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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.
What’s new in 2026?
Illinois Meals and Breaks
20 MinutesFor Meal Breaks
Employees who work at least 7.5 continuous hours or more are entitled to a 20-minute unpaid meal break.
- Additional 20-minute meal break for workers with 12-hour shifts or longer.
- Employees can’t be forced to work during meal break; otherwise, it shall be paid.
2x 15 Minutes For Rest Breaks
Hotel room attendants are the only employees in Illinois entitled to two 15-minute paid rest breaks (in addition to the meal break), provided they work at least 7 hours.
Paid lactation breaks are now required under the amended Nursing Mothers Act (SB 212), effective January 1, 2026. This replaced the prior unpaid break mandate. Employers must provide a private space that is not a bathroom stall.
Illinois Leave and Paid Time Off (PTO)
Illinois mandates that employers offering sick leave allow employees to use it for personal illness or to care for sick family members under the Illinois Sick Leave Act.
While there’s no state-mandated requirement for general paid sick leave, the Chicago Paid Sick Leave Ordinance and Cook County Earned Sick Leave Ordinance provide paid sick leave for employees working in those areas.
- Key Features: Accrue one hour of paid sick leave for every 40 hours worked.
- Usage: For personal illness or to care for a family member.
The Illinois PLAWA (Paid Leave for All Workers Act) is the most significant leave law change in Illinois in years. It took effect January 1, 2024. Every employee in Illinois earns 1 hour of paid leave per 40 hours worked, up to 40 hours per year.
Workers can use PLAWA leave for any reason. No doctor’s note. No prior approval required. Retaliation against a worker for using PLAWA leave is a separate civil violation. IDOL can seek reinstatement, back pay, and attorney’s fees with no damages cap.
PLAWA is separate from and in addition to any sick leave or PTO plan you already run. It covers all employers in Illinois, regardless of size. If your crew handbook still references only the old Employee Sick Leave Act, update it now.
Illinois follows the federal Family and Medical Leave Act (FMLA), which allows eligible employees to take up to 12 weeks of unpaid leave for serious health conditions, family care, or childbirth/adoption.
- Eligibility: Employees who have worked for at least 12 months with 1,250 hours in the last year.
- Leave Duration: Up to 12 weeks of unpaid, job-protected leave.
The Family Neonatal Intensive Care Leave Act (HB 2978) is new for 2026. Parents of newborns admitted to a NICU are entitled to additional unpaid leave beyond standard FMLA. This applies to any employer covered by federal FMLA.
Under the Child Extended Bereavement Leave Act (“CEBL”), Illinois employees may be entitled to an unpaid, job-protected bereavement leave should they experience the loss of a child by suicide or homicide.
- Employers with 250 or more full-time employees – required to provide up to 12 weeks of leave per year.
- Employers with 50 to 249 full-time employees – required to provide up to 6 weeks of leave per year.
- Employers with fewer than 50 full-time employees – exempt from the CEBL.
Illinois workers are covered under FMLA for parental leave, allowing parents to take up to 12 weeks of unpaid leave following the birth or adoption of a child. Paid parental leave policies are generally left up to individual employers.
Illinois does not require employers to offer paid or unpaid holiday leave. Holiday time off and pay are usually a matter of employer policy. However, private-sector employers generally offer paid holidays as part of their benefits packages.
While Illinois does not mandate paid vacation leave, employers who offer it must comply with state laws that treat accrued vacation as wages. This means unused vacation time must be paid out upon separation from employment.
The School Visitation Rights Act allows Illinois employees to take up to 8 hours of unpaid leave per year to attend school conferences or activities if they cannot be scheduled outside of work hours.
Eligibility: Employers with at least 50 employees.
There are no specific Illinois laws mandating emergency leave, but employees may use other available leave options such as PTO, sick leave, or unpaid leave in case of personal or family emergencies.
Under the Illinois Family Military Leave Act, employees are entitled to take unpaid, job-protected leave if they:
- Are either the spouse, parent, child, or grandparent of a person called to military service lasting longer than 30 days; and
- Have worked for the same employer for at least 12 months, and for at least 1,250 hours in the last year.
How much family military leave you can request depends on where you’re employed:
- Employers with 15 to 50 employees are required to provide up to 15 days of unpaid leave.
- Employers with more than 50 employees are required to provide up to 30 days of unpaid leave.
Illinois does not mandate volunteering leave, but employers may provide paid or unpaid time off for employees to volunteer at their discretion.
Illinois does not have a specific law governing administrative leave, but employers may place employees on administrative leave as part of internal investigations or other employer-initiated actions.
Under Illinois law, employees are entitled to up to two hours of paid leave to vote on Election Day if their work schedule does not allow them enough time to vote during polling hours.
Key Rule: Employees must request leave before Election Day.
Illinois employers are required to provide employees with unpaid leave to serve on a jury. Employers cannot penalize employees for taking time off for jury duty.
Key Protection: Job security during jury service.
Illinois law requires employers to provide up to 30 days of paid leave for organ or bone marrow donation. This leave is available to employees who have been with their employer for six months or more.
Benefit: Paid leave for life-saving donations.
As part of the Employee Blood Donation Leave Act, employees are entitled to up to one hour of paid leave every 56 days to donate blood. The law expands in 2024 to cover organ and tissue donations.
Illinois employees are entitled to unpaid leave if they are subpoenaed to appear as witnesses in criminal proceedings.
The Victims’ Economic Security and Safety Act (VESSA) gives employees who are victims of domestic violence, sexual violence, or gender violence the right to take unpaid, job-protected leave.
VESSA leave entitlements scale with employer size. Employers with 50 or more workers must allow up to 12 weeks of VESSA leave per year. Employers with 15 to 49 workers allow up to 8 weeks. Employers with 1 to 14 workers allow up to 4 weeks. All VESSA leave is unpaid but job-protected.
Workers can use it for safety planning, medical treatment, legal proceedings, or relocation. VESSA applies to every Illinois employer with at least one employee.
HB 1278, effective January 1, 2026, expanded VESSA to explicitly protect employees who use electronic devices to document incidents of domestic or sexual violence.
A worker who records a threatening situation connected to their abuser cannot be fired or disciplined for making that recording. This applies on job sites just as it does in any other workplace.
Construction employers should audit their mobile device and recording policies now. A blanket no-recording rule on your site could conflict with VESSA if enforced against a worker in a protected situation. Review your site rules with legal counsel before disciplining any employee for recording.
Under VESSA, employees may also take time off if they are crime victims, providing protection similar to the leave for domestic violence victims.
Here are other state-specific labor laws to look into:
- Colorado Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- South Dakota Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Louisiana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Maine Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Tennessee Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Kansas Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Mississippi Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Pennsylvania Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Maryland Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Georgia Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Texas Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
- Utah Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More
Illinois Wages and Overtime
$15/hourMinimum Wage
The Illinois minimum wage is $15.00/hr for most workers. This rate has been in effect since January 1, 2025.
1.5x HourlyOvertime Rate
Illinois overtime laws match the federal FLSA standard. You owe 1.5x the regular rate for every hour over 40 in a single workweek. Illinois has no daily overtime threshold.
For a framing crew working 10-hour days Monday through Thursday, the 40-hour mark hits at the end of Thursday. Every Friday hour is overtime from minute one. Plan your schedule around that.
$9/hourTipped Minimum Wage
Tipped employees must earn a minimum of $9 per hour. If tips do not bring the total pay to $15 per hour, the employer is required to make up the difference.
2x MonthPay Frequency
- Illinois Wage Payment and Collection Act requires employers to pay employees at least semi-monthly (twice a month), or bi-weekly (every two weeks).
- Employees must be paid their wages no later than 13 days after the end of the pay period in which the wages were earned.
Chicago employers pay more. The Chicago standard minimum wage is $16.60/hr as of July 1, 2025. Tipped workers in Chicago earn at least $12.62/hr. Chicago is also phasing out the tip credit entirely. The credit disappears by July 1, 2028.
Cook County follows a separate ordinance that sits between the state and city rates. Check the Cook County Minimum Wage Ordinance before scheduling work in unincorporated Cook County.
If your crew rotates between Chicago city limits, Cook County, and downstate sites, you owe different minimums on different days. Your time tracking system needs to capture location to get this right.
- Tipped Employees: Employers can pay tipped employees a base wage of $9.00 per hour, but their total earnings, including tips, must meet or exceed the standard minimum wage of $15.
- Youth Workers: Workers under 18, working fewer than 650 hours per year, can be paid a sub-minimum wage of $13.00 per hour.
- Workers with Disabilities: Employers may pay workers with disabilities less than minimum wage under a special wage certificate based on productivity.
Certain workers in Illinois are exempt from the state’s minimum wage law or may qualify for lower wage rates:
- Youth Workers: Employees under the age of 18 who work fewer than 650 hours per year can be paid a lower minimum wage. As of 2024, the youth wage is $13 per hour, instead of the regular $15.
- Tipped Employees: Employers are allowed to pay tipped employees a base wage of $9 per hour, but they must ensure that the employees’ total earnings (including tips) reach at least $15 per hour.
- Agricultural Workers: Some agricultural workers are exempt from overtime pay requirements, and certain small farmworkers may also be exempt from minimum wage requirements, depending on their employer’s size and revenue.
- Exempt Employees: Certain white-collar workers, such as executive, administrative, and professional employees, are generally exempt from both minimum wage and overtime requirements, as long as they meet specific criteria under the Fair Labor Standards Act (FLSA).
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Illinois Prevailing Wages
$23.16 per hour Truck Driver (Oil & Chip Resealing)
The Truck Driver (Oil & Chip Resealing) position currently holds the lowest prevailing wage rate in Illinois, with a base pay of $23.16 per hour. This role involves transporting materials and equipment to or from job sites, distributing oil or liquid asphalt, and handling aggregate materials for oil and chip resealing projects.
$67.84 per hourElevator Constructor
The Elevator Constructor holds the highest prevailing wage rate in Illinois, with a base pay of up to $67.84 per hour in certain counties. Elevator constructors are responsible for assembling, installing, and maintaining elevators, escalators, and moving walkways.
The Illinois prevailing wage act sets minimum pay rates for workers on public works projects. Rates vary by county and trade. You cannot pay a carpenter less than the prevailing rate on a school renovation, regardless of your union agreement.
HB 1189, effective August 14, 2025, expanded prevailing wage coverage to federally-funded public works projects in Illinois. If you have a federally-funded infrastructure or public building job, Illinois prevailing wage rates now apply alongside federal Davis-Bacon rates.
Check which rate is higher and pay that one. IDOL publishes updated prevailing wage rates each June. Check the IDOL prevailing wage page before you price any public works bid.
Illinois Prevailing Wage Resources
- Illinois Department of Labor – Prevailing Wage Rates: This official state resource provides access to prevailing wage rates based on location and type of work.
- U.S. Department of Labor – Wage and Hour Division: The federal resource that outlines prevailing wage standards across various states, including Illinois, especially for federal projects.
- Cook County – Prevailing Wage Ordinances: For workers and employers in Cook County, this site provides specific details on county-level prevailing wage regulations.
- City of Chicago – Minimum Wage and Labor Standards: This resource covers prevailing wages within Chicago, including updates on local laws.
Illinois Child Labor Laws
Illinois child labor laws set strict limits on hours and job types for minors. Construction sites carry extra hazard risk. Know these rules before any minor steps on your payroll.
<14 Years
Laws in Illinois for children under 14
- Generally prohibited from employment except in limited circumstances (e.g., acting, modeling, certain family businesses).
- Work permits are typically not issued for children under 14 except for these exemptions.
14-15 Years
Laws in Illinois for minors aged 14-15
Permitted to work in certain non-hazardous jobs like office work, grocery stores, and restaurants (but not cooking or baking).
- During the school year: Up to 3 hours per day on school days and 8 hours on non-school days.
- Up to 6 days a week and a maximum of 24 hours a week during school weeks, increasing to 48 hours a week when school is not in session.
- May only work between 7 a.m. and 7 p.m. during the school year, extending to 9 p.m. from June 1 to Labor Day.
Work permits required: Employers must obtain a work permit for each minor before hiring them.
Illinois has implemented a new Child Labor Law, replacing the previous version by virtue of Senate Bill 3646. As the law’s full provisions become effective on January 1, 2025, it will establish strict regulations on the industries and work environments minors can participate in, along with new working hour restrictions. Employers must ensure that minors have valid employment certificates, and violations can result in civil and criminal penalties.
Other Essential Illinois Labor Laws
Health and Safety Standards in Illinois.
In Illinois, employers are required to follow specific health and safety guidelines to ensure a safe working environment.
The state’s labor laws are governed by both federal Occupational Safety and Health Administration (OSHA) standards and the Illinois Department of Labor’s safety regulations. These laws are in place to reduce workplace injuries and fatalities, and they outline responsibilities for both employers and employees to create safer workplaces.
In Illinois, employers must…
- Maintain a safe work environment free from recognized hazards that could cause death or serious harm (OSHA general duty clause).
- Provide safety training relevant to workplace hazards, ensuring employees understand how to protect themselves.
- Comply with OSHA standards for safety equipment, signage, machine operation, and emergency preparedness.
- Report workplace injuries and illnesses to OSHA and maintain injury/illness logs for inspection.
- Provide access to necessary safety gear, such as hard hats, gloves, and eye protection, at no cost to the employee.
In Illinois, employees should…
- Follow safety guidelines and wear personal protective equipment (PPE) as provided by the employer.
- Report hazardous conditions to their supervisor immediately to prevent accidents.
- Participate in safety training and adhere to emergency procedures.
- Exercise their right to refuse dangerous work if they believe the work poses an immediate risk of serious injury or death.
Report health and safety violations (unsafe working conditions) in Illinois to…
- Employees:
- File a complaint with OSHA
- Illinois Department of Labor’s Workplace Safety and Health Division
- Employers:
- Illinois On-Site Safety and Health Consultation Program
- OSHA Reporting Requirements
By adhering to these guidelines, both employees and employers help to create a safer working environment and reduce the risk of accidents. Illinois enforces these standards strictly, providing mechanisms to report and rectify unsafe conditions.
Hiring and/or Firing Employees in Illinois
Illinois is an at-will employment state, meaning that either the employer or employee can terminate the employment relationship at any time, with or without cause, and with or without notice, as long as it does not violate other laws (e.g., anti-discrimination laws). However, written contracts, collective bargaining agreements, or public policies may provide exceptions to this rule.
Illinois does not have right-to-work laws, meaning that union security agreements are permitted. Employees in unionized workplaces can be required to join the union or pay union dues as a condition of employment.
Employers in Illinois are allowed to conduct background checks on job applicants, but there are restrictions under the state’s Job Opportunities for Qualified Applicants Act, also known as the “ban-the-box” law.
Employers with 15 or more employees cannot inquire into an applicant’s criminal record until later in the hiring process, typically after an interview or conditional job offer.
Drug testing is permitted, but it must be consistent, and results cannot be used in a discriminatory manner.
Illinois follows federal anti-discrimination laws (like Title VII of the Civil Rights Act) and also has its own Illinois Human Rights Act, which provides additional protections for workers. This ensures fair treatment in hiring, promotions, compensation, and termination processes.
Anti-Discrimination Laws in Illinois.
The Illinois Human Rights Act prohibits employment discrimination. It covers hiring, firing, pay, promotions, and working conditions. The IDOL (Illinois Department of Labor) and the IDHR both hold enforcement authority.
New protected classes
The IHRA now protects employees based on family responsibilities and reproductive health decisions. If a worker is fired or demoted for scheduling a medical appointment related to reproductive health, that is an IHRA violation. The same applies to adverse actions tied to caregiving obligations.
The full protected class list now includes: race, color, religion, sex, national origin, ancestry, age (40+), marital status, order of protection status, disability, military status, sexual orientation, gender identity, pregnancy, unfavorable military discharge, citizenship status, immigration status, family responsibilities, and reproductive health decisions.
IDHR complaint deadline: 2 years
Employees now have 2 years to file a charge with the IDHR. This extended window means your HR documentation and termination records must go back at least 24 months. Review your record retention policy now.
AI in hiring: HB 3773 restrictions
HB 3773, effective January 1, 2026, restricts how employers use AI in hiring decisions. You must disclose to applicants when AI tools influence the screening process. The AI tool cannot produce outcomes that are discriminatory by protected class.
Construction employers using software to screen apprenticeship applicants, verify safety certifications, or rank resumes must audit those tools for IHRA compliance. The law does not ban AI outright. It requires transparency and non-discriminatory outcomes.
Illinois job posting pay transparency
Illinois job posting pay transparency rules took effect January 1, 2025. Employers with 15 or more employees must include a pay range and a general benefits description in all job postings. This applies to both internal and external postings.
If you post an open foreman position with no salary range listed, each posting can trigger an IDOL fine. Fines range from $500 to $10,000 per violation. Five active listings without pay ranges could cost up to $50,000.
Posting on third-party job boards does not shift the liability. You are responsible for ensuring the pay range appears on every channel you post to. Audit your job listing templates today.
Employee Resignation or Termination in Illinois.
In Illinois, employees are free to resign at any time. Employers can terminate employees without cause unless the termination violates anti-discrimination laws or the terms of an employment contract. For example, firing an employee due to their race or in retaliation for filing a complaint would be illegal under state and federal law.
Unemployment Benefits in Illinois.
Workers in Illinois are eligible for unemployment benefits if they:
- Are unemployed through no fault of their own (e.g., layoffs or company downsizing).
- Have earned sufficient wages during the base period.
- Are actively seeking new employment.
Use this website to start your application for unemployment benefits in Illinois:
Illinois Department of Employment Security (IDES)
COBRA Benefits in Illinois.
Separated employees in Illinois may extend employer-provided health care coverage through COBRA (Consolidated Omnibus Budget Reconciliation Act), which stipulates:
- Employees can extend their health insurance for up to 18 months after termination.
- The employee typically pays the full premium cost plus a small administrative fee.
- COBRA applies to employers with 20 or more employees.
Final Paychecks in Illinois.
Illinois final pay laws require employers to pay all final wages by the next regular scheduled payday. If you terminate a worker on Tuesday and your payday is Friday, the check must be ready Friday. There is no requirement to pay immediately at the moment of termination.
The Illinois Wage Payment and Collection Act treats delay as a violation. Workers are entitled to a 1% daily penalty for every day their final wages are late. IDOL can now enforce these violations directly starting from August 1, 2025.
Accrued vacation pay you have contractually agreed to pay is treated as earned wages under Illinois law. If your crew handbook says unused PTO is paid out at termination, you owe it. Check your handbook before the next layoff season.
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Illinois Recordkeeping Requirements
Illinois labor laws require employers to maintain specific employment-related records for varying periods to ensure compliance with state and federal laws. These records must be readily available for inspection by relevant authorities, such as the Illinois Department of Labor (IDOL) or the U.S. Department of Labor (DOL). Below are the key recordkeeping requirements, categorized by the length of time employers must retain them.
1 Year
Documents employers must retain for at least one year:
- Work Authorization Reports: Employers should keep documents indicating a person’s eligibility for hire, such as reports verifying the right to work, for at least one year after the employee separates from employment.
2 Years
Documents employers must retain for at least two years:
- Documents Related to Search Waivers: For searches that are completed, failed, or where an offer is declined, any documents related to search waivers should be kept for at least two years after the close of the search.
3 Years
Documents employers must retain for at least three years:
- Employment Applicant Records (Unsuccessful Applicants): This includes resumes, vitae, and letters of recommendation for all unsuccessful applicants. Retain these for three years past the close of the search.
- Employment Eligibility Files:
- I-9 Forms: Retain for three years from the date of hire, or one year following the separation from employment, whichever is later.
- Visa Documents: Keep all visa-related records for three years after the visa expires or the date of separation from employment, whichever is sooner.
- Leave Reports: Documents related to leave, such as medical leave (FMLA or VESSA) or military leave under USERRA, should be kept for three years after their creation or three years after the employee’s separation from employment.
5 Years
Documents employers must retain for at least five years:
- Labor Certifications: For employees who require certification to work, labor certification records should be retained for five years from the filing date of the application for permanent employment certification.
6 Years
Documents employers must retain for at least six years:
- Background Check Documentation: Retain all documentation related to background checks for six years after the employee’s separation from employment.
- Unemployment Insurance Case Files: Keep these records for six years after the claim has been settled.
Penalties for Labor Law Noncompliance in Illinois Wages
5% monthly penaltyWage Violations
The Illinois Wage Payment and Collection Act now imposes a 5% monthly penalty on all unpaid wages. IDOL also adds a 20% administrative penalty on the total amount owed. Employees waiting for unpaid wages accrue a 1% daily penalty until you pay.
Since August 1, 2025, IDOL files civil enforcement actions directly. They do not wait for an employee complaint first. Auditors pull payroll records on-site and can initiate collection proceedings the same day.
$500 to $10,000Child Labor Law Violations
Knowingly placing a minor in a prohibited role or work schedule carries fines of $500 to $10,000 per violation. Construction sites are classified as hazardous environments. IDOL inspectors pay close attention to crew rosters on job sites.
$7,000 to $70,000+OSHA Violations
Per OSHA (Occupational Safety and Health Administration) guidelines for workplace safety, serious violations can cost up to $7,000 per violation if the employer was aware or should have been aware of the hazard.
Willful or repeat violations can incur fines up to $70,000 per violation, reflecting more serious or recurring offenses.
$500 to $5,000Minimum Wage and Overtime Violations
Employers may face a fine of up to $500 per violation or an amount equal to 20% of underpaid wages.
For overtime violations, fines can be up to $5,000 per violation, and employees may be entitled to back pay for unpaid overtime, along with damages.
$250 to $500Recordkeeping Violations
Employers may be fined between $250 to $500 per impacted employee for failing to maintain proper records of hours worked and wages paid.
$500 to $10,000Pay transparency violation fines
Each non-compliant job posting triggers an IDOL fine of $500 to $10,000. Fines are assessed per posting, not per company. A construction firm running 5 open listings without pay ranges could face up to $50,000 in fines in a single IDOL review.
In Illinois, labor law violations are investigated and addressed by…
- Illinois Department of Labor (IDOL)
- U.S. Department of Labor (DOL) – Wage and Hour Division
- Occupational Safety and Health Administration (OSHA)
Further Details on Other Illinois Labor Laws
Equal Pay Act in Illinois
Illinois mandates that employers with 100 or more employees submit equal pay certificates to demonstrate that they are paying men and women equally for similar work.
- Employers must renew their certificates every two years.
- Penalties: Failure to comply may result in fines of up to $10,000.
Pay Transparency Requirements in Illinois
Effective January 1, 2025, employers with 15 or more employees will be required to disclose pay scales and benefits in all job postings. This law aims to increase transparency, helping workers make more informed decisions. It also mandates that promotional opportunities be disclosed to current employees within 14 days of an external job posting.
Whistleblower Protection in Illinois.
Illinois law provides robust protections for employees who report illegal activities or unsafe work conditions. The Illinois Whistleblower Act prohibits employers from retaliating against employees who disclose violations of laws, rules, or regulations.
- Protection from retaliation: Employees cannot be demoted, fired, or harassed for reporting unlawful practices.
- Right to refuse illegal actions: Employees have the right to refuse to participate in activities they reasonably believe violate the law.
- Penalties for retaliation: Employers may face civil damages, including reinstatement of the employee, back pay, and other financial penalties.
Workers’ Compensation in Illinois.
Illinois requires employers to carry workers’ compensation insurance to cover employees in case of injury or illness on the job. The Workers’ Compensation Act provides benefits to employees who are injured while performing work-related tasks.
- Benefits: Includes medical expenses, temporary total disability (TTD), permanent disability, and death benefits.
- Eligibility: Any employee injured while performing their job duties, regardless of fault.
- Penalties for noncompliance: Employers who fail to obtain workers’ compensation insurance may face fines of up to $500 per day of noncompliance and potential criminal charges.
Personnel Record Review.
Effective January 1, 2025, employees will have greater access to inspect and copy more categories of their employment records, including benefit information, employee handbooks, and employment agreements. Employers must comply with these requests within a shorter timeframe than before, or face legal consequences.
How Workyard helps construction companies stay compliant with Illinois labor laws
Illinois construction employers are managing PLAWA accruals, prevailing wage certifications, Chicago-specific minimums, and new AI disclosure requirements across multiple job sites at once. That is a compliance stack most back offices were never built to handle.
Tracking crew hours accurately is the foundation of getting it right. When your time data is GPS-verified and matched to the right job, overtime calculations, prevailing wage documentation, and PLAWA accruals all get easier to verify before IDOL shows up.
Illinois contractors are not alone in flagging compliance as a core business risk. Workyard’s analysis of 280 contractor discovery calls found that nearly 1 in 3 construction businesses identify labor compliance, including overtime rules, union pay codes, and state wage laws, as a primary operational risk. Workyard is workforce management software especially built for construction businesses.
Discover how Workyard helps businesses maintain compliance while simultaneously boosting productivity. You can sign up for a free 14-day trial today to start improving your workflow at no cost.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.