Report highlights variation in worker protections across the state, emphasizes expanding protections to better align state policy with a shifting labor market
Executive Summary
As labor markets have evolved in recent decades, federal laws protecting workers have changed little. The federal minimum wage has remained at $7.25 since 2009, and no federal requirements exist for paid sick leave. Meanwhile, the rise of precarious, part-time, and gig work—now comprising 25–35% of the workforce—has left many workers without benefits, predictability, or job security (Katz & Krueger, 2019). Precarious work disproportionately affects women, racial/ethnic minorities, and those with lower educational attainment, and is associated with poor physical and mental health outcomes (Hajat et al., 2024; Oddo et al., 2021). In the absence of federal action, some states and municipalities have stepped in. This Policy Spotlight discusses actions taken by states and localities to regulate employment practices, with particular attention to the state of Illinois, Cook County, and the city of Chicago.
How does Illinois compare?
As of July 2024, state employment protections nationwide focus primarily on minimum wage (31 states above the federal minimum), paid sick leave (12 states), paid family leave (7 states), and gig worker protections (2 states). Figure 1 shows how Illinois compares.
Figure 1. Number of states with laws providing worker protections, compared to Illinois.
Illinois has made notable progress. The state minimum wage of $14/hour exceeds the federal floor, and Illinois law provides combined sick and family leave at one hour per 40 hours worked (capped at 40 hours/year). Workplace postings must appear in multiple languages. However, Illinois lacks secure scheduling laws and has limited gig worker protections.
Chicago (Cook County) has gone further. The city’s minimum wage is $16.20/hour, and its One Fair Wage ordinance is gradually eliminating the lower tipped minimum wage by 2028. Chicago’s Fair Workweek Ordinance requires employers to post schedules 14 days in advance and compensates workers for last-minute changes. These local policies offer models the state could consider expanding.
What are the implications?
Despite such progress, the gap between minimum wage and living wage for a single adult remains significant across Illinois. As shown in Figure 2, the state’s $14/hour minimum falls short of the living wage needed in most communities—ranging from approximately $17 in downstate counties to over $21 in Cook County.
Figure 2. Living wages for one adult in localities across Illinois.
Note: Generated by authors using the calculator available at https://livingwage.mit.edu/
Workers in precarious and gig arrangements often lack access to benefits that support health and economic stability. Policies like higher minimum wages improve mental health, food security, and reduce illness-related absences (Paul Leigh et al., 2019; Winkler et al., 2025), while secure scheduling enhances sleep, economic security, and well-being (Harknett et al., 2021) and paid leave bolsters family health at minimal employer cost (Bartel et al., 2023). As gig work continues to grow, Illinois has opportunities to strengthen protections for this expanding workforce segment.
Policy Options for Illinois
This policy brief outlines four strategic pathways for strengthening worker protections in Illinois.
- Minimum Wage. Evaluate whether the state minimum wage meets living-wage thresholds. Consider expanding Chicago’s One Fair Wage ordinance—which eliminates the tipped minimum wage—statewide.
- Secure Scheduling. Adopt statewide scheduling protections modeled on Chicago’s Fair Workweek Ordinance, requiring advance notice of schedules and compensation for last-minute changes.
- Paid Leave. Expand the state’s Paid Leave for All Workers Act beyond the current 40-hour annual cap to better support workers managing illness and family responsibilities.
- Gig Workers. Evaluate the impact of the Freelance Worker Protection Act on workforce conditions and economic growth and consider additional protections for gig workers.
What’s Next?
Illinois and its largest county and city have enacted worker protections, including a state minimum wage above the federal $7.25/hour, combined sick and family leave (one hour earned per 40 hours worked, capped at 40 hours/year), and multilingual workplace postings of employment rights. In the absence of additional federal standards, states and localities have implemented such measures. As the gig economy grows, Illinois faces decisions about extending these protections to its expanding low-wage contract workforce.
