Illinois Minimum Wage: Rate, Tipped Wage, and Local Rules

As of 2026, the Illinois statewide minimum wage is $15.00 per hour for most adult workers, the final step of a multi-year schedule set by the Illinois Minimum Wage Law that reached $15.00 on January 1, 2025. That is more than double the federal floor of $7.25 per hour under the Fair Labor Standards Act (FLSA), which has not changed since 2009. When state and federal minimums differ, employers must pay the higher rate, so Illinois workers are entitled to the state figure. Because rates and local ordinances can change, always confirm the current number with the Illinois Department of Labor (IDOL) before relying on it.

The Illinois Minimum Wage and How It Compares to Federal Law

The FLSA sets a national minimum of $7.25 per hour, but it expressly allows states and cities to require more. Illinois does. Under the Illinois Minimum Wage Law (820 ILCS 105), the General Assembly enacted annual increases that raised the wage in steps: $9.25 and then $10.00 in 2020, $11.00 in 2021, $12.00 in 2022, $13.00 in 2023, $14.00 in 2024, and $15.00 in 2025. As of 2026, $15.00 remains the statewide baseline for workers age 18 and over.

Unlike some states, Illinois does not currently tie its minimum wage to an automatic inflation index (CPI). The increases were fixed by statute on the schedule above. That means the rate stays at $15.00 until the legislature passes a new law to change it, rather than rising automatically each January. Workers should still verify the figure each year, because new legislation or local ordinances can alter what you are owed.

Youth and Training Wages

Illinois law permits a lower rate for some workers. Employees under age 18 who work 650 hours or fewer in a calendar year may be paid a youth wage that is below the standard rate (set at $13.00 as of 2025 under the statutory schedule). Once a minor exceeds 650 hours for the same employer in a year, the full adult minimum applies. Employers may also pay a limited training wage of 50 cents less than the minimum during a worker's first 90 consecutive days of employment. These reduced rates are narrow exceptions, not the default.

Tipped Employees and the Tip Credit

Illinois allows employers to take a tip credit for workers who customarily and regularly receive tips, such as servers and bartenders. The state permits a cash wage as low as 60% of the applicable minimum wage, with tips expected to make up the remaining 40%. At the $15.00 statewide minimum, that means a tipped cash wage of $9.00 per hour as of 2026.

The critical protection is the guarantee: an employee's cash wage plus tips must equal at least the full minimum wage for every hour worked. If a tipped worker's wages and tips combined fall short of $15.00 per hour (or the higher local rate where it applies), the employer must make up the difference. Tips belong to the employee; an employer cannot keep them, although valid tip pools among tipped staff are allowed.

By comparison, federal law lets employers pay a tipped cash wage as low as $2.13 per hour with a tip credit up to $5.12. Illinois's tipped cash wage is far more generous to workers. Note that Chicago is separately phasing out the tip credit entirely, so the cash wage owed to tipped workers in Chicago is higher and rising toward the full minimum.

City and County Minimum Wages

Two Illinois jurisdictions set their own minimums above the state rate, and where a local ordinance is higher, the employer must pay it:

• Chicago: The City of Chicago sets a minimum wage that exceeds the state figure and is adjusted annually each July 1, indexed to inflation. As of mid-2025 it was approximately $16.60 per hour for employers, and Chicago is phasing out the separate tipped minimum so that tipped workers move toward the full city wage. Confirm the current Chicago rate with the Chicago Department of Business Affairs and Consumer Protection (BACP).
• Cook County: Cook County also maintains its own minimum wage ordinance with annual adjustments. However, many municipalities within Cook County have opted out of the county ordinance, so coverage depends on the specific city or village. Check whether your worksite's town has opted out.

Outside Chicago and unincorporated/participating Cook County, the $15.00 statewide rate generally governs.

Who Is Covered and Common Exemptions

The Illinois Minimum Wage Law covers most employees of employers with four or more workers, and the four-employee threshold excludes the employer's immediate family. Some categories are exempt or treated differently, including certain agricultural labor, some commissioned salespeople, and bona fide executive, administrative, and professional employees who meet salary and duties tests. Independent contractors are not covered, but misclassification is common: being labeled a contractor does not strip you of minimum-wage rights if you are functionally an employee.

How to Enforce Your Rights

If you are paid less than the Illinois minimum wage, or if your tips plus cash wage do not reach the required floor, you can file a wage claim with the Illinois Department of Labor (IDOL), which enforces the Minimum Wage Law. Illinois law is strongly pro-worker on remedies: an employee who recovers underpaid wages may be entitled to the unpaid amount plus damages of 5% of the underpayment per month that it remains unpaid, on top of statutory penalties owed to the state.

Practical steps: keep your own record of hours worked, pay stubs, and tips received; note your job duties in case of a misclassification dispute; and act promptly, because claims are subject to time limits. You generally have several years to bring a minimum-wage claim, but waiting can cost you. Retaliation for asserting wage rights is prohibited.

Where to Confirm the Current Rate

Minimum-wage rules change, and local ordinances update on their own calendars. Before relying on any figure here, verify the current statewide rate, youth rate, and tipped cash wage with the Illinois Department of Labor. For Chicago, check the City of Chicago's Office of Labor Standards or BACP; for suburban Cook County, check the Cook County minimum-wage page and whether your municipality participates. These official sources are the authoritative word on what you are owed.

Official Illinois Sources

This page is based on Illinois employment law. Rules and figures change — verify the current details directly with the official Illinois sources below. This is general legal information, not legal advice.

• Illinois Department of Labor — official Illinois agency.
• File a Wage Claim (Unpaid Wages) - Illinois Department of Labor
• Illinois Wage Payment and Collection Act (820 ILCS 115)

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Illinois state law.