An Illinois employment contract is used to hire a new employee and establish their role, responsibilities, and compensation. The agreement should also stipulate if the employee is entitled to any benefits, vacation time, and personal leave. If the employer will compensate for out-of-pocket expenses, or if the hiree will be presented with an ownership stake in the company, the contract can be used to detail these terms as well.
Some companies provide specialized training to their employees, divulging valuable trade secrets in the process. If the employer wishes to protect these secrets from competitors, they may require that the employee agrees to the non-compete and confidentiality clauses in this document. Before signing, the hiree should ensure they understand the agreement’s provisions fully.
Independent Contractor Agreement – Used by a freelancer and a client to establish a working relationship.
Subcontractor Agreement – General contractors use this contract to hire workers to help complete specific tasks on a project.
- Labor Statutes: Chapter 820 (Employment)
- Definition of Employee: 820 ILCS 185
- Minimum Wage: $12/hr (820 ILCS 105/4)
- Overtime: One and a half (1.5) times the employee’s standard wage for a workweek exceeding forty (40) hours (820 ILCS 105/4a(1)).
- Record Keeping: Employers are required to keep accurate employment records for at least three (3) years (820 ILCS 105/8).
Permitted? Yes, at-will employment is permitted in the state, meaning that employees may either quit or be fired at almost any time and for nearly any reason, however, some exceptions apply. For example, an employee may not be terminated for reasons of:
- Discrimination (775 ILCS 5/2-102)
- Exercising their rights under the Child Bereavement Act (820 ILCS 154/20)
- Civil Air Patrol leave (820 ILCS 148/25)
- Exercising their rights under the Family Military Leave Act (820 ILCS 151/25(b))
- Using sick leave benefits (820 ILCS 191/20)
- Filing a complaint under the Occupational Safety and Health Act (820 ILCS 219/110)
- Whistleblowing (740 ILCS 174/15)