Paid Leave for All Workers Act FAQ

How do employees earn paid leave under the Act?

Under the Act, employees can earn at least 1 hour of paid time off for every 40 hours worked, up to 40 hours in a 12-month period. Employers can also frontload paid leave by providing all paid leave time at the beginning of the year or at the start of employment. Either method is allowed, so long as employees can earn and use up to 40 hours of paid leave per year.

What is paid leave? Is it the same as sick leave, vacation, or PTO?

Generally, paid leave is leave in which you remain in pay status that can be taken for any reason or no reason at all and any balances do not have to be paid out to an employee upon separation from employment. Leave specified as “vacation”  may also be leave that can be taken for any reason; however, it may be subject to pay out upon separation pursuant to Section 4 of the Illinois Wage Payment and Collection Act.

When does accrual of paid leave begin under the Act? When can employees start taking paid time off?

PLAWA went into effect on January 1, 2024. Accrual of paid leave begins upon the start of employment or January 1, 2024, whichever is later. Employees are entitled to begin using the accrued paid leave after 90 days. If an employee begins accruing paid leave on January 1, 2024, the first day they could take that paid time off would be March 31, 2024.

Example: The Paid Leave for All Workers Act went into effect on January 1, 2024. Six months later, Employee B starts a new job on July 1, 2024, and works 40 hours per week. They start accruing paid leave on their first day (July 1), but must wait 90 days (until September 29, 2024) before taking any of their accrued paid leave.

Example: Employee C has worked for their employer since 2019, but did not previously get paid time off. Employee C began accruing paid time off beginning January 1, 2024 (the effective date of the Act). 

What if a business already has paid leave or vacation plan? Do they have to provide an extra week under PLAWA?

If an employer already provides their employees with at least 40 hours of paid leave per year that employees can use for any reason of their choosing, such as vacation, PTO, or personal time, then an employer does not need to provide employees with additional paid leave time or modify their existing policy. This isn’t because the employer is exempt from the law, but that their paid leave policy is likely already in compliance with PLAWA. 

How much should employees be paid when they take paid leave?

Under PLAWA, employees should receive their regular hourly rate for their paid leave time.

Employees who earn tips/gratuities and employees who earn commissions should be paid at least the full minimum wage rate in the jurisdiction where they work or the agreed upon base hourly wage rate, whichever is higher. In Illinois, the minimum wage rate is $14 per hour.

Can employers deny an employee use of paid leave under this law? Can employers have “blackout dates?”

Yes, in certain cases. Employers can adopt a reasonable policy that outlines the reasons they can deny paid leave requests due to operational necessity. Be sure to review the rules regarding Paid Leave Usage Policy and Notice Requirements (56 Ill. Admin. Code Section 200.310) for more information. This includes “blackout dates” for particularly busy periods, such as holidays and peak seasons. This paid leave policy should be applied equally, and clearly communicated to all employees in writing.

For example, an Accounting Firm has a peak season from April 1-16.  In the employee handbook, they tell employees that leave requests will be limited during that period due to staffing needs.  During that busy season, the Accounting Firm may deny leave requests per their policy.

Can an employer prohibit an employee using PLAWA time for no-call, no-show absences?

An employer can adopt a reasonable policy regarding notification for unforeseen absences and how they will handle no-call, no-show absences, but employers cannot require the employee to disclose the reason for the absence at any time. Be sure to review the rules regarding Paid Leave Usage Policy and Notice Requirements (56 Ill. Admin. Code Section 200.310) for more information. 

Do employees have to provide a reason for taking leave? Can employers ask for proof or documentation, such as a doctor’s note?

Under PLAWA, an employer cannot ask an employee the reason for their paid leave request. Additionally, an employer cannot ask an employee for documentation relating to their paid leave request. Please note that if your employer offers more than 40 hours of paid leave per year, it is possible that they can enact a reasonable policy that requires employees to provide a reason for the leave or documentation to use those additional paid leave hours. This policy should be clearly communicated to employees in writing. 

Can an employer tell an employee to find someone to cover their shift before they can take paid leave?

Under PLAWA, an employer cannot require an employee to find a replacement before they can use their paid leave time. Please note that if your employer offers more than 40 hours of paid leave per year, it is possible that they can enact a reasonable policy that requires employees to provide a reason for the leave or documentation to use those additional paid leave hours. This policy should be clearly communicated to employees in writing. 

I requested to use 8 hours of paid leave and my employer granted it. However, they gave me an attendance point. Is this allowed under the Act?

Under PLAWA, it is unlawful for an employer to consider the use of paid leave by an employee as a negative factor in any employment action that involves evaluating, promoting, disciplining, or counting paid leave under a no-fault attendance policy. 820 ILCS 192/25. However, please note that if your employer offers more than 40 hours of paid leave per year, it is possible that they can enact a reasonable policy that implements attendance points for using those additional paid leave hours. This policy should be clearly communicated to employees in writing. 

Can employers require employees to take paid leave at certain increments, such as 4 hours or 8 hours?

An employee may take PLAWA leave at a minimum of two-hour increments. For example, if an employee needs to run an errand that will take 45 minutes, an employer can require that employee to use 2 hours of paid leave time. However, an employer can also be more generous and use smaller increments, such as 1-hour or half-hour, if they choose.

However, an employer whose pre-existing policy meets the minimum requirement of 40 hours of paid time off for any reason of the Act would not have to modify that existing policy in regard to leave increments. In other words, if an employer’s paid leave policy was in effect prior to 1/1/24 and provides employees with at least 40 hours of paid leave that they can use for any reason of their choosing, then they would not have to modify the policy to adjust the leave increments. 

Does an employer have to include an employee’s paid leave balance on their paystubs?

No, PLAWA does not require your employer to put your paid leave balance on your paystubs. However, an employer is required to maintain records, including each employee’s paid leave balance, and must provide that information upon an employee’s request.

Where can I find the Paid Leave for All Workers required notice?

It is available on our website at https://labor.illinois.gov/employers/posters.html. It is currently available in English, Spanish, Polish, French, Arabic, Thai, Chinese, Hindi, Tagalog, Ukrainian, and Vietnamese. If you need another language for your workplace, please contact us at DOL.PaidLeave@illinois.gov and we can have the poster translated. 

Who is exempt from the Act?

The Act has limited and specific exemptions:

o   Independent contractors, generally;

        Certain railroad and airline employees;

        Certain higher education employees:

o   College/university students who are employed part-time by their school; or

o   Some short-term, temporary employees of institutions of higher education;

o   Employees in the construction industry covered by a collective bargaining agreement;

o   Employees covered by a collective bargaining agreement with an employer that provides delivery, pickup, and transportation services

o   Employees of school districts organized under the School Code;

o   Employees of park districts organized under the Park District Code

Does the law apply to small businesses? What about non-profits and religious organizations?

Yes. The Act applies to employers of all sizes, and includes non-profits and religious organizations.

Does the Act apply to both full- and part-time workers?

Yes. PLAWA applies to all employees so long as they meet the definition under the Act. It does not matter if you work full-time, part-time, seasonal, through a temp agency, or are on-call. 

Does the law apply to employees of temp or staffing agencies?

Yes, PLAWA does not exempt temporary staffing agencies or employment placement agencies. The staffing agency would be required to provide the paid leave to its employees.

Does the law apply to workers and employers in the City of Chicago or in Cook County?

No. The City of Chicago passed the Paid Leave and Paid Sick and Safe Leave Ordinance prior to January 1, 2024, and would cover employees and employers in Chicago. Cook County passed the Paid Leave Ordinance prior to January 1, 2024, and covers employees and employers in Cook County. 

• If you are in Chicago:  Please direct questions regarding the City of Chicago ordinance to the City of Chicago Office of Labor Standards  

• If you are in Cook County (outside of Chicago): Please direct questions regarding the Cook County ordinance to the Cook County Commission on Human Rights 

Are union employees eligible to earn paid leave under the Act?

Under the Act, employees covered by a Collective Bargaining Agreement (CBA) that was in effect on 1/1/24 are not entitled to paid leave. However, once the CBA expires, the union and the employer can negotiate over the terms of paid leave, including whether to waive the requirements of PLAWA. If the parties agree to waive the requirements of PLAWA, they must do so in the CBA explicitly, clearly, and unambiguously. Otherwise, the employer must comply with the Act. IDOL recommends parties that wish to waive the requirements of PLAWA consider including a specific named reference to the Paid Leave for All Workers Act and the statutory citation allowing such a waiver.

Example: The hatmaker's union has a CBA with a hat factory that expires on 6/30. The union and factory are negotiating a new CBA that starts 7/1. They decide to specifically waive PLAWA and instead agree on 20 hours of PL and 30 hours of unpaid leave. Therefore, the factory does not need to provide 40 hours of PL.​

Are remote workers living outside of Illinois covered by the law? What about employees living in Illinois but working for a business in another state?

The Department has traditionally found that Illinois workplace protections apply to employees who primarily perform work in Illinois for a company that does business in Illinois. Therefore, if you primarily perform work within Illinois, then you are likely entitled to paid leave under this Act. Be sure to review the definition of “employee” under the rules (56 Ill. Admin. Code Section 200.110) for more guidance.

I work for a municipality that passed an ordinance opting out of PLAWA. Are they allowed to do this?

Municipalities or counties may use their authority to enact ordinances related to paid leave or paid sick leave. There are however, two distinct sections of PLAWA regarding when such ordinances are enacted by local law.

For ordinances enacted prior to January 1, 2024, the provisions of this Act shall not apply:

“The provisions of this Act shall not apply to any employer that is covered by a municipal or county ordinance that is in effect on the effective date of this Act that requires employers to give any form of paid leave to their employees, including paid sick leave or paid leave. Notwithstanding the provisions of this subsection, any employer that is not required to provide paid leave to its employees, including paid sick leave or paid leave, under a municipal or county ordinance that is in effect on the effective date of this Act shall be subject to the provisions of this Act if the employer would be required to provide paid leave under this Act to its employees.” (820 ILCS 192/15(p)).

For ordinances enacted on or after January 1, 2024, any local ordinance that is enacted or amended after the effective date of the Act must comply with all PLAWA requirements.

“Any local ordinance that provides paid leave, including paid sick leave or paid leave, enacted or amended after the effective date of this Act must comply with the requirements of this Act or provide benefits, rights, and remedies that are greater than or equal to the benefits, rights, and remedies afforded under this Act.” (820 ILCS 192/15(p)).

IDOL will review all claims on a case-by-case basis for compliance purposes, and as such, the above information should not be interpreted, use or provided as legal advice. Given the potential legal implications of such local laws, ordinances or regulations, it is recommended that employers consult with legal counsel prior to changing or enacting such policies, laws, rules or regulations. 

This could negatively impact local governments with police and fire personnel, what are they supposed to do?

The Act does not prohibit an employer from adopting an evenly applied paid leave policy to allow it to address operational issues and meet safety objectives. Employers of unionized employees can also address these concerns through collective bargaining.

Can an employer frontload pro-rated leave for an employee who is hired mid-year?

Yes, an employer can establish their 12-month period as January through December. If they have an employee who starts in July, an employer can give them a proportionate amount of what they’d earn in half a year, but then that employee would receive the full amount of paid leave the following January. 

Can an employer count each employee’s hire anniversary date as the beginning of that employee’s 12-month period?

Yes, an employer can establish their 12-month period to begin on an employee’s hire anniversary date. 

If an employee works 40 hours per week and works 52 weeks per year, wouldn’t they accrue more than 40 hours of paid leave in a year?

While employees do earn 1 hour of paid leave for every 40 hours worked, PLAWA limits the amount of paid leave accrued each year to 40 hours. 

Do employees accrue paid leave while using PTO time or unpaid leave?

No. For paid leave accrual purposes, only hours actually worked count. For example, if Employee D works 32 hours and takes 8 hours of paid leave, he would not yet have earned 1 hour of paid leave since he only worked 32 hours. 

How should employers frontload paid leave for part time workers? Are they entitled to the full 40 hours of paid leave?

Under PLAWA, an employer may front load paid leave time by giving a full year’s worth of leave that meets the minimum requirements of the Act (1 hour of paid leave for every 40 hours worked) to an employee at the beginning of the year. For those employees that work less hours throughout the year, such as part-time employees, they would be entitled to receive a pro rata share of their paid leave time at the beginning of the year, not the full 40 hours of paid leave.  

Example: Employee A works at a retail location 20 hours per week. Her employer decides to frontload paid leave time for all employees. If Employee A’s anticipated work schedule has her working 20 hours per week for 50 weeks, then her employer can frontload approximately 25 hours of paid leave to Employee A at the beginning of the year.

What if a part-time employee ends up working more hours than anticipated? If an employer frontloads paid leave, is an employee entitled to get more paid leave time?

Yes. If an employee works more hours than the employer anticipates, the employee is entitled to accrue more hours at a rate of 1 hour of paid leave for every 40 hours worked, up to 40 hours for the 12-month period. 

What if an employee ends up working less hours than anticipated or quits before the end of the year? Can the employer take back or make the employee pay for that used or unused paid leave?

No. If an employee leaves their employment before the end of the year or works fewer hours than anticipated by their employer, the employer may not diminish or recoup used or unused frontloaded paid leave benefits.

How does PLAWA work for an overtime-exempt employee if they work more than 40 hours per week? Do all of the hours worked count for accrual purposes?

Employees who are exempt from the overtime requirements of the federal Fair Labor Standards Act (29 U.S.C. 213(a)(1)) shall be deemed to work 40 hours in each workweek for purposes of paid leave time accrual, even if they regularly work 40 or more hours in a workweek. If an FLSA-exempt employee’s regular workweek is less than 40 hours, their paid leave time accrues based on the number of hours in their regular workweek.

How does PLAWA work for an hourly employee if they work more than 40 hours a week? Do all of the hours worked count for accrual purposes?

Yes. Under PLAWA, for non-FLSA-exempt employees, all hours worked should be counted for accrual purposes. However, the Act caps the number of paid leave hours an employee can earn per year to 40.

Does an unlimited PTO Policy comply with the Act?

It depends. To determine whether a specific employer’s unlimited PTO policy is compliant with this Act would require a fact-specific analysis upon complaint or formal investigation. One factor the Department would consider in such analysis would be whether the employee in question actually did, or had the ability to, take 40 hours of paid leave in a year for any reason. Another factor would be whether the employees were paid their regular rate of pay for time they took off. This is not an exhaustive list of factors the Department may consider in whether an unlimited PTO complies with the Act.

Are employees entitled to carry over unused paid leave time under PLAWA?

Under PLAWA, employees are allowed to carry over unused, accrued leave from one year to the next under this law. However, employees who received frontloaded leave would not be entitled to carry over unused paid leave into the next 12-month period. 

If an employee carries over unused paid leave into the next 12-month period, do they get to use all of those paid leave hours in that year?

Under PLAWA, an employer does not have to let an employee use more than 40 hours of paid leave off in a year. An employer may offer more than the 40 hours off if they choose. 

Example: Employee L accrues 40 hours of paid leave in one year. She used 30 hours of paid leave, and she carried over 10 hours of paid leave into the next year. The next year, she again accrues 40 hours of paid leave for a total of 50 hours of paid leave. Under the Act, Employee L’s employer can have a policy that only lets Employee L use 40 hours of paid leave in one year, even though she has those extra 10 hours that carried over.

Can an employer pay out accrued time at the end of the year, rather than having it carry over?

Under the Act, employers are not obligated to pay out unused accrued leave and  employees are entitled to carry over that accrued leave into the next 12-month period. However, an employer and employee may mutually agree, in writing and on an annual basis, that unused paid leave will be paid out to the employee at the end of the 12-month period instead of being carried over into the new 12-month period. See 56 Ill. Admin. Code Section 200.320(d) for more information.  

I was terminated and had 4 hours of paid leave time accrued. Am I entitled to get those hours paid out?

Under PLAWA, unused paid leave time does not have to be paid out at the end of employment UNLESS it is part of a vacation bank or general PTO bank. For example, if your employer provides that its 2-week vacation policy complies with PLAWA and they do not change their policy, then it is likely that any unused, accrued vacation time will have to be paid out at the end of employment under the Illinois Wage Payment and Collection Act. However, if your employer provides 1 week of vacation and 1 week of PLAWA and maintains separate recordkeeping for both types of leave, then your employer would not have to payout any unused accrued PLAWA time, but would have to payout any unused accrued vacation time. Be sure to review 56 Ill. Admin. Code Section 200.460 for more guidance.

I generally get to pick my schedule and I have a lot of unused, accrued paid leave time at the end of the year. Can my employer pay me for that time instead of carrying it over into the next year?

An employer and employee may mutually agree, in writing and on an annual basis, that unused paid leave will be paid out to the employee at the end of the 12-month period instead of being carried over into the new 12-month period. See 56 Ill. Admin. Code Section 200.320(d) for more information. 

If an employer allows employees to borrow against future accrual, thereby making the employee’s paid leave balance go negative, can the employer make the employee repay the paid leave if the employee terminates before they have earned that leave?

An employer may only make an employee repay borrowed accrued leave if that policy is disclosed in the employer’s written paid leave policy and the employee agrees to that policy in writing prior to taking any leave. All payroll deductions must comply with the requirements of the Illinois Wage Payment and Collection Act.

If an employer frontloads an employee’s paid leave at the beginning of the 12-month period, and the employee uses all of their leave and then quits before the end of the 12-month period, can the employer make the employee repay the paid leave?

No, the law does not allow an employer to make an employee repay paid leave time that was frontloaded at the beginning of the 12-month period. Benefits that have already been provided may not be retroactively diminished.

If an employer has a general PTO policy and an unpaid leave policy, can the employer require the employee to use PTO before using unpaid leave time?

No. Under PLAWA, an employee is entitled to use paid leave under the Act before using unpaid leave under any employer policy or other state law, and vice versa. The employee can choose which type of leave to use.  

I have earned vacation days from my employer that I have not yet used. My employer is wiping out my vacation bank and converting their paid leave plan to match the new Act. Am I entitled to the leave in my vacation bank?

Yes, you are likely entitled to that existing earned vacation leave. The Illinois Wage Payment and Collection Act regulations further state “[a]n employer cannot effectuate a forfeiture of earned vacation by a written employment policy or practice of the employer.” 56 Ill. Admin. Code Section 300.520(h). Employers cannot diminish vacation benefits that have already been provided to employees including converting, reducing, or eliminating vacation leave that the employee already earned but not used prior to 1/1/24.

How does PLAWA interact with FMLA?

FMLA is unpaid job protected leave that can only be used by covered employees in covered circumstances. Employees going on FMLA may use or may be required by their employer to use PLAWA time concurrently during their FMLA leave. All FMLA questions should be directed to the United States Department of Labor.

How can an employer track the time required under this act, versus other benefit time given to the employee?

The Act requires employer tracking of paid time off for any reason. If the employer chooses to offer paid sick time or other forms of paid time off in addition to paid leave, they should track that too as a best practice, but it is not covered by this Act.

I believe my employer violated the Paid Leave for All Workers Act. When should I file a complaint?

You can file a complaint if any of the following apply to you. Remember that earned time can be used starting March 31, 2024, or 90 days after starting a job.

• I took leave from work and wasn’t paid for it or was paid too little.
• I was not allowed to take paid leave from work.
• I took leave or requested to take leave from work and was fired or punished because of it.
• My employer did not keep accurate records of the paid leave I am owed.
• My employer did not post a public notice about workers’ rights under the Paid Leave for All Workers Act.

What should I do before filing a complaint?

• Talk to your employer about issues with your paid leave requests.

• Get a copy of the Employee Handbook/Manual.

• Ask to see the totals of paid leave or other leave accruals if they aren’t already provided.

• Look at your wage records/paystubs/online app to see if you were paid for the time you requested off.

• Gather “evidence” to submit with your Complaint, such as communications between you and your employer regarding your leave request.

How do I file a complaint?

If you believe that your employer is not complying with the Paid Leave for All Workers Act, you can file a complaint with the Illinois Department of Labor. You can find the complaint form here (https://labor.illinois.gov/laws-rules/paidleave/paidleavecomplaintform.html). Please note that you should receive an email confirming that your paid leave complaint was submitted. If you do not receive an email, then your complaint was not received and you will need to resubmit your complaint.