Illinois PEO Law FAQs
Does Illinois have a PEO-specific statute?
No. Illinois does not have a specific PEO registration or licensing statute. PEOs operating in the state must follow general business and employment law requirements.
What is Illinois's unemployment insurance (SUI) taxable wage base?
Illinois's SUI taxable wage base is $14,250 for 2026, up from $13,916 in 2025. The new-employer rate is 3.350% for most employers who became liable on or after January 1, 2024, and 3.450% for employers in NAICS sector 56 (administrative support and waste management), both including the 0.550% Fund Building Rate.
Is workers' compensation mandatory in Illinois?
Yes. Illinois requires employers to carry private workers' compensation insurance. The state does not operate a public workers' compensation fund.
Does Illinois require paid leave?
Yes. Illinois has a statewide paid leave mandate requiring employers to provide at least 40 hours of paid leave per year. This applies to most employees.
What is the minimum wage in Illinois?
Illinois's minimum wage is $15.00 per hour, which is above the federal minimum wage.