Paid Leave for All Workers Act Is Set to Begin

On March 13, 2023, Gov. Pritzker signed Senate Bill 208, known as the Paid Leave for All Workers Act (the “Act”), which will require covered Illinois employers to provide covered employees up to 40 hours of paid leave per year beginning January 1, 2024. Covered employees will accrue one hour of paid leave for every 40 hours worked. Employers can choose to frontload the 40 hours of paid leave if desired.

Covered employers include all employers with employees in Illinois, including state and local governments and their agencies. School districts organized under the School Code and park districts organized under the Park District Code are not considered covered employers. Interestingly, the Act does not preempt the Cook County and/or Chicago Paid Sick Leave Ordinances; employers subject to those ordinances would not have to comply with the Act at this time.

Employees who work in Illinois are considered covered employees except for certain short-term employees of an institution of higher learning, temporary university student workers, employees defined in the Federal Railroad Unemployment Insurance Act, and certain employees covered by a bona fide collective bargaining agreement in specific industries.

It is important to note that the paid leave under the Act functions as paid time off, so it is to be used for any purpose, and it is not restricted to sick leave or to care for a family member like many other state leave laws require. Employers are expressly prohibited from requiring documentation to support an employee’s leave request.

Employers with employees working in Illinois should be aware of the new law and begin working with employment law counsel to implement any new policies or changes to ensure compliance ahead of the January 1, 2024, deadline. The Illinois Department of Labor may also provide additional information or FAQs for employers as we move closer to the law’s effective date.

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