Illinois Minimum Wage (2026) - $15/hr State, $16.20 Chicago

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Source: Fair Labor Standards Act (FLSA), 29 U.S.C. § 206 — Federal minimum wage established 1938, last increased in 2009 to $7.25/hour (unchanged for 17 years as of 2026).

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Sourced from primary statutes (U.S. Code, CFR, state compiled statutes) and official government agency guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards

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Illinois Law

Primary statute: 820 ILCS 105/4

How Illinois differs from federal law

1. The Rule: Illinois Minimum Wage in 2026

Illinois Minimum Wage Law (820 ILCS 105/4) sets the statewide minimum at $15.00/hr effective January 1, 2025 — the final step of the SB 1 phase-in enacted in 2019. The Chicago minimum is higher under the Chicago Minimum Wage Ordinance (BACP-administered): $16.20/hr for employers of 4+ workers as of July 1, 2025, with the next CPI adjustment due July 1, 2026. Cook County (outside Chicago) has its own ordinance at $15.00/hr that runs in parallel. Workers under 18 may be paid $13.00/hr (state) and employers with fewer than 4 workers may pay $0.50 less than the standard rate.

2. Tipped Workers and the Tip Credit

Illinois employers may take a tip credit equal to 40% of the standard wage under 820 ILCS 105/4(c). The tipped cash wage floor is $9.00/hr (60% of $15) statewide and $11.02/hr in Chicago. The total of cash wage + reported tips must equal or exceed the full minimum wage in every pay period. Chicago is phasing out its tip credit entirely by July 1, 2028 under the One Fair Wage ordinance — the tipped cash floor rises 8% of the full minimum each year until it reaches 100%.

3. The Key Differences from Federal Law

Three Illinois-specific provisions go beyond the federal FLSA $7.25/hr floor:

  • 5% per month compound damages under IWPCA § 14(a): Unpaid wages accrue at 5% per month compound — the most aggressive damages clock of any state. A $2,000 underpayment owes roughly $2,680 additional after 12 months on top of the unpaid wages themselves. The rate was raised from 2% to 5% effective April 2023 — settlement offers citing 2% are using a stale figure.
  • Personal liability of officers and agents (820 ILCS 115/13): Any corporate officer or agent who knowingly permits a wage violation is personally liable as the employer — no corporate veil-piercing required. Recovery is possible against individual managers even when the business has no assets.
  • 10-year statute of limitations for written contracts: Illinois Wage Payment and Collection Act claims have a 10-year SOL when the employment agreement is written (5 years oral), and 3 years for pure IMWL claims (820 ILCS 105/12) — far longer than the federal FLSA 2–3 year window.

4. How to Calculate What You're Owed

  1. Identify the controlling minimum wage. Use the highest of: federal $7.25, state $15.00, or local (Chicago $16.20). The location where you physically perform the work governs — not where the employer is headquartered.
  2. Compute the shortfall per pay period. Multiply (controlling wage − wage paid) × hours worked at the underpaid rate. Repeat for every underpaid period in the limitations window.
  3. Apply 5% compound per month. Each underpaid period starts its own 5% monthly compound clock from the date the wages were originally due. The damages snowball quickly — multi-year violations frequently double or triple the principal owed.

5. How to Enforce — Step by Step

  1. Send a written demand. A dated letter to your employer documenting hours, rates, and the shortfall preserves your evidence and may trigger voluntary payment.
  2. Choose IDOL OR private suit (election of remedies). 820 ILCS 115/14(a) forces you to pick one path. IDOL is free; private suit unlocks attorney's fees and the 10-year written-contract SOL.
  3. IDOL complaint: File at labor.illinois.gov/complaints-and-appeals or call (312) 793-2800. IDOL contacts the employer and can order back pay + 5% monthly compound damages. Typical timeline: 6–18 months.
  4. Private civil action: File in Illinois Circuit Court under 820 ILCS 105/12 (IMWL) and/or 820 ILCS 115/14 (IWPCA). Prevailing employees recover back wages + 5% monthly compound + mandatory attorney's fees.
  5. Chicago BACP track: Chicago Minimum Wage Ordinance violations are enforced separately by BACP (Department of Business Affairs and Consumer Protection). File at chicago.gov/bacp.

6. Resources

Additional Steps in Illinois

Document first, then choose your forum. Save pay stubs, schedules, time records, and any written communications about hours or rates. Election of remedies under 820 ILCS 115/14(a) means you pick IDOL OR a private lawsuit — not both. IDOL is free and good for small claims; a private suit unlocks mandatory attorney's fees and the 10-year written-contract SOL. The 5% monthly compound rate applies under IWPCA — verify any settlement uses 5%, not the stale 2% figure.

Relevant Law: 820 ILCS 105/4 (Illinois Minimum Wage Law — $15.00/hr standard rate); 820 ILCS 105/4(c) (40% tip credit); 820 ILCS 105/12 (3-year IMWL statute of limitations + attorney's fees); 820 ILCS 115/14(a) (IWPCA 5% monthly compound damages on unpaid wages); 820 ILCS 115/13 (personal liability of officers/agents); Chicago Municipal Code § 1-24 (Chicago Minimum Wage Ordinance — $16.20/hr 2025–2026); Cook County Code § 42 (Cook County Minimum Wage Ordinance)

Federal baseline: Minimum Wage nationwide

What is this right?

The federal floor is $7.25 an hour. It's been there since July 24, 2009 — the longest stretch the U.S. has gone without a raise since the minimum wage was created in 1938. Inflation has eaten roughly 30% of its purchasing power in that time, which is why so many states and cities pulled away years ago.

You're owed whichever number is highest where you work — federal, state, or local. As of 2026, that's $16.50 in California for most employers, $15+ in New York, Washington, Massachusetts, and Connecticut, and over $19 in cities like Seattle and Emeryville. The $7.25 federal rate is still the actual minimum in about 20 states.

Tipped workers see a different number on the federal side — $2.13/hour base — but your tips plus base have to add up to at least $7.25 across the workweek. If they don't, your employer is legally required to make up the gap. Quietly skipping that math is one of the most common forms of wage theft the DOL investigates.

When does it apply?

You're covered if:

  • You work for an employer covered by the FLSA (almost every business of any size).
  • You're at least 20 — workers under 20 can be legally paid $4.25/hr for their first 90 calendar days on the job.
  • You're not a full-time student or trainee on a special DOL subminimum-wage certificate.

Three things people get wrong:

  • "Only my state's minimum wage matters." You get the highest of federal, state, or local — period. A Seattle barista is owed Seattle's rate, not Washington's, and not $7.25.
  • "Undocumented workers don't have minimum wage rights." Flat wrong. The FLSA covers every worker regardless of immigration status, and the DOL has confirmed this in writing for decades.
  • "Independent contractors don't get minimum wage." True for actual contractors — but misclassification is rampant. If your boss controls when, where, and how you work, you're probably an employee in the eyes of the law, no matter what the 1099 says.

What to Do If Your Employer Pays Below Minimum Wage

Step 1: Look up your real number. Check your state and your city — the local rate often beats both. The DOL keeps a state-by-state table, and big cities post their own.

Step 2: Do the division. Total weekly pay ÷ total hours worked = your actual hourly rate. If it lands below the floor, you have a claim, and the math itself is your evidence.

Step 3: Save everything. Pay stubs, schedules, screenshots of scheduling apps, your own time log. Anything with a date.

Step 4: File. The DOL Wage and Hour Division handles federal claims; your state labor department often moves faster on state-rate violations. Most wage attorneys take these cases on contingency.

What should you NOT do?

Don't roll over on illegal deductions. Your employer can't dock you for till shortages, broken dishes, walkout customers, or uniforms if doing so drops you below minimum wage. They get sued over this constantly.

Don't let tip-credit math slide. If you're tipped and a slow shift means tips + $2.13 base didn't hit $7.25, your employer owes you the difference for that shift.

Don't sign anything that says you'll work below the minimum. Such waivers are unenforceable under federal law — you can't contract around the FLSA.

Illinois minimum wage is $15.00/hr statewide ($16.20+/hr in Chicago). Unpaid wages compound at 5% per month under IWPCA, individual managers face personal liability under § 13, and written-contract claims have a 10-year statute of limitations.

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Common Questions

What is the minimum wage where I work?

It's the higher of the federal $7.25 per hour and your state or city rate. Many states and cities are well above the federal floor, with some at $15 or more. Check your state's section above for the current figure and how it's enforced.

Can a city set a higher minimum wage than the state?

In many states, yes — cities like New York, Chicago, and Seattle set local minimums above the state rate. But some states, such as Texas, preempt local wage laws, so the state rate applies statewide. Your state's section above notes whether local rates apply.

What can I recover if I'm paid below minimum wage?

You can generally recover the unpaid difference as back wages, and many states add liquidated damages — often doubling the amount — plus attorney's fees. Deadlines to file typically range from about two to six years. Your state's section above shows the recovery rules where you work.

Does the minimum wage apply to tipped workers?

Yes. An employer may pay a lower cash wage to tipped workers, but your cash wage plus tips must still reach at least the full minimum wage. If it doesn't, the employer owes you the difference. See the tip and wage-theft guide for more detail.

Minimum Wage in other states

Same topic, different jurisdiction. Pick the one that applies to you.

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