Illinois Minimum Wage

As a result of a new law, Illinois employers with 4 or more employees will experience the following minimum wage rate increases in 2020:

  • On January 1, 2020, the minimum wage rate applicable to these employers will rise to $9.25 per hour for regular employees and $5.55 per hour for tipped employees.

  • On July 1, 2020, the minimum wage rate applicable to these employers will rise to $10.00 per hour for regular employees and $6.00 per hour for tipped employees.

The increases are part of a plan to have the state minimum wage reach $15 by 2025. This is the result of a bill signed into law by new Governor J.B. Pritzker on February 26, 2019.  It is estimated that 1.4 million Illinois residents currently make less than $15 an hour.

Illinois Minimum Wage Rates

  Current Minimum Wage(s) Future Minimum Wage(s)
State of Illinois For employers with 4 or more employees, $8.25 per hour ($4.95 per hour for tipped employees)

Effective January 1, 2020:

  • For employers with 4 or more employees, $9.25 per hour ($5.55 per hour for tipped employees)
  • For employers with 3 or fewer employees, the federal minimum wage generally applies

Effective July 1, 2020:

  • For employers with 4 or more employees,$10.00 per hour($6.00 per hour for tipped employees)
  • For employers with 3 or fewer employees, the federal minimum wage generally applies

Effective January 1, 2021:

  • For employers with 4 or more employees,$11.00 per hour($6.60 per hour for tipped employees)
  • For employers with 3 or fewer employees, the federal minimum wage generally applies
Chicago
  • For employers with 4 or more employees, $12.00 per hour ($6.25 per hour for tipped employees)
  • For employers with 3 or fewer employees, the federal minimum wage generally applies
  • Effective July 1, 2019, $13.00 per hour (tipped employee wage not yet determined) 
Cook County
  • For employers with 4 or more employees, $11.00 per hour ($8.25 per hour for tipped employees, $5.10 of which must be paid by the employer)
  • For employers with 3 or fewer employees, the federal minimum wage generally applies
  • Effective July 1, 2019, $12.00 per hour (tipped employee wage not yet determined)
  • Effective July 1, 2020, $13.00 per hour (tipped employee wage not yet determined) 

Per the Chicago Tribune: "Under the law, on Jan. 1, 2020 the statewide minimum wage increases from $8.25 to $9.25 per hour. The minimum wage again will increase to $10 per hour on July 1, 2020, and will then go up $1 per hour each year on Jan. 1 until hitting $15 per hour in 2025.

Since Illinois last raised its minimum wage, Chicago has increased its minimum wage to $12 per hour, and Cook County’s is now $11. The city and county minimums each will increase by $1 per hour July 1. The federal minimum wage remains $7.25 per hour."

Key Exceptions

The following employees are generally eligible for a lower minimum wage under Illinois state law:

  • Employees in the first 90 days of employment
  • Employees under 18 years old

Click here for more information.

For More Information

Illinois Department of Labor
160 N. LaSalle St.
Suite C-1300
Chicago, IL 60601
(312) 793-2800

Please Note: The state laws summaries featured on this site are for general informational purposes only. In addition to state law, certain municipalities may enact legislation that imposes different requirements. State and local laws change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in the State Laws section. For more detailed information regarding state or local laws, please contact your state labor department or the appropriate local government agency.

Sources: 

  • The Chicago Tribune: "Gov. J.B. Pritzker Signs Law Raising Illinois' Minimum Wage to $15 an Hour by 2025." Published February 19, 2019 by Dan Petrella.
  • HR360: "Illinois Minimum Wage to Increase Twice in 2020." Published February 11, 2019.

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