As of January 1, 2025, Illinois has enacted several significant updates to its labor laws, impacting both employers and employees across the state. These changes encompass wage standards, workplace protections, employee rights, and employer obligations.
This comprehensive guide outlines the key aspects of the Illinois Labor Laws 2025, ensuring you stay informed and compliant.
Minimum Wage Increases
Statewide Minimum Wage
Effective January 1, 2025, the Illinois statewide minimum wage has been increased to $15.00 per hour for all workers aged 18 and above. Employers where gratuities are paid may pay 60% of the minimum wage to their employees. Additionally, employers can apply for licenses to pay sub-minimum rates to learners and certain workers with physical and mental limitations.
Local Ordinances
Certain localities within Illinois may have established higher minimum wage rates. For instance, Chicago has set its minimum wage at $16.60 per hour for standard employers and $12.62 per hour for tipped workers, effective July 1, 2025.
Paid Leave for All Workers Act
Illinois has implemented the Paid Leave for All Workers Act, mandating that all employees earn one hour of paid leave for every 40 hours worked, up to a total of 40 hours per year. Employees can utilize this leave for any reason without the need to justify. Employers are prohibited from requiring employees to disclose the purpose of their leave. This law applies universally, irrespective of business size, with exemptions for seasonal workers, federal employees, and part-time college students.
Equal Pay and Pay Transparency
Equal Pay Act Amendments
Amendments to the Illinois Equal Pay Act, effective January 1, 2025, require employers with 15 or more employees to disclose pay scales and benefits in all job postings. This includes information about wages or salary ranges and a general description of benefits and other compensation expected to be offered for the position. Employers must also provide this information to third parties posting job opportunities on their behalf.
Equal Pay Compliance Statement
Employers subject to the Equal Pay Act must submit an Equal Pay Compliance Statement to the Illinois Department of Labor. This statement must include details about the average compensation for female and minority employees compared to their male and non-minority counterparts within each job category. Employers must also provide a list of all employees during the past calendar year, separated by gender, race, and ethnicity categories, along with the county in which the employee works and the date the employee started working for the business.
Workplace Protections and Employee Rights
Victims’ Economic Security and Safety Act (VESSA)
The VESSA provides employees who are victims of domestic, gender, or sexual violence, or other crimes of violence, or who have family or household members who are victims, with up to 12 weeks of unpaid leave and other accommodations and protections during 12 months. Effective January 1, 2024, employees who have worked at least 1,250 hours in the previous 12 months for employers with 50 or more employees are entitled to 2 additional weeks of unpaid leave for certain reasons relating to a family or household member’s death due to a crime of violence.
Reproductive Health Decisions
Effective January 1, 2025, Illinois employers are prohibited from discriminating against an employee for actual or perceived decisions on reproductive health. “Reproductive Health Decisions” are defined as decisions regarding the use of contraception, fertility or sterilization care, assisted reproductive technologies, miscarriage management care, healthcare related to the continuation or termination of pregnancy, or prenatal, intranatal, or postnatal care.
Family Responsibilities
Effective January 1, 2025, House Bill (HB) 2161 prohibits Illinois employers from discriminating against an employee, or prospective employee, based upon the employee’s “family responsibilities.” “Family responsibilities” means an employee’s actual or perceived provision of personal care to a family member. This includes activities to ensure that a covered family member’s basic medical, hygiene, nutritional, or safety needs are met, or to provide transportation to medical appointments, for a covered family member who is unable to meet those needs themselves. It also includes being physically present to provide emotional support to a covered family member with a serious health condition who is receiving inpatient or home care.
Child Labor Law Reforms
Effective January 1, 2025, Illinois employers must comply with new requirements when employing minors under the age of 16. Senate Bill (SB) 3646 repeals and replaces the state’s child labor law with the Child Labor Law of 2024. The new law requires employers to obtain an employment certificate authorizing a minor’s work and maintain records on the premises. It specifies allowable work hours and times, including restrictions on the number of hours minors can work during school sessions and non-school sessions, and the number of hours in any single 24-hour period.
Whistleblower Protections
Under HB5561, effective January 1, 2025, employees can now bring a claim under the Whistleblower Act for retaliation based on their report to an internal supervisor, manager, officer, or board member. The amendments expand the Act’s coverage to include non-employment actions that would dissuade a reasonable worker from disclosing information under the Whistleblower Act, such as taking or threatening to take action that would intentionally interfere with an employee’s ability to obtain future employment.
E-Verify Regulations
Effective January 1, 2025, Senate Bill (SB) 3208 requires Illinois employers to comply with new requirements in the event of a discrepancy in an employee’s employment verification documentation. If an employer asserts that a discrepancy exists in an employee’s employment verification information, the employer must provide the employee with:
- A written notice detailing the specific information in question.
- An opportunity for the employee to contest the discrepancy.
- A reasonable period to resolve the issue before taking any adverse employment action.
Employers must produce requested documents to which employees are entitled within seven working days after receipt of the request. If the employer can reasonably show that such a deadline cannot be met, the employer might have an additional seven calendar days to comply. Any fee charged by the employer is limited to the actual cost of duplicating the requested records.
Captive Audience Ban
Effective January 1, 2025, all employers in Illinois are prohibited from requiring employees to participate in employer-sponsored meetings communicating an employer’s position on religious or political matters under the Worker Freedom of Speech Act. Employers are also prohibited from taking an adverse employment action against an employee for declining to attend or participate in such meetings. The Act allows employees to bring a civil action on behalf of themselves and other employees similarly situated no later than one year after the date of the alleged violation. The Department can assess a civil penalty of $1,000 for each violation.
Conclusion
The Illinois Labor Laws 2025 introduce significant changes that enhance worker protections and establish clearer guidelines for employers. Both employers and employees must familiarize themselves with these updates to ensure compliance and uphold workplace rights. For more detailed information and resources, visit the Illinois Department of Labor and the Illinois Attorney General’s Workplace Rights Bureau.
