Illinois Passes Mandatory Paid Leave Bill; How It Differs From Other States' Laws

Gov. J.B. Pritzker signed a comprehensive paid leave legislation into law Monday, making Illinois the third state in the U.S. and first in the Midwest to mandate paid time off of up to 40 hours (five days) for all workers for any reason.

Starting Jan. 1, 2024, employees will get up to 40 hours of paid leave during a 12-month period under the Paid Leave for All Workers Act or SB 208. Employers can choose to offer more paid time off to employees. Furthermore, the employer cannot mandate an employee to find their replacement during the leave period.

Illinois employers will be required to offer workers paid time off based on the number of hours they worked without the need for a reason for their absence.

Currently, there are 4 million workers in the state who don't have access to a single day of sick leave. With this legislation, more than 1.5 million workers will earn paid time off starting in 2024, Pritzker's office said.

"Employers benefit from allowing employees to tend to the urgent personal matters of their lives. Workers' productivity increases, and they often gain a greater passion for their job when they can manage the stresses they face outside work," the governor said in a statement, as per ABC7Chicago.

The unused paid leave should be carried over annually, up to 40 hours, but employers are not required to cash out the balance of an outgoing employee.

"Employers that violate the act would be subject to penalties, including fines and compensatory damages for the affected employee," the bill said.

The existing law does not guarantee payment to workers when they take time off due to sickness, child care, vacation or mental health reasons.

What Does the Law Offer?

Starting March 31, 2024, or 90 days after joining a company, workers can start using their earned time off for any reason without providing documentation to their employer. It applies to all full-time employees across the state, exempting seasonal workers, federal employees and college students in temporary jobs.

Cook County and Chicago have already had ordinances in place since July 2017, requiring employers to offer paid sick leave. Workers in the areas will continue to follow existing laws instead of the new state law.

What Do Other States' Laws Say?

Currently, only two states in the U.S. — Maine and Nevada — have similar laws. The two states also provide earned paid time off to employees. While Maine's Earned Paid Leave law only applies to businesses with more than 10 employees, Nevada exempts employers with less than 50.

Illinois' law is expansive to cover nearly all employees with no limit on the basis of business size.

Washington, D.C. and 14 other states also have structured regulations mandating employers to offer paid sick leave. However, workers in these states can avail of the time off only for health-related reasons.

Meanwhile, critics of the legislation suggest it will overburden small businesses that are already struggling to survive the economic impact of the COVID-19 pandemic and the rising inflation in the country, AP News.

Opposing the bill, small business advocacy organization National Federation of Independent Business reportedly said it "imposes a one-size fits all mandate on all employers."