Illinois maintains its statewide overtime framework through the Illinois Minimum Wage Law (IMWL), which aligns with the federal FLSA’s 40-hour weekly threshold for time-and-a-half. Local wage floors in Chicago ($17.05/hour as of July 1, 2026) and Cook County ($15.40/hour) continue to sit above the $15.00 statewide minimum, so overtime calculations in those jurisdictions are based on the higher local rate rather than the state floor.
Overview of Illinois Overtime Laws
Illinois overtime laws follow the federal Fair Labor Standards Act (FLSA) in determining overtime, with several state-specific features:
- Standard Overtime Rate: Non-exempt employees earn 1.5× their regular rate for all hours worked over 40 in a workweek.
- No Daily Overtime Rule: Illinois does not require overtime based on hours in a single day.
- No Double Time Rule: There is no state requirement for double-time pay (including holidays/Sundays) unless an employer policy or agreement provides it.
- Agricultural Labor: State law exempts agricultural labor from overtime coverage.
- Leave Hours: Paid vacation, sick, and holiday hours are not “hours worked” for overtime; only actual hours worked are counted.
The following table summarizes the key provisions affecting overtime calculations across varying local jurisdictions.
| Change Area |
2026 Update / Detail |
| Statewide Minimum Wage (IMWL) |
Unchanged: still $15.00/hour for workers 18+, effective since January 1, 2025 (the final step of the original phase-in schedule; no further statewide increase is currently scheduled). Employers of tipped employees may still pay 60% of the state minimum ($9.00) so long as tips + wages reach at least $15.00 (employer must make up any shortfall). Overtime remains due after 40 hours in a workweek at 1.5× the regular rate. |
| City of Chicago Minimum Wage |
From July 1, 2026: $17.05/hour (employers with 4+ employees); tipped minimum $12.96/hour. Notable change: Chicago’s planned phaseout of the tip credit (“One Fair Wage”) has been delayed — the tip credit stays at 24% of the applicable minimum wage through June 30, 2028, with full elimination now pushed back to July 1, 2030 (previously targeted for 2028). |
| Cook County Minimum Wage (outside Chicago) |
From July 1, 2026: $15.40/hour (non-tipped); $9.25/hour (tipped). County guidance continues to base overtime rates on these floors when applicable. |
| City of Chicago Contracts/Concessions Minimum Wage |
As of July 1, 2026: $18.50/hour on City contracts and concessionaire agreements (up from $17.80), with tipped workers on those contracts at $12.96/hour. |
| Paid Leave for All Workers Act (PLAWA) |
Still in effect statewide with the same accrual structure: at least 1 hour of paid leave per 40 hours worked (up to 40 hours/year), separate from overtime rules — only hours actually worked count toward OT. Note: Chicago and Cook County remain exempt from PLAWA because they run their own qualifying paid-leave ordinances; Chicago’s own Paid Leave and Paid Sick and Safe Leave Ordinance had revised rules take effect June 1, 2026. |
These revisions in minimum wages demonstrate Illinois’ focus on clear statewide standards while allowing local wage floors to lift effective pay. Employers should track local posting and rate changes to stay compliant when computing overtime based on higher local minimums.
Eligibility for Overtime
Not every worker in Illinois is automatically eligible for overtime. The rules distinguish between non-exempt and exempt employees:
Non-Exempt Employees
Eligible for overtime after 40 hours in a workweek, regardless of pay method.
Exempt Employees
Must meet both the salary and duties tests under the FLSA/IMWL framework (executive, administrative, professional, outside sales, certain computer professionals).
Industry-Specific Exceptions:
- Agricultural labor.
- Salesmen and mechanics employed by auto, truck, or farm-implement dealerships; salesmen primarily selling trailers, boats, or aircraft.
- Certain radio/television employees in small markets are commissioned employees under FLSA §7(i).
- Employees working under approved work-time exchange agreements; certain not-for-profit residential child-care employees; specified crew members of uninspected towing vessels; certain unionized public safety or alternate-schedule employees.
- Illinois Federal vs. State Overtime Rules
Illinois’ rules are closely aligned with federal law but have a few state-specific exemptions.
Illinois Federal vs. State Overtime Rules
Example: If an employee works 45 hours in a week at $20/hr.
- Federal law: 40 × $20 = $800, plus 5 × ($20 × 1.5) = $150. Total = $950.
- Illinois law: Same calculation—overtime is triggered only after 40 hours in a workweek.
| Aspect |
Federal (FLSA) |
Illinois State Law |
| Overtime Threshold |
> 40 hrs/week |
> 40 hrs/week |
| Daily Overtime |
No |
No |
| Double Time |
No |
No (unless employer policy/contract) |
| Overtime Rate |
1.5× regular rate |
1.5× regular rate |
| Agricultural Workers |
Many agricultural workers are exempt from federal OT |
Illinois exempts agricultural labor from OT under state law |
| Leave Hours Counted? |
No |
No (only hours actually worked) |
Example:
- A retail worker in Illinois who works 50 hours must be paid 10 hours of overtime at 1.5×.
- By contrast, an agricultural worker may be exempt from state overtime coverage under IMWL.
Exemptions in Illinois
Illinois law exempts several categories of workers from overtime. Common exemptions include:
- Executive, administrative, and professional employees (as defined under FLSA/IMWL).
- Outside salespersons.
- Certain computer professionals.
- Agricultural labor.
- Salesmen and mechanics at dealerships; certain sales of trailers, boats, aircraft.
- Certain radio/television employees in smaller markets.
- Commissioned employees under FLSA §7(i).
Workers operating under work-time exchange agreements; certain not-for-profit residential child-care staff; specified towing-vessel crew; certain unionized public safety schedules.
Employer Obligations and Employee Rights
Illinois employers must follow strict wage and hour rules:
- Timely payment: Overtime wages must be paid in a timely manner consistent with state law; failure can trigger penalties and damages.
- Recordkeeping: Employers must maintain accurate payroll records as required by IMWL; failures can lead to penalties.
- Wage claims: Employees who believe they have not been paid correctly (minimum wage or overtime) can file a wage claim with the Illinois Department of Labor.
- Penalties: Under IMWL enforcement provisions, employers can face underpayment penalties, additional damages, and administrative fines payable to the Wage Theft Enforcement Fund.
- Protection against retaliation: Workers are protected from retaliation for asserting wage rights under state and federal law (e.g., IWPCA and FLSA).
Employees can also pursue private lawsuits for unpaid overtime in addition to filing state claims.
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