Illinois Employer Checklist
We’ve got you covered on the payroll end. Please read carefully the following resources and information to help keep you in compliance with other IL laws.
If your employee works for a total of 40 or more hours per week for a period of 13 or more weeks during a calendar year, you are required to maintain workers’ compensation insurance coverage. This insurance covers on-the-job injuries and illness, and is not a tax. You may obtain coverage by contacting your homeowner’s or renter’s insurance company. Consider electing coverage even if not required.
Federal law requires that all employers request this form to be completed by the prospective employee. Don’t submit it to anyone, just keep it with your employer records in case of an audit.
I-9 form: https://www.uscis.gov/i-9
W-4 form: https://www.irs.gov/pub/irs-pdf/fw4.pdf
To be sure your employee doesn’t get an unexpected tax bill, or have too much withheld, have them complete a W-4 form when they are hired, or anytime they experience a change in their withholding requirements (marriage, birth of child, additional income, etc.). You can update your employee’s profile in the Nest Payroll app at anytime during the year.
Please provide the following required posters to your employee:
Victims' Economic Security and Safety Act (VESSA)
Cook County Min Wage Ordinance: Required Poster
Chicago: Required Poster
Please see this resource if there are other posters that may apply to your employee: Illinois Posters Resource
Having an agreement reduces awkwardness and misunderstandings, especially as things come up you just didn’t anticipate. If you don’t have an agreement with your employee, you can download this one and modify for your situation. This one is for a nanny, but you can easily change out the role of the employee, such as for a housekeeper or caregiver, making it work for you.
Additionally, Hand In Hand, a non-profit we love that supports domestic employers + employees, is a great resource for tackling all sorts of challenges that come with household employment, creating a more dignified and respectful workplace for all. Please consider taking their Fair Care Pledge, plus take advantage of their excellent and free sample contracts and guide books.
PAID TIME OFF: STARTING JANUARY 2024, REQUIRED BY LAW FOR ALL EMPLOYEES IN ILLINOIS
Paid time off to be used for any reason. Paid leave shall accrue at the rate of one hour for every 40 hours worked or up to 40 hours of paid leave during a 12-month period.
PAID SICK TIME: REQUIRED BY LAW IN COOK COUNTY AND CHICAGO
Any Chicago employee who works at least 80 hours within any 120-day period is eligible for paid sick leave. Employees begin to accrue paid sick leave on the first calendar day after they begin their employment.
For every 40 hours worked, employees accrue one hour of paid sick leave, up to 40 hours per year. This time can be offered upfront, or can be accrued at a rate of 1 hour for every 40 hours worked. Paid sick time can be entered in the Nest Payroll app when creating a paycheck.
Details: Chicago Paid Sick Leave and Cook County Sick Leave
Update: Starting January 2024, all Illinois employees: Paid time off to be used for any reason. Paid leave shall accrue at the rate of one hour for every 40 hours worked or up to 40 hours of paid leave during a 12-month period.
https://www.illinois.gov/news/press-release.26164.html
ONE DAY OF REST
The “One Day of Rest in Seven” Act requires domestic workers who work more than 20 hours a week for one employer one full, 24 hour day of rest in a 7 day work week. If a worker chooses to work on their day of rest, they are entitled to compensation at the overtime rate.
Details: One Day of Rest
VACATION TIME or PAID TIME OFF: NOT REQUIRED
Paid vacation time is not required, but it could be an important benefit to offer. Vacation/PTO hours can be setup at the beginning of employment and, when taken, simply entered in the Nest Payroll app when creating a paycheck.
MINIMUM WAGE: REQUIRED BY LAW
All household employees are classified as hourly (non-exempt) and are subject to minimum wage protections. To check if your city has a higher minimum wage requirement than the state, see the following:
IL Dept. of Labor- Minimum Wage
The Economic Policy Institute - Minimum Wage Tracker
When you add an employee to the Nest Payroll app, the minimum wage for your city should pop up.
OVERTIME: REQUIRED BY LAW
Overtime of 1.5x the hourly rate for any hours worked over 40 in a week. Overtime is not required for live-in employees.
Details: U.S. Dept. of Labor - Overtime
The information provided on this page is general in nature. This is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult an attorney or financial advisor for your specific situation.