PUBLIC POLICY UPDATE:

PAID LEAVE IS NOW THE LAW IN ILLINOIS: WHAT YOU NEED TO KNOW

Governor Pritzker recently signed the Paid Leave for All Workers Act, which will require Illinois employers to provide their employees up to 40 hours of paid leave. This legislation will have a far-reaching impact on the business community across Illinois.

The legislation goes into effect on January 1, 2024. Employers have until then to prepare their policies and procedures for compliance. Read on for general information on how this law may impact your business.

- This act establishes a minimum standard for employers. Employers offering 40 hours of paid leave annually are already in compliance so long as their policy allows employees to take paid leave for any reason at the employee’s discretion. Exemptions include railroads and airlines governed under federal law. Park districts, school districts, college student workers and short-term employees for institutions of higher education who work for less than two consecutive quarters are exempted.

- This legislation will apply to employers regardless of size.

- Employees will earn one (1) hour of paid leave for every 40 hours worked up to a maximum of 40 earned paid leave hours per year.

- Exempt employees are generally considered to have worked 40 hours a week.

- Employees can access the leave earned after 90 days of employment or sooner if an employer allows, but leave accrual begins at the start of employment.

- An employer may provide paid leave in a lump sum to an employee on the first day of employment (or the first day of the 12-month period) rather than utilizing an accrual process.

- An employee’s paid leave will carry over annually, but employers are not required to provide more than 40 hours in a calendar year.

- Employers may set a reasonable minimum increment for paid leave that shall not exceed 2 hours.

- Employers will not be required to pay out unused leave upon the employee’s end of employment, whether voluntarily or involuntarily.

- However, if employers credit the paid leave to a vacation account, any unused leave shall be paid out. An employer’s policy will help determine this.

- Employees may utilize their paid leave for any reason and are not required to provide employers with an explanation. Employees may choose to use this state-mandated paid leave before using any other paid leave that may be available from the employer. Employees may not be required to find a replacement to cover those hours.

- Employees shall provide written or oral requests to use the paid time off. Employers may require an employee to provide seven (7) calendar days’ notice if paid leave is reasonably foreseeable. Unforeseeable use of paid leave may require the employee to provide notice as soon as possible.

- Employers must provide written notice to employees about their paid leave notification requirements. Notices shall be posted in a public space and may be requested in languages other than English.

- Employers shall keep records for at least three years.

- Employers who do not comply may be subject to fines from the Illinois Department of Labor. Penalties can be $2,500 for each separate offense.

As you examine your current policies and create new policies for compliance, the Chamber is here to help answer your questions on the law and connect you with solutions. Please contact Director of Public Policy Madeline Herrman at madelineh@champaigncounty.org.