On January 10, 2023, in one of its first acts of the new legislative session, the Illinois General Assembly passed Senate Bill 208. This Act, known as the Paid Leave for All Workers Act, will require employers to provide paid leave to most workers for any reason, drastically expanding worker leave entitlements in Illinois.

Most importantly for employers, the Act — one of the most expansive leave laws in the nation — contains the following key provisions:

• Employees who work in Illinois are entitled to earn and use at least 40 hours of paid leave for any reason during a 12-month period. Employees must accrue paid leave at a rate of no less than one hour for every 40 hours worked.
• Exempt employees are deemed to work 40 hours a week for paid leave accrual purposes, unless their regular workweek is less than 40 hours (in which case paid leave must accrue based on their regular workweek).
• Alternatively, employers may choose to front load their employees’ paid leave instead of tracking accruals.
• If an employer chooses to front load paid leave, they may adopt a use-it-or-lose-it policy in which the employee must use all paid leave prior to the end of the benefit year or forfeit unused leave. Otherwise, paid leave must carryover year to year.
• While on paid leave, employees must be paid their hourly rate of pay.
• Employees must begin to accrue paid leave at the commencement of employment or on the effective date of the Act, whichever is later.
• Employees are entitled to use paid...

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