Governor J.B. Pritzker has indicated he intends to sign the Illinois Paid Leave for All Workers Act that passed both houses of the legislature on January 10, 2023. The Act will entitle covered employees to earn and use up to 40 hours of paid leave in each 12-month period of their employment and go into effect on January 1, 2024.
Unlike the existing Cook County and Chicago ordinances that mandate paid sick leave, the Act will entitle covered employees to use paid leave for any reason at all.
Who is a covered employer and employee?
The Act applies to all employers in Illinois, including individuals and partnerships, units of state and local government, as well as government agencies. It does not apply to public school districts organized under the School Code or park districts organized under the Park District Code.
The Act applies to all employees working in Illinois, with limited exceptions. For example, certain railroad employees, as well as short-term employees of an institution of higher learning, are not covered under the Act.
How much paid leave is required to be accrued, carried over, or frontloaded?
Under the Act, employees accrue one hour of paid leave for every 40 hours of work. Employers are permitted to cap accrued leave at 40 hours annually. Employers have the option of frontloading the leave annually in lieu of an accrual system.
Employers must pay employees their normal hourly rate for paid leave. Employees whose normal compensation includes...
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