Calculate your overtime pay in Chicago based on your hourly rate and hours worked, using the federal FLSA 40-hour rule for 2026.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Applicable minimum wage in Chicago: $16.60/hour
Illinois follows the federal Fair Labor Standards Act and the Illinois Minimum Wage Law, both of which require 1.5x the regular rate for hours worked beyond 40 in a workweek. Illinois has no daily overtime requirement.
| Rule | Chicago (IL) Requirement |
|---|---|
| Weekly overtime threshold | 40 hours/week (1.5x) |
| Daily overtime | Not required (no daily overtime in Illinois) |
| Double time | Not required under state or federal law |
| Seventh consecutive day | No special rule |
| Applicable minimum wage | $16.60/hour |
| Federal overtime rate | 1.5x regular rate (FLSA) |
Your overtime rate is based on your regular rate of pay, which includes hourly wages and most non-discretionary bonuses. For example, at $16.60/hour a standard 1.5x overtime hour pays $24.90.
Chicago is the third-largest city in the United States and the economic capital of the Midwest, a global hub for derivatives and futures trading (CME and Cboe), corporate headquarters, rail and air transportation through O'Hare, manufacturing, healthcare, and a fast-growing technology sector.
| Local Metric | Chicago (2026 estimate) |
|---|---|
| Metro population | 2.7 million |
| County / jurisdiction | Cook County |
| Cost of living index (US avg = 100) | 116 |
| MIT living wage, single adult | $22.00/hour |
| MIT living wage, one earner supporting a family of four | $43.00/hour |
| Applicable minimum wage | $16.60/hour |
| Average rent, 1-bedroom | $1,900/month |
| Average rent, 2-bedroom | $2,350/month |
| Median home price | $360,000 |
| Median household income | $71,000/year |
| Combined sales tax rate | 10.25% |
| Effective property tax rate | 1.75% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
In Chicago, Illinois follows the federal Fair Labor Standards Act and the Illinois Minimum Wage Law, both of which require 1.5x the regular rate for hours worked beyond 40 in a workweek. Illinois has no daily overtime requirement. Overtime is based on your regular rate of pay, which includes most non-discretionary bonuses, not just your base hourly wage.
The applicable minimum wage in Chicago is $16.60/hour. The City of Chicago sets its own minimum wage above the Illinois state minimum and raises it each July 1 in line with inflation; surrounding suburbs outside Cook County follow the lower state rate. Overtime must be at least 1.5x your regular rate, and if your rate is higher than the minimum, overtime is figured on your actual rate.
No. Illinois has no daily overtime law, so workers in Chicago earn overtime only after 40 hours in a workweek under the federal FLSA and the Illinois Minimum Wage Law, regardless of how many hours they work in a single day.
Salaried executive, administrative, and professional employees who earn above the FLSA salary threshold ($684/week) and meet the duties tests are generally exempt, as are most independent contractors. Illinois follows the federal exemption rules and salary threshold. Check with an employment attorney for your situation.
Overtime is taxed as ordinary wages. New for 2026, the federal One Big Beautiful Bill Act lets eligible non-exempt workers deduct up to $12,500 ($25,000 for joint filers) of overtime pay from federal taxable income. Illinois taxes overtime as ordinary income at its flat 4.95% rate and has not adopted a matching state deduction. Consult a tax professional to confirm eligibility.