Minimum wage refers to the lowest hourly pay rate that employers are legally permitted to pay their employees. If your earnings fall below this minimum threshold, you have the right to claim the unpaid wages owed to you. Minimum wage regulations are established at the federal, state, and even local levels, creating a tiered system of wage protection for workers.
Minimum Wage Laws: A Breakdown
Federal Minimum Wage
The federal minimum wage has been set at $7.25 per hour since July 24, 2009. This federal rate serves as the baseline for minimum wage standards across the United States.
Illinois State Minimum Wage
Illinois has established its own minimum wage standards, which are higher than the federal rate and are set to increase progressively. As of January 1, 2025, the minimum wage in Illinois is $15 per hour for most adult workers and those under 18 working substantial hours.
Specifically, the Illinois minimum wage structure includes:
- General Minimum Wage: $15 per hour for workers aged 18 and older, and for those under 18 who work more than 650 hours in a calendar year.
- Minimum Wage for Younger Workers (Limited Hours): $13 per hour for workers aged 17 and younger who work less than 650 hours in a calendar year.
- Minimum Wage for Tipped Workers: $9 per hour. Illinois law allows employers to take a tip credit of up to 40% of the minimum wage, meaning that while tipped employees must be paid at least the standard minimum wage, employers can count a portion of their tips towards this obligation.
Key aspects of Illinois Minimum Wage Law:
- Tipped Employees: Employers are required to pay tipped employees a direct wage of at least $9 per hour. While a tip credit can be applied, the combination of direct wages and tips must equal or exceed the full minimum wage of $15 per hour. If an employee’s tips and direct wages do not reach $15 per hour, the employer is legally obligated to make up the difference.
- Workers with Disabilities and the Dignity in Pay Act: Historically, employers could obtain licenses to pay workers with disabilities less than the minimum wage. However, Illinois has taken a significant step towards wage equality with the Dignity in Pay Act. Passed in 2025, this act will eliminate the subminimum wage for workers with disabilities, effective December 31, 2029. From this date forward, workers with disabilities in Illinois must be paid at least the standard minimum wage. You can find more information on the Illinois Council on Developmental Disabilities website.
- Overtime Pay: Illinois law mandates overtime pay for employees who work more than 40 hours in a workweek. The overtime rate is set at one and a half times the employee’s regular rate of pay for all hours worked beyond 40 in a week.
- Resources and Further Information: The Illinois Department of Labor (IDOL) is the primary state agency responsible for enforcing minimum wage and labor laws. Their website offers comprehensive resources, including:
- Illinois Minimum Wage Law Page: Detailed information on the state’s minimum wage regulations.
- Frequently Asked Questions (FAQ) on Minimum Wage and Overtime: Answers to common questions about minimum wage and overtime pay in Illinois.
- “Your Rights Under Illinois Employment Laws” Poster: A mandatory workplace poster outlining employee rights under Illinois law. Employers are required to display this poster in a conspicuous location accessible to employees. For remote workers, employers must provide electronic access to this information.
- Fair Labor Standards Act (FLSA): For a broader understanding of federal labor standards, including minimum wage and overtime pay, you can refer to the Fair Labor Standards Act (FLSA) administered by the U.S. Department of Labor.
Cook County Minimum Wage (Outside of Chicago)
Cook County, which encompasses a large area of Illinois but excludes the City of Chicago, has its own minimum wage ordinance. As of January 1, 2025, the minimum wage in Cook County (excluding Chicago) mirrors the state level at $15 per hour and $9 per hour for tipped employees. Detailed information can be found in the Cook County Minimum Wage Ordinance. It’s important to note that Cook County’s ordinance does not extend to the City of Chicago, which operates under its own specific regulations.
Chicago City Minimum Wage
The City of Chicago has established its own, higher minimum wage standards compared to both the federal and Illinois state levels, and Cook County. As of July 1, 2024, the minimum wage in Chicago is $16.20 per hour, and for tipped workers, it is $11.02 per hour. This Chicago minimum wage applies to businesses with 4 or more employees. Similar to state and county regulations, if a tipped worker’s combined wages and tips do not reach the Chicago minimum wage, the employer is obligated to cover the shortfall. For complete details, refer to the City of Chicago’s page on the Minimum Wage Ordinance.
Can You Be Fired for Inquiring About Minimum Wage?
Absolutely not. It is against the law for employers to terminate or take any retaliatory action against you for asking about minimum wages or asserting your rights related to wage laws. Employees have the protected right to inquire about their wages and ensure they are being paid in accordance with applicable minimum wage laws.
If you believe you have faced retaliation for asking or complaining about wages, you have several avenues for recourse:
- Contact the Illinois Department of Labor: File a complaint with the state agency responsible for enforcing labor laws.
- Contact the U.S. Department of Labor: Reach out to the federal agency to report potential violations of federal labor laws.
- Consult with an Attorney: Seek legal advice from an employment lawyer to understand your rights and options.
If you suspect that wage issues might be linked to illegal discrimination, you should also consider contacting:
- The Illinois Department of Human Rights: This agency handles complaints of discrimination in employment and other areas.
- The Equal Employment Opportunity Commission (EEOC): The EEOC is the federal agency responsible for enforcing federal anti-discrimination laws.
- Consult with an Attorney: Seek legal advice from an attorney specializing in employment discrimination.
Understanding your rights regarding minimum wage is crucial for ensuring fair compensation for your work. By being informed about the applicable laws and available resources, you can protect yourself and advocate for your rights in the workplace.
