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Federal minimum wage illinois

January 6, 2026state-laws

Federal Minimum Wage Illinois: What Employers Must Pay and Post in 2026

If you’re searching “federal minimum wage Illinois” you’re likely trying to confirm the correct pay rate for employees in Illinois—and whether federal or state law controls. For most employers, the answer is straightforward: you must pay at least the highest applicable minimum wage among federal, Illinois, and any local minimum wage rules (such as Chicago or Cook County). This guide breaks down the Illinois minimum wage, how it compares to the federal floor, special rules like the minimum wage for minors in Illinois, and the postings HR teams must keep compliant.


Federal minimum wage vs. Illinois minimum wage: which one applies?

Under the Fair Labor Standards Act (FLSA), the federal minimum wage is $7.25 per hour. However, states may set higher minimum wages—and when they do, employers generally must follow the higher standard.

Illinois has its own minimum wage law, the Illinois Minimum Wage Law (IMWL), which sets pay rates above the federal floor for most workers in the state. As a result, when people ask “how much is minimum wage in Illinois” or “current minimum wage in Illinois,” the practical compliance answer is usually the Illinois rate (or a local rate) rather than the federal $7.25.

For broader context on federal wage rules, overtime coverage, and other baseline requirements that still apply in Illinois, see SwiftSDS’s employment legislation list.


Current minimum wage in Illinois (statewide)

Illinois minimum wage (standard statewide rate)

Illinois’ statewide minimum wage is set by the IMWL and is higher than the federal minimum wage. Employers should verify the current year’s statewide rate and any scheduled increases.

Actionable compliance steps:

  • Confirm the applicable statewide minimum wage under the IMWL for your effective date.
  • Check whether a local rule (Chicago/Cook County) sets a higher rate (covered below).
  • Update payroll systems, offer letters, and wage notices so the il minimum wage rate is applied to all covered hours worked in Illinois.

Tip for HR: If you have remote or hybrid employees, ensure you’re applying Illinois wages based on where the employee actually performs work, not where headquarters is located.


Local minimum wage rules: Chicago and Cook County

Illinois employers may also be subject to higher local minimum wage requirements. This is a common compliance pitfall, especially for multi-location employers.

Actionable compliance steps:

  1. Map each worksite to determine whether it falls under Chicago or Cook County rules.
  2. Apply the highest wage rate that covers the employee’s work location.
  3. Maintain local posters/notices at the physical worksite (and consider electronic distribution where required/allowed for remote workers).

Minimum wage for minors in Illinois and youth wage considerations

When employers ask about the minimum wage for minors in Illinois, they’re usually referring to whether younger workers may be paid a different rate. Illinois law has specific rules for youth workers, including limitations and special wage provisions in certain circumstances.

Actionable compliance steps:

  • Confirm the employee’s age and whether any youth wage provisions are available under Illinois law.
  • Document wage rates and any qualifying conditions in writing.
  • Train managers not to “average” hours or apply youth rates incorrectly once an employee ages out of eligibility.

Because youth wage rules can change and may interact with school/work hour restrictions, employers should verify requirements through official Illinois guidance and keep policies current.


“Minimum salary in Illinois” (and why salary doesn’t replace minimum wage)

Many HR teams search “minimum salary in Illinois” while trying to ensure that salaried employees meet exemption requirements. Important point: being paid a salary does not eliminate minimum wage obligations.

Salary basis vs. minimum wage

Under the FLSA and Illinois law, non-exempt employees must receive at least the applicable minimum wage for every hour worked (and overtime where required), even if they are paid a salary.

Exempt employees

To treat an employee as exempt from overtime under federal law, employers typically must meet:

  • a salary basis requirement, and
  • a salary level threshold, and
  • a duties test (executive/administrative/professional, etc.).

Actionable compliance steps:

  • Audit salaried roles to confirm exempt/non-exempt classification.
  • Track hours for salaried non-exempt employees.
  • If an exempt employee’s salary is docked improperly, review the risk of losing the exemption.

Required federal and Illinois workplace posters (minimum wage compliance)

Posting requirements are an often-overlooked part of wage compliance. Under the FLSA, covered employers generally must display the federal minimum wage poster.

SwiftSDS recommends keeping the following federal notices readily accessible to employees (as applicable to your workforce type):

For Illinois-specific posting obligations (and local add-ons), start with Illinois (IL) Posting Requirements and then confirm whether you also need Chicago/Cook County notices.

Actionable compliance steps:

  • Post federal and Illinois-required notices in a conspicuous place at each worksite.
  • For multilingual workforces, provide required translations where applicable/available.
  • For remote employees, keep a compliant electronic posting process aligned with agency guidance.

Multi-state comparison: Illinois vs. Pennsylvania (and why it shows up in searches)

Some readers looking for federal minimum wage Illinois also search “how much is the minimum wage in Pennsylvania” or “pennsylvania state minimum wage.” The key compliance takeaway is the same: apply the highest applicable rate for the jurisdiction where work is performed.

Pennsylvania’s minimum wage is often discussed because it is closer to the federal baseline than Illinois. If you operate across multiple states, standardize a process that:

  • identifies the controlling wage (federal/state/local),
  • updates rates annually (or whenever laws change), and
  • applies location-based payroll rules by worksite.

If your compliance team manages multiple jurisdictions, SwiftSDS also maintains state law explainers such as alabama minimum wage to help employers compare approaches across states.


“Minimum wage bill” updates: how employers should track changes

Employers frequently ask about a minimum wage bill when there’s legislative activity at the federal, state, or local level. Even when a bill is proposed, it may not be enacted—or it may phase in increases over time.

Actionable compliance steps:

  1. Assign ownership (HR, legal, payroll) for monitoring wage legislation.
  2. Build lead time into payroll updates (rates, tip credits where applicable, budgeting).
  3. Update postings and wage notices when new rates take effect (especially in Chicago/Cook County).

For federal baseline posting guidance and compliance structure, see Federal (United States) Posting Requirements.


FAQ: Illinois minimum wage and federal minimum wage

Is the federal minimum wage used in Illinois?

The federal minimum wage is $7.25/hour, but Illinois generally requires a higher state minimum wage, so Illinois employers usually follow the Illinois minimum wage (or a higher local rate).

How do I know if Chicago or Cook County minimum wage applies?

It depends on where the employee performs work. Confirm your location and posting obligations using Chicago, Cook County, IL Posting Requirements or Cook County, IL Posting Requirements, and apply the highest applicable wage.

Do salaried employees have a “minimum salary in Illinois” requirement?

Illinois does not treat “salary” as a substitute for minimum wage. Salaried non-exempt employees must still meet minimum wage for all hours worked. Exempt employees must meet federal exemption rules (salary basis/level and duties tests) under the FLSA.


Need help keeping your workplace postings aligned with wage requirements? Start with SwiftSDS’s Illinois (IL) Posting Requirements page and cross-check federal requirements in Federal (United States) Posting Requirements to ensure every location is covered.