Overview: What Is the Illinois Paid Leave for All Workers Act?
PLAWA (820 ILCS 192) is one of the most expansive paid leave laws in the country. It guarantees most Illinois employees the right to earn and use paid leave for any reason, including personal, family, health, school, childcare, transportation, or mental health needs.
The law applies to nearly all employers with at least one employee in Illinois, including:
Small and mid-sized businesses
Non-profits
Religious organizations
Unlike sick leave statutes, PLAWA does not limit usage to illness or caregiving. Additionally employees do not need to explain why they are taking leave.
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.
Accrual rules include:
Employers may frontload the full 40 hours at the start of the year (or 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 workweek is less.
Usage Rules
Usage rules:
Employees may begin using leave 90 days after their start date
Leave may be used for any reason.
Employers may not require employees to provide the reason for taking leave or documentation to support it.
Employers may set a minimum increment of up to two hours, though smaller increments are permitted.
Carryover:
If leave accrues over time, unused leave must carry over to the next 12-month period.
If employers frontload, carryover is not required, but employers cannot reduce the frontloaded balance mid-year.
Eligibility – Covered and Exempt Employees
Covered Employees
PLAWA applies to nearly all employees working in Illinois, including:
Full-time employees
Part-time employees
Temporary and seasonal workers
Exempt Employees
The following are not covered:
Independent contractors
Certain unionized construction and delivery workers covered by a CBA
Part-time student workers in higher education
Employees of public school districts and park districts
Employees covered by a 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 have a written paid leave policy that explains:
Accrual method
Usage rules
Notice requirements
Any minimum increments
Circumstances where foreseeable leave may be denied for operational necessity
This policy 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, and
Include it in written materials provided to employees.
Notice must be available in any language commonly spoken in the workplace.
3. Notice From Employees
Employers may require:
Up to 7 days’ advance notice for foreseeable leave.
Notice “as soon as practicable” for unforeseeable leave.
4. Record keeping
Employers must maintain for 3 years:
Hours worked
Accrued paid leave
Leave used
Records must be available to employees upon request and to the IDOL during investigations.
5. Payroll and Timekeeping
Payroll systems must track:
Accrual
Usage
Carryover
Balances upon request
Many payroll systems now include PLAWA-compliant settings, but manual review remains essential.
Can Employers Deny Leave?
Only in limited circumstances when the leave is foreseeable, when the employer has a publicly available and consistently applied written policy, describing situations where leave may be denied, and when the denial is based on the 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, and the policy applies to all employees, the existing policy may satisfy PLAWA requirements. However, the policy must not restrict the reasons for leave or require documentation. Employers should review their current PTO, vacation, or sick leave policies to ensure they meet or exceed PLAWA standards.
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 from other banks can avoid this payout obligation.
Enforcement, Penalties, and Employee Remedies
PLAWA is enforced by the Illinois Department of Labor. There is no private lawsuit right. 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 or discrimination
Employers cannot count the use of PLAWA leave as a negative factor in attendance, discipline, or promotion decisions.
Local Ordinances: Chicago, Cook County, and Multi-Jurisdiction Employers
PLAWA does not apply to employees covered by:
The City of Chicago Paid Leave and Paid Sick Leave Ordinance, or
The Cook County Paid Leave Ordinance, provided those ordinances pre-date January 1, 2024.
Chicago’s updated ordinance (effective July 1, 2024; penalty enforcement for small employers begins January 1, 2025) requires:
40 hours paid leave, and
40 hours paid sick leave,
with different accrual, usage, and payout rules than PLAWA.
Employers with workers in multiple jurisdictions should implement separate, jurisdiction-specific policies.
Practical Steps for Small and Mid-Sized Employers
Update leave policies to align with PLAWA accrual, usage, and notice requirements.
Update handbooks and circulate revised versions to all employees.
Post required notices and distribute digital copies.
Train supervisors and HR on leave approval, denials, anti-retaliation rules, and documentation prohibitions.
Verify your payroll system is fully PLAWA-compliant.
Communicate transparently with employees about their rights and processes.
Maintain complete records for at least three years.
Consult legal counsel for multi-jurisdiction compliance 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:
Reviewing and drafting PLAWA-compliant policies
Implementing multi-jurisdiction payroll and leave systems
Training managers and HR teams
Navigating IDOL inquiries and investigations
Ensuring ongoing compliance as regulations evolve
This ongoing partnership reduces risk, improves policy clarity, and helps employers maintain a compliant and supportive workplace.