Paid Leave for All Workers Is Coming to Illinois, Effective January 1, 2024

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Patricia Tsipras

April 3, 2023

On March 13, 2023, Illinois Governor JB Pritzker signed the Paid Leave for All Workers Act (SB208), which will go into effect on January 1, 2024.  The law gives nearly all Illinois workers the ability to earn and use up to 40 hours of paid leave during a 12-month period for any reason.

Excluded workers and employers:  The Act excludes independent contractors and workers employed by school and park districts.  It exempts parties to a collective bargaining agreement, but only if they explicitly waive compliance with the Act.  The Act also exempts employers that are subject to local ordinances that provide for paid sick leave as of January 1, 2024 (e.g., Chicago and Cook County, IL).  Furthermore, the Act will not apply to workers subject to coverage under the federal Railway Labor Act; short-term workers in higher education; enrolled students employed on a temporary basis for a university or college; and workers covered by a collective bargaining agreement in the construction industry or those in the parcel pickup and delivery industry.

Accrual of leave:  Workers will accrue one hour of paid leave for every 40 hours worked.

Use of paid leave:  Workers are entitled to begin using their paid leave 90 days after beginning employment, or March 31, 2024, whichever is later.  They may use paid leave under the Act prior to using other employer-provided or state-required leave.  Workers may use the paid leave for any purpose and are not required to provide a reason or documentation to their employer in support of the leave request.  Nor are workers required to search for or find a replacement worker to cover their leave.

Carryover:  Workers may carry over unused paid leave, but may not “bank” more than 40 hours of leave at any time.

Employer limitations:  Though workers may determine when and how much leave to use, employers may set a reasonable minimum increment of no less than two hours per day.  Employers may require up to seven days’ notice of a worker’s foreseeable leave.  If the need for leave is not foreseeable, workers must provide notice as soon as practicable.

No payout at termination:  The Act does not require employers to pay out unused paid leave upon termination of employment, unless the employer has “credited” the paid leave to a worker’s paid time off or vacation bank.  When an employer has made such credits, then any unused paid leave should be paid to the worker upon termination of employment in accordance with the Illinois Wage Payment and Collection Act.

Notice to workers and record-keeping obligations:  Illinois employers must post a notice to workers in physical or electronic format that summarizes the Act.  Employers also must maintain, for at least three years, records for each worker that show the hours worked, paid leave used, and remaining leave balance.

No retaliation:  The Act expressly prohibits an employer from retaliating against workers who exercise their rights under the Act, oppose conduct that they consider to be in violation of the Act, or support other workers who exercise their rights under the Act.

Enforcement:  Workers may file a complaint with the Illinois Department of Labor within three years of an alleged violation of the Act.  Employers who fail to post the required notice may be fined $500 for the first violation and $1,000 for each subsequent violation.  If the Department of Labor finds that an employer violated the Act in another manner, the employer will be liable to the worker for the amount of underpayment, compensatory damages, and a penalty of $500 to $1,000.  Furthermore, the worker may recover reasonable attorney’s fees and expert witness fees.  Employers also will be subject to a $2,500 civil penalty for each violation (other than a violation of the posting requirement) that will be deposited into the Paid Leave for All Workers Fund, a fund earmarked to enforcement of the Act.

Employer takeaways:  Before the January 1, 2024 effective date, employers should review and update their policies to ensure compliance and train managers on the requirements of the Act.

The author of this article, Patricia Tsipras, is a member of the Bar of Pennsylvania.  This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Pennsylvania, Illinois, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist.  Always consult an attorney with specific legal issues.