After a "gut and replace" of Illinois Senate Bill 208 at the beginning of the 2023 legislative session, the Paid Leave for All Workers Act passed both houses of the legislature on Jan. 10. The legislation has been sent to the governor, who said he is looking forward to signing it.

Once signed, beginning Jan. 1, 2024, the legislation would require nearly all covered Illinois employers to provide covered employees up to 40 hours of paid leave per year to be used for any purpose. This would make Illinois the third state with a mandatory paid time off law, following Nevada and Maine.

The legislation applies to all employers in Illinois, including state and local government. It does not, however, cover school districts organized under the School Code or park districts organized under the Park District Code.

The legislation covers all employees, with the following exceptions:

Employees covered under the federal Railroad Unemployment Insurance Act or the Railway Labor Act.

Temporary college or university student-employees.

Certain short-term employees of an institution of higher learning.

Employees working in the construction industry who are covered by a bona fide collective bargaining agreement (CBA).

Employee who are covered by a bona fide CBA with an employer that provides services nationally and internationally of delivery, pickup, and transportation of parcels, documents, and freight.

It does not apply to employees covered by a valid CBA in effect on Jan. 1, 2024....

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