Illinois Minimum Wage Laws
Minimum wage
Illinois’ current minimum wage is $9.25. IL Statute 820-105/4
Illinois’ minimum wage will increase in subsequent years as follows:
- July 1, 2020 – $10.00
- January 1, 2021 – $11.00
- January 1, 2022 – $12.00
- January 1, 2023 – $13.00
- January 1, 2024 – $14.00
- Janary 1, 2025 – $15.00
Illinois Senate Bill 1 (2019), Illinois Department of Labor Minimum Wage
Illinois employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. See FLSA: Minimum Wage.
If an employer chooses to pay employees minimum wage, the employer must pay those employees in accordance with the minimum wage law, either federal or state, that results in the employees being paid the higher wage. In most instances in Illinois, the Illinois minimum wage will apply as it generally guarantees a higher wage rate for employees than federal law.
Tip minimum wage
Illinois’ minimum wage for tipped employees is $5.55.
Illinois’ minimum wage for tipped employees will increase in subsequent years as follows:
- July 1, 2020 – $6.00
- January 1, 2021 – $6.60
- January 1, 2022 – $7.20
- January 1, 2023 – $7.80
- January 1, 2024 – $8.40
- Janary 1, 2025 – $9.00
Illinois Department of Labor Minimum Wage
Employers may pay the tipped minimum wage to employees in occupations where gratuities are customarily and usually received and have been recognized as part of the compensation for hiring purposes. IL Statutes 820-105/4(c) The employee must also receive at least $20 per month in tips. IL Admin. Code 210.110 If employers decide to pay employees the tipped minimum wage, they must also ensure the employees are paid the standard minimum wage when tips received by the employees are combined with the tipped wages earned. Employers carry the burden of establishing tipped employees received enough tips to ensure the employee was paid the standard minimum wage. IL Statutes 820-105/4(c)
Tip pooling and sharing
Illinois minimum wage law does not address tip pooling or sharing.
Subminimum wage
Employees with disabilities
Illinois minimum wage laws allow employers to pay employees with disabilities a subminimum wage rate lower than the standard minimum wage if they have received a license from the Illinois Department of Labor to do so. The Department of Labor may approve a license for no more than one year after which the employer must submit an application for renewal. The subminimum wage rate set by the Department of Labor is based on the individual employee’s earning or productive capacity. IL Adm. Code 210.500
Trainees
Illinois minimum wage laws do not allow employees to pay trainees a wage rate lower than the standard minimum wage.
Apprentices
Illinois minimum wage laws do not allow employers to pay apprentices a wage rate lower than the standard minimum wage.
Learners
Illinois minimum wage laws allows employers to pay learners 18 years or age and older a subminimum wage that is not less than 70% of the standard minimum wage. IL Statutes 820-105/6(c)820 ILCS 105/6(c) Learners are individuals who participate in training programs for occupations in which they are employed. The training programs must involve either formal instruction or on-the-job training and the learners must have limited responsibility and work under supervision or guidance. IL Admin. Code 210.110 An individual may only be deemed a learner and paid less than the standard minimum wage for up to six months, except when the Illinois Department of Labor determines a longer period is necessary. IL Statutes 820-105/6(d); IL Admin. Code 210.600(c) An employer must also cease paying the sub-minimum wage when the learner completes the required training. IL Statutes 820-105/6(d); IL Admin. Code 210.600(d)
Before an employer may pay learners less than the standard minimum wage, an employer must obtain a license. Employers may obtain a license by filing an application with the Illinois Department of Labor and the license, if requested, may authorize the employer to employ more than one learner in the same capacity. IL Admin. Code 210.610; IL Admin. Code 210.620
Learners may only be employed in occupations that require a sufficient degree of skill to necessitate a learning period. The training cannot be for improving manual dexterity and production speed in repetitive operations. Employers cannot displace any other workers with learners and cannot use learners to depress the wage rates or working standards for experienced workers performing similar work. IL Admin. Code 210.630
Student learners
Illinois minimum wage laws allow employers to pay student learners a subminimum wage that is not less than 70% of the standard minimum wage. Student learners are individuals who receive course credit for participating in school-approved work study programs. IL Admin. Code 210.110; IL Admin. Code 210.640 Employers or schools must apply and receive a license from the Illinois Department of Labor before they may employ student learners. IL Admin. Code 210.640
Student workers
Illinois minimum wage laws allow employers to pay student workers a subminimum wage that is not less than 70% of the standard minimum wage if they qualify as student learners.