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Minimum Wage in Illinois 2025 — What You Should Know

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All employers in Illinois must pay their employees a minimum hourly wage, ensuring fair compensation for all workers. This rate represents the lowest legal pay for one hour of work. If a worker earns less than the mandated minimum, the employer must make up the difference.

Different states follow their own minimum wage laws, including local and federal regulations. The primary purpose behind these laws is to ensure employees receive fair pay and that businesses maintain a healthy and legal working environment.

Illinois Minimum Wage in 2025

As of January 1, 2025, the minimum wage in Illinois stands at $14 per hour for workers aged 18 and above. This marks another step toward the state’s plan to reach $15 per hour by 2025, which was established through the law passed in 2019.

For workers under 18, the minimum wage is $12 per hour, provided they work less than 650 hours per year. Once a minor exceeds 650 working hours, employers are required to pay them the same rate as adult workers.

This increase is part of Illinois’s long-term goal to help low-income earners cope with inflation and the rising cost of living — a move many consider essential for economic stability.

A Quick Look Back at Illinois Wage History

The push for higher wages began in 2019, when Illinois lawmakers passed legislation to gradually raise the minimum wage to $15/hour by 2025. The rate moved from $8.25 in 2019 to $14 in 2025, showing steady progress toward that target.

This decision followed years of debate around living wages, cost of living, and the gap between urban and rural income levels. The adjustment aimed to reduce wage inequality and promote sustainable employment opportunities across the state.

Minimum Wage for Tipped Workers in Illinois

Illinois has separate laws for tipped employees (like restaurant servers or bartenders). These workers can legally receive a lower base pay as long as their tips make up the difference to meet the state minimum wage.

As of 2025:

  • The base wage for tipped workers is $8.40 per hour (60% of the state minimum).
  • If an employee’s total earnings (base wage + tips) fall below $14/hour, the employer must pay the difference.

Tip Credit: Employers in Illinois can count a portion of an employee’s tips as a credit toward the minimum wage. This is legal as long as the worker’s total hourly earnings equal or exceed the minimum wage.

Tip Pooling: Some workplaces may pool tips among employees who regularly serve customers, ensuring fair distribution — but management cannot take part in the pool.

Overtime Pay Rules in Illinois

Employees who work more than 40 hours in a week are eligible for overtime pay at 1.5 times their regular hourly rate.

That means a worker earning $14/hour would receive $21/hour for every additional hour worked beyond 40 in a week.

Who is Exempt from Overtime Pay?

While most workers qualify for overtime, certain job categories are exempt under state and federal law. These include:

Woman Doing a Work
  • Administrative and executive employees under the Fair Labor Standards Act (FLSA)
  • Computer professionals and engineers earning at least $27.63/hour
  • Agricultural workers and some educational institution staff
  • Employees in small TV or radio stations (serving populations under 100,000)
  • Commission-based sales employees under FLSA rules

Should Illinois Raise Its Minimum Wage Beyond 2025?

Many economists argue that Illinois should continue raising the minimum wage beyond $15/hour to match inflation and living costs. With more than 13 states offering equal or higher base pay, Illinois remains competitive but could improve further.

A gradual increase may also:

  • Reduce income inequality
  • Boost consumer spending
  • Support small businesses through better employee retention
  • Enhance overall economic health

Still, such policies must balance both worker welfare and business sustainability, ensuring small employers aren’t overburdened.

FAQs About Illinois Minimum Wage 2025

What is the current minimum wage in Illinois?

As of 2025, the minimum wage in Illinois is $14 per hour for adults and $12 per hour for minors under 18 working less than 650 hours annually.

Do tipped workers in Illinois get the same minimum wage?

Not exactly. Tipped workers earn a base rate of $8.40 per hour, and their total (base pay + tips) must equal at least $14/hour. If not, employers must make up the difference.

Who qualifies for overtime pay in Illinois?

Any non-exempt employee who works more than 40 hours in a week qualifies for overtime pay at 1.5 times their regular rate.

Will Illinois increase its minimum wage after 2025?

While $15/hour was the target set in 2019, discussions about further increases continue as inflation and living costs rise. Future adjustments will depend on the state’s economic outlook and legislative decisions.

What is the Minimum Wage in Georgia in 2025? State vs Federal Rules & FAQs

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Different states have the power to set a legal minimum wage. In Georgia, the state minimum wage is $5.15 per hour, as defined in state statute. However, for most workers, the federal minimum wage under the Fair Labor Standards Act (FLSA) — $7.25/hour — overrides Georgia’s lower rate. That means while the state law sets a floor at $5.15, employers subject to FLSA must pay at least $7.25.

Georgia’s Minimum Wage & Federal Override

Georgia has not raised its state wage above $5.15 for many years. Because the federal minimum wage is higher, the federal rate is the effective legal minimum for nearly all covered workers in Georgia. In practice, employers covered by FLSA must comply with the federal standard rather than the lower state statute.

Overtime Rules Under FLSA

Under FLSA, eligible (nonexempt) employees who work more than 40 hours in a workweek must receive 1.5× their regular hourly rate as overtime pay. For example, someone earning $7.25/hour would have an overtime rate of about $10.88/hour.

Who’s Covered & Who’s Exempted?

Many workers in Georgia fall under FLSA coverage (retail, services, manual labor), particularly where employers engage in interstate commerce or meet federal revenue thresholds. Certain roles, however, can be exempt from overtime and some minimum-wage protections if they meet salary-and-duties tests (commonly executive, administrative, and professional roles).

Special categories also exist: tipped employees, student workers, and certain small or family-run employers may have different rules or allowed lower rates under narrow conditions. Tipped employees, for example, may be paid a lower direct cash wage when an employer properly takes a tip credit in accordance with federal rules.

Person check Minimum Wage in Georgia

Current Challenges & Possible Changes

Regulatory and legal changes at the federal level — such as attempts to revise exemption salary thresholds — can alter who qualifies as exempt and who receives overtime. Georgia’s state minimum remains static, so any meaningful increase for most workers would likely require action at the federal level or new state legislation.

Final Takeaway

In Georgia, the state law sets the minimum wage at $5.15, but most covered employees are protected by the federal floor of $7.25/hour. Overtime protections under FLSA provide additional pay for extra hours. Because exemptions and legal rulings can change the practical effect of these laws, employees and employers should monitor official sources for updates.

FAQs

What is Georgia’s state minimum wage in 2025?

Georgia legally sets a state minimum wage of $5.15/hour, but this often doesn’t apply when federal law overrides it for covered employers.

Why do many Georgia workers earn $7.25 instead of $5.15?

Most employers and jobs in Georgia are covered by the FLSA, which requires at least $7.25/hour; where FLSA applies, it supersedes the lower state rate.

Who qualifies for overtime pay in Georgia?

Employees classified as nonexempt under FLSA — typically hourly workers and some salaried workers who fail the exemption tests — must be paid 1.5× their regular rate for hours worked beyond 40 in a workweek.

Are there roles not entitled to overtime or minimum wage?

Yes. Certain executive, administrative, and professional employees who meet federal salary-and-duties tests are exempt from overtime. Additionally, some small employers or specific job categories may be subject to different rules; consult official guidance for details.