On January 10, 2023, the Illinois Legislature passed the "Paid Leave for All Workers Act," (PLAW Act) effectively guaranteeing that as of January 1, 2024, with a few exceptions, "an employee who works in Illinois" will be eligible to earn "up to a minimum 40 hours of paid leave" in a 12-month period. With the new law, Illinois will join Maine and Nevada in allowing eligible employees to take time provided or earned under the Act for "any reason." Governor JB Pritzker is expected to sign the bill into law in the near future.
As discussed below, in some cases this law may not require employers to provide additional leave beyond what they already provide. Even where no additional leave is required, some employers—including some employers based outside of Illinois—may need to follow accrual and carry-over rules in the PLAW Act. Indeed, there are several aspects of this law that are potentially subject to differing interpretations and/or appear to be inconsistent with other laws. For now, until the Illinois Department of Labor issues regulations or other guidance, employers should review current leave policies, assess the need for any changes to those policies in time to provide notices as required under state laws, and prepare to implement the PLAW Act's requirements on or before January 1, 2024.
Under the definition of "employer"—which borrows heavily from the Illinois Wage Payment and Collection Act's definition—most companies that have...
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