State of Illinois - Effective January 1, 2024

We highly recommend that employers use/update their current vacation or PTO policies or adopt a PTO or vacation policy prior to January 1, 2024.  That is because employers with vacation or PTO policies adopted prior to January 1, 2024, need not follow any of the new paid leave requirements except for two requirements:  their current vacation or PTO policy must offer at least 40 hours of paid leave in a 12-month period and the employees must be able to use that leave for any reason. 

Scenario 1:  Employers with existing vacation or PTO policies as of January 1, 2024

An employer who has a current vacation or PTO policy (or adopts one prior to 1/1/24), is automatically in compliance with the law, provided the policy satisfies the following 2 requirements:

1. The employer provides at least a TOTAL of 40 hours of paid leave per 12-month period (or, for part-time employees, the equivalent to 1 hour of leave for every 40 hours worked); and
2. The employee is free to take the paid leave for any reason.
   

As long as the employer's policy is in place prior to 1/1/24 and satisfies the above two requirements, the employer does NOT need to follow any other requirements in the new Illinois Paid Leave for All Workers Act.  For example, the employer need not follow requirements 3-11 in Scenario 2 below, as long as the employer adopts a vacation or PTO policy that complies with numbers 1 and 2  in Scenario 2 (which are the same as 1 and 2 above) prior to January 1, 2024. 

Note: Just like all PTO and vacation policies, earned and unused vacation or PTO time must still be paid out at termination.

Scenario 2:  Employers with no vacation or PTO policy as of January 1, 2024

Employers who have not adopted a vacation or PTO policy by January 1, 2024, must create a Paid Leave for All Workers policy ("PLAW") policy. Importantly, the PLAW Leave policy should not be referred to as a vacation or PTO policy.  It should be titled its own separate PLAW Leave policy. The special feature about PLAW Leave is that an employer need not pay out unused hours at termination (as long as the employer does not co-mingle it with any other leave).

To be compliant with the new law, an employer must adopt a PLAW Leave policy consistent with the following:

1. Minimum hours of leave. The employer must provide a minimum of 40 hours of paid leave for full-time workers in a 12-month period (and the equivalent for part-time employees, based on 1 hour of paid leave for every 40 hours worked).
2. Basis for leave.  The employer must allow the employee to take paid leave for any reason.
3. Waiting period for new employees.  An employer may impose a waiting period before new employees are permitted to take PLAW Leave; however, the waiting period may not be longer than 90 calendar days after the start of employment.
4. Documentation.  The employer may not require the employee to provide a reason for the leave and cannot require any documentation as a condition of the leave. 
5. Increments of Use.  An employer may limit the increments of use, but must allow the employees to take PLAW Leave in increments of at least 2 hours or more at a time.
6. Procedure.  An employer may require a maximum of 7 days of advanced notice of the PLAW Leave, but only if the leave is “foreseeable” or anticipated by the employee in advance.  If the leave is “not foreseeable,” the employer may only require the employee to provide notice as soon as practicable.  Further, an employer may only deny PLAW Leave in order to meet its core operational needs as stated in the employer’s policy. 
7. Carryover of PLAW Leave.  Earned but unused PLAW Leave is not required to be carried over to the subsequent 12-month period if the leave is “frontloaded.”  If the employer grants the leave on an accrual basis (instead of a frontloaded basis), the employer must allow the employee to carryover earned but unused PLAW Leave to the next 12-month period, but may cap the carryover to 80 hours. 
8. No Payout Required for PLAW Leave.  An employer does not need to compensate the employee for unused PLAW Leave at separation; however, if the employee returns to employment within 12-months of separation, the unused PLAW Leave must be reinstated.
9. Eligibility for PLAW Leave. All employees are eligible for PLAW Leave, including full-time, part-time, temporary and seasonal. 
10. 12-month period.  PLAW leave is tracked on consecutive 12-month periods. The 12-month period must be identified in the employer’s policy and can start on the employee’s date of hire forward (anniversary year), or can be changed to another 12-month period (such as calendar year), providing there is no loss of benefits and provided the employer provides at least 5 days of prior notice.
11. Cap on Usage.  Employers are permitted to limit the amount of PLAW Leave actually taken per 12-month period to 40 hours. 

Employers creating a PLAW Policy must decide whether to adopt a "frontloading policy" or an "accrual policy."  With a frontloading policy, the employer allots all the 40 hours of PLAW Leave to the employee at the start of the 12-month period. Subject to waiting periods and request procedure that an employer may adopt, the PLAW Leave can then be taken during the 12-month period, and any unused time need not be carried over to the subsequent 12-month period. 

Accrual policies, on the other hand, require employees to accrue PLAW Leave throughout the year (1 hour of PLAW Leave for every 40 hours worked including overtime hours).  With accrual policies, employees may not take the PLAW Leave until it is earned.  Accrual policies require the carryover of up to 80-hours of earned but unused PLAW Leave to the subsequent 12-month period.

SAMPLE PLAW POLICIES

Sample PLAW Accrual Policy:

On January 1st, 2024, or the first day of employment (whichever is later), employees begin accruing PLAW Leave at the rate of 1 hour of PLAW Leave per 40 hours worked (including overtime hours worked), subject to a maximum of 40 hours of PLAW Leave in a 12-month period.  PLAW leave is not personal, sick or vacation leave, and does not constitute PTO.  Unused PLAW Leave is not subject to payout at the end of employment.  Employees do not accrue paid leave when they are on leave or are otherwise off of work.

Waiting Period for New Employees.  New employees may not use PLAW Leave until 90 calendar days following their 1st day of employment. 

Reasons for PLAW Leave.  PLAW Leave may be taken for any reason and employees need not disclose the reason or any supporting documentation for eligibility.

Increments of Use. Employees may take PLAW Leave may not be taken in increments of less than 2 hours.

Procedure.  Employees who intend to take PLAW Leave must notify their supervisor at least seven days in advance where the leave is foreseeable or as soon as possible if the leave is not foreseeable.  The employer may deny the PLAW Leave in order for the Employer to meet its core operational needs for the requested time period.

Carry-over of accrued hours.  Employees may carry over up to 80 hours of earned but unused PLAW Leave to the subsequent 12-month period. 

Limitation on hours used in 12-month period.  Employees are limited to the use of 40 hours of PLAW leave in a 12-month period. 

Reinstatement of PLAW Leave.  If an employee is rehired within 12 months of separation, previously accrued but unused PLAW Leave will be reinstated, and the employee will be able to use PLAW Leave beginning on their first day of re-employment, not after a 90-day waiting period. If an employee is transferred out of state, the employee is entitled to use all accrued but unused Paid Leave at the time of the transfer. 

SAMPLE PLAW Frontloading Policy:

On January 1st, 2024, or the first day of employment (whichever is later), full-time employees earn and are granted the full 40 hours of PLAW Leave, which may be taken throughout the subsequent 12-month period, subject to the requirements below.  On January 1, 2024 (or the first day of employment, whichever is later), part-time, temporary and seasonal workers earn and are granted a pro-rata estimate of PLAW Leave based on the expected work hours for the following 12-month period (with a rate of 1 hour of PLAW Leave for every 40 hours worked).  PLAW Leave is not personal, sick or vacation leave, and does not constitute PTO, and unused PLAW Leave is not subject to payout at the end of employment. 

Waiting Period for New Employees. New employees may not use PLAW Leave until 90 calendar days following their first day of employment. 

Reasons for PLAW Leave.  PLAW Leave may be taken for any reason and employees need not disclose the reason or any supporting documentation for eligibility.

Increments of Use. Employees may take PLAW Leave may not be taken in increments of less than 2 hours.

Procedure.  Employees who intend to take PLAW Leave must notify their supervisor at least seven days in advance where the leave is foreseeable or as soon as possible if the leave is not foreseeable.  The employer may deny the PLAW Leave, but only based on in order for the Employer to meet its core operational needs for the requested time period.

Carry-over of accrued hours.  Employees may carry over up to 80 hours of earned but unused PLAW Leave to the subsequent 12-month period. 

Limitation on hours used in 12-month period.  Employees are limited to the use of 40 hours of PLAW leave in a 12-month period. 

Reinstatement of PLAW Leave.  If an employee is rehired within 12 months, previously accrued but unused Paid Leave will be reinstated, and the employee will be able to use Paid Leave beginning their first day of re-employment, not after a 90-day waiting period. If an employee is transferred out of state, the employee is entitled to use all accrued but unused Paid Leave at the time of the transfer.

Violations. Violations may lead to damages in the form of the actual underpayment, compensatory damages, a penalty of $500-$1,000, equitable relief, attorneys’ fees and other legal costs, as well as a "civil penalty" of up to $2,500 for each separate offense other than a violation of the notice/posting requirements.  For violating the notice/posting requirements, employers are subject to a $500 civil penalty for the first violation and $1,000 civil penalty for each subsequent violation.

Resources:

For more information on PLAW, click here. 

Frequently Asked Questions

Cook County - Effective December 31, 2023

The Cook County legislation aligns with the State of Illinois law as detailed above. Enforcement of Cook County's policy will begin on February 1, 2024. 

The  Cook County Commission on Human Rights  is the enforcement agency for the Cook County Paid Leave Ordinance. Employees who believe their employer is not providing the required hours of paid leave, failing to allow use of paid leave as required by the Ordinance, or is otherwise violating the Ordinance, should contact the Cook County Commission on Human Rights with any questions or to file a complaint. 

Cook County has not provided rules regarding the new Paid Leave Ordinance as of December 21, 2023.  The IRA will provide updated information as it is released. 

Resources:

Cook County Paid Leave Ordinance (12.14.23)

Latest News:

Cook County passes Paid Leave Ordinance, replaces Earned Sick Leave (12.14.23)

City of Chicago - Effective July 1, 2024

The Chicago Paid Leave and Paid Sick and Safe Leave Ordinance will go into effect on July 1, 2024.  On December 20, 2023, the Department of Business Affairs and Consumer Protection (BACP) posted proposed rules. Click here to view the draft rules. Public comment will be taken until February 16, 2024.

You may submit public comment in writing or via email:

1. In writing to:
   Chicago Office of Labor Standards 
   2350 W. Ogden Ave, 1st Floor 
   Chicago, IL 60608 
2. Via e-mail: BACPLaborStandards@cityofchicago.org 

BACP has also published on overview of the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance and FAQs on December 20, 2023.  See the below links.  

Resources:

Chicago Office of Labor Standards: Overview: Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (12.20.23)

Chicago Office of Labor Standards: Paid Leave and Paid Sick and Safe Leave FAQs (12.20.23)

City of Chicago Paid Leave and Paid Sick and Safe Leave Ordinance Amendment (12.13.23) 

City of Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (11.9.23)

Laner Muchin & IRA: What You Need to Know About PTO Webinar Recording (12.14.23)

Statement from Business Groups on Amendments to Chicago Paid Leave Ordinance (12.7.23)

Disclaimer:  The information contained above addressing Paid Leave is provided for informational purposes only. 

Please contact your lawyer if seeking legal advice.