Chicago contractor licenses, permits and paid leave rules

Illinois leaves most contractor licensing to cities and counties, and Chicago uses that power heavily. The details below are from the city's own offices in October 2026. This is general information and not legal advice. Check fees and forms with the Department of Buildings and the Department of Business Affairs and Consumer Protection (BACP) before you apply.

Which rules are Chicago's and which are the state's

Illinois itself licenses roofers, plumbers and commercial pesticide applicators, as described on our Illinois page and in the Illinois contractor licenses guide. The state also sets the Home Repair and Remodeling Act for jobs over $1,000. Chicago adds licenses on top. A state-licensed plumbing contractor, for example, still must obtain a City of Chicago plumbing contractor license to work inside the city, according to the Department of Buildings.

The general contractor license applies to most permit-triggering work

The Department of Buildings says a Chicago general contractor license is required before you bid, undertake, supervise or control most "regulated activity." That means work that needs a building, sign or demolition permit, work exempt from a permit under section 402 of the construction codes' administrative provisions, work under a stormwater management plan, sewer work needing a Buildings permit, and work needing a Department of Public Health permit for sandblasting, grinding or chemical washing. That last item catches some exterior cleaning and restoration jobs.

Licenses are issued to businesses, including sole proprietorships. The city lists five classes for calendar year 2026:

Insurance must come from an Illinois-authorized insurer rated B+ or better by A.M. Best, and the city says the Class C and D increase to $2 million took effect January 1, 2026, enforced at policy renewal for older licenses. The application asks for a statement of financial solvency, proof you may do business in Illinois, and government ID for the owner or officers. A Chicago license lasts one year and is automatically inactivated if the insurance policy on file expires. Applications and renewals go by mail to Continental Testing Services, which processes them for the city, and a reinstatement costs $100 per year expired. Compare this with the national picture in our contractor license guide.

Who does not need the general contractor license

The city lists several exemptions. Subcontractors working under a licensed general contractor's supervision and control do not need their own. City-licensed board-up companies, drain layers, electrical contractors, elevator mechanic contractors, plumbing contractors and mason contractors do not need it for work within their own license. A person who owns and lives in a building of three stories or fewer with up to six dwelling units, and no nonresidential use, can skip the license for work at that primary residence (excluding excavation and demolition), but only for one property a calendar year. An owner doing work that needs no permit is also exempt.

A painting or HVAC subcontractor under a licensed general contractor generally needs to appear on the permit only if it will schedule inspections with the Department of Buildings.

Home repair businesses carry consumer rules on top of the license

BACP's consumer notice says a home repair business must hold a current Chicago Home Repair or General Contractor license, and that the number is required on business fliers, advertisements and vehicles. The Department of Buildings says a general contractor must comply with the consumer protection requirements for licensed home repair companies on residential work but needs no separate home repair license. BACP's notice lists these customer rights:

• A detailed estimate before work begins.
• Three days to cancel a contract signed at the customer's home, with a Notice of Cancellation form provided.
• A receipt showing your license number, business name, address, phone, and the total cost with parts and materials listed.
• A signed receipt of translation if the job was negotiated in a language other than English.
• The right to see your insurance certificate, which BACP says should cover up to $300,000.
• The Illinois Consumer Rights Brochure, as the state requires.

Put the license number on the truck wrap, the invoice template and the footer of your website. That is also where a customer looks it up.

Electrical and plumbing contractors have their own city licenses

• Electrical. A city electrical contractor license is required to install, alter or maintain wiring regulated by the Chicago Electrical Code, whether or not a permit is needed. The business must employ at least one licensed supervising electrician. The 2026 fee is $150, for both general and low voltage licenses. The license covers employees only, not people paid as independent contractors.
• Plumbing. A plumbing contractor license covers any plumbing piping, system or appliance, including lawn sprinkler systems. The business files a $20,000 performance bond with the City Clerk, and a sole proprietor must be a City-licensed plumber. The 2026 fee is $150.

The department also says the owner or occupant of a single-family residence may do the plumbing there personally, but may not hire anyone other than a licensed plumbing contractor to do it.

When a home job needs a permit

The Department of Buildings' homeowner guide (the edition dated November 2019, so check the current rules) lists common projects. Painting needs no permit. Neither does a shingle roof with a slope of 5-in-12 or steeper on a residential building of up to three dwelling units and three stories, or in-kind replacement of water heaters, boilers, furnaces and AC condensers in a building of that size. Fences up to 5 feet high on private property need no permit; non-brick, non-chain-link fences over 5 and up to 6 feet do. Decks and porches over certain sizes, moved walls, new window openings and plumbing system changes need review.

Small repairs usually go through the Easy Permit Program, which the guide says is generally approved the day you apply, and requires a signed contract with a licensed contractor or trade professional. The same guide says masonry, plumbing and electrical work require a licensed contractor, with an exception for owner-occupants of single-family homes who certify responsibility. The property owner is ultimately responsible for getting the permit, which is why customers ask who will.

DIGGER and the 811 process

The Chicago Department of Transportation says to notify DIGGER (811 or 312-744-7000) not less than 48 hours, exclusive of Saturdays, Sundays and holidays, and no more than 14 calendar days before an excavation starts. Mark the dig area in white paint first when you can. You protect the utility markings, and the city asks you to request refreshed marks no later than 28 calendar days after the last request. Hand excavation is required for 18 inches on either side of a marked facility. Digging fence post holes is digging, so treat it the same way.

Chicago's paid leave and paid sick leave ordinance

This one is easy to miss because it is an employment rule. BACP says every Chicago business must provide paid leave and paid sick leave to employees who work at least 80 hours for an employer in Chicago within any 120-day period. Employees accrue one hour of each for every 35 hours worked, up to 40 hours of each in a 12-month period, and begin accruing the day after they start. Paid leave can be used from the 90th day and paid sick leave from the 30th. Small employers, defined by BACP as 1 to 50 covered employees, owe no payout of unused paid leave at separation. Employers must also post a notice in a conspicuous place at each Chicago facility, with minimum wage, paid leave and wage theft information, and give a notice with the first paycheck. A lawn crew that mows in Evanston and Chicago counts hours only for work inside Chicago limits.

Snow season sets the calendar

At O'Hare, NOAA's 1991 to 2020 normals show 38.4 inches of snow and 37.86 inches of precipitation a year. January highs average 31.6 degrees and lows 18.8, with 11.3 inches of snow in January and 10.7 in February. The normals show no snow from May to September, then 0.2 inches in October, followed by 1.8 inches in November and 7.6 in December. That is a short exterior season, so plowing and salting contracts matter, and so does getting insurance renewed before April.

Putting the Chicago rules on your site and phones

Your city license numbers belong on your website, estimates and trucks. A Chicago customer who calls after hours should reach a line that also states recording clearly: Illinois requires all-party consent, covered in our recording guide. Keep your insurance certificate ready to email on request, since BACP tells customers they may ask for it.

Each of these offices updates its rules on its own schedule, so verify before you act.

Frequently asked questions