Governor Pritzker has signed into law the recently passed “Paid Leave for All Workers Act” (“PLAWA”), guaranteeing paid time off for virtually all working Illinoisans. Set to go into effect on January 1, 2024, the PLAWA will provide a minimum of 40 hours of paid time off for employees to “maintain their health and well-being, care for their families, or use for any other reason of their choosing.”
Who Is and Is Not Covered
The PLAWA borrows the definitions of “Employee” and “Employer” from the Illinois Wage Payment and Collection Act (“IWPCA”), but adds “domestic workers” to the definition of “Employee” and State and local government to the definition of “Employer.” The definition of “Employer” does not, however, include school districts organized under the School Code or park districts organized under the Park District Code.
Leave Entitlement
Under PLAWA, workers will be entitled to earn and use “up to a minimum of 40 hours” of paid leave during a 12-month period. Leave under the Act accrues at the rate of one hour of paid leave for every 40 hours worked until the employee reaches the greater of 40 hours of paid leave or the maximum set by the employer. Employees begin accruing leave when the Act takes effect on January 1, 2024 or on their first day of employment, whichever is later. Employees who are exempt from overtime requirements under the Fair Labor Standards Act are deemed to work 40 hours each week, unless their regular workweek is less than 40 hours, in which...
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