Our friends in Illinois have passed the Paid Leave for All Workers Act.  It’s effective January 1^st, and it’s a big deal change for the Prairie State.

The Paid Leave Act requires nearly all employers to provide up to 40 hours of paid leave per year, that can be used for any reason.  That’s right – the bill actually says the words ‘to maintain their health and well-being, care for their families, or use for any other reason of their choosing’.  In fact, it makes Illinois only the 3^rd state in the nation to mandate paid time off to be used for any reason.

Now in the past employees could take time off for sick leave etc., but that time wasn’t required to be paid.  That is except in specific jurisdictions, like the city of Chicago and Cook County, which has their own Paid Sick Leave laws.  And in fact, if an employer is covered by those laws, they are exempted from this one.

So, here are the details:

• as I mentioned earlier, employees can use it for any reason of their choosing
• the time will be accrued at a minimum of 1 hour of paid leave for every 40 ours worked up to a maximum of 40 hours of leave every 12 months period
• employees can take the leave after they have 90 days of employment with their employer, or 90 days after January 1^st – whichever is later.
• Employers can set a minimum leave increment 2 hours per day (meaning that your employee can’t use 1 hour at a time, they have to take at least 2 hours for each leave event in a day.
• like with most rules around mandatory paid leave, the company has the option of using the accrual method, or front-loading all the time at the beginning of the year.
• Now – if you use the accrual method, you have to allow the employee to carry over unused leave from one 12 month period to the next. But if you opt for front loading, you don’t’ have to allow carryover; and you can enforce a use it or lose it policy.
• And, generally speaking you aren’t required to pay out unused time at termination
• There’s a poster notice, and you have to include it in the handbook (if you have one)
• Of course you have to keep records (at least for 3 years)