New Illinois law mandates paid leave for any reason

The Illinois Paid Leave for All Workers (PLFAW) Act was passed by the Illinois legislature in January and was signed into law by Governor J.B. Pritzker on March 13, 2023. Effective January 1, 2024, it will require nearly all private sector employers in Illinois to provide employees a minimum of 40 hours of paid leave per year, which can be used for any reason. PLFAW makes Illinois the third state in the country to mandate paid time off for any reason.

And you thought tracking time off was already difficult?

PLFAW will require virtually all employees to be provided paid leave at a rate of 40 hours per year. It’s important to note that unlike vacation or other PTO that must be paid out upon an employee’s separation from employment (according to the Illinois Wage Payment and Collection Act), paid leave under PLFAW that is accrued but unused doesn’t have be paid upon termination.

The main feature of PFLAW is that employees may use the paid leave for any reason, and employers can’t ask about the reasons for taking such leave. In addition, employers can’t retaliate because an employee uses PLFAW leave or otherwise exercises their rights under the Act. They also can’t consider an employee’s use of PLFAW leave as a negative factor in any employment action.