Illinois Mandates Paid Leave for All Workers Act
By: Kristine Overacker and Charles Tzinberg
Who does this apply to - All Illinois businesses with 1 or more employees (including domestic workers) even if they have an existing paid time off policy. *
Exceptions - Unions with collective bargaining agreements, out-of-state remote employees, schools, and Park Districts.
When - Effective January 1, 2024
How it's calculated:
Hourly Staff: 1 hour of paid time off for every 40 hours worked up to 40 hours per year.
Overtime Exempt Staff (Salary) is calculated based on 40 hours per week unless that staff member’s normal work week is less than 40 hours, then it is calculated as normal weekly hours.
Commission-based: State minimum wage.
Tipped employees: state regular minimum wage, not the lower tipped minimum wage.
Options for Availability:
Front Load: All employees receive their full annual mandatory paid leave on January 1st of the year and must be used by December 31st of the same year. Employees may begin using the time off after 90 days (new hires have a 90-day waiting period and time is prorated based on when they are hired during the year).
Accrual: Employees start accruing time off based on hours worked starting January 1, 2024. Employees can use accrued time off after the first 90 days of employment or after 3/31/24 if employed on 1/1/24 or before. There is no reset, time accrues continuously, but employers can limit use to 40 hours per year.
IL Mandatory Paid Leave can be used for any purpose without notice or retaliation. Employees may choose whether they are paid leave provided under this act prior to using any other leave provided by employers or state law.
Leave must be used in a minimum of 2 hours increments.
Terminated employees lose accrued Illinois Paid Leave time unless commingled with vacation, so keep it separate.
Employers can require employees to provide 7-day notice if leave is foreseeable. If leave is unforeseeable, employees must provide as much notice as possible. Employers may not inquire about why the employee is using leave under this act.
Employers must provide written notice to employees with Illinois Paid Leave Requirements.
Employers must post the IDOL poster about Illinois Paid Leave
Employers may not retaliate against employees who use IL mandatory Paid Leave, require employees to find someone to cover their shift, or count negatively toward attendance points.
Employers who already offer paid time off can redistribute time off to IL Mandatory Paid Leave, but it should be tracked and reported separately. Employers must inform employees in writing and employees must be clear that the time is being moved not lost.
Employers must maintain records of accrual and use for a minimum of 3 years and make such records available to IDOL upon request.
Businesses that are found to be non-compliant may be fined $2,500 per separate offense. Failing to display the required poster could be $2,500 PER DAY.
*Employers with existing paid time off policies may adjust their existing policy for the addition of this required paid time off. However, employees must be made aware of any changes in writing.