Beginning January 1, 2024, Illinois joins Maine, Nevada and Bernalillo County, New Mexico to require up to 40 hours of paid leave that can be used for any purpose.

Employers subject to the law

An employer subject to the law is any employer that employs one or more employees in the state, including state and local governments. Employer does not include the federal government, school districts organized under the School Code or park districts organized under the Park District Code.

NOTE: An employer that is covered by a municipal or county ordinance that is in effect on the effective date of this Act that requires employers to give any form of paid leave to their employees, including paid sick leave or paid leave, is exempt from the requirements of this law. As a reminder, both Chicago and Cook County have paid leave requirements. Be aware, any new local ordinances enacted must, at minimum, meet the requirements of this new Paid Leave for All Workers Act.

Eligible employees

Eligible employee means an individual engaged in employment including domestic workers. Employee does not include an individual under the Railway Labor Act, a student enrolled in and regularly attending

classes in a college or university that is also the student's employer, or a short-term employee who is employed by an institution of higher education for less than 2 consecutive calendar quarters during a calendar year.

Amount of leave

An employee is entitled to accrue one hour of paid leave for every 40 hours worked up to maximum of 40 hours of paid leave during a 12-month period. Accrual begins at the start of employment or the effective date of the law, whichever is later. An employee may use leave 90 days after start of employment or effective date of this law, whichever is later. Alternatively, an employer can frontload 40 hours of leave on the first day of employment or first day of the 12-month period.

Unused accrued leave will carry over annually but is subject to a cap of 40 hours. An employer that chooses to frontload the 40 hours will not be required to carry over unused paid leave and can require an employee to use all paid leave prior to the end of 12-month period or lose it.

An employer is not required to pay out unused paid leave upon separation from employment. If an employee is rehired within 12 months with the same employer, unused paid leave shall be restored.

Use of leave

Paid leave can be taken upon the oral or written request of an employee in accordance with the employer's reasonable paid leave policy notification requirements. An employer may require advance notice of up to 7 calendar days for foreseeable leave. If the leave is not foreseeable, employees must provide notice as soon as practicable. An employee is not required to provide documentation or certification as proof or in support of the leave.

Job protection

Health coverage must be continued during a period of leave. The employer can advise the employee that the employee is still responsible for paying the employee's share of the cost of the health care coverage, if any.

Workplace posting and records requirement

An employer shall post and keep posted in a conspicuous place at the workplace a notice (to be prepared by the IL Department of Labor) summarizing the requirements of the law. The notice may be included in an employee manual or policy if the employer has one. Employers that have workforces comprised of a significant portion of workers who do not read English will be required to request a notice from the IL Department of Labor in the appropriate language

An employer shall create and preserve records documenting hours worked, paid leave accrued and taken, and remaining paid leave balance for each employee for a period of not less than 3 years.

Enforcement and penalties

The Illinois Department of Labor is responsible for administering and enforcing the Paid Leave for All Workers Act. An employer that violates this law or any rule adopted under this law shall be subject to a civil penalty of $2,500 for each separate offense.

The information contained in this Benefit Beat is not intended to be legal, accounting, or other professional advice, nor are these comments directed to specific situations. This information is provided as general guidance and may be affected by changes in law or regulation. This information is not intended to replace or substitute for accounting or other professional advice. You must consult your own attorney or tax advisor for assistance in specific situations. This information is provided as-is, with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.