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Under the Paid Leave for All Workers Act, household employers in Illinois will be required to provide up to 40 hours of paid leave during a designated 12-month period beginning in 2024.
Most employers – including household employers – in Illinois will be required to provide their workers with paid leave for any reason starting in 2024.
The state’s legislature recently passed the Paid Leave for All Workers Act, which Governor J.B. Pritzker says he intends to sign. When he does, Illinois will join Maine and Nevada as states that require private employers to provide earned paid leave to their workers for any reason.
The act will provide Illinois workers with up to 40 hours of paid leave during a designated 12-month period. However, the new requirement would not cover household employees receiving paid sick leave under Chicago’s or Cook County’s sick leave ordinances.
How paid leave will accrue
Paid leave under the new act will accrue at the rate of one hour for every 40 hours worked.
Accrual begins on January 1, 2024, or when employment begins, whichever is later. A family can also frontload 40 hours of paid leave on the first day of the 12-month period.
When paid leave is available
Household workers will be permitted to use paid leave after 90 days on the job or beginning March 31, 2024, whichever is later, unless their employer allows them to utilize leave earlier.
Unused paid leave may be carried over to the next year, but employers aren’t required to allow their workers to use more than 40 hours of leave in a 12-month period. Families that frontload paid leave to their employees would not be required to allow carryover of unused paid leave.
Household employees will also be able to determine how much leave to use, but families may set a reasonable minimum increment of no less than two hours per day.
Requirements for taking paid leave
Workers won’t have to give a reason for taking leave, and household employers won’t be permitted to require any documentation or certification of the need to take leave.
Household employers may require up to seven days of notice for foreseeable leave if they have a written policy provided to employees outlining the notice requirement.
If the leave is not foreseeable, household employees are only required to provide notice as soon as practicable.
Paid leave must be paid at the employee’s regular hourly rate.
Household employers won’t need to pay out unused paid leave at the end of the benefit year or at any other time – such as separation from employment – unless they have credited paid leave to their employee’s PTO or vacation bank.
However, household employers must restore paid leave when a worker leaves the employer but returns within 12 months.
A household employer may use their existing, more generous paid leave policies to satisfy their obligation to provide paid leave under the new law provided their worker can take paid leave for any reason.
Paid leave record keeping and notices
Families will be required to maintain accurate records for each employee showing hours worked, paid leave accrued and used, and remaining paid leave balance.
These records must be retained for at least three years.
Paid leave accruals don’t need to be reported on paystubs but must be provided to an employee upon request.
Families will be required to post a notice summarizing paid leave requirements and providing information on how to file a charge. Posters are not yet available.
Families should prepare now by reviewing and amending their paid leave policies to conform with these new requirements.
Household employers found to have violated the paid leave law are subject to actual damages, compensatory damages, attorney fees, and civil penalties, as well as being subject to equitable relief.
GTM can help
Using a nanny payroll service can help you track paid leave, sick time, vacation time, and other PTO policies while helping you maintain compliance with tax, wage, and labor laws. To learn more, give us a call at (800) 929-9213 and get a complimentary, no-obligation consultation with a household employment expert. Or schedule time with us at your convenience.
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Tax and legal updates or any other information posted on the GTM Payroll Services Inc. website and/or social media is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.
