On January 10, 2023, the Illinois legislature passed the Paid Leave for All Workers (PLFAW) Act, making Illinois the third state in the country to require private employers to provide earned paid leave to employees to be used for any reason. The Governor has indicated that he will sign the legislation.
The Act will take effect on January 1, 2024 and will provide most Illinois workers with a minimum of 40 hours of paid leave, or a pro rata number of hours, during a designated twelve-month period.
Employers can opt to frontload the leave on the first day of employment or the first day of a designated twelve-month period or use an accrual method. Under the act, leave accrues at the rate of one hour of paid leave for every forty hours worked.
Once the law is enacted, it will permit employees to use the PLFAW Act leave after 90 days on the job, unless the employer allows them to utilize leave earlier. Employees may determine how much leave to use, but employers may set a reasonable minimum of increment of no less than two hours per day.
The law will not require employees to give a reason for taking leave, and employers will not be permitted to require any documentation or certification of the need to take leave. Employers may require up to seven calendar days’ notice of foreseeable leave if they have a written policy provided to employees outlining notice requirements and procedures. If the leave is not foreseeable, employees must provide notice as soon as practicable.
The Act also provides for the following requirements:
- Leave under the law will be paid at the employee’s hourly rate of pay for the hours of paid leave he or she takes.
- Unused accrued PLFAW Act leave will carry over annually, but the employer will not be required to provide more than 40 hours of paid leave for an employee in the designated twelve-month period. Employers that choose to frontload the 40 hours will not be required to carry over unused paid leave to the next twelve-month period.
- The law will require employers to create records documenting hours worked, leave accrued and taken, and remaining paid leave balances. Such records must be maintained for at least three years. Failure to comply with the recordkeeping requirements could result in a penalty of $2,500 per violation.
- The law will require employers to post a notice summarizing the requirements of the act. A violation of the posting requirements would subject employers to a penalty of $500 for the first violation and $1,000 for each subsequent violation.
For more information, please contact compliance@benefitmall.com