Illinois enacted the Paid Leave for All Workers Act in March 2023, effective January 1, 2024 - giving every employee 40 hours of paid leave per year for any reason. Combined with the Freelance Worker Protection Act, a $15/hr minimum wage, and Chicago-specific rules layered on top, Illinois is one of the most worker-protective states in the Midwest. WorkGenius becomes your legal employer and handles every layer of compliance from day one.
Facts reviewed against primary sources in September 2026
| Requirement | Illinois | Detail |
|---|---|---|
| Minimum wage | $15.00/hr | Chicago: $17.05/hr from July 1, 2026 (tipped $12.96, frozen until July 1, 2028); Cook County has its own CPI-indexed ordinance at $15.40/hr non-tipped and $9.25 tipped from July 1, 2026, so it does not follows the $15.00 state rate |
| Paid leave | 40 hrs/year | For any reason - no medical documentation required (Paid Leave for All Workers Act, Jan 2024) |
| Freelance Worker Protection | $500+ threshold | Written contracts required where the work is worth $500 or more in a 120-day period, for contracts taking effect after July 1, 2024 |
| Final paycheck | At separation if possible | 820 ILCS 115/5 requires final compensation at the time of separation where possible, and in no case later than the next regularly scheduled payday |
| Non-compete (low-wage workers) | Unenforceable | Non-competes void below $75,000/yr and non-solicits void below $45,000/yr under the Illinois Freedom to Work Act. Above those figures the same statutory requirements apply, with no second tier |
| Paid Family Leave | None (state) | Illinois has no state-mandated paid family leave program - FMLA unpaid leave applies |
Effective January 1, 2024, Illinois's Paid Leave for All Workers Act (PLAWA) requires all private employers to provide at least 40 hours of paid leave per year to every employee. Unlike traditional sick leave laws, employees can use this leave for any reason - no medical documentation, no explanation required. This is one of the broadest paid leave mandates in the country and catches many out-of-state companies by surprise when they hire their first Illinois-based worker.
Get Illinois-Compliant TodayIllinois stacks state law, Chicago ordinances, and federal requirements into one of the most complex compliance environments in the Midwest.
Leave accrual tracked at 1 hour per 40 hours worked. Carryover managed. Usage available for any reason with no documentation required. Full PLAWA compliance on every payroll cycle.
State income tax withholding, Chicago and Cook County minimum wage tiering, semi-monthly pay requirements, and detailed pay stub requirements under the Illinois Wage Payment and Collection Act - all handled on every pay cycle.
Written contracts for any Illinois freelance engagement worth $500 or more in a 120-day period. Payment terms tracked and enforced. Zero risk of double-damage penalties under the FWPA.
Illinois voids non-competes below $75,000/year and non-solicitation agreements below $45,000/year. Above those thresholds the statute still requires two years of continued employment or other adequate benefit, written advice to consult an attorney, and 14 days to review. WorkGenius drafts compliant agreements that protect your business within Illinois's restrictions.
ACA-compliant health coverage, 401(k), disability insurance, and Chicago-specific benefit requirements - all enrolled and administered. Illinois and Chicago leave accruals managed and tracked.
Final pay on the next regular payday, COBRA administration, compliant separation documentation, and proper handling of accrued leave balances and any restrictive covenant obligations.
Most EOR providers use manual checklists. WorkGenius runs Illinois's Paid Leave for All Workers Act, Chicago wage tiers, and Freelance Worker Protection Act requirements directly in the platform - automatically, on every payroll cycle.
Beyond the Paid Leave for All Workers Act, Illinois layers multiple additional requirements on top of federal law.
This one matters specifically to contingent workforce buyers. The Illinois Day and Temporary Labor Services Act (820 ILCS 175), as amended in 2023, requires a temporary worker assigned to the same client for more than 90 calendar days to be paid at least as much as the lowest-paid directly hired comparator doing substantially the same work. Assignment length changes the pay obligation, so it has to be tracked. WorkGenius monitors assignment duration and applies the comparator rate when the threshold is crossed.
From January 1, 2025, employers with 15 or more employees must include the pay scale and a general description of benefits in every job posting for a role performed at least partly in Illinois, or reporting to an Illinois supervisor - which catches remote roles managed from Illinois. WorkGenius publishes a compliant range and benefits summary on every Illinois posting.
Effective July 1, 2024, Illinois requires written contracts for any freelance engagement worth $500 or more (single or cumulative over a 120-day period). Contracts must specify payment terms; payment is due by the date in the contract or within 30 days of completion. Violations expose companies to double damages and attorney's fees.
Illinois bans non-compete agreements for employees earning under $75,000 per year, and bans non-solicitation agreements for those earning under $45,000 per year. Higher-earning employees can be subject to non-competes, but courts require 14 days of review time before signing and "adequate consideration." WorkGenius ensures all agreements comply.
Chicago has a higher minimum wage ($17.05/hr from July 1, 2026) and, since July 1, 2024, its own Paid Leave and Paid Sick and Safe Leave Ordinance giving every covered employee 40 hours of Paid Leave plus 40 hours of Paid Sick Leave a year, each accruing at 1 hour per 35 hours worked. Employer size affects only whether unused Paid Leave is paid out at separation. WorkGenius applies the correct rules based on each worker's work location, not just the state-level baseline.
Illinois's Human Rights Act applies to employers with as few as 1 employee - one of the lowest thresholds in the country. It prohibits discrimination based on all federally protected classes plus additional protected categories including source of income, gender identity, and military status. WorkGenius employment practices are IHRA-compliant from day one.
From first conversation to fully compliant employment - typically within days.
Workers, roles, locations, and start dates. We tailor the setup to your needs.
Our AI runs every worker through Illinois's classification and compliance rules. We prepare compliant contracts and payroll setup.
Onboarded with Illinois-compliant contracts, benefits enrolled, payroll running from day one.
Payroll runs on Illinois rules. Taxes filed. Compliance monitored. One weekly invoice.
Yes. The Paid Leave for All Workers Act applies based on where the employee performs work, not where your company is headquartered. If you have even one employee working in Illinois - including remotely from an Illinois address - you must provide 40 hours of paid leave per year that can be used for any reason. WorkGenius tracks accrual, usage, and carryover automatically for every Illinois employee.
Traditional paid sick leave laws restrict usage to illness, injury, or caregiving situations. Illinois's Paid Leave for All Workers Act is broader - employees can use their 40 hours of leave for any reason at all, without providing medical documentation or a specific explanation. Employers cannot require documentation for PLAWA leave. Chicago's Paid Sick and Safe Leave Ordinance provides additional sick leave on top of this.
Both laws require written contracts for freelance engagements above a dollar threshold, mandate timely payment, and prohibit retaliation. The key difference is the threshold: New York's law applies to engagements valued at $800 or more; Illinois's law applies at $500 or more in a 120-day period - a lower bar that catches more engagements. Both laws apply based on where the worker is located, not where your company is based.
It depends on the employee's compensation. The Illinois Freedom to Work Act (820 ILCS 90) voids a non-compete for anyone earning $75,000 a year or less, and voids a non-solicitation agreement for anyone earning $45,000 or less. Those are the only two compensation thresholds in the statute; there is no higher tier. Above $75,000 the same requirements apply regardless of salary. Adequate consideration means either at least two years of continued employment after the employee signs, or other professional or financial benefits adequate on their own. The employer must also advise the employee in writing to consult an attorney and give at least 14 calendar days to review the agreement. WorkGenius drafts agreements that meet every one of those conditions.
Illinois has a statewide minimum wage of $15.00 per hour as of January 2025. Chicago has its own higher minimum: $17.05 per hour effective July 1, 2026, rising each July 1 by CPI capped at 2.5% and rounded up to the nearest five cents. Cook County outside Chicago runs its own CPI-indexed ordinance, $15.40/hr non-tipped and $9.25 tipped from July 1, 2026 - it does not simply follow the state rate. WorkGenius automatically applies the correct minimum wage based on each employee's work location.
Yes. Unlike Texas, Illinois requires all employers to carry workers' compensation insurance as soon as they have one employee. There are no exceptions for small employers. The Illinois Workers' Compensation Act is strictly enforced - operating without required coverage can result in civil and criminal penalties, including stop-work orders. WorkGenius obtains and maintains workers' comp coverage as part of the EOR arrangement.
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