (800) 732-8866

Illinois Tax Structure:

According to the Illinois Department of Revenue:

Flat Tax Rate:

  • Illinois has a flat income tax rate of 4.95% (as of 2025)
  • All income levels taxed at same rate
  • No graduated tax brackets like federal system

What this generally means:

  • Simpler calculation than federal taxes
  • Same rate applies to all taxable income
  • No separate rates for different income levels

Personal Exemptions (2025):

According to Illinois Department of Revenue:

  • Personal exemption: $2,850 per person
  • Dependent exemption: $2,850 per dependent
  • Additional exemptions for taxpayers over 65 or blind

Phase-Out for High Earners:

  • Exemptions may be reduced or eliminated for taxpayers with AGI exceeding:
    • $250,000 (single)
    • $500,000 (married filing jointly)

Illinois Does NOT Have:

  • Traditional standard deduction (like federal)
  • Itemized deductions in federal sense
  • Separate capital gains rate (taxed as ordinary income)
  • Local income taxes (unlike some states)

What Illinois DOES Allow:

  • Specific subtractions from income
  • Retirement income exemptions
  • College savings contributions
  • Other specific deductions

Remote Work Tax Considerations

⚠️ COMPLEX AREA: Multi-state tax issues are extremely complicated. This is general background only.

General Principles (Consult Tax Professional):

Where Income is Taxed:

Resident of Illinois:

  • Generally owe Illinois tax on all income regardless of where earned
  • May get credit for taxes paid to other states on income earned there

Non-Resident Working in Illinois:

  • Generally owe Illinois tax on income earned for work performed in Illinois
  • Should file Form IL-1040 as non-resident

Illinois Resident Working in Another State:

  • Owe Illinois tax on all income
  • May owe tax to other state on income earned there
  • Credit may be available to avoid double taxation

Reciprocal Agreements:

Illinois has income tax reciprocity with:

  • Iowa
  • Kentucky
  • Michigan
  • Wisconsin

What Reciprocity Generally Means:

  • Residents of reciprocal states working in Illinois:
    • NOT subject to Illinois income tax withholding
    • Pay tax only to their home state
    • Must file Form IL-W-5-NR with employer
  • Illinois residents working in reciprocal states:
    • NOT subject to other state’s income tax withholding
    • Pay tax only to Illinois
    • Must file appropriate form with employer in other state

⚠️ Important: Reciprocity rules can be complex. Employers and employees should consult tax professionals.

Remote Work from Home State:

Example Scenario (For Illustration Only):

Scenario: Illinois employer, employee lives in Wisconsin and works remotely from home.

General Analysis:

  • Income sourced to Wisconsin (where work performed)
  • Employee generally owes Wisconsin tax
  • Due to reciprocity, Illinois withholding not required
  • Employee should file Form IL-W-5-NR with employer
  • Employee files Wisconsin return only

⚠️ This is not tax advice. Actual tax treatment depends on specific circumstances. Consult tax professional.

Remote Work from Multiple States:

If employee performs work in multiple states:

  • May owe tax to multiple states
  • May need to allocate income among states
  • Very complex – requires professional guidance

Temporary vs. Permanent Remote Work:

Some states distinguish between:

  • Temporary work in another state
  • Permanent change of work location

Illinois Position: Illinois generally sources income based on where services performed.

⚠️ Note: Other states may have different rules. Some states (like New York) have “convenience of employer” rules. Multi-state issues require professional tax guidance.

Withholding Requirements for Employers

Illinois Employers with Illinois Employees:

According to Illinois Department of Revenue:

Withholding Obligations:

  • Withhold Illinois income tax at 4.95%
  • Account for employee’s exemptions
  • Use Illinois withholding tables (Form IL-700-T)
  • Report and remit withheld taxes

Forms:

  • Employees complete Form IL-W-4
  • Employers file Form IL-941 (quarterly)
  • Annual reconciliation Form IL-W-3

Illinois Employers with Out-of-State Remote Employees:

General Principles (Consult Tax Professional):

May need to:

  • Register to withhold in employee’s state
  • Withhold that state’s income tax
  • File returns in that state
  • Potentially register as doing business in that state

Reciprocal State Employees:

  • If employee from reciprocal state, no Illinois withholding
  • Employee files Form IL-W-5-NR
  • Employer maintains form in records

⚠️ Critical: Out-of-state employees create significant compliance complexity. Employers should consult tax professionals and potentially register in employee’s state.

Unemployment Insurance Tax

Illinois Unemployment Insurance:

Administered by: Illinois Department of Employment Security (IDES)
Website: https://ides.illinois.gov

General Framework:

Employer Contributions:

  • Employers pay unemployment insurance tax
  • Rates vary by employer experience rating
  • Calculated on wages up to wage base ($13,271 for 2025)

New Employer Rate:

  • New employers typically assigned standard rate
  • Rate may change based on experience

Remote Workers:

  • Generally covered under state where services primarily performed
  • May need to register in multiple states if employees in multiple locations

⚠️ Note: Multi-state workforce creates UI registration requirements in multiple states. Consult IDES and tax professionals.

Federal Tax Considerations

⚠️ Federal Tax Law: The following is general background only. Consult IRS or tax professional.

Federal Income Tax:

  • Applies to all earned income regardless of state
  • Progressive tax brackets
  • Standard deduction or itemized deductions

Social Security and Medicare (FICA):

  • 6.2% Social Security (employee) + 6.2% (employer)
  • 1.45% Medicare (employee) + 1.45% (employer)
  • Additional Medicare tax for high earners

Federal Unemployment Tax (FUTA):

  • Employer pays 6.0% on first $7,000 of wages
  • Credit available for state unemployment taxes paid

Home Office Deduction for Employees:

⚠️ Important Change: Tax Cuts and Jobs Act (2017)

For Tax Years 2018-2025:

  • Employees generally CANNOT deduct home office expenses
  • Unreimbursed employee expenses suspended
  • Applies even if working from home full-time

Exception:

  • Self-employed individuals and independent contractors may still qualify for home office deduction
  • Must meet regular and exclusive use test
  • Detailed requirements in IRS Publication 587

⚠️ Critical: Tax laws change. Verify current law with tax professional or IRS.

Resources for Tax Information

Illinois:

Federal:

Professional Assistance:

Resources

Illinois State Agencies

Illinois Department of Labor (IDOL)

Illinois Workers’ Compensation Commission (IWCC)

Illinois Department of Human Rights (IDHR)

Illinois Department of Employment Security (IDES)

Illinois Department of Revenue (IDOR)

Illinois Attorney General – Workplace Rights Bureau

Local Agencies (Chicago and Cook County)

City of Chicago – Office of Labor Standards

Cook County Commission on Human Rights

Federal Agencies

U.S. Department of Labor

Equal Employment Opportunity Commission (EEOC)

Internal Revenue Service (IRS)

  • Website: https://www.irs.gov
  • General Questions: (800) 829-1040
  • Business Questions: (800) 829-4933

Occupational Safety and Health Administration (OSHA)

Legal Assistance and Bar Associations

Illinois State Bar Association (ISBA)

Chicago Bar Association

Legal Aid Organizations

Professional Organizations

Illinois CPA Society

Society for Human Resource Management (SHRM)

National Employment Law Project

Additional Resources

Illinois Compiled Statutes

Illinois Administrative Code

Illinois General Assembly

Frequently Asked Questions

General Employment Questions

Q: Do Illinois employment laws apply to remote workers?

A: Generally yes, if the work is performed in Illinois. According to general legal principles, employment laws typically apply based on where work is physically performed. A worker performing services from a location in Illinois would generally be subject to Illinois employment laws, regardless of where the employer is located. Specific situations should be verified with the Illinois Department of Labor or legal counsel.

Q: I work remotely for an Illinois company but live in another state. Which state’s laws apply?

A: This is complex and depends on the specific law. Generally:

  • Wage and hour laws: State where work is performed
  • Tax laws: Multiple states may have jurisdiction
  • Workers’ compensation: Typically state where work performed
  • Discrimination laws: May be state where work performed

However, some states have special rules. For multi-state employment situations, consult legal counsel and tax professionals in both states.

Q: Can my employer require me to work from the office instead of remotely?

A: Generally yes, unless:

  • You have a contract specifying remote work
  • Remote work is a disability accommodation
  • Requirement violates discrimination or other laws

Employers generally have discretion to set work location policies. However, changes to established remote work arrangements should be handled carefully. Consult HR or legal counsel for specific situations.

Classification Questions

Q: How do I know if I’m an employee or independent contractor?

A: This is a complex legal determination that depends on multiple factors including:

  • Degree of control employer exercises
  • Your financial independence
  • Nature of your relationship

Do not rely on what employer calls you or what your contract says. Actual working relationship determines classification. If uncertain, consult Illinois Department of Labor or an employment attorney.

For more details, see Part 1 of this guide.

Q: My employer classified me as an independent contractor, but I think I’m an employee. What should I do?

A: If you believe you are misclassified:

  1. Review classification factors (see Part 1)
  2. Gather documentation of working relationship
  3. File complaint with Illinois Department of Labor (if construction industry) or Illinois Department of Employment Security
  4. Consult with employment attorney

Misclassification may affect your rights to minimum wage, overtime, unemployment benefits, and workers’ compensation.

Wage and Hour Questions

Q: Does the Illinois minimum wage apply to me if I work remotely from Illinois?

A: Generally yes. According to general legal principles, minimum wage typically applies based on where work is physically performed. If you perform work from a location in Illinois, Illinois minimum wage would generally apply. However, local ordinances (Chicago, Cook County) may have higher minimum wages. Verify with Illinois Department of Labor for your specific situation.

Q: Can my employer require me to be “on call” without paying me?

A: This depends on the restrictions placed on you. According to federal wage and hour principles:

  • If you must remain on employer premises or so close you cannot use time for personal purposes, it’s typically compensable
  • If you’re simply required to leave a contact number and can otherwise use time as you wish, it may not be compensable

For Illinois-specific guidance on on-call time, consult Illinois Department of Labor or wage-hour attorney.

Q: As a remote worker, can I work overtime without approval?

A: Non-exempt employees generally must be paid for all time worked, including unauthorized overtime. However:

  • Employers can discipline employees who work overtime without authorization
  • Employers cannot avoid paying for work actually performed
  • Clear policies on overtime approval are recommended

If you worked overtime, you generally must be paid for it even if not pre-approved. Employers should consult legal counsel on overtime policies.

Q: Do I need to be paid for time spent reading work emails after hours?

A: For non-exempt employees, this depends on circumstances:

  • If you’re performing work, it’s generally compensable
  • Brief, occasional emails may not be compensable
  • Regular, substantial after-hours work should be compensated

Employers should have clear policies. Employees with wage questions should consult Illinois Department of Labor or wage-hour attorney.

Leave Questions

Q: How much paid leave am I entitled to in Illinois?

A: Under the Paid Leave for All Workers Act (effective January 1, 2024):

  • Generally can accrue up to 40 hours per 12-month period
  • Accrual rate: 1 hour per 40 hours worked
  • Can use for any reason after 90 days

Exceptions:

  • Chicago and Cook County have separate paid leave ordinances
  • Some employers may have more generous policies

For details, see Part 3 of this guide or contact Illinois Department of Labor.

Q: Can my employer ask why I’m taking paid leave?

A: Under the Paid Leave for All Workers Act: NO.

  • Employers cannot require explanation for leave use
  • Employers cannot require documentation
  • Leave is for “any reason” at employee’s discretion

Employers may require reasonable advance notice for foreseeable leave, but cannot ask about reason.

Q: What happens to my unused paid leave when I quit?

A: Under the Paid Leave for All Workers Act:

  • Employers are NOT required to pay out unused PLAWA leave upon separation
  • Exception: If leave was credited to a PTO bank subject to the Illinois Wage Payment and Collection Act

Check your employer’s policy or consult Illinois Department of Labor for specific situation.

Workers’ Compensation Questions

Q: Am I covered by workers’ compensation if I work from home?

A: Generally yes, if you are an employee (not independent contractor) and meet coverage requirements. However, whether a specific injury is covered depends on whether it “arose out of and in the course of employment.” Home office injuries are fact-specific. See Part 3 for detailed information.

For specific injury questions, contact Illinois Workers’ Compensation Commission or workers’ compensation attorney.

Q: If I’m injured working from home, what should I do?

A: According to general workers’ compensation principles:

  1. Seek necessary medical treatment
  2. Report injury to employer as soon as possible (preferably in writing)
  3. Document what happened, when, where, and how
  4. Tell medical providers injury is work-related
  5. Follow up with employer on claim status
  6. Consult workers’ compensation attorney if claim denied or delayed

Report promptly – delays can affect claim.

Q: Does workers’ compensation cover stress or mental health conditions from remote work?

A: Mental health claims are generally more difficult to establish than physical injury claims. According to Illinois law:

  • Mental conditions from sudden, traumatic events may be covered
  • Gradual stress from normal work conditions typically not covered
  • Specific circumstances matter

Mental health workers’ compensation claims are complex. Consult workers’ compensation attorney and medical professional.

Discrimination Questions

Q: Am I protected from discrimination as a remote worker?

A: Yes. The Illinois Human Rights Act protects employees from discrimination regardless of work location. Protections include:

  • Hiring and firing decisions
  • Terms and conditions of employment
  • Harassment (including virtual harassment)
  • Retaliation

Discrimination protections apply equally to remote and on-site workers. See Part 4 for details or contact Illinois Department of Human Rights.

Q: Can I be harassed virtually?

A: Yes. Harassment in virtual meetings, emails, chat platforms, and other electronic communications is prohibited. According to Illinois law:

  • Sexual harassment is prohibited regardless of medium
  • Other harassment based on protected categories is prohibited
  • Employers must prevent and address virtual harassment

If you experience virtual harassment, report to your employer and consider filing charge with Illinois Department of Human Rights.

Q: Can my employer require me to have my camera on during video meetings?

A: Generally yes, employers may require camera use for business purposes. However:

  • Policies should be reasonable and applied consistently
  • Disability accommodations may be required
  • Privacy concerns should be considered
  • Discriminatory application of policy would be prohibited

If you have concerns, discuss with HR or consult employment attorney.

Tax Questions

Q: Do I pay Illinois income tax if I work remotely in Illinois?

A: If you are an Illinois resident: Yes, you pay Illinois tax on all income.

If you are not an Illinois resident but perform work in Illinois: You may owe Illinois tax on income earned for work performed in Illinois.

Tax situations are complex. Consult tax professional or Illinois Department of Revenue.

Q: Can I deduct home office expenses if I work remotely?

A: For employees (W-2): Generally NO for tax years 2018-2025 under current federal law. The Tax Cuts and Jobs Act suspended unreimbursed employee expense deductions.

For self-employed/independent contractors: May be eligible for home office deduction if meet requirements.

Consult tax professional for your specific situation. See tax section of this guide for more information.

Q: My employer didn’t withhold income tax for my home state. What do I do?

A: This may happen with multi-state remote work. Generally:

  1. File income tax returns in all required states
  2. Pay any taxes owed
  3. Consider adjusting withholding for future
  4. Consult tax professional about estimated tax payments

Employers should consult tax professionals about multi-state withholding obligations.

Privacy and Monitoring Questions

Q: Can my employer monitor my computer when I work from home?

A: Generally, employers may monitor employer-provided computers used for work purposes. However:

  • Should provide notice of monitoring
  • Should limit to business purposes
  • Some types of monitoring (like biometric data) have specific requirements under Illinois law

For specific concerns, consult privacy attorney. See Part 4 for overview of privacy laws.

Q: Can my employer require me to install monitoring software on my personal computer?

A: This raises significant concerns:

  • Employers generally should provide work devices
  • Monitoring personal devices raises privacy issues
  • Employee may have right to refuse

If employer requires use of personal device, consult employment attorney about rights and privacy protections.

Q: Does my employer have to pay for my home internet if I work remotely?

A: This is a complex, unsettled area under Illinois law. Factors that may matter:

  • Whether remote work is required or voluntary
  • Whether employer provides alternative (office space)
  • Whether expense is necessary for work

Illinois Wage Payment and Collection Act requires reimbursement for “necessary expenditures” but application to remote work is not fully settled. Employers should consult legal counsel about reimbursement policies.

General Rights Questions

Q: Can I be fired for refusing to work remotely?

A: Illinois is an at-will employment state, meaning employers can generally terminate employment for any reason not prohibited by law. However:

  • Cannot fire for discriminatory reasons
  • Cannot fire in violation of contract
  • Cannot fire for exercising legal rights

If you believe termination was unlawful, consult employment attorney.

Q: Can my employer change my remote work arrangement and require me to come to the office?

A: Generally yes, unless:

  • You have a contract guaranteeing remote work
  • Remote work is a disability accommodation under ADA or Illinois Human Rights Act
  • Change is discriminatory or retaliatory

Employers generally have discretion to set work location policies. If concerned about change, consult HR or employment attorney.

Q: Who should I contact if I have a workplace concern as a remote worker?

A: Depends on the issue:

  • Wage/hour issues: Illinois Department of Labor, (312) 793-2800
  • Discrimination/harassment: Illinois Department of Human Rights, (312) 814-6200
  • Workers’ compensation: Illinois Workers’ Compensation Commission, (312) 814-6611
  • Unemployment: Illinois Department of Employment Security, (800) 244-5631
  • Tax questions: Illinois Department of Revenue, (800) 732-8866
  • Legal advice: Employment attorney

For emergencies or safety concerns, contact appropriate authorities immediately.

Others

Indiana
Wisconsin
Michigan
Missouri
Iowa

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.