Illinois — Leave Laws

Under the Paid Leave for All Workers Act, employees earn paid leave at a rate of one hour for every 40 hours worked, up to a minimum of 40 hours in a 12-month period. Employers may satisfy this requirement by allowing accrual over time or by frontloading the full 40 hours at the start of the benefit year. Employers may provide more generous leave policies. Employees may use paid leave for any reason, and employers cannot require workers to provide a basis for their request. The Act became effective January 1, 2024.

Source: 820 ILCS 192/15 and Illinois Department of Labor – Paid Leave

The Paid Leave for All Workers Act imposes no minimum employee-count threshold for private employers; an employer with even one covered employee in Illinois must comply. However, the Act excludes two categories of public employers from the definition of "Employer" under 820 ILCS 192/10.

Statutory exclusions. The Act's definition of "Employer" explicitly excludes:

• School districts organized under the School Code (105 ILCS 5); and
• Park districts organized under the Park District Code (70 ILCS 1205).

These exclusions are categorical. Employees of Illinois school districts and park districts do not accrue paid leave under the Act and have no entitlement to the Act's 40-hour annual minimum, regardless of the employer's size or the employee's work location within Illinois.

All other employers covered. For all other employers—including private employers, state agencies, local government units, and political subdivisions other than school and park districts—the Act applies regardless of size. There is no de minimis exception or startup grace period. An employer's obligation to provide paid leave does not depend on reaching a minimum headcount, revenue threshold, or years in operation.

Employee coverage. Employee coverage under the Act turns on where the work is primarily performed and the employer's Illinois presence, as defined in 56 Ill. Admin. Code § 200.110. The regulation specifies that "Employee" means an individual whose base of operations is in Illinois and whose work is primarily performed in Illinois; or whose work is primarily performed in Illinois for an employer that performs substantial business in the state, markets its services in the state, or maintains a registered agent in Illinois; or whose work is primarily performed in Illinois and the individual is domiciled in Illinois. The employer's obligation to provide paid leave to a covered employee does not hinge on the employer's total headcount.

Effective date. The Act took effect January 1, 2024.

Source: 820 ILCS 192/10 and 56 Ill. Admin. Code § 200.110

Under the Paid Leave for All Workers Act, employees who earn leave through accrual (one hour for every 40 hours worked) are entitled to carry over unused accrued leave from one 12-month period to the next. Employers may establish a reasonable written policy limiting the amount of carryover to 40 hours of unused paid leave. Separately, employers may cap the total amount of leave an employee can use in any single 12-month period at 40 hours, regardless of the employee's accumulated balance.

Carryover for accrued leave. Under 56 Ill. Admin. Code § 200.320(a), accrued paid leave that the employee has not used carries over annually. The regulation provides that an employer may adopt a policy restricting "the amount of carryover to 40 hours of unused paid leave." This cap applies to the hours carried from one benefit year into the next; it does not alter the employee's right to accrue leave during the current year at the statutory one-hour-per-40-hours-worked rate. Employers must document any carryover cap in a written policy communicated to employees.

No carryover for frontloaded leave. Employees who receive their full allotment of paid leave frontloaded at the beginning of the 12-month period (typically 40 hours provided on day one) are not entitled to carry over paid leave time from one 12-month period to the next unless the employer's policy allows them to do so. This distinction is explicit in Section 200.320(b). Frontloading eliminates the mandatory carryover obligation that applies to accrual-based leave.

Annual usage cap of 40 hours. Under Section 200.320(c), an employee is not entitled to use more than 40 hours of paid leave in a 12-month period unless the employer allows them to do so. This usage cap operates independently of carryover. Even if an employee's available balance exceeds 40 hours (because of carryover plus current-year accrual), the employer may limit actual usage to 40 hours within any single 12-month period.

Payout in lieu of carryover. Under Section 200.320(d), an employer and employee may mutually agree in writing, on an annual basis, that unused paid leave will be paid out to the employee at the end of the 12-month period instead of being carried over into the new 12-month period. The agreement must be renewed each year. This cashout option is voluntary and cannot be imposed unilaterally by the employer.

Interaction with the 40-hour annual minimum. The Act requires employers to provide a minimum of 40 hours of paid leave per 12-month period. The carryover and usage caps do not reduce this floor. An employer satisfies the Act by allowing an employee to accrue up to 40 hours per year and use up to 40 hours per year, even if carryover is capped at 40 hours and usage is capped at 40 hours.

Effective date. The Paid Leave for All Workers Act took effect January 1, 2024. The Illinois Department of Labor published final regulations implementing the Act at 56 Ill. Admin. Code Part 200, effective April 30, 2024.

Source: 56 Ill. Admin. Code § 200.320 and Illinois Department of Labor — Paid Leave for All Workers Act

Under the Paid Leave for All Workers Act, employees begin accruing paid leave immediately upon hire (or on January 1, 2024, whichever is later), but they may not use that accrued leave until a 90-day waiting period has elapsed. The Illinois Department of Labor's implementing regulations at 56 Ill. Admin. Code § 200.300(a) establish that an employee is entitled to begin using earned paid leave time 90 calendar days after commencement of employment or March 31, 2024, whichever is later.

The two trigger dates. The 90-day waiting period runs from two possible start dates, depending on when the employee's relationship with the employer began:

• For employees hired on or after January 1, 2024 (the Act's effective date), the 90-day waiting period runs from the employee's first day of employment. An employee hired on July 1, 2024, for example, may begin using accrued paid leave on September 29, 2024 (90 calendar days later), per the regulatory example in Section 200.300.

• For employees already employed as of January 1, 2024, the waiting period runs from the Act's effective date, not from the employee's original hire date. All such employees became entitled to use their accrued paid leave on March 31, 2024, regardless of how long they had been employed prior to the Act taking effect.

The waiting period is employment-status based, not work-based. The 90-day period begins on the employee's first day of employment status, even if the employee does not perform work on that day. Section 200.300 includes an example in which an employee whose employment status began on September 1 (a Saturday, when the office was closed) has a waiting period that begins September 1, not the first day the employee actually performed work (Tuesday, September 3, after the Labor Day weekend). The regulation states, "Because Employee B's employment status began on September 1, that day is the beginning of the 90-day waiting period."

Accrual continues during the waiting period. Although the employee may not use paid leave during the first 90 days, leave continues to accrue at the statutory rate of one hour for every 40 hours worked (or is frontloaded at the employer's option). Section 200.210(a) confirms that leave accrual begins "at the commencement of the individual's employment with the employer or on January 1, 2024, whichever is the later date." An employee who works 40 hours per week during the 90-day waiting period will accrue leave throughout that time; all accrued hours become available for use on day 91.

The waiting period applies to both accrual-based and frontloaded leave. Employers who frontload the full 40-hour annual allotment on the employee's first day must still observe the 90-day waiting period. Section 200.300 includes an example: "Employee C's employer frontloads its employees' paid leave in accordance with the Act, but Employee C must wait 90 days before being entitled to use any of their paid leave time."

Employees who separate before 90 days. An employee who works fewer than 90 days and separates is not entitled to use the accrued leave during that employment period. However, if the employee is rehired by the same employer within 12 months of separation, the previously accrued but unused leave must be carried over or reinstated under 820 ILCS 192/15(k). Section 200.300 notes that if an employee who worked 75 days (and thus accrued but could not use leave) returns to work for that employer within 12 months, "their accrued but unused leave shall be carried over or reinstated." The Department of Labor's FAQ confirms that reinstated leave is made available for immediate use without a new 90-day waiting period.

Effective date of the regulation. The Illinois Department of Labor published final regulations implementing the Paid Leave for All Workers Act at 56 Ill. Admin. Code Part 200, effective April 30, 2024. The 90-day waiting-period rule in Section 200.300(a) has been in force since that date, though the substantive requirement (the March 31, 2024, trigger for pre-Act employees) operated from the Act's January 1, 2024, effective date.

Source: 56 Ill. Admin. Code § 200.300, 56 Ill. Admin. Code § 200.210, and 820 ILCS 192/15(k)

Under the Paid Leave for All Workers Act, unused paid leave accrued under the Act is not required to be paid out to an employee upon termination, resignation, retirement, or other separation from employment—unless the employer has credited PLAWA leave to an existing paid-time-off or vacation bank. The payout obligation turns entirely on whether the employer has combined PLAWA leave with a pre-existing vacation or PTO policy.

Separate PLAWA leave — no payout required. Section 820 ILCS 192/15(j) provides that "[n]othing in this Section or any other Illinois law or rule shall be construed as requiring financial or other payment to an employee from an employer upon the employee's termination, resignation, retirement, or other separation from employment for paid leave accrued under this Act that has not been used." This explicit exclusion applies both at separation and at the end of a benefit year. An employer that maintains PLAWA leave as a separate category from its vacation or PTO bank has no statutory obligation to pay out unused PLAWA leave when the employment relationship ends.

The Illinois Department of Labor's implementing regulation at 56 Ill. Admin. Code § 200.460(d) confirms that if an employer "does not provide an additional form of paid leave allowance, nor chooses to combine or credit the multiple forms of leave together, then an employer shall not be required to pay out, provide financial benefit, or reimbursement for unused paid leave earned under the Act upon an employee's termination, resignation, retirement, or other separation from employment at any time of the year."

Combined PLAWA leave and vacation/PTO — payout required. The answer changes when the employer credits PLAWA leave to a pre-existing paid-time-off or vacation account. Section 820 ILCS 192/15(l) provides that "[p]aid leave under this Act shall not be charged or otherwise credited to an employee's paid time off bank or employee account unless the employer's policy permits such a credit," and continues: "If the paid leave under this Act is credited to an employee's paid time off bank or employee vacation account then any unused paid leave shall be paid to the employee upon the employee's termination, resignation, retirement, or other separation to the same extent as vacation time under existing Illinois law or rule."

Under the Illinois Wage Payment and Collection Act, 820 ILCS 115/5, earned vacation is considered "final compensation" that must be paid to a separated employee. When PLAWA leave is combined with or credited to a vacation or PTO bank, it inherits that same payout obligation. Section 200.460(c) of the regulations states that "any unused paid leave time shall be paid to the employee upon an employee's termination, resignation, retirement, or other separation to the same extent that vacation time is paid under the Illinois Wage Payment and Collection Act."

Employer choice and policy communication. The Act allows employers to choose whether to credit PLAWA leave to an existing paid-leave allowance or to maintain it as a separate category. Section 200.460(a) requires that "[a]n employee's existing time off allowance bank or time off account shall be kept separate from the accounting of the employee's earned paid leave under the Act unless the employer's written policy or practice is to combine such leave." If the employer chooses to combine the categories, Section 200.460(b) requires that the policy "must be communicated to the employee within 30 days after the start of employment or of the effective date of the policy."

No general payout obligation preserved. Section 820 ILCS 192/15(l) clarifies that "[n]othing in this Act shall be construed to waive or otherwise limit an employee's right to final compensation for promised and earned, but unpaid vacation time or paid time off, as provided under the Illinois Wage Payment and Collection Act and rules." This savings clause means that PLAWA does not reduce any pre-existing payout obligation the employer has for other leave categories; it simply provides that PLAWA leave, standing alone, does not trigger a new payout obligation.

Effective dates. The Paid Leave for All Workers Act took effect January 1, 2024. The Illinois Department of Labor published final implementing regulations at 56 Ill. Admin. Code Part 200, effective April 30, 2024.

Source: 820 ILCS 192/15(j) and (l) and 56 Ill. Admin. Code § 200.460

The Paid Leave for All Workers Act establishes different preemption rules for local paid leave ordinances depending on whether the ordinance was in effect on January 1, 2024 (the Act's effective date) or was enacted or amended after that date. Employers covered by a pre-existing local ordinance generally remain subject to that local ordinance rather than the state Act, while post-effective-date local ordinances must meet or exceed the Act's requirements.

Ordinances in effect on January 1, 2024 — grandfather rule. Under 820 ILCS 192/15(p), the Act does not apply to any employer that is covered by a municipal or county ordinance that was in effect on the Act's effective date (January 1, 2024) and that requires employers to provide any form of paid leave to their employees, including paid sick leave or paid leave. This grandfather provision is categorical: if a local ordinance covering the employer was in effect on January 1, 2024, and the ordinance required paid leave of any kind, the state Act does not apply to that employer with respect to employees covered by the local ordinance.

Chicago and Cook County ordinances. The two major pre-existing local paid leave ordinances are the City of Chicago Paid Leave and Paid Sick and Safe Leave Ordinance and the Cook County Paid Leave Ordinance, both of which were in effect prior to January 1, 2024. Employers and employees covered by these ordinances remain subject to those local requirements rather than the state Act. The Illinois Department of Labor's FAQ explicitly confirms that Chicago's ordinance covers employees and employers in Chicago, and Cook County's ordinance covers employees and employers in Cook County (outside of Chicago). Employees covered by these local ordinances should direct questions to the City of Chicago Office of Labor Standards or the Cook County Commission on Human Rights, respectively, rather than to the Illinois Department of Labor.

Employer partially covered by a local ordinance. Under 56 Ill. Admin. Code § 200.140(b), an employer that qualifies for the local-ordinance exemption but also employs employees who are not covered by the municipal or county ordinance is required to provide paid leave under the state Act to those non-covered employees. For example, an employer with a location in a municipality that had a local paid leave ordinance in effect on January 1, 2024, and another location in a municipality without such an ordinance, must provide paid leave in accordance with the local ordinance to employees in the covered location and in accordance with the state Act to employees in the non-covered location. The local-ordinance grandfather is employer-location specific, not employer-wide.

Ordinances enacted or amended after January 1, 2024 — floor-setting rule. The Act operates as a floor for any local ordinance enacted or amended after the Act's effective date. Section 820 ILCS 192/15(p) provides that any local ordinance that provides paid leave, including paid sick leave, enacted or amended after January 1, 2024, must comply with the requirements of the Act or provide benefits, rights, and remedies that are greater than or equal to those afforded under the Act. A municipality or county may not enact or amend a paid leave ordinance after the Act's effective date that provides fewer benefits, rights, or remedies than the state Act requires.

Under 56 Ill. Admin. Code § 200.140(e), if a municipality or county enacts or amends a local law or ordinance to provide paid leave after January 1, 2024, and the local law or ordinance provides less paid leave benefits, rights, or remedies than the Act, then the employer must comply with the minimum requirements of the state Act. Conversely, an employer in a municipality or county that enacts or amends a local ordinance after January 1, 2024, with more generous requirements must comply with the local ordinance or ordinances so long as the benefits, rights, and remedies are greater than or equal to those afforded under the Act.

Employees not required to provide paid leave under a pre-existing ordinance. The second sentence of Section 820 ILCS 192/15(p) clarifies that an employer that is not required to provide paid leave to its employees under a municipal or county ordinance that is in effect on January 1, 2024 (for instance, because the employer falls below a size threshold in the local ordinance, or because the ordinance exempts certain categories of employees), must nevertheless comply with the state Act if the employer would be required to provide paid leave under the Act to its employees. The local-ordinance grandfather does not shield an employer from state-Act obligations with respect to employees whom the local ordinance does not cover.

Effective date. The Paid Leave for All Workers Act took effect January 1, 2024. The Illinois Department of Labor published final regulations implementing the Act at 56 Ill. Admin. Code Part 200, effective April 30, 2024.

Source: 820 ILCS 192/15(p), 56 Ill. Admin. Code § 200.140, and Illinois Department of Labor — Paid Leave FAQ