The Paid Leave for All Workers Act takes effect on January 1, 2024, potentially impacting Illinois employers significantly. Key points include:

The Act applies to:

• Part-time and full-time employees.
• Private employers.
• State and local government and agencies are covered (with exceptions – municipal employers should speak with an attorney regarding the details of the new PTO law before January 1, 2024).
• Exemptions include certain school and park districts, certain students, some construction industry workers under specific conditions, and independent contractors who meet the Department of Labor exemption test.

Existing Policies and CBAs:

• Employers with policies meeting the Act’s minimum (at least 40 hours) need no modifications.
• Collective Bargaining Agreements (CBAs) in effect on January 1, 2024, remain unaffected, with explicit waivers required after this date.
• Municipal employers may also be able to comply with the Act by enacting ordinances that will be in effect on January 1, 2024.

Usage and Accrual:

• Employees can use up to 40 hours of paid leave annually for any reason.
• Accrual is at one hour per 40 worked, starting January 1, 2024, or at employment commencement.
• Leave eligibility begins 90 days post-employment or 90 days after January 1, 2024, whichever is later.

Carryover and Front-loading:

• Employees can carry over unused accrued leave.
• Alternatively, employers can front-load 40 hours, and utilize a “use it or lose it” policy.

The Act includes other requirements that may apply to specific employers. Additionally, specific provisions of the Act are still being developed by the Illinois Department of Labor.

If you have questions regarding the new Paid Leave Act, contact Thomas Mamer LLP’s Labor & Employment attorneys for further guidance.