Chicago workers are protected by a layered set of laws: federal statutes, Illinois laws, and City of Chicago ordinances that often go further than either. Employers in the city must keep track of all three. This guide summarizes the rules that come up most often for Chicago employees and employers, including minimum wage, paid leave, final pay, scheduling, and protections against discrimination and retaliation.

Because several of these laws change on a set schedule, this article explains how each rule works and points you to the official source for the current figures.

Minimum wage: city, state, and federal

When more than one minimum wage applies, the employer generally must pay the highest applicable rate.

  • Illinois minimum wage. Under the Illinois Minimum Wage Law, the statewide minimum wage reached $15.00 per hour on January 1, 2025, after a series of scheduled increases. Lower rates apply to some younger workers and to tipped employees under state law.
  • Chicago minimum wage. The Chicago Minimum Wage Ordinance applies to employers with four or more employees and sets a higher rate than the state. The Chicago rate is adjusted every July 1 based on inflation, subject to a cap in the ordinance. Check the City's official minimum wage page for the current rate, which is published each spring.
  • Tipped workers in Chicago. In 2023, Chicago adopted an ordinance phasing out the subminimum "tip credit" wage over several years. The City later revised that schedule, so the current tipped wage and the end date for the tip credit depend on the employer's size and the amendments in effect. Check the City's current notice.
  • Federal minimum wage. The federal minimum is lower than both state and city rates, so it rarely controls in Chicago.

Employers must also display current City and state minimum wage and paid leave notices in the workplace.

Overtime

Illinois law generally requires overtime at one and one-half times the regular rate for hours worked over 40 in a workweek, with exemptions that largely track federal law (for example, certain executive, administrative, and professional employees who meet salary and duties tests). Misclassifying employees as exempt, or as independent contractors, is a frequent source of disputes.

Chicago Paid Leave and Paid Sick and Safe Leave

Effective July 1, 2024, Chicago's Paid Leave and Paid Sick and Safe Leave Ordinance replaced the City's earlier paid sick leave ordinance. In general terms:

  • Who is covered. Employees who work at least 80 hours within any 120-day period in Chicago are generally covered.
  • Accrual. Covered employees accrue one hour of Paid Leave and one hour of Paid Sick Leave for every 35 hours worked, up to 40 hours of each per 12-month benefit period (employers may front-load instead).
  • Paid Leave can be used for any reason, subject to reasonable notice rules the employer may adopt.
  • Paid Sick Leave can be used for the employee's or a family member's illness, injury, or medical care, for reasons related to domestic violence or sexual violence, and for certain public health and closure situations.
  • Carryover. The ordinance generally allows carryover of up to 16 hours of unused Paid Leave and up to 80 hours of unused Paid Sick Leave into the next year, unless the employer front-loads leave.
  • Payout at separation. Employers with 51 or more covered employees generally must pay out accrued, unused Paid Leave (not Paid Sick Leave) at separation, subject to limits in the ordinance and City rules. Small employers with 50 or fewer covered employees generally are not required to pay it out under the ordinance.

There are exceptions and special rules, including for some collectively bargained workforces and certain industries. Outside Chicago, Illinois's Paid Leave for All Workers Act and Cook County's ordinance may apply instead.

Fair Workweek: predictable scheduling

Chicago's Fair Workweek Ordinance applies to covered employers in industries such as building services, health care, hotels, manufacturing, restaurants, retail, and warehouse services, and to covered employees earning below income thresholds that adjust annually. Covered employees generally must receive work schedules 14 days in advance, and may be entitled to predictability pay for certain last-minute schedule changes. They also have a right to decline shifts added with short notice and a right to rest between closing and opening shifts.

Getting paid: the Illinois Wage Payment and Collection Act

The Illinois Wage Payment and Collection Act (820 ILCS 115) governs how and when wages are paid:

  • Final compensation generally must be paid by the next regularly scheduled payday after separation.
  • Earned vacation under an employer's policy is generally treated as wages and must be paid out at separation; Illinois does not allow "use it or lose it" forfeiture of earned vacation.
  • Deductions from wages generally require the employee's written consent given freely at the time of the deduction, with some exceptions.

Employees can file wage claims with the Illinois Department of Labor or bring a lawsuit. The Act allows recovery of unpaid wages, statutory damages on underpayments, and attorney's fees.

Discrimination and harassment: the Illinois Human Rights Act

The Illinois Human Rights Act (775 ILCS 5) prohibits employment discrimination, harassment, and retaliation. Since July 1, 2020, it generally applies to employers with one or more employees, a much broader reach than federal law.

Protected characteristics include, among others, race, color, religion, sex (including pregnancy and sexual harassment), national origin, ancestry, age (40 and over), disability, military status, sexual orientation (which includes gender-related identity), marital status, order of protection status, arrest record, citizenship status, and work authorization status. Illinois law also limits how employers may use conviction records in hiring.

Filing deadlines

  • Illinois Department of Human Rights (IDHR). For employment charges, the filing deadline was extended from 300 days to two years after the alleged violation, effective January 1, 2025.
  • U.S. Equal Employment Opportunity Commission (EEOC). Federal charges in Illinois generally must be filed within 300 days. Charges can be cross-filed between the agencies.
  • Chicago Commission on Human Relations. The Chicago Human Rights Ordinance provides additional protections and its own complaint process and deadline. Check the Commission's website for the current filing period.

Missing a deadline can eliminate a claim, so act promptly if you believe you were treated unlawfully.

Harassment prevention training

Illinois requires employers to provide annual sexual harassment prevention training, and Chicago requires additional annual training and a written policy under the City's ordinance. Employers should confirm they meet both sets of requirements.

Other protections worth knowing

  • Retaliation and whistleblowing. Illinois's Whistleblower Act and other laws protect employees who report or refuse to participate in certain unlawful conduct.
  • Pay equity and transparency. The Illinois Equal Pay Act prohibits most salary history inquiries and requires many employers with 15 or more employees to include pay scale and benefits information in job postings.
  • Noncompete limits. The Illinois Freedom to Work Act bans noncompete agreements for employees earning at or below a set threshold and non-solicitation agreements for employees earning below a lower threshold. These thresholds increase on a schedule set in the statute.
  • Workers' compensation provides benefits for work-related injuries, regardless of fault, through the Illinois Workers' Compensation Commission.
  • Unemployment insurance claims are handled by the Illinois Department of Employment Security (IDES).

Where Chicago workers can turn

  • City of Chicago Office of Labor Standards for minimum wage, paid leave, and Fair Workweek complaints (check chicago.gov for the office's current departmental home);
  • Illinois Department of Labor for wage payment, minimum wage, and overtime claims;
  • Illinois Department of Human Rights and the Chicago Commission on Human Relations for discrimination;
  • U.S. Department of Labor and the EEOC for federal claims.

When to talk with an employment lawyer

Consider getting legal advice if you were fired after complaining about discrimination, safety, or pay; if you are being asked to sign a severance agreement or noncompete; if you believe you were misclassified or not paid overtime; or if you are an employer updating policies to comply with Chicago's paid leave and scheduling rules.

If you would like your situation reviewed by Henry Dog, a Chicago attorney, you can share a brief, general description through our contact form. If it is not a matter the attorney handles, you may be pointed toward other resources.

Frequently asked questions

What is the minimum wage in Chicago?

Chicago's minimum wage is higher than the Illinois rate and is adjusted every July 1 based on inflation. Because it changes annually, check the City of Chicago's official minimum wage page for the current rate.

How much paid leave do Chicago workers get?

Under the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, covered employees generally accrue up to 40 hours of Paid Leave and up to 40 hours of Paid Sick Leave per 12-month period, at a rate of one hour of each for every 35 hours worked.

How long do I have to file a discrimination charge in Illinois?

For employment charges filed with the Illinois Department of Human Rights, the deadline is two years after the alleged violation (effective January 1, 2025). Federal EEOC charges in Illinois generally must be filed within 300 days.