Preparing for the Paid Leave for All Workers Act

In March 2023, Governor JB Pritzker signed SB208 into law, otherwise known as the Paid Leave for All Workers Act (PLFAW). This significant legislation made Illinois the 3^rd state in the country to mandate paid time off that can be used for any reason. Under the law, employees are provided with up to 40 hours of paid leave during a 12-month period.

The new law applies to every employee working for an employer in Illinois, including domestic workers. There is no distinction between full or part-time workers, including seasonal employees. However, employees who work fewer hours may accrue less leave time compared to full-time workers. Independent contractors are excluded, as are certain railroad employees and employees covered by a collective bargaining agreement in the construction and parcel delivery industries. School Districts organized under the School Code and Park Districts organized under the Park District Act are also exempt. State and local governments, any political subdivision of the State or local government, or any State or local government agency are included in the definition of "employer.” This also includes the judicial and legislative branches of government.

Paid leave will accrue at the rate of 1 hour for every 40 hours worked. Part-time employees may accrue leave at a pro rata number of hours. While on leave, the employee will be paid their full wage. Tipped workers will be paid the full minimum wage in their respective jurisdiction. An employee cannot be required to find a replacement while on leave. Employees can determine how much paid leave they need to use. Employers may set a reasonable minimum increment for the use of paid leave not to exceed 2 hours per day.

This law is effective January 1, 2024. Paid leave begins to accrue at the beginning of employment or on the effective date of the legislation. Employees are entitled to begin using paid leave 90 days after beginning employment or 90 days after the effective date of the legislation, whichever is later.

Information sourced by https://www.illinois.gov/news/press-release.26164.html. Now is a good time to consult a tax professional to best determine how the law affects your unique situation. John Kasperek Co., Inc. is a leading expert accounting firm in the Chicago Southland region and can be reached at (708) 862-2262 or email This email address is being protected from spambots. You need JavaScript enabled to view it..