Illinois Restaurant Labor Laws (2026): Wages, Tips & Chicago Rules
State and Chicago minimum wage, tipped pay, ODRISA breaks, overtime, Fair Workweek, and minor rules for Illinois restaurant managers in 2026.
Last reviewed: June 2026Illinois reached a $15 state minimum wage in 2025, but Chicago and parts of Cook County set higher rates that increase every July 1. The biggest 2026 development for restaurants is in Chicago: the city paused its plan to eliminate the tip credit, so the tipped wage did not jump the way earlier schedules predicted.
This guide covers Illinois’ 2026 wage figures at the state, Chicago, and Cook County levels, the tipped wage, the ODRISA break law, overtime, Chicago Fair Workweek, and minor rules. Confirm details with the Illinois Department of Labor and the City of Chicago before relying on them.
Illinois restaurant labor laws at a glance (June 2026)
| Standard minimum wage | $15.00/hr state ($17.05 Chicago from July 1, 2026) |
|---|---|
| Tipped minimum (cash) wage | $9.00/hr state cash wage ($12.96 Chicago from July 1, 2026) |
| Tip credit | Permitted — up to 40% of minimum wage (Chicago phaseout paused) |
| Overtime | 1.5× after 40 hours/week (no daily overtime) |
| Meal break (adults) | 20-min meal for shifts of 7.5+ hours; 24 hours rest per 7 days (ODRISA) |
| Minimum age to work | 14 (work permit required for ages 14–15) |
Minimum wage for Illinois restaurant workers
Illinois’ state minimum wage is $15.00 per hour, reached on January 1, 2025 and unchanged for 2026 — the top of the scheduled increases, with no further statewide raise planned.
Chicago and Cook County are higher and rise every July 1. As of July 1, 2026, Chicago’s minimum wage is $17.05 per hour for employers with four or more employees. Cook County’s rate is $15.40, but more than 80% of municipalities have opted out (including Chicago), so it applies only in non-opt-out areas.
Tipped wages and the tip credit in Illinois
Illinois permits a tip credit of up to 40% of the minimum wage, putting the state tipped cash wage at $9.00 per hour; tips must bring the total to at least $15.00.
Chicago is the headline. The city had been phasing out its tip credit entirely, but on May 20, 2026 the City Council voted to pause the phaseout for two years. The tip credit stays at 24% of the minimum wage rather than dropping further, and full elimination is pushed out — to 2030 for larger employers and 2033 for smaller ones. As of July 1, 2026, the Chicago tipped wage is approximately $12.96 per hour; confirm the exact figure against the city’s official fact sheet.
Overtime rules in Illinois
Illinois follows the federal overtime standard: time-and-a-half for hours worked beyond 40 in a workweek. There is no state daily overtime.
For tipped employees, overtime is calculated on the full minimum wage rather than the lower tipped cash wage.
Meal and rest breaks in Illinois
Illinois’ One Day Rest in Seven Act (ODRISA) gives employees 24 consecutive hours of rest in every consecutive seven-day period, plus a 20-minute meal period for shifts of 7.5 hours or more, beginning no later than five hours into the shift. An additional 20-minute meal is required for each additional 4.5 continuous hours.
Amendments effective in March 2025 strengthened ODRISA with anti-retaliation protections and an enforcement mechanism. Minors receive a 30-minute meal after five consecutive hours.
Hiring minors at Illinois restaurants
Illinois’ Child Labor Law requires a work permit (employment certificate) for ages 14–15 before they start work, obtained from the local school district. The minimum age for most restaurant work is 14.
- Under 16: no work before 7am or after 7pm (extended to 9pm June 1–Labor Day).
- Under 16 (school in session): maximum 3 hours on a school day, 8 hours combined school-and-work per day, and 18 hours per week.
- Under 16 (summer): maximum 40 hours per week.
- Minors under 16 are prohibited from working where liquor is served for on-premises consumption.
Other rules Illinois restaurant managers should know
Chicago tip-credit phaseout paused
On May 20, 2026, the Chicago City Council voted to delay eliminating the tip credit by two years. The credit stays at 24% of the minimum wage through mid-2028 rather than stepping down further, and full elimination now runs to 2030 for larger employers and 2033 for smaller ones. Any source citing a 16% credit or a lower Chicago tipped wage for July 2026 is out of date.
Chicago Fair Workweek Ordinance
Chicago’s predictive-scheduling law covers restaurants with 250 or more employees and 30 or more locations globally. It requires schedules posted 14 days in advance and predictability pay for late changes. Amended rules effective June 1, 2026 require anticipated on-call shifts to be included in the advance schedule. Covered employees earn at or below a wage threshold that updates each July 1.
Stay compliant without the spreadsheet
Sideworks helps Illinois restaurant managers schedule staff within budget, track labor cost in real time, and keep opening and closing tasks on record — so wage, break, and overtime rules are easier to honor.