Payroll Compliance Guide

Illinois Payroll Compliance Guide

Complete Reference for Multi-State Employers

Last updated: February 2026 • 60+ requirements covered

Key Facts at a Glance

RequirementIllinois Rule
Minimum Wage$15.00/hour (state); $16.60/hour (Chicago large employers)
Tipped Minimum60% of minimum wage ($9.00 state)
Overtime Threshold40 hours/week (1.5x regular rate)
Final Pay (Termination)Next regular payday
Final Pay (Resignation)Next regular payday
PTO Payout Required?Yes (accrued vacation must be paid)
Pay Frequency MandateSemi-monthly (most employees)
State Income TaxYes (4.95% flat rate)
Unemployment InsuranceYes
State Disability InsuranceNo
Paid Family LeaveNo (state program not yet enacted)
Paid Sick LeaveYes (40 hours/year - Paid Leave for All Workers Act)
Workers' Comp RequiredYes (all employers)

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Local Jurisdiction Rules

Chicago has a higher minimum wage, paid sick leave, and fair workweek scheduling requirements.

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Looking for a different view? Check out the Illinois Payroll Laws overview page with final paycheck, vacation payout, and wage & hour details.