The Illinois Department of Labor has published guidance on the Paid Leave for All Workers Act which requires employers to provide employees with up to 40 hours of paid leave that they may use for any reason. The law takes effect Jan. 1, 2024.

The details

Provided in the form of answers to frequently asked questions , the guidance is intended to clarify and highlight various aspects of the law and is being updated periodically. Here are some key takeaways from the current version of the guidance.

• Both full-time and part-time workers are covered by the law.
  
  

·       The law does not apply to employers covered by municipal or county ordinances in effect on January 1, 2024, that provide for paid leave or paid sick leave. However, The FAQs clarify that employers located in jurisdictions (e.g., municipalities in Cook County) that have opted out of a local paid leave law or ordinance are required to comply with the law.  

·       Accrual begins upon starting employment or Jan.  1, 2024, whichever is later.

·       Employees are entitled to begin using the paid leave under the law 90 days following commencement of their employment or March 31, 2024, whichever is later.

·       An employer may only make an employee repay borrowed accrued leave if it is disclosed in the employer’s written paid leave policy and the employee agrees to that policy in writing prior to taking any leave. All payroll deductions must comply with the requirements of the Illinois Wage Payment and Collection Act.

·       The law doesn’t require payout of unused leave unless the leave is credited to the employee’s paid time off bank or employee vacation account; however, employers should additionally consider their vacation payout obligations under the Illinois Wage Payment and Collection Act.

Employers Currently Providing Paid Time Off

For employers currently providing paid time off the FAQs also include the following guidance:

3. My employer already provides paid time off. Do they have to add another 40 hours of leave under the Act?

An employer who already offers paid leave benefits that meet the minimum requirements of the Act does not have to add additional time.

12. Does an unlimited PTO Policy comply with the Act?

To determine whether a specific employer’s unlimited PTO policy is compliant with this Act would require a fact-specific analysis upon complaint or formal investigation. One factor the Department would consider in such analysis would be whether the employee in question did, or had the ability to, freely take the full 40 hours in a year, consistent with the Act and the Rules.  Another factor would be whether the employees were paid their normal rate of pay for time they took off. This is not an exhaustive list of factors the Department may consider.

Next steps

• Read the guidance in full .
• Consult with Legal counsel as needed to determine if existing paid time off policies satisfy the requirements. 
• Prepare to comply with the law by Jan. 1, 2024.
  
  

Please contact your ADP Service Representative with any questions.