Illinois Minimum Wage to Increase to $15 per Hour on January 1, 2025

Illinois workers will see a $1 per hour increase in the state’s minimum wage starting January 1, 2025. The new wage will rise to $15 per hour for most workers, up from $14. The increase is part of a series of wage hikes outlined in legislation signed by Governor JB Pritzker in 2019.

Tipped workers will see their minimum wage rise to $9 per hour, while youth workers under 18 who work fewer than 650 hours in a calendar year will be paid $13 per hour. Once youth workers exceed 650 hours with an employer, their pay will increase to $15 per hour, in line with the adult minimum wage.

New Wage Rates and Youth Worker Rules

Employees who are 18 years old or older and do not receive tips may be paid $14.50 per hour for the first 90 days of employment. After this initial period, the wage will increase to the full $15.00 per hour.

For workers under 18, a special wage applies. If a youth employee works fewer than 650 hours in a calendar year, their pay rate will be $13.00 per hour. Once they hit 650 hours, their pay rate will rise to the $15.00 per hour minimum wage.

The 650-hour limit is calculated from the date of hire and spans through the calendar year. For example, if a youth worker is hired on April 30, 2025, the calculation of hours worked will run until April 30, 2026, and the employee must be paid the full minimum wage once they exceed the 650-hour threshold.

Tipped Employees and Training Wages

Tipped employees will also see changes in 2025. Under the new law, employers will be required to pay the full minimum wage, but they can take credit for tips to cover up to 40% of the employee’s wages. For employees aged 18 and older, a training wage of $9.00 per hour can be applied for the first 90 days if the employer utilizes the tip credit. Without using the tip credit, the training wage will be $14.50 per hour. After the training period, the minimum wage must be raised to $15.00 per hour, regardless of whether the tip credit is used.

Overtime and Holiday Pay

In addition to the changes in minimum wage, Illinois workers should also be aware of their rights regarding overtime. Employees who work over 40 hours in a workweek are entitled to time-and-a-half pay for those extra hours. However, employers are not required to pay extra for work done on legal holidays or Sundays unless the employee exceeds 40 hours worked that week.

Exemptions to Overtime Pay

Certain employees, including those in agricultural labor, commissioned employees, and some salaried workers in executive, administrative, or professional roles, are exempt from overtime pay. This includes employees involved in radio/television production in small cities, and those working at educational or residential child care institutions.

For those working on salary, it’s important to note that being salaried does not automatically exempt an employee from overtime pay. An employee’s primary job duties must meet specific criteria set forth by the U.S. Department of Labor to be exempt.

“Since day one of my administration, I’ve made it my mission to build an economy that works for everyone, and raising the minimum wage to $15 an hour fulfills that promise to our working families,” Governor Pritzker said. “This increase honors the workers who power our state and ensures they can better support their families, bringing us closer to a stronger, more equitable economy for all.”

This wage increase marks the seventh and final increase under the 2019 legislation, which set a schedule that will culminate in a $15 per hour minimum wage.

“As the cost of living has gone up, the wage increases enacted by the General Assembly and signed into law by Governor Pritzker have helped Illinois workers pay for their everyday expenses,” said Illinois Department of Labor Director Jane Flanagan.

Workers in Illinois are encouraged to review their paystubs in the new year to ensure they are being paid the correct minimum wage. In the City of Chicago, workers are required to be paid a higher minimum wage, depending on the size of their employer.

Employees who believe their employer is not in compliance with the minimum wage laws can file a complaint with the Illinois Department of Labor (IDOL) online or by calling the Minimum Wage Toll-Free Hotline at (800) 478-3998.