Ask Jade June 2025 - Bringing on Your First Employee

Hiring Your First Employee? Don’t Skip These Legal Must-Haves
Essential Legal Policies for New Employers in Illinois

Bringing on your first employee is an exciting milestone—but it’s also one packed with legal responsibilities. If you’re not sure where to begin or what’s legally required, you’re not alone. The rules around employment are complex and constantly evolving. That’s why it’s critical to get it right from the start—and why I always recommend consulting with an attorney.

Here are the key legal basics every Illinois employer should know before hiring:

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🧾 Employee or Independent Contractor?

Before anything else, determine the nature of your working relationship. Are you hiring an employee or contracting an independent contractor? The control test is essential here—if you control how the work is done (not just what gets done), you’re likely hiring an employee. Misclassification can lead to major penalties, so be sure this step is crystal clear.

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✅ Legal Checklist to Get Started

• Get an EIN (Employer Identification Number) from the IRS.
• In Illinois, the minimum wage is $15/hour as of 2025.
• You must carry unemployment insurance and workers’ compensation insurance.
• Employers are required to keep records of employee pay stubs for at least 3 years.
• Under the Paid Leave for All Workers Act, employees must earn at least 1 hour of paid time off for every 40 hours worked.
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💼 Policies That Protect You and Your Team

• Nondiscrimination: Treat all employees equally—this isn’t just good practice, it’s the law.
• Pay Transparency: If you have 15 or more employees, the Illinois Equal Pay Act requires you to disclose pay scales and benefits in every job posting.
• Required Posters: The State of Illinois mandates that specific labor law posters be displayed in your workplace. You can find the full list here:
  Illinois Required Posters & Disclosures

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✍️ Don’t Forget the Employment Agreement

Always have a written employment agreement in place that outlines the scope of work, expectations, compensation, and legal rights. This protects you and creates clarity for your employee.

Hiring your first employee should feel exciting—not overwhelming. But with all the regulations, recordkeeping requirements, and changing state laws, it’s easy to miss a critical detail. That’s where I come in. I can help you stay compliant, avoid costly mistakes, and build a strong foundation for growth.

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📩 Have questions about hiring or employment law? Reach out—I’m here to help!

— Jade Carpenter, Attorney at Law | WESOS Platinum Sponsor

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