Chicago Small Business Employers: Labor, Employment & Benefit Laws 

outline of illinois with gavel and book

Search

Need Legal Help With Admin. & Regulatory Law?

Contact us for a Free Consultation Below

2025 brings new postings, pay transparency, and important wage and hour requirements

Staying compliant with labor laws is essential for both employers and employees. The City of Chicago and the State of Illinois have various regulations, some differing, regarding wages, paid leave, and workplace rights. Here’s a breakdown of the most important labor and employment updates you should be aware of if you are a small business owner with less than 50 employees in Chicago, Illinois.

Minimum Wage Laws

The City of Chicago maintains a minimum wage of $16.20 per hour for non-tipped workers and $11.02 per hour for tipped workers. While Cook County and the State of Illinois have both raised their minimum wages to $15 for non-tipped workers and $9.00 for tipped workers, employers in Chicago must follow the city’s higher rates.

Equal Pay Act Transparency Amendment

Illinois has taken a significant step toward pay equity by requiring employers to disclose pay scale and benefit information in all job postings. Additionally, if a job is posted externally, current employees must be informed of promotion opportunities within 14 days.

Paid Leave for All Workers (PLAW)

Illinois now mandates a minimum of 40 hours of paid leave for full-time employees within a 12-month period. Part-time workers earn paid leave at a rate of 1 hour per 40 hours worked.

Key aspects of PLAW:

  • Leave can be used for any reason.
  • Employers may impose a 90-day waiting period for new employees before they can use PLAW leave.
  • Employees do not need to provide a reason for taking leave.
  • Leave may be taken in two-hour increments.
  • Unused leave may carry over if accrued but is not required to be paid out upon termination. However, if an employee returns within 12 months, their PLAW leave must be reinstated.

Illinois Wage Payment and Collection Act

Employers must continue to adhere to these wage and payment requirements:

  • Overtime and meal break regulations must be followed.
  • Final pay for separated employees must be provided no later than the next regular payday.
  • No deductions from wages for lost items, inventory, unearned vacation, training costs, etc., unless freely agreed upon in writing.
  • Employers are not required to provide sick leave but must comply with PLAW.
  • Nursing mothers must be paid for breaks beyond required unpaid meal and rest breaks.

One Day Rest in Seven Act (ODRISA)

Employees are entitled to at least 24 consecutive hours of rest within each calendar week. However, employers can comply with the law even if an employee works 13 consecutive days, provided they receive a full day off in consecutive workweeks (e.g., Sunday of the first week and Saturday of the second week). This law does not apply to part-time employees working less than 20 hours per week.

Illinois Secure Choice Program

Employers with more than five employees who do not offer a retirement plan must enroll in the Illinois Secure Choice Program, a state-operated IRA program for employees.

Workplace Posting Requirements

Private sector employers must display various labor law notices, including:

  • Chicago Labor Laws (City of Chicago)
  • Illinois Employment Laws (Illinois Department of Labor)
  • Paid Leave for All (PLAW)
  • Equal Pay Act
  • Victims’ Economic Security and Safety Act
  • Right to Privacy in the Workplace Act and E-Verify
  • Human Rights Act
  • Pregnancy Rights in the Workplace
  • ISERRA (Illinois Attorney General)
  • Unemployment Insurance
  • Workers’ Compensation
  • Emergency Care for Choking
  • Federal EEOC Know Your Rights

Employers must also post:

  • Regular payday schedules and payment locations.
  • A list of employees scheduled to work on Sundays and their designated rest days.

Employers in specific industries, like construction, may have additional posting requirements in Illinois.

Final Thoughts

Keeping up with labor and employment laws ensures compliance and protects the rights of workers. Employers should review their policies, job postings procedures, and maintain the required workplace notices to avoid penalties. Staying informed helps create a fair and transparent work environment for everyone.

If you are a small business in Chicago and you have questions about the myriad of labor and employment requirements that may apply to you, we can help. We can provide a simple employee handbook to keep you and your paid leave policies compliant with the ever-changing laws in Chicago, Cook County, and Illinois. 


To learn more about what proper representation can do for you, call us today at (312) 779-1818 or fill out our online contact form. Let 1818’s team of experienced attorneys fight for your rights.

Jordan Matyas - 1818 Founder

Jordan Matyas

LinkedIn | Google

Jordan Matyas is a lawyer, lobbyist, and Founder of 1818 Legal, an Illinois professional licensing defense law firm he created in 2014. With more than 18 years of experience practicing law, he represents clients in a wide range of legal matters, including professional license defense, administrative law, land use and zoning, and state, local, and municipal law.

Jordan received his Juris Doctor from the University of Illinois — Chicago School of Law and is a member of the Illinois Bar Association.