If your company has employees in Illinois, do not forget about Paid Leave for All, which is effective as of January 1, 2024. Under the new law, most employers with one or more employees in Illinois must permit full-time employees to accrue and use a minimum of up to 40 hours of paid leave in a designated 12-month period for any reason. This amount is prorated for employees who work less than 40 hours a week. Paid leave must accrue at a minimum rate of one hour for every 40 hours worked. Employers are required to maintain records of the leave accrued, taken, and remaining for a period of no less than three years. Employers must also provide employees with the amount of leave they have accrued and used upon request.

Under the new law, employers are required to carry over unused leave, unless the leave is front-loaded. Employers can set a minimum usage amount of no less than two hours at a time. Unused time does not need to be paid upon separation, unless the employer provides the required time off as part of a vacation or paid time off policy. Employers may not require that the employee designate the reason for the absence or provide documentation or certification to support the paid leave. In other words, the employee decides when and for what reason they use their available leave. An employer can, however, establish a reasonable notice period in its written policies or procedures.

Employers who have a collective bargaining agreement in effect as of January 1, 2024, are not required to modify the agreement. When negotiating a new agreement, such employers can waive the Paid Leave for All requirements if the waiver is stated clearly and unambiguously in the new agreement.

The new law is not appliable in cities or counties where paid leave or paid sick leave is already required. Many employers may also use their current policies to comply with the new law, if they already provide 40 or more hours of paid time off that can be used for any reason. The law does not require such employers to create new policies. We are finding, however, that some employers exclude part-time employees from their current policies. As a result, those employers may need to implement a separate paid leave policy to comply with Illinois law as of January 1, 2024. Employees must be permitted to use Paid Leave for All starting 90 days after the law is effective or 90 days after they are hired, whichever is later.

We encourage you to look at your policies, if you have not done so already, and take steps to comply with the new law, as needed. If you have questions, please contact Tami A. Earnhart or any other member of our Workplace Solutions Group.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.