Illinois Workers Can Soon Take Up To 40 Hours of Paid Leave “For Any Reason.” What Employers Need to Know About The Paid Leave For All Workers Act.
When Gov. JB Pritzker signed the Paid Leave For All Workers Act (the Act) into law on March 13, 2023, he made Illinois one of only three states that require employers to grant workers paid leave that they can use “for any reason,” not just illness. This statewide paid leave requirement comes in the wake of existing paid leave ordinances in Cook County and the City of Chicago. The interaction of those two ordinances with the new state law is one of several nuances Illinois employers must understand as they prepare to comply with the Act.
Those nuances make it advisable for employers to consult with experienced employment counsel as they review, modify, or establish paid leave policies in light of the Act. But here are some fundamental aspects of the law that can help you get ready for this major change in Illinois employment law.
The Act Covers Almost All Private Illinois Employers
Almost all private employers in Illinois, regardless of size, are subject to the Act, as are state and local governments. Notably, those who employ domestic workers will also need to provide paid leave.
However, the following employers are exempt from the Act’s leave requirements:
- School districts organized under the School Code or park districts organized under the Park District Code.
- Certain railroad employees.
- Temporary college or university student employees.
- Certain short-term employees of an institution of higher learning.
- Employees in the construction industry or who work for a freight, parcel, or document delivery company and are covered by a bona fide collective bargaining agreement (CBA).
Cook County and Chicago Employers Will Not Need To Comply With the Act
Most employers in the City of Chicago and Cook County already have an obligation to provide employees with paid leave under the Chicago Minimum Wage and Paid Sick Leave Ordinance and Cook County Earned Sick Leave Ordinance, respectively.
The Act specifies that it does not apply to employers covered by a “municipal or county ordinance,” such as Chicago’s and Cook County’s, “that requires employers to give any form of paid leave to their employees, including paid sick leave or paid leave.” Accordingly, Cook County and Chicago employers covered by those ordinances will not need to comply with the Act, and such employers do not need to provide employees with an additional 40 hours of paid leave. The Act does apply to employees who are not currently covered by those ordinances.
However, there is a significant chance that both Cook County and Chicago will amend their paid leave ordinances to match the broader “for any reason” rights provided by the Act. Any amendments made after the Act’s effective date “must comply with the requirements of this Act or provide benefits, rights, and remedies that are greater than or equal to the benefits, rights, and remedies” afforded by the Act. Cook County and Chicago employers should prepare for such a possibility.
Amount, Accrual, and Use of Paid Leave
Employees covered under the Act will be entitled to earn and use up to a minimum of 40 hours of paid leave during a 12-month period, which may be any consecutive 12-month period the employer designates in writing at the time of the employee’s hiring.
Employees are eligible to begin taking leave 90 days after their employment begins or 90 days after Jan. 1, 2024, whichever is later. The Act also contains detailed provisions regarding calculating hours, accrual and carry-over, and obligations upon an employee’s termination or departure.
Perhaps the most distinguishing aspect of the Act is that employees can take paid leave “for any reason of the employee's choosing,” not just illness-related reasons. An employee does not have to tell their employer why they are taking leave, and employers cannot require an employee to provide documentation or certification as proof or in support of the leave request.
While an employer can’t ask why an employee is taking paid leave, it can require that an employee provide up to seven calendar days’ notice before taking paid leave if the need for the leave is foreseeable. If an employee’s use of paid leave is not foreseeable, the employee must provide notice as soon as it is practicable. An employer that requires notice of paid leave under this Act when the leave is not foreseeable must provide a written policy that contains procedures for the employee to provide notice.
Notice and Recordkeeping Requirements
The Act requires that employers conspicuously post a notice in the workplace advising employees of their rights under the Act and how to file a complaint alleging non-compliance with its provisions. Employers must also maintain records for at least three years reflecting each employee’s hours worked, the amount of paid leave accrued and taken, and any remaining paid leave balance.
Anti-Retaliation Provisions and Penalties For Violations
As with most employment laws, the Act prohibits retaliation against employees for exercising their rights under the Act or reporting alleged violations.
While the Act does not establish a private cause of action, employers who violate the Act face:
- Civil penalties of $500 for an initial posting violation and $1,000 for each subsequent violation;
- General civil penalties of $2,500 for each violation (other than a posting violation);
- An Illinois Department of Labor complaint initiated by an employee, allowing them to recover for underpayment, compensatory damages, and attorney’s fees and costs, as well as a penalty of $500 to $1,000.
As noted, these are only the broad strokes of the new paid leave law. Employers should consult with an employment law attorney to understand their specific obligations and establish or update their paid leave policies to ensure compliance before the Jan. 1, 2024 effective date.
At Grogan, Hesse & Uditsky, P.C., we focus a substantial part of our practice on providing exceptional legal services for dentists and dental practices, as well as orthodontists, periodontists, endodontists, pediatric dentists, and oral surgeons. We bring unique insights and deep commitment to protecting the interests of dental professionals and their practices and welcome the opportunity to work with you.
Please call us at (630) 833-5533 or contact us online to arrange for your free initial consultation.
Jordan Uditsky, an accomplished businessman and seasoned attorney, combines his experience as a legal counselor and successful entrepreneur to advise dentists and other business owners in the Chicago area. Jordan grew up in a dental family, with his father, grandfather, and sister each owning their own dental practices, and this blend of legal, business, and personal experience provides Jordan with unique insight into his clients’ needs, concerns, and goals.
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