All Employers with IL Employees
January 1, 2024
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The Illinois Paid Leave for All Workers Act (PLFAW) will provide almost all Illinois employees with the ability to take paid leave for any reason. The bill has not yet been signed but the Governor has indicated he will do so.
Accrual and Frontloading. Employees can accrue a minimum of 40 hours of paid leave during a designated 12-month period. Leave accrues at the rate of one hour for every 40 hours worked. Employers can also choose to frontload the leave on the first day of employment or the first day of a designated twelve-month period.
Carryover. Unused accrued leave will carryover but there is no requirement to provide more than 40 hours of paid leave in a designated twelve-month period. If employers are frontloading leave, there is no requirement to carry over unused leave.
Eligibility and Use. Employees cannot use paid leave until they have completed 90 calendar days of employment or March 31, 2024, whichever is later. Employers are also permitted to set a reasonable minimum increment in which leave can be taken of no less than two hours per day.
Qualifying Reasons. Employees do not have to provide a reason for taking leave. Employers also are not allowed to require documentation or certification of the need to take leave.
Documentation and Notice. Employers can require up to 7 days’ notice of foreseeable leave if there is a written policy in place outlining the notice requirements. Leave that is not foreseeable only requires notice as soon as practicable. A notice to post and distribute to employees will be provided by the Illinois Department of Labor.
Rate of Pay. Pay will be at the employee’s regular hourly rate of pay for the hours leave is taken.
End of Employment. Employers do not have to pay employees for unused paid leave time at the end of employment unless the employer has a more generous paid time off policy. If a vacation bank is used to comply, then the employer will be required to paid out unused leave upon the end of employment in accordance with the Illinois Wage Payment and Collection Act. Unused time must be reinstated if an employee is rehired within 12 months.
Chicago and Cook County Paid Sick Leave. The PLFAW does not preempt Chicago Minimum Wage and PSL Ordinance or the Cook County ESL Ordinance. It simply does not apply to an employer that is covered by either.
Collective Bargaining Agreements. The law applies to all employees but there are exceptions including for certain circumstances involving employees covered by a CBA: 1) employees in the construction industry who are covered by a bona fide CBA are not covered by the PLFAW; 2) employees who are covered by a bona fide CBA with an employer that provides services nationally and internationally of delivery, pickup, and transportation of parcels, documents, and freight are not covered by the PLFAW; and 3) employees who are covered by a valid CBA in effect on January 1, 2024 are not covered by the PLFAW. After January 1, 2024, PLFAW requirements can be waived in a bona fide CBA if the waiver is set forth explicitly in clear and unambiguous terms.
- Review the PLFAW Act here.
- Prepare to update leave policies.
- Update payroll procedures for accrual of leave.
- Have appropriate personnel trained on the requirements.
- Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.
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. © 2023 ManagEase