Understanding Illinois Employment and Labor Laws

In the US, labor and employment laws establish the framework for fair and equitable workplaces. They outline the rights and responsibilities of employers, employees, and labor unions, covering areas such as wages, working conditions, health and safety, and termination.

Since these laws can vary by state, it's crucial for both employers and employees to know their local requirements. In this article, we’ll cover the key laws in Illinois.

Federal vs. state law differences

While federal laws provide a baseline across the country, states can enact laws that offer additional protections. Illinois often provides greater protections than federal law, including higher minimum wages and stricter safety regulations.

Employment vs. labor law: What’s the difference?

Employment laws typically cover the rights and responsibilities of individual employees, including wage standards and discrimination protections. Labor laws deal with the collective relationship between employers and groups of employees, particularly regarding union organization and collective bargaining.

Wages and hours in Illinois

Illinois’ wage and hour laws combine state-specific requirements with federal requirements. Here’s a breakdown:

Minimum wage in Illinois

As of January 1, 2025, the minimum wage in Illinois will be $15.00 per hour for workers 18 years and older. Employees over the age of 18 who do not receive tips may be paid $14.50 for the first 90 days of employment. Workers under the age of 18 may be paid $13 per hour for the first 650 hours worked. After that, they must be paid $15 per hour.

Overtime pay in Illinois

Employees must be paid one and one-half times their regular rate for hours worked beyond 40 in a workweek.

Pay transparency in Illinois

As of January 1, 2025, all job postings made by employers with 15 employees or more need to incude pay scale information and benefit information.

Pay stubs

Starting from January 1, employers in Illinois are required to provide pay stubs to their employees for each pay period. The pay stub includes information such as work hours, pay rates, overtime pay, and wage deductions.

Leaves of absence in Illinois

While specific state-mandated leaves were not detailed, Illinois employees are generally covered under federal laws like the Family and Medical Leave Act (FMLA) for personal or family illness, pregnancy, or military leave.

Paid Leave for All Workers Act (PLAWA)

The Paid Leave for All Workers Act (PLAWA) grants employees up to 40 hours of paid leave annually. Workers can use this leave for any reason, and employers cannot require them to justify their time off. Employees accrue one hour of paid leave for every 40 hours worked. Employers with existing leave policies may qualify for certain exceptions. Some worker categories are not covered by this law.

Pregnancy disability leave in Illinois

Illinois follows the FMLA, which allows eligible employees to take unpaid leave for pregnancy and related conditions, ensuring job protection and continuation of health insurance.

Paid sick leave in Illinois

Illinois does not have a statewide mandate for paid sick leave, although certain municipalities like Chicago have their own ordinances requiring it.

Jury duty in Illinois

Employers must allow employees to take leave for jury duty, ensuring that they are not penalized or terminated for fulfilling their civic duty.

Workplace safety in Illinois

Illinois adheres to federal OSHA regulations and has additional state-specific safety laws designed to provide greater protection to workers in various industries.

Discrimination and harassment laws in Illinois

Illinois enforces stringent laws against discrimination and harassment in the workplace, covering a wide range of protected classes beyond federal law.

Unions in Illinois

The Illinois Labor Relations Board governs the relationship between unions and public employers, ensuring the right to organize and engage in collective bargaining.

Stay compliant across the US with Deel PEO

Keeping up to date with the latest state-specific labor and employment laws is a crucial but resource-intensive task for HR and payroll teams. With Deel PEO, you can offload HR and compliance risks and focus on growing your business. Deel’s services include:

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Book a demo to explore Deel’s platform and speak with an expert.

Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.