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Monday, May 4, 2026

Illinois Enacts Paid Leave for Any Reason Effective January 1, 2024 - JD Supra

On March 13, 2023, Governor Pritzker signed the Paid Leave for All Workers Act (the “Act”), which requires nearly all Illinois employers to provide employees up to 40 hours of paid leave annually to be used for any reason. The Act’s paid leave requirements will go into effect on January 1, 2024. Illinois is now the third state to require employers to provide paid time off to employees to be used for any reason, following Maine and Nevada.

Under the Act, Illinois employees are eligible to accrue paid leave at the rate of one hour of paid leave for every 40 hours worked up to 40 hours in a 12-month period. Employees who are exempt from the overtime requirements of the Fair Labor Standards Act are deemed to work 40 hours in each work week, unless their regular work week is less than 40 hours, in which case paid leave accrues based on that regular work week. Employees must be paid their hourly rate of pay for paid leave. Employees who earn gratuities or commissions must be paid at least minimum wage in the jurisdiction in which they are employed when paid leave is taken. Employees begin to accrue paid leave when they begin employment, or on the effective date of the Act, whichever is later, but employers may require employees to wait 90 days before using accrued paid leave.

Accrued unused paid leave under the Act carries over annually. However, at no point in time may an employee accrue more than 40 hours. The Act also allows an employer to “frontload” paid leave, which means...



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