19 Citations
Welcome to another important installment in our 50-state series of labor laws across the United States, where we’re going to take a closer look at Illinois labor laws.
If you’re a business owner or leader in the construction industry, you know that staying informed about labor laws isn’t just a matter of compliance—it’s effectively a cornerstone of your business’s success and sustainability.
Labor laws are the framework that governs the relationship between employers and employees, which helps ensure a fair, safe, and equitable working environment.
In Illinois, as in each state, these laws cover a wide range of topics, from minimum wage standards and overtime pay to breaks (and more). Navigating these laws can be downright daunting, but understanding them is essential to avoid penalties or other legal repercussions and to foster a positive work environment.
In this chapter of our series, we will go in-depth and explore everything about Illinois’s labor laws. Our goal is to provide you with a comprehensive guide that covers all the critical aspects of state regulations regarding your employees.
Meals and Breaks in Illinois
There are specific state regulations that employers in the construction industry and beyond need to be aware of regarding meals and breaks in Illinois.
Meals and Breaks in IL
Meal Break
Employers in Illinois must provide one 20-minute meal break no later than 5 hours after the shift starts to employees who work at least 7.5 hours.
Lactation Breaks
No state laws govern lactation breaks in Illinois. However, under the federal PUMP Act, breastfeeding employees are entitled to reasonable break time and a private space to pump for one year after giving birth.
ODRISA Act
The State’s One Day Rest in Seven Act requires employers to provide employees with at least 24 consecutive hours of rest per calendar week, in addition to any meal breaks.
Are Rest Breaks Required by the State?
Unlike some states, Illinois doesn’t have specific requirements for shorter rest breaks (like 10 or 15 minutes) during the workday. However, if an employer chooses to provide these shorter breaks, and they last less than 20 minutes, federal law requires that they be paid.
Leave and Paid Time Off (PTO) in Illinois
Illinois has its own set of regulations concerning leave and paid time off (PTO) policies that employers need to understand to ensure they’re meeting legal requirements and supporting their employees effectively.
Break or Leave Type in IL
IL Sick Days
The Paid Leave for All Workers Act makes private employers provide 1 hour of sick leave for every 40 hours worked, for up to 40 hours of paid leave over a 12-month period.
IL Vacation Time
The Paid Leave for All Workers Act makes private employers provide 1 hour of sick leave for every 40 hours worked, for up to 40 hours of paid leave over a 12-month period.
IL Holiday Leave
The Paid Leave for All Workers Act makes private employers provide 1 hour of sick leave for every 40 hours worked, for up to 40 hours of paid leave over a 12-month period.
IL Family and Medical Leave
The Paid Leave for All Workers Act makes private employers provide 1 hour of sick leave for every 40 hours worked, for up to 40 hours of paid leave over a 12-month period.
The federal Family and Medical Leave Act provides employees with up to 12 weeks of unpaid leave with their jobs protected.
IL Bereavement Leave
Under the Illinois Bereavement Leave Act or FBLA, eligible employees may take up to 10 days of job-protected unpaid leave for covered events, including to grieve, attend a funeral, or make arrangements related to the death of a covered relative.
IL Military Leave
Under the Illinois Family Military Leave Act, employers with 15-50 employees must provide up to 15 days of job-protected unpaid family military leave for certain conditions. Employers with over 50 employees must provide up to 30 days.
IL Firefighter Leave
Volunteer emergency workers are allowed time off to respond to emergency calls.
State employees can receive up to 200 hours of leave for training under the Firefighter Training Leave of Absence Act.
IL Voting Leave
Illinois allows for up to 2 hours of paid leave to vote under specific circumstances.
IL Jury Duty Leave
All employers must excuse employees from work so they can serve jury duty.
IL Witness Leave
Under the Rights of Crime Victims and Witnesses Act, employers in Illinois are required to provide paid or unpaid leave for employees who are summoned to be a witness in courts of any kind.
Overtime Regulations in Illinois
In Illinois, overtime pay is required for any hours worked over 40 in a single workweek. The standard rate for overtime is one and a half times the employee’s regular pay rate, which means if an employee typically earns $20 per hour, their overtime rate would be $30 per hour.
Overtime is based only on actual hours worked, which means if an employee takes a day off and works extra hours on other days, but doesn’t exceed 40 hours worked in the week, they aren’t entitled to overtime pay for those extra hours.
However, it’s important to note that there are exemptions to these overtime rules.
Certain employees, often called “exempt,” do not qualify for overtime pay. These exemptions generally apply to employees in executive, administrative, professional, and outside sales positions who meet specific criteria set by the Fair Labor Standards Act, also known as the FLSA.
Illinois law requires that overtime wages be paid on the regular payday for the period in which the overtime was worked. Employers cannot delay overtime payments; they must be included with the regular wages for that pay period.
Wages and Benefits in Illinois
As an employer in Illinois, especially in the construction industry, understanding the state’s regulations on wages and benefits is essential.
Wage Types in IL
IL Minimum Wage
$14 /hr. as of January 1, 2024 – increases to $15 /hr. in 2025.
IL Tipped Minimum Wage
$8.40 /hr. as of January 1, 2024 – increases to $9 /hr. in 2025.
Pay Frequency and Pay Stub Regulations
Illinois law requires employees to be paid at least semi-monthly, which means you must have a consistent payroll schedule and ensure your employees receive their wages at least twice a month.
Additionally, employers are required to provide their employees with pay stubs. These pay stubs must include the number of hours worked, the pay rate, gross wages, deductions, and net wages.
Final Paychecks
When it comes to final paychecks for employees who are leaving, whether they’re quitting or being terminated, Illinois law has clear guidelines—employers are required to give a departing employee their final paycheck by the next regularly scheduled payday, which includes any accrued and unused vacation pay if your company policy provides for vacation accrual.
Mandatory and Optional Benefits
As far as mandatory benefits go, employers in Illinois are required to contribute to unemployment insurance and workers’ compensation insurance. In terms of optional benefits, while not mandated by law, many employers offer additional benefits such as health insurance, retirement plans, paid time off, and more.
Want to ensure your company stays compliant with leave, PTO, overtime, and wage laws in California – or in any other state? Try Workyard!
With Workyard, you can…
Click the links above to discover how Workyard can help handle your employment compliance needs, or go to the link below to start a fully-featured 14-day free trial today:
Ensure employment compliance and better manage your payroll with Workyard
Prevailing Wages in Illinois
Prevailing wages are the standard pay rates set by law for each trade and occupation employed in public works projects.
In Illinois, these wages are determined based on the prevailing rates in the locality where the work is performed. The idea is to ensure that the competition for public contracts does not drive down workers’ wages.
Prevailing wages in Illinois specifically apply to public works projects, which means any project funded wholly or partly by public funds is subject to these wage requirements. If your construction business is involved in these projects, understanding and adhering to the prevailing wage laws is crucial.
To stay updated with the current prevailing wage rates in Illinois, it’s important to know where to look: the Illinois Department of Labor (IDOL) website provides key resources for this by publishing prevailing wage rates, which are typically updated monthly. These rates are determined based on surveys conducted in each locality.
Hiring Practices in Illinois
As an employer in Illinois within the construction industry, getting a good grasp on the state’s regulations around hiring practices is vital to success.
Job Postings, Interviews, and Hiring Decisions
In Illinois, your job postings should accurately reflect the qualifications and requirements of the position without being discriminatory.
During the interview process, it’s important to focus on the candidate’s qualifications and fit for the role. Try to avoid any questions that could be perceived as discriminatory based on race, gender, religion, marital status, sexual orientation, age, or disability.
When making your final hiring decisions, these should be based solely on the applicant’s suitability for the position, including their skills, experience, and ability to perform the job duties.
Background Checks and Drug Testing
Illinois employers must comply with state and federal background check regulations, including obtaining written consent from the candidate before conducting the check and following specific procedures if they decide not to hire based on the results.
While Illinois allows pre-employment drug testing, drug testing must be conducted in a non-discriminatory manner. With the legalization of recreational marijuana in Illinois, employers need to be particularly careful about how they handle drug testing and employment decisions based on marijuana usage.
Anti-Discrimination Laws and Equal Employment Opportunities
Illinois takes anti-discrimination laws very seriously, and the Illinois Human Rights Act prohibits employment discrimination based on several protected characteristics. These characteristics include:
- Race
- Skin Color
- Religion
- Sex
- National origin
- Ancestry
- Age
- Order of protection status
- Marital status
- Any physical or mental disability
- Current military status
- Sexual orientation (including gender identity)
- Unfavorable discharge from military service
Health and Safety Standards in Illinois
Illinois has specific regulations regarding workplace safety, and being well-versed in these is crucial to maintaining a safe and compliant work environment.
Drug-Free Workplace
The Drug-Free Workplace Act of Illinois explicitly prohibits the making, distribution, dispensing, possession, or use of any controlled substance in the workplace.
Smoke-Free Workplace
The Smoke-free Illinois Act prohibits smoking in public buildings, places of employment, and within 15 feet of any entrance, exit, windows, or vents related to these buildings.
Weapons in the Workplace
Current Illinois law does not directly address whether or not an employer can prohibit weapons in the workplace. Instead, they must determine whether the Firearm Concealed Carry Act considers their place of work to be a prohibited location.
Workplace Safety Regulations in Illinois
In Illinois, the primary guideline for workplace safety is the Occupational Safety and Health Administration or OSHA standards, which apply at both the federal and state levels. These regulations cover a wide range of safety issues, including but not limited to hazard communication, emergency planning, and specific equipment safety standards.
For construction sites, there are additional specific safety standards regarding scaffolding, fall protection, electrical safety, and personal protective equipment or PPE. It’s important to implement these standards and regularly train your employees on them to ensure ongoing safety awareness and compliance.
Resources for Reporting Unsafe Working Conditions
To report unsafe working conditions, employees in Illinois have several options, and The Illinois Department of Labor or IDOL’s website is their primary contact point. Employees or employers can confidentially report unsafe working conditions to IDOL, which then can initiate inspections or investigations as needed.
Additionally, OSHA provides their own hotline and an online complaint system for reporting workplace hazards. Employees need to know they can report unsafe conditions without fear of retaliation.
Child Labor Laws in Illinois
In Illinois, minors under the age of 16 are required to obtain a work permit before they can be employed, which is issued by the minor’s school and ensures that the job does not conflict with their educational commitments. Employers are responsible for ensuring that any minor they hire has the necessary work permit.
The state of Illinois sets specific age restrictions and hour limitations for minors who are working within it.
For example, minors under 14 are generally not permitted to work, with a few exceptions, like in agriculture or entertainment. For those aged 14 and 15, there are limits on the number of hours they can work: no more than 3 hours on a school day, 8 hours on a non-school day, and a maximum of 24 hours per week when school is in session.
For 16 and 17-year-olds, the restrictions are a bit more relaxed, but there are still limits, especially during the school year. These older minors are not permitted to work during school hours and have a cap on the total number of hours they can work per week.
There are stricter rules in the construction industry and other hazardous occupations. Minors under 18 are generally prohibited from working in hazardous jobs, which include roles that require the operation of heavy machinery, work at significant heights, or exposure to potentially hazardous materials.
Employee Termination and Resignation in Illinois
In Illinois, as in many states, employment is generally considered “at-will.” This means that barring a contractual agreement or collective bargaining agreement to the contrary, either the employer or the employee can end the employment relationship at any time, for any legal reason, with or without notice.
However, there are critical exceptions to this rule—you cannot terminate an employee for reasons that would violate federal or state anti-discrimination laws, in retaliation for whistleblowing, or for reasons that would violate public policy.
There’s no legal requirement in Illinois to provide notice or severance pay when terminating an employee unless you have an employment contract or company policy that specifies these conditions.
When an employee resigns, the process is typically more straightforward for employers. While employees often provide notice, they are not legally required to. As an employer, you should have a clear policy for handling resignations, including managing final paychecks and the transition of the employee’s responsibilities.
Under Illinois law, you must provide a final paycheck to the terminating or resigning employee by the next scheduled payday, including payment for unused vacation time, provided your company policy allows for vacation accrual and payout upon termination.
In Illinois, ‘right-to-work’ laws pertain to union membership and dues, indicating that employees cannot be required to join a union or pay dues as a condition of employment.
Unemployment Benefits in Illinois
In Illinois, an individual must meet several criteria to be eligible for unemployment benefits.
They must be unemployed through no fault of their own (for example, due to a layoff), be actively seeking work, and have earned a minimum amount of wages during a base period, typically the first four of the last five completed calendar quarters before the claim.
Employees can apply for unemployment benefits through the Illinois Department of Employment Security or IDES, which typically involves providing personal information, employment history, and details about their separation from their last job. The IDES then reviews the application, and if approved, benefits are paid to the employee.
When an employee files a claim, employers will receive a notice from the IDES. It’s important to respond to this notice promptly, providing accurate information about the employee’s work history and the circumstances of their unemployment.
Your response can affect the employee’s benefits eligibility and your company’s unemployment insurance rate. Inaccurate or incomplete information can lead to improper payment of benefits, which might impact your tax rate.
Employers in Illinois are required to contribute to the state’s unemployment insurance fund, which is based on a tax rate applied to your employees’ wages. The rate can vary depending on factors like the number of former employees who have claimed unemployment benefits and your company’s overall unemployment history.
To help navigate these responsibilities, the IDES website offers resources for employers. This includes detailed guides on responding to unemployment claims, understanding your tax rate, and managing your contributions to the unemployment insurance fund.
Penalties for Noncompliance in Illinois
The penalties for failing to comply with Illinois labor laws can vary depending on the severity and nature of the violation.
Common areas of noncompliance include failure to pay minimum wage or overtime, violation of child labor laws, and neglecting workplace safety regulations. Penalties can range from monetary fines to more severe consequences, like business closure or criminal charges for egregious violations.
For example, not adhering to minimum wage and overtime laws can result in fines per affected employee, plus the requirement to back pay the owed wages. Violating safety standards can lead to substantial fines, especially if the violation results in serious injury.
Enforcement of these laws is primarily carried out by state agencies like IDOL and, for safety violations, OSHA. These agencies conduct investigations, often triggered by employee complaints, and can perform audits and inspections to ensure compliance.
Violations of labor laws are often reported by employees, which they can do by filing a complaint with the IDOL or OSHA, depending on the nature of the violation. It’s also possible for violations to be uncovered during routine inspections or audits by these agencies.
Other Essential Information About Labor Laws in Illinois
In addition to the core topics we’ve discussed, other aspects of Illinois labor laws are essential for employers in the construction industry to understand.
These include nuances in state-specific regulations and the role of labor unions and collective bargaining.
State-Specific Labor Laws and Regulations
- One Day Rest in Seven Act (ODRISA): This law requires employers to provide employees with at least twenty-four consecutive hours of rest in every calendar week in Illinois. This is particularly relevant for industries like construction, where work schedules can be demanding.
- Victim’s Economic Security and Safety Act (VESSA): This law allows employees to take unpaid leave if they are victims of domestic or sexual violence, extending to their family members as well. It’s a crucial aspect of supporting employee welfare beyond the typical leave policies.
- Illinois Service Member Employment and Reemployment Rights Act (ISERRA): This act protects the employment, reemployment, and retention rights of service members.
Labor Unions and Collective Bargaining
In Illinois, labor unions play a significant role in various industries, including construction. To help guide you, here are some key points:
- Right to Organize Employees in Illinois have the right to organize and join labor unions. This is protected under both state and federal law.
- Collective Bargaining: Once a union is formed, it can bargain with employers on its members' behalf. This process covers negotiating terms of employment, including wages, hours, and working conditions.
- No Strike/No Lockout: In some collective bargaining agreements, there may be a 'no strike/no lockout' clause, implying that the union agrees not to strike and the employer agrees not to lock out workers during the contract period.
- Right-to-Work Laws: Illinois is not a right-to-work state. This means union security agreements, where employees must join the union or pay union dues as a condition of employment, are permissible.
Ensuring Your Business Complies With Illinois Labor Laws
Looking back on our exploration of Illinois labor laws, we covered the essential topics that are vital for your company’s success and compliance in the construction industry. We first took a look at the basics of wages and breaks, where understanding Illinois’s minimum wage laws, meal and rest break requirements, and overtime regulations are key.
We then navigated the nuances of leave and PTO, covering sick leave, family and medical leave, and vacation policies. Remember, these regulations are as much about supporting your employees as they are about legal compliance. In terms of health and safety, adhering to OSHA standards and state-specific safety regulations is critical in helping you maintain a safe work environment.
The legal intricacies of hiring and termination practices, including at-will employment and anti-discrimination laws, were also a key focus. We then explored the rules governing child labor and the complexities surrounding unemployment benefits, highlighting the importance of understanding these areas.
Furthermore, the potential penalties for noncompliance underscore the significance of adhering to these laws—not only do they carry legal implications, but they also impact the ethical standing of your business. We also discussed additional state-specific laws like ODRISA, VESSA, ISERRA, and the pivotal role of labor unions and collective bargaining in Illinois.
Understanding and complying with these labor laws transcends beyond avoiding penalties; it’s about fostering a positive, equitable, and productive work environment.
While this guide offers a comprehensive overview, specific questions or concerns should be directed to legal professionals. After all, labor laws are complex, and seeking out professional legal counsel can help provide some much-needed clarity for any legal nuances or updates you need help with.
For many businesses, the only real solution to compliance challenges is great software. The right business management software comes with built-in compliance and recordkeeping rules, regardless of your industry, how many employees you have, what they do, or how widely they’re dispersed across the state (or country).
If you operate a construction or field services company, we humbly suggest trying Workyard for your compliance needs.
Workyard is built around the industry’s most accurate GPS tracking and geofencing technology, which ensures payroll accuracy across your workforce, no matter which job site you send them to or when you need them to work there. Workyard’s timesheet tracking system also comes with built-in federal and state overtime rules, as well as adjustable break rules you can customize at the employee level.
Workyard’s intuitive scheduling dashboard makes it easy to direct your workforce to the jobs you need done, based on their skill sets, their locations, their availability, and (of course) their weekly time worked – so you can avoid unnecessary overtime payments and reduce reimbursable travel expenses.
All of these tools work together to save you money. Minimize payroll waste, ensure regulatory compliance without lifting a finger, accurately assess project costs in real time, and pay your team with ease thanks to seamless payroll processing integrations.
And best of all, you can try it free for 14 days, so you can be sure it’s the right solution for your company. Just click here (or the buttons below) to get started today!
Loading...
