Illinois MINIMUM WAGES

Illinois State Minimum Wage for 2025

As of January 1, 2025, the state of Illinois revised its minimum wage to $15.00 per hour for non-tipped workers and $9.00 per hour for tipped workers. Youth workers under 18 years and work less than 650 hours per calendar year have a minimum wage rate of $13.00 per hour.

Employers can deduct up to 40% from their minimum wages for gratuities. Additionally, employers may apply for licenses to pay sub-minimum wages to learners, and certain employees with physical or mental disabilities.

The state law mandates overtime pay at 1.5 times the regular rate for working beyond 40 hours per week. Additionally, the state law also allows employees to pay sub-minimum wages to learners and certain employees with mental or physical disabilities.

Local jurisdictions such as Chicago and Cook Country have higher rates. Employers must comply with updated minimum wage notices and laws mandating pay transparency.

Minimum Wages in Illinois Cities

The table below details minimum wage rates across all the cities of Illinois.

Threshold For Employees Exempt

As of January 1, 2025, the Department of Labor introduced changes to the Fair Labor Standards Act (FLSA), impacting the overtime eligibility of exempt employees. However, a federal court ruling in Texas on November 15, 2024, blocked these changes reverting the thresholds to the old rates.

Thus, the minimum salary for executive, administrative, and professional (EAP) exemptions remains at $684 per week ($35,568 annually), and the threshold for highly compensated employees (HCEs) remains at $107,432 annually.

The planned increases to $844 per week on July 1, 2024, and to $1,128 per week on January 1, 2025, for EAP and HCE thresholds, are no longer effective due to the court ruling.

Historical Data of Illinois Minimum Wages

Illinois has periodically increased its minimum wage rates to keep pace with inflation and ensure that workers receive fair compensation. The table below sheds light on the gradual and incremental minimum wage rise in Illinois.

* – Under the FLSA, the two rates shown in 1968, 1970, and 1976 reflect the former multiple-track minimum wage system in effect from 1961 to 1978.

*** – Rates applicable to employers of four or more.

Source: https://www.dol.gov/agencies/whd/state/minimum-wage/history

Exemptions in Minimum Wages of Illinois

Although all employees can receive the state minimum wage, some exemptions exist. Here is an overview of these exemptions:

• Youth employees under 18 years who work less than 650 hours in a calendar year, receive a minimum wage of $12 per hour.
• Agricultural workers engaged in harvesting, planting, and tending crops, or livestock.
• Car wash and auto service station employees regularly receive tips and earn a significant portion of their income through gratuities.
• Employees working at summer camps and other seasonal recreational establishments are classified as part-time jobs.
• Student learners who participate in vocational training programs.