On March 13, 2023, Illinois Governor J.B. Pritzker signed the Paid Leave for All Workers Act (PLFAW Act), which requires Illinois employers to provide covered employees up to 40 hours of annual paid time off beginning January 1, 2024. Championed by supporters as requiring employer-provided paid time off for any reason, Illinois becomes just the third state with a mandatory paid leave law, joining Nevada and Maine. The Illinois Legislature also is considering additional new employer obligations.

What Is the PLFAW Act?

Under the new law, covered employees accrue one hour of paid leave for every 40 hours worked, for up to a total of 40 hours earned in any designated 12-month period. Employers may also satisfy the paid time off requirement by granting, or "frontloading," all 40 hours of paid leave at the beginning of the designated benefit year. Employees must be permitted to carry over up to 40 hours of unused paid leave to the next benefit year, except where an employer frontloads the full 40 hours.

Coverage

The PLFAW Act applies to nearly all private employers and their employees in Illinois, regardless of size. It does not apply to:

• School district or park district employers;
• Students employed on a temporary, part-time basis by the college or university in which they are enrolled;
• Certain short-term employees of higher education institutions;
• Employees covered by collective bargaining agreements in the construction or national or international delivery or transportation...

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