The Illinois General Assembly recently passed Senate Bill 208 or the “Paid Leave for All Workers Act.” The Act will take effect on January 1, 2024 and provides that employers provide all employees a minimum of 40 hours of paid leave during a 12-month period. The intent of the Act is to establish a minimum paid leave for workers in Illinois while providing employment security for those requiring paid time off as well as promoting employee health and well-being.
The 40 hours of paid leave are a minimum requirement and do not prevent employers from providing additional paid leave. Under the Act, paid leave shall accrue at a rate of one hour of paid leave per 40 hours worked, and any unused leave is to carry into the following 12-month period.
The 12-month period is permitted to be any consecutive 12 months and is to be set by the employer at the time of hire. Any changes to the 12-month period are to be provided to all employees in writing prior to making any changes and may not reduce the accrual rate or available paid leave to the employee.
The Act permits employers to set a minimum increment of paid leave per day that may not exceed 2 hours. Meaning employers can require that employees use at least two hours of paid leave at any given time. However, employers may not require that employees give reason for taking such leave or to provide documentation related to the leave. Additionally, employers cannot require employees find their own replacement or coverage for hours of paid leave taken. If an employee is paid via commission or gratuities, then the employer shall use the minimum hourly rate within the jurisdiction.
This Act does not affect any collective bargaining agreements previously established and does not apply to employees of the construction industry covered by such agreements. Employees of companies providing national and international services of delivery, pickup and transportation of parcels, documents and freight who are covered by a collective bargaining agreement are also not affected.
If you have any questions or concerns regarding the Paid Leave for All Workers Act or its impact on your business, contact the attorneys at Rock Fusco & Connelly.