Illinois enacted the Paid Leave for All Workers Act in 2024 — giving every employee 40 hours of paid leave per year for any reason. Combined with the Freelance Worker Protection Act, a $15/hr minimum wage, and Chicago-specific rules layered on top, Illinois is one of the most worker-protective states in the Midwest. WorkGenius becomes your legal employer and handles every layer of compliance from day one.
Effective January 1, 2024, Illinois's Paid Leave for All Workers Act (PLAWA) requires all private employers to provide at least 40 hours of paid leave per year to every employee. Unlike traditional sick leave laws, employees can use this leave for any reason — no medical documentation, no explanation required. This is one of the broadest paid leave mandates in the country and catches many out-of-state companies by surprise when they hire their first Illinois-based worker.
Get AB5-Compliant TodayIllinois stacks state law, Chicago ordinances, and federal requirements into one of the most complex compliance environments in the Midwest.
Leave accrual tracked at 1 hour per 40 hours worked. Carryover managed. Usage available for any reason with no documentation required. Full PLAWA compliance on every payroll cycle.
State income tax withholding, Chicago and Cook County minimum wage tiering, semi-monthly pay requirements, and detailed pay stub requirements under the Illinois Wage Payment and Collection Act — all handled on every pay cycle.
Written contracts for any Illinois freelance engagement valued at $250 or more. Payment terms tracked and enforced. Zero risk of double-damage penalties under the FWPA.
Illinois bans non-competes for employees earning under $75,000/year, and limits them for those earning under $247,500/year. WorkGenius drafts compliant agreements that protect your business within Illinois's restrictions.
ACA-compliant health coverage, 401(k), disability insurance, and Chicago-specific benefit requirements — all enrolled and administered. Illinois and Chicago leave accruals managed and tracked.
Final pay on the next regular payday, COBRA administration, compliant separation documentation, and proper handling of accrued leave balances and any restrictive covenant obligations.
Most EOR providers use manual checklists. WorkGenius runs Illinois's Paid Leave for All Workers Act, Chicago wage tiers, and Freelance Worker Protection Act requirements directly in the platform — automatically, on every payroll cycle.
Beyond the Paid Leave for All Workers Act, Illinois layers multiple additional requirements on top of federal law.
Effective July 1, 2024, Illinois requires written contracts for any freelance engagement valued at $250 or more (single or cumulative over 120 days). Contracts must specify payment terms; payment is due by the date in the contract or within 30 days of completion. Violations expose companies to double damages and attorney's fees.
Illinois bans non-compete agreements for employees earning under $75,000 per year, and bans non-solicitation agreements for those earning under $45,000 per year. Higher-earning employees can be subject to non-competes, but courts require 14 days of review time before signing and "adequate consideration." WorkGenius ensures all agreements comply.
Chicago has a higher minimum wage ($16.20/hr in 2025), its own Paid Sick and Safe Leave Ordinance (up to 80 hours/year for employers with 100+ employees), and additional worker protections. WorkGenius applies the correct rules based on each worker's work location, not just the state-level baseline.
Illinois's Human Rights Act applies to employers with as few as 1 employee — one of the lowest thresholds in the country. It prohibits discrimination based on all federally protected classes plus additional protected categories including source of income, gender identity, and military status. WorkGenius employment practices are IHRA-compliant from day one.
From first conversation to fully compliant employment — typically within days.
Workers, roles, locations, and start dates. We tailor the setup to your needs.
Our AI runs every worker through California's ABC test. We prepare compliant contracts and payroll setup.
Onboarded with California-compliant contracts, benefits enrolled, payroll running from day one.
Payroll runs with daily OT. Taxes filed. Compliance monitored. One weekly invoice.
Yes. The Paid Leave for All Workers Act applies based on where the employee performs work, not where your company is headquartered. If you have even one employee working in Illinois — including remotely from an Illinois address — you must provide 40 hours of paid leave per year that can be used for any reason. WorkGenius tracks accrual, usage, and carryover automatically for every Illinois employee.
Traditional paid sick leave laws restrict usage to illness, injury, or caregiving situations. Illinois's Paid Leave for All Workers Act is broader — employees can use their 40 hours of leave for any reason at all, without providing medical documentation or a specific explanation. Employers cannot require documentation for PLAWA leave. Chicago's Paid Sick and Safe Leave Ordinance provides additional sick leave on top of this.
Both laws require written contracts for freelance engagements above a dollar threshold, mandate timely payment, and prohibit retaliation. The key difference is the threshold: New York's law applies to engagements valued at $800 or more; Illinois's law applies at $250 or more — a much lower bar that catches more engagements. Both laws apply based on where the worker is located, not where your company is based.
It depends on the employee's compensation. Illinois bans non-competes entirely for employees earning under $75,000 per year. For employees earning between $75,000 and $247,500, non-competes are permitted but must be supported by adequate consideration (at least 2 weeks of advance notice before termination if tied to termination, or some other benefit). For employees above $247,500, courts apply a reasonableness standard. WorkGenius drafts agreements that comply with Illinois's income-tiered approach.
Illinois has a statewide minimum wage of $15.00 per hour as of January 2025. Chicago has its own higher minimum: $16.20 per hour in 2025, with annual increases tied to the Consumer Price Index. Cook County (outside Chicago) follows the Illinois state rate. WorkGenius automatically applies the correct minimum wage based on each employee's work location.
Yes. Unlike Texas, Illinois requires all employers to carry workers' compensation insurance as soon as they have one employee. There are no exceptions for small employers. The Illinois Workers' Compensation Act is strictly enforced — operating without required coverage can result in civil and criminal penalties, including stop-work orders. WorkGenius obtains and maintains workers' comp coverage as part of the EOR arrangement.
WorkGenius handles AB5 classification, California payroll, benefits, and every other compliance requirement so you don't have to. Get started today.
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