Illinois Labor Laws 2026: A Complete Guide to Wages, Breaks, Overtime, and More

Illinois labor laws explained for employers: minimum wage, overtime, breaks, paid leave, and 2026 compliance updates. Built for construction contractors.

Frequently Asked Questions
What is the Illinois minimum wage in 2026?

The Illinois minimum wage is $15.00/hr for most workers. Tipped workers earn a minimum of $9.00/hr, provided tips bring their total to at least $15.00. Chicago employers pay $16.60/hr standard and $12.62/hr for tipped workers as of July 1, 2025. Always check local minimums before staffing a job in Chicago or Cook County. Chicago is also phasing out its tip credit by July 1, 2028, which will require tipped workers to receive the full standard minimum wage.

Does Illinois have overtime laws different from federal law?

Illinois follows the federal FLSA overtime standard: 1.5x regular pay after 40 hours in a workweek. Illinois does not have daily overtime. A drywall crew hitting 40 hours by Thursday earns overtime on every Friday hour. The Illinois overtime laws apply to all non-exempt hourly workers, including most construction crew members. Misclassification as a contractor does not remove the obligation.

What are Illinois break laws for construction workers?

Illinois requires one 20-minute meal break for shifts over 7.5 hours. The Illinois break laws require that break within the first 5 hours of the shift. There is no mandatory rest break for adult workers beyond that meal period. The Illinois lunch break law applies on all job sites, union or non-union. Employers must also now provide paid lactation breaks under the Nursing Mothers Act (SB 212), effective January 1, 2026.

What are the Illinois child labor laws for construction?

Workers under 16 cannot work more than 8 hours per day or 48 hours per week outside the school year. During the school year, limits drop to 3 hours per school day and 18 hours per week. Workers 16–17 face fewer hour restrictions but still have time-of-day limits. Illinois child labor laws prohibit anyone under 18 from roofing, excavation, or heavy equipment operation. Illinois child labor law 2025 updates under SB 3646 added restrictions for minors near hazardous chemicals. Fines run from $500 to $10,000 per violation on construction sites.

What are the Illinois final pay laws?

Illinois final pay laws require employers to pay all final wages by the next regular payday after termination. Illinois does not require immediate payment at the moment of firing. Delay triggers a 1% daily penalty under the WPCA that accrues until you pay. IDOL can now file enforcement actions directly since August 1, 2025. Accrued vacation you have contractually agreed to pay must also be included in the final check.

What is the Illinois Paid Leave for All Workers Act (PLAWA)?

The PLAWA entitles every Illinois employee to at least 40 hours of paid leave per year. Workers earn 1 hour per 40 hours worked. They can use it for any reason with no documentation required. Illinois PLAWA took effect January 1, 2024. It covers all employers regardless of size. It is separate from and in addition to any existing sick leave or PTO policy. If your handbook still references only the old Employee Sick Leave Act, you are likely out of compliance.

What is the Illinois paid sick leave law?

Illinois does not have a separate general paid sick leave law as of 2026. The PLAWA now covers that function and more. Workers can use PLAWA leave for illness, personal needs, or any other reason. Chicago also maintains its own paid sick leave ordinance that provides additional protections on top of state PLAWA rules. Illinois maternity leave laws layer on top of PLAWA for pregnancy-related leave.

When must I issue a final paycheck in Illinois?

You must issue a final paycheck by the next regular payday after the worker’s last day. Illinois final pay laws do not require immediate payment at termination. If your agreement includes paid PTO, include that amount in the final paycheck. Missing the deadline triggers the Illinois Wage Payment and Collection Act’s 1% daily penalty plus IDOL’s new 5% monthly damages. IDOL can enforce this directly since August 1, 2025.

Can I use AI tools to screen job applicants in Illinois?

Yes, but with new restrictions under HB 3773, effective January 1, 2026. You must disclose to applicants when AI influences your hiring decisions. The AI tool cannot produce discriminatory outcomes by protected class. Construction employers using software to screen apprenticeship applications or safety certifications must audit those tools for IHRA compliance. Violations are handled through the IDHR complaint process, which now has a 2-year filing window.

What are the penalties for violating Illinois wage laws?

The Illinois Wage Payment and Collection Act now imposes a 5% monthly penalty on unpaid wages, plus a 20% IDOL administrative penalty on the total owed. Workers waiting for pay accrue a 1% daily penalty. IDOL files civil actions directly since August 1, 2025. Pay transparency violations cost $500 to $10,000 per job posting. PLAWA retaliation claims carry no damages cap. Child labor violations on construction sites carry fines of $500 to $10,000 per violation.

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