- Minimum wage: $15.00/hr statewide (since Jan 1, 2025); Chicago $16.20/hr (through June 2025)
- Non-compete ban: agreements barred for employees earning under $75,000/year (SB 672, eff. 2022)
- IHRA: Illinois Human Rights Act covers employers with 1+ employee
- Paid leave: Illinois Paid Leave for All Workers Act — 40 hours/year accrual starting Jan 1, 2024
Illinois has consistently expanded employee protections in recent years. The Illinois Human Rights Act (IHRA, 775 ILCS 5) covers all employers with even one employee — broader than the federal Title VII threshold of 15. SB 672 (2022) created income-based bans on non-compete and non-solicitation agreements. The Paid Leave for All Workers Act (2023) created a universal paid leave entitlement — not limited to sick leave — for virtually all Illinois employees. Chicago's minimum wage ordinance consistently runs above the state floor.
Illinois Human Rights Act: Broadest State Anti-Discrimination Coverage
The IHRA (775 ILCS 5/1-101 et seq.) prohibits employment discrimination based on race, color, religion, sex, national origin, ancestry, age (40+), marital status, military status, unfavorable discharge from military service, sexual orientation, gender identity, disability, and several other characteristics. Unlike federal law (Title VII: 15+ employees; ADEA: 25+; ADA: 15+), the IHRA applies to employers with just 1 employee — meaning even the smallest Illinois businesses must comply. Claims are filed initially with the Illinois Department of Human Rights (IDHR) within 300 days of the discriminatory act; after investigation, claimants can proceed to the Human Rights Commission or, in certain circumstances, circuit court. The 300-day filing deadline is strictly enforced.
Non-Compete Agreements Under SB 672 (2022)
Illinois's Freedom to Work Act (820 ILCS 90), significantly amended by SB 672 effective January 1, 2022, created income thresholds below which non-compete and non-solicitation agreements are void and unenforceable:
- Non-compete agreements: void and unenforceable for employees earning $75,000/year or less
- Non-solicitation agreements (restricting employee from contacting former customers or colleagues): void and unenforceable for employees earning $45,000/year or less
For employees above these thresholds, non-competes must: be supported by adequate consideration (at least 2 weeks' notice before termination, or some other benefit); be ancillary to a valid employment relationship; not be oppressive; and protect a legitimate business interest (trade secrets, confidential customer relationships, specialized training). Illinois courts can modify ("blue pencil") overly broad agreements. The law also requires employers to advise employees to consult with an attorney before signing and to provide 14 days to review the agreement.
Paid Leave for All Workers Act
Effective January 1, 2024, the Illinois Paid Leave for All Workers Act (820 ILCS 192) requires employers with 1+ employees to provide up to 40 hours of paid leave per 12-month period. Unlike sick leave laws, this is general paid leave — employees can use it for any reason, and employers cannot require them to explain. Leave accrues at 1 hour per 40 hours worked (or employers can front-load 40 hours at the start of the year). Employees can carry over unused leave (but employer need not allow use of more than 40 hours in a 12-month period). Employers who already provide 40 hours of general paid leave under existing policies generally don't need to add more. Chicago and Cook County have their own paid leave ordinances that may provide additional benefits.
Illinois Workers' Compensation: Exclusive Remedy
The Illinois Workers' Compensation Act (820 ILCS 305) is the exclusive remedy for most workplace injuries — employees cannot sue their employer in civil court for negligence if the injury arose out of and in the course of employment. Illinois workers' comp provides medical treatment, temporary total disability (TTD) at 2/3 of average weekly wage, and permanent partial disability (PPD) based on schedule ratings for specific body parts or whole-person impairment. Illinois's workers' comp system is administered by the Illinois Workers' Compensation Commission (IWCC). Unlike some states, Illinois does not require pre-authorization for emergency medical treatment.
Need employment contracts or HR documents?
Offer letters, NDAs, non-competes, and severance agreements — state-specific.
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