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Illinois Minimum Wage 2025: Know Your Rights

Illinois has a state minimum wage higher than the federal minimum, and local minimum wages in Chicago and Cook County that exceed the state rate. As of January 1, 2025, the Illinois statewide minimum wage is $15.00 per hour—more than double the federal minimum wage of $7.25.

Understanding which minimum wage applies to you depends on where you work (statewide Illinois, Chicago city limits, or Cook County suburbs). Unlike many states, Illinois prohibits tip credits, meaning tipped workers must receive the full minimum wage before tips.

If your employer pays you less than the applicable minimum wage, you have the right to file a complaint and recover unpaid wages plus penalties.

Illinois Minimum Wage Rates (2025)

Statewide Illinois: $15.00/Hour

Effective January 1, 2025: Illinois statewide minimum wage is $15.00 per hour

This applies to:

  • All workers in Illinois outside Chicago city limits and Cook County
  • Most workers in Illinois not covered by higher local minimum wages

History of Illinois minimum wage increases:

  • 2019: $8.25/hour
  • 2020: $9.25/hour
  • 2021: $11.00/hour
  • 2022: $12.00/hour
  • 2023: $13.00/hour
  • 2024: $14.00/hour
  • 2025: $15.00/hour

The statewide minimum reached $15/hour on January 1, 2025, fulfilling the schedule set by the 2019 legislation that incrementally raised Illinois’ minimum wage from $8.25 to $15 over six years.

Future increases: After reaching $15/hour in 2025, Illinois law does not mandate automatic annual adjustments tied to inflation (unlike Chicago and Cook County, which have annual CPI adjustments). Any future statewide increases would require new legislation.

Chicago: $16.20/Hour (2025)

Effective July 1, 2025: Chicago minimum wage is $16.20 per hour

Current rate (through June 30, 2025): $15.80/hour

Who this covers:

  • All employees who work within Chicago city limits
  • Applies regardless of employer size
  • Covers full-time, part-time, and temporary workers

Annual adjustments: Chicago’s minimum wage increases annually on July 1 based on the Consumer Price Index (CPI) to keep pace with inflation. The rate is announced each spring.

Tipped workers: Chicago requires tipped workers to receive the full $16.20/hour minimum wage (as of July 1, 2025). Tips are on top of this base wage. No tip credit is allowed.

Youth minimum wage: Workers under 18 who work fewer than 650 hours per year can be paid $13.00/hour (80% of adult minimum wage as of 2024; this may adjust for 2025).

Example: You work as a server at a restaurant in downtown Chicago. As of July 1, 2025, your employer must pay you at least $16.20/hour before tips. If you only make $200 in tips during a 40-hour week, your employer still owes you $16.20 × 40 = $648 in base wages, plus the $200 in tips = $848 total.

Cook County: $14.05/Hour (2025)

Effective July 1, 2025: Cook County minimum wage is $14.05 per hour (estimated based on CPI adjustment)

Current rate (through June 30, 2025): $13.70/hour

Who this covers:

  • Employees working in Cook County but outside Chicago city limits
  • Includes suburban areas like Evanston, Oak Park, Skokie, Des Plaines, Schaumburg, etc.
  • Does not apply within Chicago city limits (Chicago’s higher rate applies there)

Annual adjustments: Cook County’s minimum wage increases annually on July 1 based on CPI (inflation adjustment).

Tipped workers: Must receive full Cook County minimum wage ($14.05/hour as of July 1, 2025). No tip credit allowed.

Example: You work at a retail store in Evanston (Cook County, outside Chicago). As of July 1, 2025, your employer must pay you at least $14.05/hour. Because this is higher than the Illinois statewide minimum ($15.00), you receive the statewide rate of $15.00/hour (higher rate prevails).

Important note: When Cook County minimum wage is lower than statewide Illinois minimum wage, the higher rate applies. As of 2025, the statewide Illinois minimum ($15.00) is higher than Cook County’s rate, so Cook County employers must pay the state rate.

Which Minimum Wage Applies to You?

Determine your minimum wage by work location:

Work Location Minimum Wage (2025) Annual Adjustment?
Chicago city limits $16.20/hour (as of July 1, 2025) Yes (CPI, adjusted July 1)
Cook County (outside Chicago) $15.00/hour (state rate, higher than county) State: No automatic adjustment County: Yes (CPI, adjusted July 1)
Rest of Illinois $15.00/hour No automatic adjustment

Key rule: If multiple minimum wages apply (state, county, city), you’re entitled to the highest applicable rate.

Example: You work in Oak Park (Cook County, outside Chicago):

  • Cook County minimum: ~$14.05/hour (July 2025)
  • Illinois state minimum: $15.00/hour
  • You must be paid: $15.00/hour (higher of the two)

No Tip Credit in Illinois

Critical difference from many states: Illinois does not allow tip credits.

What This Means

Tip credit (used in many states): Employer can pay tipped workers a lower “cash wage” (as low as $2.13/hour federally) and count tips toward meeting minimum wage requirement.

Illinois rule: Employers must pay tipped workers the full minimum wage ($15.00 statewide, $16.20 in Chicago, $14.05 in Cook County) before tips. All tips are on top of the minimum wage.

Who this helps: Servers, bartenders, delivery drivers, barbers, valets, and other tipped workers receive significantly higher base pay in Illinois than in tip-credit states.

Examples: Illinois vs. Tip Credit States

Texas (tip credit state):

  • Texas minimum wage: $7.25/hour
  • Tipped minimum wage: $2.13/hour (employer can take $5.12 tip credit)
  • Server works 40 hours, earns $200 in tips
  • Base pay: $2.13 × 40 = $85.20
  • Total: $285.20 ($85.20 wages + $200 tips)

Illinois (no tip credit):

  • Illinois minimum wage: $15.00/hour
  • Tipped workers receive full $15.00/hour
  • Server works 40 hours, earns $200 in tips
  • Base pay: $15.00 × 40 = $600
  • Total: $800 ($600 wages + $200 tips)

Difference: Illinois server earns $514.80 more for the same work and tips.

Chicago example (no tip credit):

  • Chicago minimum wage: $16.20/hour (as of July 1, 2025)
  • Server works 40 hours, earns $300 in tips
  • Base pay: $16.20 × 40 = $648
  • Total: $948 ($648 wages + $300 tips)

Tip Pooling Rules

Legal tip pooling:

  • Tips can be shared among employees who customarily receive tips (servers, bartenders, bussers, hosts)
  • Must be voluntary or pursuant to valid tip pooling policy
  • Employer cannot take any portion of tips (except processing fees for credit card tips)

Illegal tip taking:

  • Managers and supervisors cannot participate in tip pools
  • Employer cannot keep any portion of tips
  • Employer cannot require tips be used to cover business expenses (walk-outs, breakage, cash register shortages)

Example: Your restaurant requires servers to share tips with bussers and food runners. This is legal tip pooling. However, if your manager takes a share of the tip pool or if the restaurant deducts broken dishes from your tips, this is illegal under Illinois law.

Youth Minimum Wage

Illinois allows lower youth minimum wage for workers under 18 in limited circumstances:

State Youth Wage

Who qualifies:

  • Workers under age 18
  • Working fewer than 650 hours per calendar year for the employer

Rate: $12.75/hour (85% of adult minimum wage for 2025)

Once 650 hours worked: Must receive full adult minimum wage ($15.00/hour)

Example: You’re 17 and work part-time at a grocery store. Your employer can pay you $12.75/hour for your first 650 hours in a calendar year. After you work your 650th hour, your employer must pay you $15.00/hour for all subsequent hours.

Chicago Youth Wage

Who qualifies:

  • Workers under age 18
  • Working fewer than 650 hours per calendar year

Rate: Approximately $13.00/hour (80% of adult Chicago minimum wage, based on 2024 rate; may adjust for 2025)

After 650 hours: Must receive full Chicago adult minimum wage

Important: Most employment of minors is governed by both minimum wage laws and child labor laws, which restrict hours and types of work for workers under 16 or 18.

Unpaid Wages and Violations

Common Minimum Wage Violations

Paying below minimum wage:

  • Paying less than $15.00/hour (or applicable higher local minimum)
  • Taking illegal tip credits
  • Requiring employees to pay for uniforms, equipment, or breakage if it reduces wages below minimum

Off-the-clock work:

  • Requiring work before clocking in or after clocking out
  • Unpaid preparation time, closing duties, or mandatory meetings
  • Automatic meal break deductions when employee actually worked through break

Misclassification:

  • Classifying employees as “independent contractors” to avoid minimum wage
  • Misclassifying employees as exempt to avoid overtime (doesn’t directly affect minimum wage but related wage issue)

Illegal deductions:

  • Deducting cash register shortages, walk-outs, or breakage that reduce pay below minimum wage
  • Charging for uniforms or equipment if it brings wages below minimum wage

Example: You’re paid $15.00/hour and work 40 hours per week. Your employer deducts $50/week for a required uniform. This reduces your effective wage to $13.75/hour ($600 wages – $50 uniform = $550 ÷ 40 hours = $13.75/hour), below the minimum wage. This is illegal.

How to Calculate Unpaid Wages

Formula: (Minimum wage you should have received – wage you actually received) × hours worked

Example 1 – Simple underpayment:

  • You work in Chicago (minimum $15.80/hour through June 2025)
  • Your employer pays you $13.00/hour
  • You worked 400 hours
  • Unpaid wages: ($15.80 – $13.00) × 400 = $2.80 × 400 = $1,120

Example 2 – Illegal tip credit:

  • You work as a server in suburban Cook County
  • Employer pays you $10.00/hour, claiming your tips make up the difference
  • This is illegal—no tip credit allowed in Illinois
  • You should be paid $15.00/hour (2025 state minimum)
  • You worked 1,000 hours over 6 months
  • Unpaid wages: ($15.00 – $10.00) × 1,000 = $5.00 × 1,000 = $5,000

Example 3 – Off-the-clock work:

  • You’re paid $15.00/hour
  • Your employer requires 15 minutes of unpaid prep work before each shift and 15 minutes of unpaid closing work after each shift = 30 minutes/day unpaid
  • You work 5 days/week for 52 weeks = 260 days × 0.5 hours = 130 hours unpaid
  • Unpaid wages: $15.00 × 130 = $1,950

Filing a Wage Claim

Illinois Department of Labor (IDOL)

For minimum wage violations, file a complaint with IDOL:

Contact information:

  • Chicago office: 312-793-2800
  • Springfield office: 217-782-6206
  • Website: illinois.gov/idol

Filing deadline: 3 years from wage violation under Illinois Wage Payment and Collection Act

What to include:

  • Your contact information
  • Employer’s name, address, contact information
  • Dates of employment
  • Wage you were paid vs. minimum wage you should have received
  • Hours worked
  • Pay stubs, timecards, or other documentation
  • Description of violation

Investigation and Recovery

IDOL investigates:

  • Contacts employer for response
  • Reviews documentation (pay records, timecards, policies)
  • Determines if violation occurred
  • Calculates unpaid wages owed

If violation found:

  • IDOL can order employer to pay unpaid wages
  • Additional penalties may apply
  • Employer cannot retaliate against you for filing complaint

Timeline: Investigations can take 6-12 months depending on complexity

Private Lawsuit Option

You can also file a private lawsuit in Illinois state court to recover unpaid minimum wages:

Damages you can recover:

  • Unpaid wages (difference between what you should have been paid and what you were paid)
  • Liquidated damages equal to 5% of unpaid wages per month (up to 100% of unpaid wages)
  • Attorney’s fees and costs if you prevail

Statute of limitations: 3 years from wage violation (5 years if willful violation)

Example: Your employer owes you $5,000 in unpaid minimum wages over 10 months. You file a lawsuit and prove the violation. You can recover:

  • $5,000 in unpaid wages
  • $2,500 in liquidated damages (5% × 10 months = 50% of unpaid wages)
  • Your attorney’s fees and court costs
  • Total recovery: $7,500+ (plus fees)

When to consider lawsuit:

  • Large amount of unpaid wages
  • Employer refuses to cooperate with IDOL
  • You want faster resolution than IDOL investigation
  • Pattern of wage theft affecting multiple employees (class action potential)

Consult an employment attorney to evaluate whether filing a lawsuit makes sense for your situation.

Chicago-Specific Wage Protections

Chicago has enacted additional wage protections beyond state law:

Chicago Wage Theft Ordinance

Protects against:

  • Paying below Chicago minimum wage
  • Illegal deductions
  • Failure to pay earned wages
  • Retaliation for wage complaints

Enhanced penalties: Chicago can impose fines on employers who violate wage laws, separate from IDOL enforcement

Chicago Fair Workweek Ordinance

Applies to: Covered hospitality and building services employers

Protections:

  • Predictable scheduling requirements
  • Premium pay for schedule changes within 10-14 days of shift
  • Right to rest between shifts (10 hours between closing and opening shifts)
  • Declining shifts without retaliation

Schedule change premiums:

  • Changes made with less than 14 days’ notice: $10-$75 premium per shift
  • Requires employer to offer additional hours to existing employees before hiring new workers

Example: You work at a Chicago hotel (covered by Fair Workweek). Your manager changes your schedule with only 5 days’ notice, adding a shift you weren’t originally scheduled for. You’re entitled to a premium payment ($10-$75 depending on circumstances) for the short-notice change, in addition to your regular wages.

Cook County Earned Sick Leave

Accrual: 1 hour of earned sick leave per 40 hours worked (for Cook County employees outside Chicago)

Cap: Up to 40 hours (5 days) per year

Uses:

  • Your own illness or medical care
  • Care for sick family member
  • Domestic violence or sexual assault services
  • Public health emergency

Carryover: Unused sick leave carries over to next year (subject to 40-hour cap)

Note: Chicago has its own earned sick leave ordinance with similar provisions.

Overtime and Minimum Wage

Minimum wage and overtime are related but separate:

Illinois Overtime Law

Overtime rate: 1.5× your regular rate for hours over 40 in a workweek

Minimum wage employees:

  • If you’re paid $15.00/hour (minimum wage)
  • Overtime rate = $15.00 × 1.5 = $22.50/hour
  • You work 50 hours in a week
  • Pay owed: (40 hours × $15.00) + (10 hours × $22.50) = $600 + $225 = $825

Chicago minimum wage employees:

  • If you’re paid $16.20/hour (Chicago minimum as of July 2025)
  • Overtime rate = $16.20 × 1.5 = $24.30/hour
  • You work 50 hours
  • Pay owed: (40 hours × $16.20) + (10 hours × $24.30) = $648 + $243 = $891

Critical: Some employees are exempt from overtime (salaried executive, administrative, professional employees meeting specific tests). However, no one is exempt from minimum wage—all employees must be paid at least minimum wage.

Exempt Employees and Minimum Wage

Overtime-exempt employees must still receive minimum wage:

Salary basis test: To be exempt from overtime, employee must generally earn at least $844/week ($43,888/year) as of 2024 (federal threshold; may increase).

Minimum wage still applies: Even if salaried and overtime-exempt, if you calculate your hourly rate and it falls below minimum wage, your employer violates minimum wage law.

Example: You’re classified as “exempt” salaried employee earning $31,200/year ($600/week). You regularly work 60 hours/week. Your effective hourly rate is $600 ÷ 60 = $10/hour. This is below Illinois minimum wage of $15.00/hour, violating minimum wage law even though you’re overtime-exempt.

Misclassification: Many employers incorrectly classify employees as exempt to avoid paying overtime. If misclassified, you’re entitled to both overtime pay AND minimum wage protections.

Common Questions

Can my employer pay me less than minimum wage if I’m an independent contractor?

No—if you’re misclassified. Many employers misclassify employees as “independent contractors” to avoid minimum wage, overtime, and tax obligations.

Employee vs. independent contractor: Illinois uses multi-factor test examining level of control, opportunity for profit/loss, investment in equipment, permanency of relationship, integral part of business.

If you’re really an employee: You must be paid minimum wage regardless of how employer labels you.

Example: You deliver food for a restaurant. The restaurant calls you an “independent contractor” and pays you $10/hour with no benefits. If you work set hours, use restaurant’s equipment, and have no independence in how you perform work, you’re likely an employee misclassified as contractor, entitled to minimum wage.

Does minimum wage apply to small businesses?

Yes. Illinois minimum wage applies to all employers regardless of size, with very narrow exceptions.

Federal law: Federal minimum wage only applies to employers with $500,000+ in annual revenue or engaged in interstate commerce (but this covers most businesses).

Illinois law: Applies to essentially all employers.

Chicago and Cook County: Explicitly apply to all employer sizes.

Can I be paid less if I’m training or in a probationary period?

No. Illinois does not allow a “training wage” lower than minimum wage for adults.

Exception: Youth under 18 can be paid 85% of minimum wage (statewide) or 80% (Chicago) for first 650 hours, as explained above.

For adult workers: You must be paid full minimum wage from day one, including during training or probationary periods.

Can my employer deduct for uniforms, tools, or cash register shortages?

Only if it doesn’t bring your wage below minimum wage.

Illinois Wage Payment and Collection Act prohibits deductions that reduce your wage below minimum wage.

Legal deduction example: You earn $20/hour and work 40 hours = $800. Employer deducts $50 for uniform. Your net is $750 ÷ 40 hours = $18.75/hour, still above minimum wage. Legal.

Illegal deduction example: You earn $15.00/hour (minimum wage) and work 40 hours = $600. Employer deducts $50 for uniform. Your net is $550 ÷ 40 hours = $13.75/hour, below minimum wage. Illegal.

Cash register shortages: Employers generally cannot deduct cash register shortages from minimum wage employees’ pay.

What if I work partly in Chicago and partly outside Chicago?

You’re entitled to the applicable minimum wage for the location where you perform work:

Example: You work 30 hours/week in Chicago and 10 hours/week in suburban Cook County.

  • Chicago hours: 30 × $16.20 = $486 (as of July 2025)
  • Cook County hours: 10 × $15.00 = $150 (state minimum, higher than county)
  • Total minimum weekly pay: $636

Your employer must track hours by location and pay the applicable rate for each.

Resources for Illinois Workers

State Agencies

Illinois Department of Labor (IDOL):

  • Minimum wage and wage payment enforcement
  • Website: illinois.gov/idol
  • Chicago: 312-793-2800
  • Springfield: 217-782-6206

Illinois Department of Human Rights (IDHR):

  • For discrimination or retaliation related to wage complaints
  • Chicago: 312-814-6200
  • Website: illinois.gov/dhr

Federal Agency

U.S. Department of Labor – Wage and Hour Division:

  • Federal minimum wage and FLSA enforcement
  • Chicago office: 312-596-7160
  • Website: dol.gov/agencies/whd
  • Hotline: 1-866-487-9243

Free Legal Assistance

Land of Lincoln Legal Aid:

  • Phone: 1-877-342-7891
  • Website: lincolnlegal.org
  • Free legal help for low-income workers

Prairie State Legal Services:

  • Phone: 1-800-942-4916
  • Free civil legal services

Chicago Bar Association Lawyer Referral Service:

  • Phone: 312-554-2001
  • Find an employment attorney

Related Illinois Topics

Get Help with Unpaid Wages

Think your employer is paying you less than Illinois, Chicago, or Cook County minimum wage? Get a free consultation from an employment law expert who understands Illinois wage laws.

Illinois provides strong minimum wage protections, especially for tipped workers who must receive the full minimum wage before tips (no tip credit). The 3-year statute of limitations and ability to recover liquidated damages make wage claims valuable. Understanding which minimum wage applies to your work location and how to calculate unpaid wages is the first step toward recovering what you’re owed.

Disclaimer: The information provided on this page is for general informational purposes only and does not constitute legal advice. Minimum wage rates are subject to change, and Chicago and Cook County rates adjust annually. For advice specific to your situation, please consult with a licensed employment attorney in Illinois. Employment Law Aid is not a law firm and does not provide legal representation.