Illinois Enacts Mandatory Paid Leave

Recently, the Illinois Governor signed S.B. 208 into law, passing the Paid Leave for All Workers Act (PLFAW) requiring that covered employers establish a leave policy to allow Illinois employees to take paid time off with no need to explain the reason for the absence, as long as they give notice in accordance with reasonable employer standards.  Generally, employees who work in Illinois are now entitled to a minimum of 40 hours paid leave during a 12-month period, to be paid at their hourly rate of pay.  Under the PLFAW paid leave accrues at the rate of one hour per 40 hours worked up to a minimum of 40 hours of paid leave, or a greater amount if the employer provides more than 40 hours of paid leave.

Employers are prohibited from taking or threatening adverse action against an employee because the employee (1) exercises rights or attempts to exercise rights under the Act; (2) opposes practices which the employee believes to be in violation of the Act; or (3) supports the exercise of rights of another under the Act.  However, in the event of an employee separation, the PLFAW does not require that employers pay an employee for paid leave accrued but unused.

The PLFAW goes into effect January 1, 2024.