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Necessary Paid Time Off for Employees


Oct 30, 2023


Are you an Illinois employer? Do you present paid day off (PTO) to your workers? Starting in 2024, offering paid day off is not a selection—it’s a state mandate. In March 2023, Illinois Governor JB Pritzker signed SB208 into regulation, requiring Illinois paid go away.

Often known as The Paid Go away for All Employees Act, the regulation makes Illinois the primary Midwest state to mandate PTO. Right here’s what you could know. 

Illinois Paid Time Off Abstract
Starting January 1, 2024, all Illinois employers should provide workers 40 hours of paid day off per 12-month interval. Employers can entrance load this paid go away at first of the 12 months, or workers can instantly start accruing go away at a charge of 1 hour per 40 hours labored.

Illinois paid go away: What to know

A handful of states that require employers to supply paid sick go away to workers. However Illinois is barely the third state, behind Maine and Nevada, to require that employers give workers paid day off for any motive. 

Beneath The Paid Go away for All Employees Act, employers should pay workers their full wages whereas on go away. Tipped workers are entitled to their locality’s minimal wage. 

Offering workers with paid go away has a number of advantages—for each employers and workers. In keeping with Illinois Governor JB Pritzker:

Employers profit from permitting workers to are likely to the pressing private issues of their lives. Employees’ productiveness will increase, and so they typically acquire higher ardour for his or her job once they can handle the stresses they face outdoors work.”

Perceive the important thing components of the regulation, together with the accrual charge and carryover necessities, to remain compliant. 

What’s the accrual charge?

The Illinois paid go away accrual charge is one hour per 40 hours labored. A full-time worker who works 40 hours per week would accrue one hour per week. 

Employers can cap an worker’s earned paid day off at 40 hours per 12-month interval, or 5 days. 

You don’t have to make use of the accrual methodology. You may select to frontload hours for workers as an alternative. If you happen to frontload hours, present every worker with 40 hours of paid day off at first of the 12 months. 

Illinois paid time off: The accrual rate for Illinois paid time off is 1 hour of paid time off (PTO) per 40 hours worked. Employers can use the accrual system or frontload paid time off at the beginning of the year.

Employers can cap an employee’s earned paid time off at 40 hours, or 5 days, per 12-month period.

Do the Illinois PTO legal guidelines apply to all employers?

The Illinois paid day off legal guidelines apply to all workers working for an Illinois employer. 

Nonetheless, The Paid Go away for All Employees Act does exclude:

  • Impartial contractors
  • Exempt workers lined by a collective bargaining settlement in development and parcel supply industries 

Employers topic to the Metropolis of Chicago and Prepare dinner County paid sick go away ordinances should comply with native legal guidelines as an alternative of state regulation. 

Employers who have already got a coverage that gives at the least 40 hours of paid day off in a 12-month interval don’t must make adjustments. 

When can workers accrue and take go away? 

Workers accrue paid day off starting January 1, 2024 or instantly once they start employment. 

Workers can take earned day off starting March 31, 2024, or 90 days following the beginning of their employment.

What are the qualifying causes for paid day off?

Workers can take paid day off for any motive, which can embrace:

  • Sick go away
  • Trip
  • Childcare
  • Psychological well being causes
  • Medical appointments

Workers don’t want to supply documentation backing up why they took their earned day off. 

Nonetheless, employers can set up a paid day off coverage that units guidelines for go away (e.g., advance discover necessities for trip). You could talk your coverage to workers forward of time. The Illinois Division of Labor will present extra info on this sooner or later. 

Can workers carry over unused go away?

Carryover guidelines rely upon whether or not you frontload time or use the accrual methodology. 

Employers who frontload hours at first of the 12 months can require that workers use it or lose it earlier than the subsequent 12-month interval. 

If you happen to use an accrual system, you could let workers carry over as much as 40 hours to the subsequent 12-month interval. 

Do it’s a must to embrace Illinois paid time steadiness on pay stubs?

Some states require that employers show paid go away info on worker pay stubs. For instance, California requires employers to point out the variety of sick go away days accessible to the worker on a pay stub or accompanying doc. 

Illinois requires that employers present every worker with an itemized assertion of deductions for every pay interval (i.e., a pay stub). However as of proper now, the state has not addressed whether or not employers must show PTO balances on pay stubs. 

What do employers must do?

Employers should adjust to the Illinois PTO legal guidelines starting in 2024. To take action, you could:

  1. Undertake a paid day off coverage: If you have already got a paid day off coverage that meets The Paid Go away for All Employees Act’s necessities, you do not want to change your coverage. In any other case, create a PTO coverage that complies with the state mandate.
  2. Notify workers: Be certain that workers know in regards to the paid day off regulation and their rights. Add your PTO coverage to your worker handbook and grasp all required labor regulation posters.
  3. Observe Illinois paid go away: Observe every worker’s earned and used paid day off, together with the present steadiness. Illinois requires that employers monitor paid day off for any motive. 

You need to use payroll software program to arrange accrual guidelines, monitor paid go away balances, and pay workers for day off.

With Patriot’s payroll software program, you’ll be able to pay workers with ease.

  • Arrange time-off accruals for Illinois paid go away
  • Pay workers in 3 easy steps
  • Observe worker go away balances

Illinois paid day off: Fast info

If you happen to’re an Illinois employer, you need to know the next key info about The Paid Go away for All Employees Act:

  • All Illinois employers should present paid go away starting January 1, 2024
  • Employers should present one hour of paid go away for each 40 hours labored
  • Employers can cap paid go away at 40 hours per 12-month interval
  • Workers can use paid day off for any motive
  • You need to use payroll software program to trace and handle workers’ earned and used day off

For extra info on Illinois paid day off, take a look at the FAQ web page on Illinois’ web site.

This isn’t meant as authorized recommendation; for extra info, please click on right here.


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