Illinois HR Consulting & Employment Law for Small Businesses
A complex employment environment anchored by the Illinois Human Rights Act, the Illinois Equal Pay Act, and Chicago's expansive local ordinances that go well beyond state law.
Illinois employers face a layered compliance landscape. Chicago has enacted some of the most aggressive local employment ordinances in the country, including the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance. At the state level, Illinois restricts non-competes for employees earning under $75,000 per year, requires pay scale disclosure in job postings, and provides protections covering more categories than federal law.
Note: This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a qualified employment attorney for advice specific to your situation.
Key Illinois Employment Laws
Illinois Equal Pay Act and Pay Transparency
Illinois employers with 15+ employees must include pay scale and benefits information in job postings for positions that may be filled in Illinois or that could be performed in Illinois. Employers must also provide pay scale to current employees for their position upon request.
Illinois Non-Compete Restriction
Illinois prohibits non-compete agreements for employees earning $75,000 per year or less. For higher earners, non-competes must be reasonable in scope, provide at least 14 days for review, and be supported by adequate consideration beyond initial employment. Non-solicitation agreements have a $45,000 earnings floor.
Chicago Paid Leave Ordinance
Chicago employers must provide eligible employees with up to 40 hours of paid leave per year (for any purpose) and up to 40 hours of paid sick and safe leave. Accrual begins on the first day of employment. Employers must post required notices and update employee policies.
Illinois Human Rights Act
The Illinois Human Rights Act provides broader protections than federal law, covering employers with 15+ employees and including additional protected classes such as order of protection status, pregnancy, breastfeeding, and certain genetic characteristics. Enforcement is through the Illinois Department of Human Rights.
Compliance Thresholds for Illinois Employers
1+ Employees: employees
- Illinois minimum wage applies (above federal, rising annually)
- Illinois Equal Pay Act (equal pay for substantially similar work)
- Chicago: paid leave and paid sick leave requirements apply
15+ Employees: employees
- Illinois Human Rights Act anti-discrimination protections
- Pay scale disclosure required for any externally posted role or role paying over $75k
- Sexual harassment training and written policy required
50+ Employees: employees
- Federal FMLA applies
- Illinois WARN Act obligations
- ACA employer mandate
Illinois Quick Facts for Employers
- Minimum Wage: $15.00/hour state minimum; $15.90/hour in Chicago (2025)
- At-Will Employment: Yes
- Paid Leave Law: Chicago: up to 40 hrs paid leave + 40 hrs sick leave per year
- Non-Compete: Void for employees under $75,000/year; 14-day review required above
- Workers' Comp: Required at 1+ employees for most employers
Common Questions About Illinois Employment Law
What is the Illinois minimum wage?
Illinois has set its own minimum wage above the federal floor, with a scheduled series of increases. The current rate and future schedule are available from the Illinois Department of Labor. Chicago and Cook County may have higher local minimum wage rates.
Does Illinois restrict non-compete agreements?
Yes significantly. Non-competes are void for employees earning $75,000/year or less. For higher earners, agreements must be reasonable, provide 14 days to review, and be supported by adequate consideration. The law applies to agreements entered after January 1, 2022.
What paid leave does Chicago require?
Chicago's Paid Leave and Paid Sick and Safe Leave Ordinance requires employers to provide up to 40 hours of paid leave (any purpose) and up to 40 hours of paid sick leave annually. Both accrue at 1 hour per 35 hours worked. Employers must update policies and provide required notices.
Does Illinois require pay transparency?
Yes. Employers with 15 or more employees must include pay scale and benefits information in all job postings for Illinois positions or positions that can be performed in Illinois. Employees may also request the pay scale for their own position.
What does the Illinois Human Rights Act cover that federal law does not?
The Illinois Human Rights Act covers order of protection status, pregnancy and breastfeeding beyond what federal law requires, certain genetic characteristics, and military status. Enforcement is through the Illinois Department of Human Rights with a 300-day filing deadline.
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