Illinois Paid Leave Requirements Are Here

By Kathryn O'Connor, PHR, SHRM-CP, CCP, GRP, Director, Compensation Services
Published January 17, 2023

Last week,  Governor Pritzker made an important announcement regarding the passage of SB208, the Paid Leave for All Workers Act. He shares:

“Every working Illinoisan knows that sometimes unavoidable circumstances prevent you from doing your job. However, for too long we have refused to accept this inevitability and penalized workers for dealing with family emergencies, broken down cars, or any of the other life complications we all face. Now, I’m proud to say that the General Assembly has recognized that struggle and passed a bill guaranteeing five days of paid leave for all employees in our state.” 

As a result of this Act, Illinois employers will have to ensure their employee leave practices meet or exceed the standards of the Act by January 1, 2024.

Who is covered by this Act?
As proposed, most Illinois employers are covered by this act, including the State and units of local government. Employers likely to be excluded include:

• Employers that are currently subject to the Chicago Paid Sick Leave Ordinance or the Cook County Paid Sick Leave Ordinance.
• School districts organized under the School Code.
• Park districts organized under the Park District Code.

Certain employees are also likely to be excluded from coverage under this Act. That list includes certain railway workers, employees working in the construction industry, and student workers employed by their college or university.

Finally, this act is not intended to change the terms of any bona fide collective bargaining agreement in place prior to the effective date of the Act. After the Act takes effect, a union and employer may agree to waive the paid leave provisions, provided the waiver is explicit in the collective bargaining agreement.

What is required under the Paid Leave for All Workers Act?
If the Act is signed and enacted as currently proposed, all Illinois workers, irrespective of their status as full time or part time, are entitled to earn and use up to 40 hours of paid leave time each year starting on January 1, 2024. This paid leave time must accrue at a rate no less than one hour of paid leave time for every 40 hours worked. An employer may choose to load the time up front, as opposed to requiring the employee to accrue the hours. If the hours are front-loaded, no carry-over of the hours is permitted. If employees must accrue their hours, carry-over is permitted, however, under no circumstances may an employee use more than 40 hours in a 12-month period.

In what instances can this paid leave time be used?
This paid leave time can be used for any reason of the employee’s choosing. An employee is not required to provide a reason for the leave and may not be required to provide documentation or certification as proof or in support of the leave. 

Can employers set rules regarding use of leave time?
Employers will likely be able to set some rules regarding use of leave time. As proposed, employers may require employees to wait until April 1, 2024 (or 90 days after hire), before using accrued leave time. Furthermore, employers will be able to set policies requiring the advance notice and approval of leave requests

Is the time paid out upon termination of employment?
No, an employer does not have to pay out the time unless the employer decides to classify the time as vacation or paid time off. In this circumstance, the time would need to be paid out under the Illinois Wage Payment and Collection Act.

What if my organization already offers paid leave time? Do we need to modify our policies and/or offer more paid leave time in order to comply?
Potentially not. Employers who already provide 40 or more hours of paid leave per year (including but not limited to PTO and vacation time) may not be required to make any changes, if employees are allowed to use their paid leave for any reason. 

Where can I find more information?
The full Act can be viewed at ilga.gov. Also, listen to the January 13 WBEZ interview featuring HR Source's Jackie Throop, Director, EngageHR. In this 14-minute segment, Jackie discusses the impact of this new legislation along with Audra Wilson of the Shriver Center on Poverty Law.

In the coming months, we will continue to analyze the Act and provide additional information and advice to assist employers with compliance. HR Source members with questions can contact us through the HR Hotline online or at 800-448-4584.