Seyfarth Synopsis: A bill that would provide paid leave for all workers in Illinois is awaiting Governor Pritzker’s signature. If signed into law, the bill would provide up to 40 hours of paid leave for eligible employees, effective January 1, 2024.

On January 10, 2023, the Paid Leave for All Workers Act (the “Act”), S.B. 208, passed both chambers in the Illinois Legislature, mere days into the new legislative session. If signed into law, the Act will require all employers in Illinois to provide up to 40 hours of paid leave per year to their workers, to be used for any reason. Illinois would join Maine and Nevada as the only states with such a mandate. This will make Illinois the seventeenth state to enact a statewide paid sick leave or general paid leave mandate. Governor Pritzker has publicly expressed his support for the measure and has said he will sign the Act. The new statewide law would go into effect on January 1, 2024.

Here are the key highlights of the Act:

• Employer coverage: Employer coverage under the Act is broad. The definition of an employer is borrowed from Illinois’ Wage Payment and Collection Act and includes any individual, partnership, association, corporation, limited liability company, business trust, employment and labor placement agencies where wage payments are made directly or indirectly by the agency or business for work undertaken by employees under hire to a third party pursuant to a contract between the business or agency with the third...

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