Navigating Illinois’ and Chicago’s Four New Leave Laws

Illinois employers have had to keep up with several major changes this year to laws that require providing leave to employees. As Jan. 1, 2024 — the date when these laws take effect — approaches, employers should be aware of these changes and update their policies accordingly.

Two New Bereavement Leave Laws

In July 2023, Illinois passed the Child Extended Bereavement Leave Act, providing extended unpaid bereavement leave to employees following the death of a child due to homicide or suicide. The length of leave depends on the size of the employer:

  • A “large employer” — 250 or more full-time employees in Illinois — must provide 12 weeks of unpaid leave.
  • A “small employer” — between 50 and 249 full-time employees in Illinois — must provide six weeks of unpaid leave.
  • An employer with fewer than 50 full-time employees in Illinois is not subject to this statute. Under the Family Bereavement Leave Act (FBLA), however, the employer must provide ten workdays of unpaid leave.

Employees may use accrued paid leave, if available, instead of taking unpaid leave under this statute. However, the Act does not extend the maximum period of leave to which employees are entitled under different laws or employment programs. An employee who takes leave under this law may not also take leave under the FBLA for the death of the same child.

Illinois has also expanded the Victims’ Economic Security and Safety Act (VESSA) to provide bereavement leave to employees following the death of a family or household member due to a crime of violence. Employees may take up to 10 workdays of unpaid leave regardless of the size of the employer.

An employee who takes bereavement leave under the VESSA amendments may not also take leave under the FBLA for the death of the same person, similar to the Child Extended Bereavement Leave Act. Both statutes also allow the employer to require reasonable documentation, like a death certificate, after an employee takes bereavement leave.

Two New Paid Leave Laws

In March 2023, the General Assembly passed the Illinois Paid Leave for All Workers Act (PLAWA). It requires all Illinois employers that are not in municipalities with pre-existing paid sick leave or paid leave ordinances to provide up to 40 hours of paid leave that can be taken for any reason. In November 2023, the Illinois Department of Labor (IDOL) issued proposed administrative rules clarifying how it intends to enforce the law.

Also, in November 2023, the Chicago City Council passed the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, requiring Chicago employers to double the amount of paid time off employees receive under the 2017 Chicago Paid Sick Leave Ordinance. Click here for details on the 2023 Chicago Ordinance’s new requirements. Both the new Chicago Ordinance and PLAWA will take effect on Jan. 1, 2024. Illinois businesses that employ workers both in and outside Chicago must comply with the Chicago Ordinance regarding the former and PLAWA regarding the latter.

The below chart summarizes the key requirements of each law and highlights the differences between the two laws. The text in red below signifies additional details from the PLAWA proposed rules recently issued by IDOL. Chicago has not yet issued proposed rules to clarify its enforcement of the new Chicago Ordinance.

  Chicago Paid Leave and Paid Sick and Safe Leave Paid Leave for All Workers Act (PLAWA)
Amount 40 hours of paid leave and 40 hours of paid sick leave per 12-month period. 40 hours of paid leave per 12-month period.
Purpose of leave Paid leave: Any reason.

Paid sick leave: An employee may take time off for an illness, an illness of a family member, or other specific circumstances.

Any reason.
Covered employers An employer that gainfully employs at least one employee in Chicago. Covered Employees include all domestic workers, independent contractors, sole proprietors, partnerships, and employees of the City of Chicago and its sister agencies, but not other governmental entities.

Sister agencies include Chicago Public Schools, the Chicago Park District, the Chicago Transit Authority, the City Colleges of Chicago, the Chicago Housing Authority, and the Public Building Commission.

All Illinois employers, including the state and units of local government, as well as any political subdivisions or governmental agencies of the state or units of local government.

Exception: Employers who are already complying with local paid leave requirements that were in place before the passage of PLAWA; Covered Employers also do not include school districts organized under the School Code or park districts organized under the Park District Code.

Eligible employees Employees who perform at least two hours of work in a particular two-week period in Chicago. All employees, no matter how much they work, are eligible for leave under PLAWA.
Accrual method One hour per every 35 hours worked up to 40 hours of paid sick leave and 40 hours of paid leave.

Salaried exempt employees are assumed to work 40 hours a week unless their normal workweek is less than 40 hours; then, they will accrue hours based on their normal workweek.

No fractional accrual; the accrual rate must be hourly. If an employer offers either type of paid leave above the minimum requirements, they can credit the applicable leave time on a monthly basis.

One hour for every 40 hours worked.

Salaried exempt employees are assumed to work 40 hours a week unless their normal workweek is less than 40 hours; then, they will accrue hours based on their normal workweek.

Paid leave does not accrue during the use of any paid or unpaid leave.

Employers can use a fractional accrual rate as long as the rate is equal to at least one hour of leave per 40 hours worked.

Domestic Workers: If a domestic worker works for multiple households, their aggregate time worked for all families is counted for accrual purposes.

Carry over Up to 16 hours of paid leave and 80 hours of paid sick leave can be carried over between 12-month periods.

If an employee lacked meaningful access to paid leave or paid sick leave and was denied leave despite complying with the employer’s policies, the employee must be permitted to carry over the amount of leave denied into the following plan year.

It is unclear how or if carry over requirements would be different for employers that are subject to the federal Family Medical Leave Act (FMLA).

Employers can restrict carryover of more than 80 hours of unused paid leave.

Employers also do not have to provide more than 40 hours of leave for use in any 12-month period.

Immediate grant/frontloading methods If an employer frontloads, it does not have to carry over any unused time.

Employers can provide employees with 40 hours of paid leave, paid sick leave, or both on the first day of employment or the first day of the 12-month accrual period.

It is unclear if this amount is different for employers that are subject to FMLA.

If an employer frontloads, then it does not have to carry over any unused time.

Employers can frontload paid leave time on the employee’s first day of employment or the first day of the 12-month accrual period.

An employer cannot require an employee who used all of the frontloaded amount for the year to repay any of the leave if the employee quits before the year ends.

Employers must give employees notice of the minimum amount of paid leave hours available for use on the employee’s first day of work or the first day of the 12-month period.

For part-time workers, employers can prorate the amount of paid leave based on the part-time employee’s anticipated work schedule. If the employee works more than anticipated, the employer must provide the employee with the additional hours they are entitled. Employers may not diminish an employee’s paid leave hours if they work less than expected.

Unlimited PTO Policies If an employer granted unlimited paid time off (PTO) on the first day of employment or the first day of the 12-month accrual period, the employer is not required to carry over employees’ unused PTO.

If reasonably foreseeable, employers can require that employees give reasonable notice, not to exceed seven days, before paid leave is taken. If leave is not foreseeable, employees must give notice as soon as practicable on the day the employee intends to take the leave. An employer may not require preapproval before the employee can use their PTO.

Upon the employee’s separation or termination, the employer is required to pay 40 hours of paid time off minus the hours of paid time off used by the employee in the last 12-month period.

Employers cannot include in an employment contract or employment policy a requirement that employees forfeit their earned PTO upon separation.

Whether an unlimited PTO policy complies with the Act is fact-specific and may depend on a variety of factors. Relevant factors include whether employees actually do, or have the ability to, take 40 hours of paid leave in a year for any reason and whether employees were paid their regular rate of pay for the time they took off.
Use Employees can start using the paid leave after 90 days. Employees can start using the paid leave after 90 days.

Any terms or conditions restricting the use of paid leave beyond those explicitly stated in the Act must be stated in a written paid leave policy available to all employees.

Employers may not require as a condition of leave that employees find a replacement worker to cover their hours when they use this leave.

Employee’s notice of  leave use Paid Leave: Employers can require that employees give reasonable notice, not to exceed seven days, before using paid leave.

Paid Sick Leave: If reasonably foreseeable, employers can require that employees give reasonable notice, not to exceed seven days, before sick leave is taken. If leave is not foreseeable, employees must give notice as soon as practicable.

 

Employers can require up to seven days’ notice if leave is foreseeable. If time off is not foreseeable, employees must give notice as soon as practicable.

If employers require notice when the need for time off is not foreseeable, then they must have a written policy stating the applicable procedures.

Employer’s notice of employee rights Employers must place a notice of this Act in a conspicuous location for each facility located in the city.

Employers must also issue a notice of the employee’s rights under this Act with the employee’s first paycheck and annually thereafter, within 30 days of July 1.

Employers must provide employees with notice of the amount of unused paid leave and paid sick leave available to them, along with the accrual rates of each type of leave every time wages are paid.

Employers must place a notice of this Act, prepared by IDOL, in a conspicuous location and be included in a written document — or manual/handbook/policy if the employer has one — by March 31, 2024, or upon commencement of employee’s employment, whichever is later.

Employers must provide employees notice of their amount of accrued or used paid leave upon employee request if using the accrual system.

Employers must provide employees with notice of the amount of unused paid leave available to them on each paycheck or paystub.

If an employer makes changes to the notification requirements, then they must notify employees in writing within five days of any change.

Payout Paid sick leave: Employers of any size are not required to pay out accrued paid sick leave.

Paid leave: Some employers are required to pay out accrued paid leave.

Large employers — those with 100+ covered employees — must pay employees all of their accrued and unused paid leave up to 40 hours upon the employees’ separation.

Medium employers — those with 51-100 employees — must pay employees their accrued and unused time off up to 16 hours upon the employees’ separation from Jan. 1, 2024, to Dec. 31, 2024. After Jan. 1, 2025, these employers must pay employees all of their accrued and unused paid leave up to 40 hours upon the employees’ separation.

Small employers — those with 50 or fewer employees — are not required to pay employees for any accrued and unused time off.

Generally, no payout requirement.

 

Any existing or separate leave — like vacation — granted to employees should be kept separate from the accounting of the employee’s earned paid leave under the Act. If the employer does not keep the two types of leave separate and the employer credits the paid leave required under the Act to the employee’s existing time off allowance bank, then the unused paid leave shall be paid to the employee upon their termination or separation from the employer as required by the Illinois Wage Payment and Collection Act.

 

 

Documentation Paid leave: An employer cannot require that an employee provide a reason for taking paid leave and cannot require an employee to provide documentation regarding their paid leave.

Paid sick leave: Employers can require a certification that the use of paid sick leave was authorized after three sick days in a row. A document signed by a licensed health care provider is sufficient.

An employee is not required to provide an employer a reason for the leave and may not be required to provide documentation or certification as proof or in support of the leave.
Penalty Fine: For a violation of the notice provisions, an employer will be fined $500 for the first violation and $1,000 for each subsequent violation. For any other violation, the employer will be fined no less than $1,000 and no more than $3,000.

Any policy that does not comply with the requirements of the new ordinance, including the accrual or frontloading requirements, is in violation of the ordinance.

Each day a violation continues constitutes a separate offense to which a separate fine applies.

Private cause of action: An employee may bring a claim for a violation of this ordinance and may recover three times the amount of any leave wrongfully denied or lost, along with interest and attorney fees. A private cause of action for paid sick leave is available on Dec. 31, 2023. A private cause of action for paid leave is available on Jan. 1, 2025.

Payment to the claimant who files a claim with IDOL: If the employer violates this act, they owe the claimant the total value of the earned paid leave hours owed, compensatory damages, a penalty of not less than $500, and not more than $1,000, and other equitable relief deemed appropriate.

Fine imposed by IDOL: If an employer violates this Act — except for the notice requirements — they shall be subject to a $2,500 penalty per offense.

There is no private right of action under the statute.

Increments Employers can require paid leave to be used in increments. However, they cannot set the increments to be more than four hours for paid leave and not more than two hours for paid sick leave. If an employee is scheduled for more than two hours, then the employer may restrict the use of the paid leave to increments of no less than two hours per day, in minimum units of one hour.

Next Steps for Employers

Employers should review and update their policies and handbooks before these complicated, detailed laws go into effect on Jan. 1, 2024. Stay tuned for additional details when Chicago issues administrative rules for the new Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, providing guidance for employers.

For questions about how to ensure that employer policies comply with applicable laws, contact an attorney in the Chicago Employment Law group.

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