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Chicago, IL Payroll Rules

Local payroll and employment requirements that differ from or exceed Illinois state law

Last updated: January 2025

Minimum Wage
$16.20
Tipped: $9.48
Paid Sick Leave
1 hour per 40 hours worked
Max: 40 hours (sick) + 40 hours (safe)
Fair Scheduling
14 days
Advance notice required

Minimum Wage

Current Rate$16.20/hour
Tipped Employees$9.48/hour

Applies to employers with 21+ employees. Smaller employers: $15.00. Adjusted annually for CPI. Domestic workers: $16.20 regardless of employer size.

Scheduled Increases

July 1, 2025$16.70/hour

Paid Sick Leave

Accrual Rate
1 hour per 40 hours worked
Maximum Accrual
40 hours (sick) + 40 hours (safe)
Maximum Annual Use
40 hours sick leave + 40 hours safe leave per year
Waiting Period
30 days before use

Chicago Paid Leave and Paid Sick and Safe Leave Ordinance. Two separate leave banks: 40 hours general paid leave + 40 hours sick/safe leave. Total 80 hours per year.

Fair Scheduling / Predictive Scheduling

Advance Notice Required14 days
Predictability PayOne hour of predictability pay

Fair Workweek Ordinance applies to: (1) Building services (100+ employees), (2) Healthcare (250+ employees), (3) Hotels (100+ employees), (4) Manufacturing (250+ employees), (5) Restaurants (250+ employees and 30+ locations), (6) Retail (250+ employees), (7) Warehouse services (250+ employees). Includes 10-hour rest period, access to hours, and anti-retaliation.

Local Taxes

Employer's Expense Tax (Head Tax)Currently suspended

The head tax ($4/employee/month) is currently suspended. Check for updates on reinstatement.

Additional Local Requirements

One Day RestEffective: 2021

One Day Rest in Seven Ordinance

Employees must receive 24 consecutive hours of rest in every calendar week. Employers must keep records for 3 years.

Sexual HarassmentEffective: 2022

Sexual Harassment Prevention

Annual sexual harassment prevention training required. 2 hours for all employees. Additional hour for managers. 2 hours for bystander training.

Fair ChanceEffective: 2015

Ban the Box

Cannot ask about criminal history on initial application. Must wait until after interview or conditional offer to inquire.

Domestic WorkerEffective: 2017

Domestic Workers Ordinance

Domestic workers covered by minimum wage with no small employer exception. Written notice of terms required. 24-hour rest period weekly.

Hotel WorkerEffective: 2021

Hotel Worker Protections

Panic buttons, workload limits, anti-human trafficking training, and retention rights during ownership changes.

Official Resources

Important Note

These local rules apply in addition to Illinois state law. Employers must comply with whichever law provides greater protection to employees. Always verify current requirements with official sources.