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EMPLOYER ALERT: Paid Leave Law on the Horizon in Illinois

UPDATE: On Monday, March 13, 2023, Governor Pritzker signed the Paid Leave for All Workers Act into law.

Earlier this year, a bill passed both houses of the Illinois legislature that—once signed by Governor JB Pritzker—will require almost all employers in Illinois to provide paid leave to employees.  The law will be known as the “Paid Leave for All Workers Act.”  One day after the bill passed, Governor Pritzker issued a statement in support of it, signaling that it is only a matter of time before it becomes law.

Once signed, the new law will introduce significant changes to workplaces across the state starting on January 1, 2024.  Under the new law, nearly all Illinois employers will be required to provide up to forty (40) hours of paid leave per year “for any purpose.” 

The law will contain detailed rules and requirements regarding accrual of leave and how and when it may be used.  For example, employees will accrue one (1) hour of paid leave for every forty (40) hours worked and may carry over paid leave from one year to the next.  But employees may not use their paid leave until they have completed ninety (90) days of employment.  The law contains additional provisions on notice, recordkeeping, and other requirements, as well as broad prohibitions on retaliation and discrimination.

Additional guidance on the ins and outs of this new law is expected to come from the Illinois Department of Labor before the law takes effect next year.  However, the bill itself is fairly detailed, so it would be wise for Illinois employers to start planning on how this new law will impact their policies and procedures.

Do not hesitate to contact a member of our Labor & Employment Team at Sandberg Phoenix to discuss this upcoming law and how it will impact your business.

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