On January 10, 2023, Illinois legislature passed the Paid Leave For All Workers Act (the “Act”), which requires Illinois employers to provide at least 40 hours of paid leave per year to be used for any reason. Governor Pritzker announced that he will sign the Act into law, making it effective on January 1, 2024. This is a major update for Illinois employers and will provide most Illinois employees with paid leave that may be used for any reason. The key provisions of the Act are the following:
Covered Employers
The definition of employer in the Act is borrowed from the Illinois Wage Payment and Collection Act (“IWPCA”). The Act will apply to all private sector employers of all sizes and state and local governments. The Act does not apply to school districts organized under the School Code or park districts organized under the Park District Code.
Covered Employees
The definition of employee under the Act is also borrowed from the IWPCA. The Act applies to all employees, with the exception of: (1) those in the federal Railroad Unemployment Insurance Act and Railway Labor Act; (2) certain student employees; and (3) short-term higher education employees.
Leave Usage
Employees will be able to begin using paid leave either 90 days after the beginning of their employment or 90 days after the effective date of the Act, whichever is later.
Accrual, Frontloading, and Carryover of Leave
Employees will accrue one hour of paid leave for every 40 hours worked, up to 40 hours per year....
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