Business & Work

Almost every employer is required to pay at least the state or federal minimum wage. As of January 1, 2025, the Illinois minimum wage is $15 per hour for workers 18 years of age and older, and the federal minimum wage is $7.25 per hour. Different minimum wage amounts apply to tipped employees and youth under 18 working less than 650 hours per year.     

Under Illinois law, you are entitled to receive at least the state minimum wage if you work for a company with more than 4 employees. Download the "Your Rights Under Illinois Employment Laws" poster, which should be posted where employees can see it.

Under federal law, you are entitled to receive the federal minimum wage if you work for a company that earns more than $500,000 in a year and is connected to interstate commerce.

However, there are some companies and types of jobs that are not covered by the minimum wage law.

Am I entitled to receive the minimum wage if I earn tips?

In Illinois, employers are allowed to pay commonly tipped jobs, like waiters, 60% of the minimum wage.

However, the combined wages and tips of a tipped employee must be at least the minimum wage. Otherwise, it's a violation. Learn more about the minimum wage in Illinois. Chicago and Cook County have their own rules about this as well.

Am I entitled to receive the minimum wage if I earn a salary?

Yes. Your average hourly rate must equal at least the minimum wage. You can determine your hourly rate by dividing your salary by the number of hours that you work.

For example, if you have a salary that pays $200 per week and you work 40 hours in that week, your actual hourly rate comes to $5 per hour. Because this amount is less than the minimum wage, you are entitled to recover the difference that you are owed.

Can my employer pay me less than the minimum wage for training?

Yes. In Illinois, employees in training may be paid up to $.50 an hour below the minimum wage for their first 90 days. After that, an employee must be paid the full minimum wage.

Can my employer pay me less than the minimum wage if I have a disability?

Employers may apply for licenses to pay less than minimum wage to certain workers with disabilities. However, in 2025, Illinois passed the Dignity in Pay Act. Under the act, employers will no longer be able to pay less than minimum wage to workers with disabilities, starting on December 31, 2029. Learn more on the Illinois Council on Developmental Disabilities website. 

Does my immigration status affect my eligibility to receive minimum wage?

Your employer is required to pay at least the minimum wage to all employees for all time worked, regardless of immigration status. However, employers cannot hire a person who is undocumented and not authorized to work.  

What are the laws about overtime payment?

In Illinois, most employers must pay overtime if an employee works more than 40 hours a week. Typically, overtime is paid if an employee works more than 40 hours a week, but different jobs have different regular hours of work. The rate for overtime pay is time and a half of the regular pay rate.

Certain employees, including salesmen and mechanics, are exempt from being paid overtime. Learn more about exempt roles on the Illinois Department of Labor website.

Does my employer have to reimburse me for expenses?

Yes. Your employer must reimburse you for any expenses that are necessary for your work. You must submit receipts within 30 days or a statement saying why you don't have a receipt.

Can my employer take my tips?

No. Tips are the property of the employee. The employer cannot take them. The employer can set up a tip-pooling system, though.