Beginning on January 1, 2024, the Illinois Paid Leave Act (PLA) will require Illinois employers with more than 50 employees to provide paid leave to employees, which the employees may use “for any reason of the employee’s choosing.”
Under the PLA, employees accrue one hour of paid leave for every 40 hours worked, up to 40 hours during any 12-month period. Employees that are exempt from overtime requirements are deemed to work 40 hours each workweek unless their regular workweek is less than 40 hours.
Paid leave carries over year each year up to a maximum of 40 hours unless the employer chooses to provide its employees with the minimum amount of paid leave automatically on the first day of employment or the 12-month period. Employers need not pay an employee for paid leave accrued but not used. If an employee is rehired within 12 months of a separation, the employer must reinstate the employee’s previously accrued paid leave, which the employee may use immediately upon rehire.
Employees may begin using paid leave within 90 days of the start of their employment (or March 31, 2024, for existing employees). Employers may set a minimum increment for the use of paid leave of no more than 2 hours per day. The paid leave can be used “for any reason of the employee’s choosing,” the employee is not required to provide documentation in support of the leave, and the employer cannot require the employee to find someone to cover their work as a condition of allowing paid leave.
Employers must maintain records of employees’ accrued and used paid leave for at least 3 years and must provide employees with a written statement of their available paid leave upon request. Employers must also post a notice summarizing the PLA, which will be prepared by the Illinois Department of Labor.
Employers in Illinois should take note of the new requirements under the PLA and must ensure that they comply with the law’s requirements. Employers should also update their policies and procedures to reflect the new requirements and ensure that employees are aware of their rights under the PLA.