This month’s blog entry will be the first in a series of entries focusing on the ever-changing landscape of labor law in Illinois as it pertains to vacation pay, sick pay, and other paid time off to employees. For today, I will discuss the State of Illinois legislation entitled the Illinois Paid Leave for All Act.
The Illinois Paid Leave for All Act (“Illinois Act”) was enacted to establish a minimum paid time off (“PTO”) standard for all workers in Illinois. 820 ILCS 192/5(b)(1). The effective date of the Illinois Act was January 1, 2024. Subsequent thereto, effective July 1, 2024, the City of Chicago enacted the Chicago Paid Leave And Paid Sick and Safe Leave Ordinance (“Chicago Act”). The Chicago Act actually shortened the PTO accrual period for employees in the City of Chicago and added a calculation for the issuance of “sick” leave hours. MCC Ch. 6-130. The Chicago Act will be discussed in a subsequent article.
Under the Illinois Act, all categories of employees are covered unless exempted. Most remote workers are covered as well, except for independent contractors. The most common exempt employees are those in the “construction industry”, covered by a Collective Bargaining Agreement or covered by a pre-existing PTO policy. Under the Illinois Act, an employee accrues (1) hour for every 40 hours worked. An employee is then eligible to take leave 90 days after employment or 90 days after January 1, 2024. In terms of pay, employees shall be paid the hourly rate or full minimum wage if gratuities/commissions.
The Illinois Act also allows employers to enact reasonable attendance policies that are in compliance with the Act. 820 ILCS 192/5(b)(1). Under the Illinois Act, if an employee seeks paid leave for something foreseeable, an employer can require employees to give a maximum of seven days’ notice. If the employee seeks leave for something unforeseeable, an employer can require employees to provide notice as soon as practically possible after the employee is aware of the necessity of the leave.
