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Illinois Overtime Rules for Employers of Record

State overtime is after 40 hours. The state minimum wage stays $15. Chicago and Cook County are higher.

The rule

The Illinois Department of Labor says the state minimum wage is $15.00 an hour for workers 18 and older. Overtime is time and one-half after 40 hours in a workweek. An employer who takes tips may pay 60 percent of the minimum wage. The Department's wage table lists that tipped rate as $9 and lists $13 for workers under 18 who work fewer than 650 hours in the calendar year.

Chicago and Cook County set higher rates. They do not replace the 40-hour overtime week.

As of July 1, 2026, the City of Chicago says the minimum wage is $17.05 an hour for employers with 4 or more employees. Tipped workers at those employers have a minimum of $12.96. If wages plus tips do not reach $17.05, the employer pays the difference. Work under a city contract or concession agreement is $18.50. Chicago adjusts the wage every July 1 by the Consumer Price Index or 2.5 percent, whichever is lower.

As of July 1, 2026, Cook County says the minimum wage is $15.40 an hour for non-tipped employees and $9.25 for tipped employees. The same page lists overtime at $23.10 for non-tipped employees and $16.94 for tipped employees. Chicago has its own ordinance, so the county rate does not apply inside the city. Some other Cook County towns have opted out. The county says that list changes and should be checked with the town. A new employee may be paid no more than $0.50 under the county minimum for the first 90 days.

What employers must do

Pay the highest wage that applies to the worksite: state, county, or city. Pay time and one-half after 40 hours worked. Post the Chicago notice where the Chicago ordinance applies, and give the employee the wage and leave notice with the first paycheck and again within 30 days of July 1.

Effective dates

The state rate on the Department's minimum wage page is $15.00. That page does not announce a January 1, 2027 increase. Chicago and Cook County rates above took effect July 1, 2026. Both places adjust on the next July 1. The July 1, 2027 dollar amounts are not on the pages reviewed.

What this means for BOSS partners and associates

Most BOSS associates work in Illinois. Tell BOSS whether the worksite is in Chicago, in the rest of Cook County, or elsewhere in the state before the assignment starts. Do not use the $15.00 state rate for a Chicago or Cook County worksite. Associates should record every hour over 40.

Questions? Contact BOSS Support at support@backofficenow.com.

Sources

This article is general information, not legal advice. Laws change; check with BOSS Support or your own counsel for your situation.