New Requirement to Provide PTO Leave in Illinois

New Requirement to Provide PTO Leave in Illinois

Effective January 1, 2024, employees in Illinois can earn and use up to 40 hours of paid leave during each year. The new Illinois law applies to any employer with employees in the state. Illinois’ law is not sick leave, but instead is PTO that can be used for any reason.  Employees performing any amount of work within the state are covered. A collective bargaining agreement can explicitly waive application of the law.  Employees accrue one hour of paid leave for every 40 hours worked and can accrue and use a maximum of 40 paid leave hours in a year. Although PTO hours start to accrue on January 1, 2024, or the time of hire, whichever is later, there is a 90-day waiting period before employees can use it. Unused hours must be carried over from year-to-year, up to a maximum of 80 hours according to current “proposed” regulations.  Unused hours do not need to be paid out upon separation of employment unless the employer supplants its existing paid vacation leave policy with this PTO balance (in which case, it must be paid out upon end of employment similar to payout of unused vacation leave).   The employer can also choose to frontload the 40 hours at the start of each year instead of using the accrual method. A poster explaining employees’ rights to paid leave must be posted at the worksite, and a model poster is available by the state. The proposed regulations also require printing the available PTO balance on paystubs. The text of the law, “proposed” regulations, required poster, and FAQs are available here.