Illinois Overtime Law — Quick Summary

Illinois workers are protected by both the federal FLSA and the Illinois Minimum Wage Law (IMWL). Overtime pays 1.5× your regular rate for all hours beyond 40 in a workweek. Illinois has no daily overtime requirement. Chicago and Cook County workers have higher minimum wages than the state rate.

Illinois Overtime Rates at a Glance

Regular Rate
1.0×
First 40 hours per week
No daily OT in Illinois
Overtime Rate
1.5×
All hours beyond 40/week
Time and a half

Illinois Overtime Formula

Illinois Overtime Formula (FLSA + IMWL) Regular Pay = Hours (up to 40) × Hourly Rate
Overtime Pay = (Total Hours − 40) × Hourly Rate × 1.5
Total Pay = Regular Pay + Overtime Pay

Step-by-Step Illinois Overtime Examples

Example 1 — Warehouse Worker in Chicago

Hourly rate: $18.00/hr

Hours worked: 50 hours

Overtime hours: 50 − 40 = 10 hours

Regular pay: 40 × $18 = $720.00

OT rate: $18 × 1.5 = $27.00/hr

Overtime pay: 10 × $27 = $270.00

Total Weekly Pay = $990.00 ✓
Example 2 — Retail Worker Downstate Illinois (Springfield)

Hourly rate: $15.50/hr

Hours worked: 45 hours

Overtime hours: 45 − 40 = 5 hours

Regular pay: 40 × $15.50 = $620.00

OT rate: $15.50 × 1.5 = $23.25/hr

Overtime pay: 5 × $23.25 = $116.25

Total Weekly Pay = $736.25 ✓

🕐 Illinois Overtime Calculator — Free & Instant

Enter your clock-in/out times and hourly rate. ClockCalc calculates your IL overtime pay and weekly gross automatically.

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Illinois Overtime Rules: Key Details

Weekly OT Only — No Daily Threshold

Illinois does not have daily overtime rules. Overtime applies only when you exceed 40 total hours in a workweek. You could work a 12-hour day without triggering overtime — as long as your weekly total stays at or below 40 hours. This is the same as the federal FLSA standard and very different from California's stricter daily rules.

Illinois Minimum Wage 2026

LocationMinimum Wage 2026OT Rate (1.5×)
Illinois (statewide)$15.00/hr$22.50/hr
Chicago (large employers, 21+)$16.50/hr$24.75/hr
Chicago (small employers, ≤20)$16.00/hr$24.00/hr
Cook County$15.50/hr$23.25/hr
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Key point: Chicago's minimum wage is higher than the Illinois state minimum. If you work in Chicago, your employer must pay the higher Chicago rate — and your overtime must be calculated on that higher base wage.

Who Is Covered?

Most Illinois workers are covered by both FLSA and the Illinois Minimum Wage Law (IMWL). The IMWL covers employers with 4 or more employees — a lower threshold than FLSA's enterprise coverage (which generally requires $500,000+ in annual revenue or interstate commerce involvement). This means some small businesses that fall below the FLSA threshold are still required to pay Illinois overtime.

Common exemptions: bona fide executive, administrative, and professional employees earning above the salary threshold ($684/week federal); outside salespeople; certain agricultural workers; domestic workers in private homes.

Is Overtime Taxed in Illinois?

TaxRateNotes
Illinois State Income Tax4.95% (flat)Applies to all OT earnings — flat rate, not progressive
Federal Income Tax10%–37%Applies to OT (may change with Big Beautiful Bill)
Social Security6.2%Applies to OT
Medicare1.45%Applies to OT
Chicago City TaxChicago has no separate city income tax on wages

Illinois's flat 4.95% income tax is moderate — lower than New York (up to 10.9%) and California (up to 13.3%), but higher than Texas, Florida, and Washington (which have no state income tax at all). Chicago workers benefit from the fact that Chicago imposes no personal income tax on wages, unlike New York City.

Illinois vs. Other States: Overtime Comparison

RuleIllinoisCaliforniaTexasNew York
Weekly OT Threshold40 hrs/week40 hrs/week40 hrs/week40 hrs/week
Daily OT?❌ No✅ After 8 hrs❌ No❌ No
State Income Tax on OT⚠️ 4.95% flat⚠️ Up to 13.3%✅ None⚠️ Up to 10.9%
2026 Min Wage (city)$16.50/hr (Chicago)$16.50/hr$7.25/hr$16.50/hr (NYC)
Coverage threshold4+ employees (IMWL)All sizesFLSA onlyAll sizes (NYLL)

Frequently Asked Questions

What is the overtime rate in Illinois?

Illinois overtime pay is 1.5× your regular hourly rate for all hours worked beyond 40 in a workweek. There is no daily overtime requirement and no double-time rate required under Illinois law.

Does Illinois have daily overtime?

No. Illinois only requires overtime after 40 hours per week — there is no daily overtime threshold. This differs from California, which also requires overtime after 8 hours in a single day.

What is Illinois minimum overtime rate in 2026?

The minimum overtime rate in Illinois is $22.50/hr statewide ($15.00 × 1.5). In Chicago (large employers): $24.75/hr ($16.50 × 1.5). In Cook County: $23.25/hr ($15.50 × 1.5).

Does the Illinois Minimum Wage Law (IMWL) cover more workers than FLSA?

Yes. The IMWL covers employers with 4 or more employees, which is a lower threshold than the FLSA's enterprise coverage test. This means some small businesses that aren't required to pay FLSA overtime are still required to pay overtime under Illinois law.

How do I calculate overtime in Illinois?

IL OT Pay = (Hours worked − 40) × Hourly rate × 1.5. Or use ClockCalc free — enter your hours and rate for an instant breakdown.

Related: California Overtime Calculator · New York Overtime Calculator · Texas Overtime Calculator · Pennsylvania Overtime Calculator · Georgia Overtime Calculator · How to Calculate Overtime Pay