Chicago, Ill. (February 27, 2023) – Illinois Governor J.B. Pritzker is expected to sign the Illinois Paid Leave for All Workers Act (the Act) into law soon, granting most employees the right to earn 40 hours of paid leave annually beginning January 1, 2024. On January 10, 2023, the Illinois legislature passed the Act, joining Nevada and Maine in requiring paid employee leave for any reason upon either oral or written request.
Under the Act, covered employees, including part-time and temporary workers, will be entitled to earn up to 40 hours of paid leave in a 12-month period, a rate of one hour of leave per 40 hours worked. Employees who work less than 40 hours per week will accrue their paid leave based on their regular workweeks. Employers may choose to cap accrued leave at 40 hours annually, and have the option to frontload the leave each year rather than allow it to accrue. Employers that frontload may require employees to use all their paid leave by the end of the 12-month period or forfeit any remaining time. Employees will be able to take leave after completing 90 days of employment.
The Act excludes specific categories of workers, including those already covered by the Railroad Unemployment Insurance Act or Railway Labor Act and certain higher education employees and independent contractors. It does not apply to public school districts organized under Illinois' School Code or park districts organized under the state's Park District Code. In addition, the Act excludes certain workers covered by a bona fide collective bargaining agreement in the construction and logistics industries.
Notably, the Act applies to all state and local governments, unless such entities offer paid leave pursuant to a municipal or county ordinance that will be in effect by January 1, 2024, and such ordinance provides paid leave greater than or equal to the benefits under the Act.
Affected employers should begin to familiarize themselves with the requirements of the Act and its intersection with other paid time off and leave policies at the local, state, and federal levels.
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