Illinois FLSA Laws

Ensure Compliance with Illinois-Specific FLSA Auditing

Federal FLSA: $7.25/hour.
Illinois Law: $15.00/hour (non-tipped) as of January 1, 2025, for employers with 4+ employees, per the Illinois Minimum Wage Law (820 ILCS 105/4). Tipped employees: $9.00/hour, with a tip credit of $6.00/hour—employers must ensure tips plus wage meet or exceed $15.00/hour. Youth under 18 (working <650 hours/year): $13.00/hour. Local rates (e.g., Chicago: $15.80/hour) may exceed state minimum.
What You Need to Know: The higher of federal, state, or local rates applies. Violations can lead to back wages, 5% monthly penalties (up from 2% in January 2025), and fines up to $1,500 per offense.

Federal FLSA: 1.5x regular rate for hours over 40/week.
Illinois Specifics: Matches federal 40-hour rule under the Illinois Minimum Wage Law (820 ILCS 105/4a). Overtime calculated at 1.5x the employee’s regular rate (e.g., $22.50/hour for $15.00/hour workers in 2025). No daily overtime requirement unless specified by contract or local ordinance. Exemptions align with FLSA (e.g., executive, administrative, professional earning ≥$1,128/week as of January 1, 2025).
Risk: Misclassification or payroll errors can trigger Illinois Department of Labor (IDOL) investigations, with penalties including double damages and legal fees.

Illinois Rules: Minors under 14 generally banned from work except in limited roles (e.g., modeling with permits); 14–15 capped at 3 hours/school day, 8 hours/non-school day, 18 hours/school week; 16–17 restricted from hazardous jobs (e.g., power-driven machinery). Work permits required under 16 (820 ILCS 205/9). Hours restricted: 7 a.m.–7 p.m. (9 p.m. June 1–Labor Day).
Federal FLSA: Aligns with Illinois but lacks permit mandate—state law’s stricter rules prevail.
Compliance Note: Penalties range from $1,500 to $10,000 per violation, with higher fines ($15,000) for hazardous work breaches.

Federal FLSA: 3-year retention of payroll, hours, and employment records.
Illinois Addition: 3-year minimum retention, including detailed pay stubs showing hours, wages, deductions, and regular/overtime breakdown (820 ILCS 105/8). Employers must provide records to employees upon request within 7 days.
Key Detail: Non-compliance risks fines up to $1,500 per violation and weakens defenses in wage disputes.

Federal: U.S. DOL enforces with back wages, liquidated damages, and fines up to $2,653 per minimum wage/overtime violation (2025 adjusted rate). Child labor penalties: $15,629 per instance, or $71,031 if injury/death occurs.
Illinois: IDOL enforces with back wages, 5% monthly penalties on unpaid amounts (effective January 1, 2025, per 820 ILCS 105/12), double damages for willful violations, and fines up to $1,500 per offense. Willful repeat violations may lead to criminal penalties (fines up to $10,000).
Overlap: Dual enforcement heightens liability—federal and state penalties can stack.

CFOs and Managers: Illinois’ $15.00/hour minimum, rising local rates (e.g., Chicago), and steep penalties (5% monthly interest plus double damages) make compliance critical. A payroll misstep could cost thousands—or millions in a class-action suit—especially with the state’s aggressive enforcement via IDOL.
Avoid Costly Mistakes: Regular audits tailored to Illinois’ FLSA and state-specific rules can prevent financial and legal headaches.

Protect your business from escalating risks—align with Illinois’ stringent labor laws and federal FLSA standards. Reach out for an expert audit now.