Employers in Illinois Required to Provide Paid Leave

In less than a year from now, Illinois employers with one or more employees must provide at least forty (40) hours of paid leave on an annual basis. The new law, known as the “Illinois Paid Leave for All Workers Act”, becomes effective January 1, 2024, and will require covered employers to allow covered employees to accrue one hour of paid leave for every 40 hours worked, capped at 40 hours per 12-month work period. Covered employees can start taking paid leave after their 90th day of employment, regardless of other employer-mandated waiting periods.

While the Act is broad, the term “covered” excludes (among others) independent contractors, individuals employed less than full time, employees covered by some union contracts, and employers subject to local paid sick leave ordinances (e.g., Chicago and Cook County). Employers can set a minimum incremental use for the time off not to exceed two hours per day and may require no more than seven (7) days’ advance notice for foreseeable leave.

Unless employers “front load” the required 40 hours on the employee’s first day of employment or the first day of the 12-month period, employees are permitted to carry over up to 40 hours of any unused paid leave, but employers will not have to provide more than 40 hours of paid leave in each 12-month period. Finally, employers will be required to post the requirement of the Act and can obtain compliant posters and notices from the Illinois Department of Labor (IDOT).