Illinois Paid Leave for All Workers Act:
What Your Business Needs to Know to Succeed

Master the Illinois Paid Leave for All Workers Act

The law applies broadly to employers with at least one employee in Illinois, including small businesses, mid‑sized companies, nonprofits, and religious organizations. See the act in full here.

Key Provisions: Accrual, Usage, and Eligibility

Accrual of Paid Leave

Employees accrue paid leave at a rate of 1 hour of paid leave for every 40 hours worked, up to 40 hours per employer defined 12‑month period. Additional accrual rules include:

• Employers may frontload the full 40 hours at the start of the year or at the start of employment.
• Part‑time, temporary, and seasonal employees accrue leave based on hours worked.
• Exempt employees are presumed to work 40 hours per week unless their regular schedule is less.

Employees covered by a collective bargaining agreement (CBA) in effect before January 1, 2024, remain exempt until the agreement expires. After renegotiation, the CBA must explicitly waive PLAWA rights to maintain exemption.

Employer Obligations and Notice Requirements

1. Written Policy and Handbook Updates

Employers must implement a written paid leave policy explaining:

• • • Accrual method
    • Usage rules
    • Notice requirements
    • Minimum increments
    • Circumstances where foreseeable leave may be denied

Policies must be distributed by March 31, 2024, or upon hire for new employees.

2. Posting Requirements

Employers must:

• • • Post the IDOL‑provided PLAWA notice in a conspicuous location
    • Include the notice in written materials provided to employees
    • Provide notices in any language commonly spoken in the workplace

3. Employee Notice Requirements

Employers may require:

• • • Up to 7 days’ advance notice for foreseeable leave
    • Notice “as soon as practicable” for unforeseeable leave

4. Recordkeeping

Employers must maintain for at least three years:

• • • Hours worked
    • Accrued leave
    • Leave used

Records must be available to employees and to IDOL during investigations.

5. Payroll and Timekeeping

Payroll systems must track accrual, usage, carryover, and balances. Many systems now include PLAWA‑compliant settings, but manual review remains essential.

Can Employers Deny Leave?

Only in limited circumstances, and only for foreseeable leave. Employers must have a publicly available, consistently applied written policy describing when leave may be denied, and the denial must be based on documented operational necessity. Unforeseeable leave cannot be denied.

Interaction with Existing Leave Policies

If an employer already provides at least 40 hours of paid leave per year that employees can use for any reason, the existing policy may satisfy PLAWA. However, the policy must not restrict reasons for leave or require documentation.

If paid leave is combined with vacation or PTO banks, unused leave may need to be paid out upon termination under the Illinois Wage Payment and Collection Act. Keeping PLAWA leave separate can avoid unintended payout obligations.

Enforcement, Penalties, and Employee Remedies

PLAWA is enforced by the Illinois Department of Labor. Violations may result in:

• Civil penalties up to $2,500 per violation
• Back wages
• Compensatory damages
• Attorney’s fees and costs
• Additional penalties for retaliation

Employers cannot count PLAWA leave as a negative factor in attendance or disciplinary decisions.

Local Ordinances: Chicago, Cook County, and Multi‑Jurisdiction Employers

PLAWA does not apply to employees covered by:

• The Chicago Paid Leave and Paid Sick Leave Ordinance
• The Cook County Paid Leave Ordinance

Chicago’s updated ordinance (effective July 1, 2024) requires:

• 40 hours paid leave
• 40 hours paid sick leave

Employers operating in multiple jurisdictions must implement separate, compliant policies.

Practical Steps for Small and Mid‑Sized Employers

• Update leave policies to align with PLAWA
• Update handbooks and distribute revised versions
• Post required notices
• Train supervisors and HR
• Verify payroll system compliance
• Maintain complete records for at least three years
• Consult legal counsel for multi‑jurisdiction or CBA issues

The Role of Harbor and Main Law

Harbor and Main Law’s fractional general counsel services provide small and mid‑sized businesses with cost‑effective, on‑demand legal guidance. We assist with:

• Drafting PLAWA‑compliant policies
• Implementing multi‑jurisdiction leave systems
• Training managers and HR teams
• Navigating IDOL inquiries
• Ensuring ongoing compliance as regulations evolve

We work with you to reduce risk, improve policy clarity, and help employers maintain a compliant and supportive workplace under the Illinois Paid Leave for All Workers Act.