Lunch & Learn - Paid Leave for Workers Act Explained

Effective January 1, 2024
March 14, 2023
Illinois Governor JB Pritzker signed SB208, also known as the Paid Leave for All Workers Act, on March 13, 2023. Effective January 1, 2024, covered employees will be able to earn and use up to 40 hours of paid leave during a 12-month period “for any purpose” of the employee’s choosing.
EMPLOYER AND EMPLOYEE ELIGIBILITY
The Act applies to all private employers in Illinois, as well as state and units of local government or any state or local government agency. However, the Act does not cover school districts organized under the School Code or park districts organized under the Park District Code. There are a few other exemptions including the following:

• Employees as defined in the federal Railroad Unemployment Insurance Act or the Railway Labor Act
• Temporary college or university student employees
• Certain short-term employees of an institution of higher learning
• Employees working in the construction industry who are covered by a bona fide collective bargaining agreement (CBA)
• Employees who are covered by a bona fide CBA with an employer that provides services nationally and internationally of delivery, pickup, and transportation of parcels, documents, and freight.

What does this mean for every other employer?  It means they MUST provide 40 hours of paid time off to employees to use any way the employee wishes to use it.  Although the final rules aren’t written yet, we do have some guidance from Chicago who implemented this rule back in 2017.
 
What you will learn:
 

• Vacation Policy Vs. PTO
• Front-load or Accrual basis
• Recordkeeping Requirements
• What you can and cannot ask depending on the usage
• What to do about No Call-No Show employees
• Carryovers
• Penalties
• Sample policy review