Illinois Legislature Passes Mandatory Paid Leave for Any Purpose, to be Effective in 2024

Authors: Laura Friedel, Becky Canary-King

On January 10, the Paid Leave for All Workers Act passed both houses of the Illinois legislature. Governor J.B. Pritzker says he will sign the bill and lauded the legislation. The new law would require nearly all Illinois employers to provide employees with up to 40 hours of paid leave per year. Assuming it is signed, this requirement will be effective in January 2024, and the paid leave will be able to be used for any purpose. 

Under this new law, employees will not be required to provide a reason for leave or documentation of the need for leave. Employees also cannot be required to find a replacement worker to cover the leave period. However, employees may be required to provide 7 days’ notice if the need for leave is foreseeable.

The new law will apply to all employers in Illinois, including state and local government (except school districts and park districts), with a few limited exceptions. The law does not cover employees covered by a collective bargaining agreement in effect on January 1, 2024. However, where a collective bargaining agreement is entered into after January 1, 2024, the law’s paid leave requirements will apply unless the collective bargaining agreement contains a clear and unambiguous waiver.

Paid time off will accrue at a rate of one hour of paid leave for every 40 hours worked, beginning on January 1, 2024, or first day of employment. For exempt employees (i.e., those who are not eligible for overtime under the federal Fair Labor Standards Act and the Illinois Minimum Wage Law), one workweek is considered 40 hours. Employees may carry over up to 40 hours of unused paid leave from one 12-month period to the next. Instead of the accrual method, employers may choose to “frontload” the 40 hours of paid leave on the first day of the 12-month period, in which case unused leave will be forfeited at the end of the 12-month period. Employees may use their paid leave after they have completed 90 calendar days of employment or March 31, 2024, whichever is later.

Notably, leave accrued under the new law does not need to be paid out upon termination of employment. This distinguishes leave accrued under the new law from accrued and unused PTO or vacation time, which must be paid out on termination of employment. While we will await further guidance from the Illinois Department of Labor (IDOL) on this issue, this presents a potential opportunity for Illinois employers to adopt new, generous leave policies without risking substantial payouts to departing employees.

We expect that the IDOL will provide additional guidance before the law goes into effect on January 1, 2024. We will continue to monitor any developments and provide updates. We encourage employers to begin reviewing their paid leave policies and assessing whether any changes are necessary. Please do not hesitate to reach out with any questions.

Illinois Passes Two New Leave Laws

pillarsIllinois employers should be aware of two new leave-related laws.

First, the Child Bereavement Leave Act, which took effect on July 29, mandates that Illinois employers with at least 50 employees provide employees who suffered the loss of a child with up to two weeks (10 work days) of unpaid leave. Leave can be taken to attend the funeral, make arrangements necessitated by the death of the child, or to grieve the death. If an employee has already used all of his or her 12 weeks of available FMLA leave, the employer does not need to provide the additional 10 days for reasons related to the death of a child. Employees may elect to substitute available paid leave, but employers may not require them to do so.

Second, the Employee Sick Leave Act, which takes effect on January 1, 2017, provides greater flexibility to family caregivers. The Act requires Illinois employers who provide employees with paid sick leave to allow their employees to use that time to care for the employee’s immediate family members, parents-in-law, grandchildren, or grandparents. Employers must allow employees to use sick leave for caregiving just as they do for their own illness or injury, though employers may cap the amount of sick leave to be used for caregiving responsibilities at what the employee would have earned during 6 months. The Act does not extend the maximum period of leave under the FMLA, regardless of whether the employee receives sick leave compensation during that leave.

Illinois employers should review bereavement and sick leave policies to make sure that they are compliant with this new legislation.

EEOC Provides Guidance on Leave as a Reasonable Accommodation under the ADA

EEOC LOGOEarlier this week, the Equal Employment Opportunity Commission (EEOC) issued a new resource document on when leave constitutes a reasonable accommodation under the Americans with Disabilities Act (ADA).  Although the EEOC has always taken the position that employer-provided leave can be a reasonable accommodation, the new document highlights some of the standards for when and how leave must be granted.  At its core, the EEOC resource clarifies that unpaid leave is a reasonable accommodation unless the employer can show that the leave causes an undue burden.

The new EEOC document covers the following topics and provides specific examples of each:

  • Equal Access To Leave.  Employees with disabilities must be afforded access to leave on the same basis as all other similarly-situated employees.  In other words, if an employer receives a request for leave from a qualified disabled employee, and the leave would be covered  under the employer’s existing leave policy, the employer must treat the individual the same as an employee who requests leave for reasons unrelated to a disability.  The EEOC notes here that “employers are entitled to have policies that require all employees to provide a doctor’s note or other documentation to substantiate the need for leave,” but employers can’t apply that requirement discriminatorily.
  • Unpaid Leave.  Employers must consider providing unpaid leave as a reasonable accommodation to an employee with a disability if the employee requires it to return to work, as long as the leave would not create an undue hardship on the employer’s operations or finances.  This is required even if: “the employer does not offer leave as an employee benefit; …the employee is not eligible for leave under the employer’s policy; or … the employee has exhausted the leave the employer provides as a benefit …”
  • Interactive Process.  The employer is required to engage in an “interactive process” with the employee once the employee requests leave and the employer determines that the leave is not permitted under another program (such as PTO, FMLA or Worker’s Compensation).  As the EEOC acknowledges, the interactive process will likely continue during the employee’s leave, with the employer checking in on the employee’s progress and/or need for additional leave. When a leave is at issue, the EEOC recommends that the  process focus on the following questions:
    • “the specific reason(s) the employee needs leave …
    • whether the leave will be a block of time…, or intermittent …; and
    • when the need for leave will end
  • Maximum Leave Policies.  Employers may have leave policies that establish a maximum amount of leave allowed, but more time above the maximum would be a reasonable accommodation, unless the employer can show that allowing such leave would cause an undue hardship.
  • Return to Work.  An employer cannot require an employee to be “100% healed or recovered” to return to work — it must provide the employee a reasonable accommodation (including reassignment, for example) as long as the accommodation does not create an undue hardship.  An employer can refuse to allow an employee to come back to work with a medical restrictions only if the employee would pose a “direct threat” of substantial harm to him/her self or to others.
  • Undue Hardship.  When considering whether a leave would cause an undue hardship, the EEOC considers the following factors:
    • “the amount and/or length of leave required…;
    • the frequency of the leave…;
    • whether there is any flexibility with respect to the days on which leave is taken…;
    • whether the need for intermittent leave on specific dates is predictable or unpredictable…;
    • the impact of the employee’s absence on coworkers and on whether specific job duties are being performed in an appropriate and timely manner…; and
    • the impact on the employer’s operations and its ability to serve customers/clients appropriately and in a timely manner, which takes into account, for example, the size of the employer.”

We encourage all employers to read this new EEOC resource document in full.  Although “nothing new” per se, it serves as a great reminder for ADA compliance and offers many specific examples that may be pertinent to your own employee leave issues.