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Illinois Employment Law Compliance Guide for Small Businesses
High Complexity
Illinois requires anti-harassment training annually for all employers. Pay transparency is required in job postings. Paid leave is mandatory. Predictive scheduling applies to employers in Chicago with 100+ employees in covered industries. Illinois also has strict non-compete restrictions and the Biometric Information Privacy Act (BIPA), which creates unique liability for employers using fingerprint or facial recognition systems.
Key Numbers
TIPPED WAGE
$9.00 (tip credit allowed)
Compliance Requirements
⚠Pay Transparency Required
Salary ranges must be included in job postings, including internal promotions. Non-compliance triggers fines and private lawsuits.
⚠Paid Leave Mandatory
Employers must provide paid sick leave (and potentially paid family/medical leave). You must track accrual, provide notice, and display updated workplace posters.
⚠Predictive Scheduling Law
Covered employers in retail, food service, and hospitality must provide 14-day advance schedule notice. Changes within the window trigger premium pay.
★Tip Credit: $9.00 (tip credit allowed)
Employers may pay tipped employees a reduced cash wage if tips bring total compensation to at least the minimum wage.
Federal Thresholds That Apply in Illinois
These federal requirements apply to all Illinois employers based on headcount:
1+ employees: FLSA (wage and hour), IRCA (I-9 verification), EPPA (polygraph), USERRA (military leave)
15+ employees: Title VII (discrimination), ADA (disability), GINA (genetic information), Pregnant Workers Fairness Act
20+ employees: ADEA (age discrimination), COBRA (health continuation)
50+ employees: FMLA (12 weeks unpaid leave), ACA (affordable health coverage or $2,880/employee penalty), EEO-1 reporting
100+ employees: WARN Act (60-day notice for mass layoffs)
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This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a licensed attorney for advice specific to your business. Last updated March 2026.