Illinois State Minimum Wage

The Illinois state minimum wage increased in January 2023 to $13.00 per hour for tipped and non-tipped employees. For Illinois, the minimum wage situation is unique, sharing similar rules to other states, the minimum wage varies depending on where you are located within the state. There are some differing rates for some cities and counties in Illinois.

If you are a business owner in the hospitality industry with tipped employees who may be waiting tables, serving and mixing drinks, carrying luggage, cleaning hotel rooms, etc., you are able to take credit for your employee’s tips since in some cases, employees can earn more in tips than in the base wage paid by employers.

The basic rule of tips which is recognized under federal law and state law is that the tips belong to the employee, not the employer. To find out more about the Illinois tip rules, overtime standards, and other wage and hour issues you can visit the Illinois Department of Labor (IDOL) website.

Did the Illinois Minimum Wage Go Up?

The graphic below highlights the Illinois minimum wage over the past several years. The minimum wage did go up in 2022 from $11.00 per hour (in 2020) to $12.00 in 2021 and in 2023 it increased by $1.00 again to $13.00 per hour.

If you are a full-time worker on the Illinois state minimum wage, your earnings could be as follows:

• Weekly Minimum Wage: $520 (based on a 40-hour week).
• Yearly Minimum Wage: $27,040 (based on being paid 52 weeks per year).
• This is before you have to pay the flat 4.95% Illinois income tax rate on your earnings.

You can view and download the Illinois minimum wage labor law poster for 2022-2023 here at no charge. Employers must display an official poster outlining the requirements of the Fair Labor Standards Act (FLSA), ensuring that accurate employee time and pay records are kept.

Illinois Minimum Wage Exemptions 2023

Illinois’ minimum wage is reviewed each year using the Consumer Price Index, similar to most other states. The Illinois minimum wage increase in 2023 saw the state wage increase by $1.00 per hour, making it $13.00 per hour, this is the fourth time the state minimum wage has been increased since 2010!

In addition to the regular minimum wage rate, there are a few Illinois state minimum wage exemptions that typically depend on your age or employment situation. There are even some location-dependent minimum wage rates within the state, for example, the Chicago minimum wage.

Below are the various minimum wage exemptions with some situational examples.

Illinois Student Minimum Wage

The minimum wage for student employees in Illinois is 85% of the statewide minimum wage, making their hourly pay $11.05 per hour in 2023.

This hourly rate is for any hours worked up to 20 hours per week. As a student employee, once you surpass 20 hours per week, you will be eligible to be paid the Illinois minimum wage rate of $13.00 per hour.

Being a student can be financially challenging, leading many students to pick up part-time jobs to make extra money while studying. Despite a student minimum wage rate, many Illinois employers will not necessarily follow it and pay you equal to or more than the statewide minimum wage.

Many work-study programs are available at universities, which is a route many students go down. Still, coffee shop, cafe, bar, and restaurant jobs are commonly taken by students as they can work them into their class schedule.

Illinois Under 20 Minimum Wage

If you are under 20 years old in Illinois, federal law allows your employer to pay you as little as $4.25 per hour for your first 90 days of employment.

Once the 90-day period is over, you will be eligible to be paid the 2023 Illinois minimum wage of $13.00 per hour or potentially even more.

Fortunately for young workers, this is 90 calendar days and not 90 working days; therefore, it can be completed relatively quickly and within about three months.

Illinois Tipped Minimum Wage

If you are a tipped employee in Illinois (someone who receives regular tips as a part of their job) then you are eligible to be paid a minimum wage of $7.80 per hour, with a tip credit of $5.20 per hour, ensuring that you reach the statewide minimum wage regardless if you make enough hourly tips.

Illinois Overtime Minimum Wage

Once you work over 40 hours a week, you are eligible to be paid an overtime rate of 1.5 times your hourly wage for every hour you work past 40. So, the overtime Illinois state minimum wage is $19.50 per hour, 1.5 times the minimum wage of $13.00 per hour.

Illinois Minimum Wage History

The table below provides the current rate and history of Illinois’ minimum wage over the past 40+ years since 1983. You can see when there were increases in the minimum wage, how much they were, and what percentage increase it represents each year.