Illinois Finalizes Regulations Governing Paid Leave for All Workers Act

APPLIES TO

All Employers with Employees in IL

EFFECTIVE

April 30, 2024

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Quick Look

  • The Illinois Paid Leave for All Workers Act (IPLAWA) went into effect on January 1, 2024.
  • The IDOL has now published final regulations interpreting the law, including a number of examples intended to clarify the meaning and impact of the final rules.

Discussion

The Illinois Department of Labor (IDOL) recently published final regulations governing the Illinois Paid Leave for All Workers Act (IPLAWA), which went into effect on January 1, 2024. The final regulations took effect immediately on April 30, 2024. Key aspects of the regulations are summarized below.

 

Accrual of Paid Leave. The IPLAWA requires that employees accrue paid leave at a rate of 1 hour for every 40 hours worked. The final regulations confirmed that the calculation must be made on a fractional basis based on 15-minute work increments, but clarified that “work periods must be counted on a minute-by-minute basis or may be rounded up to the next 15 minutes. An employer may not round down time worked.”

 

Carryover of Paid Leave. The final regulations confirm that a 40-hour cap may be imposed on an employee’s carryover of unused paid leave from one 12-month period to the next. This cap must be stated in the employer’s written policy.

 

Frontloading Paid Leave. Under the regulations, an employer who frontloads paid leave may reduce the frontload grant for part-time employees and mid-year hires at a pro rata amount consistent with the employee’s anticipated work schedule. The final regulations also confirm that employers may simultaneously frontload paid leave for some employees and provide other employees paid leave through an accrual method.

 

Using Paid Leave. Under the IPLAWA, employees can determine how much paid leave they want to use. The final regulations confirm that it is the employee’s choice whether and when to apply paid leave to an absence. In situations where the employee may have multiple types of leave available to cover an absence, the IDOL directs that employers should confirm and document which category of leave the employee wishes to draw from. The final rule contains several example scenarios to illustrate how the IDOL would interpret different circumstances of employee’s use of paid leave.

 

Denying Paid Leave. The final regulations permit employers to deny an employee’s request for paid leave when all of the following conditions are met:

 

  • The employer’s policy for considering leave requests under the Act, including any basis for denial under this Section is disclosed to the employee, in writing, consistent with this Section;
  • The employer’s paid leave policy establishes certain limited circumstances in which paid leave may be denied in order to meet the employer’s operational needs for the requested time period; and
  • As a matter of fact, the employer’s policy is consistently applied to similarly situated employees and does not effectively deny an employee adequate opportunity to use all paid leave time they are entitled to over a 12-month period.

 

Under the final regulations, employers are required to maintain records of all requests by an employee to use paid leave that were denied.

 

Notice Requirements. In addition to those notice requirements set forth in the IPLAWA itself, the final regulations create several other notice obligations for employers:

 

  • Substituting PTO Policy – If an employer chooses to credit IPLAWA paid leave to an existing PTO allowance provided by the employer, this policy must be communicated to employees within 30 days after the date of employment or of the effective date of the policy.
  • Initial Frontloading Notice – Employers who choose to frontload paid leave must give written notice to employees informing employees of how many paid leave hours each employee is receiving on or before the first day of initial employment or on or before the first day of the initial 12-month period.
  • Changes to Employer Policy – If the employer changes its paid leave policy, it must notify employees of the updated paid leave policy as soon as practical.

 

Action Items

  1. Review the final regulations here.
  2. Revise Paid Leave policies and procedures for compliance with final rules.
  3. Have appropriate personnel trained on requirements for Paid Leave.

 


Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase