Illinois enacts mandatory paid leave

Illinois is now the third state to require businesses to grant employees paid time off for any reason. According to the bill, which will become law on Jan. 1, 2024, employees will accrue one hour of paid time off for every 40 hours worked, with the ability to accrue up to 40 hours.

Here's what business owners should know about the bill: 

• SB208, aka the Paid Leave for All Workers Act, makes Illinois the third state in the nation to mandate paid time off to be used for any reason.
• Under the law, employees will accrue one hour of paid leave for every 40 hours worked, up to 40 paid leave hours total. Employers may offer more.
• Employees may begin using this paid leave no later than the 90th day of employment. Employers may allow them to use it sooner.
• While the paid leave can be for any reason, employers may require workers to provide notice before taking paid time off.
• If paid time usage is unforeseeable, the employee is to provide notice as soon as is practicable.
• Employers who do not comply could be subject to fines and compensatory damages for affected employees.
• The law exempts seasonal employees, federal employees, college students who work non-full-time/temp jobs for their university, and 1099s.
• The law takes effect on Jan. 1, 2024, meaning that employees may begin using their earned time off for any reason on March 31, 2024.
• Earned paid leave that goes unused carries over year-over-year up to 40 hours.
• Employers are not required to cash out remaining paid leave balances in the event an employee departs.