Illinois PLAWA: Earning 40 Hours, Using Leave, and Payout Rules

The Illinois Paid Leave for All Workers Act gives most workers in the state up to 40 hours of paid leave each year, and you can use those hours for any reason without telling your employer why. The law took effect January 1, 2024, and it applies to nearly every worker in Illinois except those employed in Chicago or Cook County, which have their own paid leave ordinances.

Who the Law Covers

The Act applies broadly. Full-time, part-time, and seasonal employees generally qualify, along with domestic workers and state and local government employees. Your base of operations or the place where you primarily perform work must be in Illinois, and your employer must have a meaningful connection to the state.

Some workers fall outside the law:

  • Independent contractors, as defined by the three-part test under the Illinois Employee Classification Act.
  • Students working temporarily for the university where they are enrolled.
  • Railroad employees covered by the federal Railway Labor Act.
  • Workers covered by a collective bargaining agreement in the construction or parcel delivery industries, whose contract governs their leave.

Chicago and Cook County Are Separate

If you work in the City of Chicago or in Cook County, this state law does not apply to you. Both jurisdictions passed their own paid leave ordinances before the state law took effect, and the statute defers to those local rules.1Legal Information Institute. Illinois Administrative Code tit. 56, 200.270 – Local Paid Leave Ordinances Chicago workers can contact the City of Chicago Office of Labor Standards, and Cook County workers are covered by the Cook County Paid Leave Ordinance.2Illinois Department of Labor. Paid Leave for All Workers Act FAQ

How You Earn the 40 Hours

You earn one hour of paid leave for every 40 hours you work, up to 40 hours in a 12-month period.3Illinois General Assembly. Illinois Code 820 ILCS 192/15 – Provision of Paid Leave Accrual starts on your first day.

Employers can pick one of two approaches. They can let leave build up hour by hour, or they can front-load the full 40 hours at the start of the year. If your employer uses accrual, any unused hours must carry over into the next 12-month cycle. Either way, actual use can be capped at 40 hours per year.4Illinois Department of Labor. Paid Leave for All Workers Act

The 12-month period is not automatically a calendar year. Your employer can define it as a fiscal year, a rolling period, or your hire anniversary.2Illinois Department of Labor. Paid Leave for All Workers Act FAQ Check your handbook to know when your balance resets.

One note if your employer already offers at least 40 hours of paid time off that you can use for any reason. That existing PTO or vacation policy satisfies the law, and you use it the way you always have. A sick-leave-only policy does not qualify, because the law requires leave you can use for any purpose.2Illinois Department of Labor. Paid Leave for All Workers Act FAQ

The 90-Day Wait Before You Can Use It

Hours start banking on day one, but your employer can require you to wait up to 90 calendar days before you actually take any of that time off. The hours keep accruing during the wait. Start a job on March 1 working 40 hours a week, and you will have roughly nine hours in the bank when the wait ends around May 30.2Illinois Department of Labor. Paid Leave for All Workers Act FAQ

Requesting Time Off

You do not have to give a reason. The statute is explicit: no explanation is required, and your employer cannot demand a doctor’s note, receipt, or other documentation.3Illinois General Assembly. Illinois Code 820 ILCS 192/15 – Provision of Paid Leave What matters is whether you have the hours and whether you followed the notice rules.

For leave you can plan, your employer can require up to seven calendar days’ notice. When the need is unexpected, notice must be given as soon as practicable. Your employer can set reasonable procedures for how you notify them, but those procedures cannot be so burdensome that you effectively cannot use the leave.5Illinois General Assembly. Illinois Code 820 ILCS 192/15 – Provision of Paid Leave

When an Employer Can Deny a Request

Denials are allowed only in limited situations. If the employer has a written policy stating that leave is subject to approval, and there is a documented business necessity, they can turn a request down. Employers can also set blackout dates, but only with a legitimate business reason and only if those dates are spelled out in writing.2Illinois Department of Labor. Paid Leave for All Workers Act FAQ

What an employer cannot do is require you to find your own shift coverage as a condition of approving leave. That is flatly prohibited.

How You Get Paid During Leave

You receive your regular hourly rate for the hours you take off, paid during the normal payroll cycle.6Illinois Department of Labor. Paid Leave for All Workers Act Fact Sheet

Tipped and commission-based workers are treated differently. Rather than the regular rate that might reflect a tip credit, the employer must pay at least the full minimum wage for the jurisdiction where you work. Across most of Illinois, that is at least $15.00 per hour.3Illinois General Assembly. Illinois Code 820 ILCS 192/15 – Provision of Paid Leave

What Happens to Unused Hours When You Leave

Unused paid leave under this law is not paid out when you quit, get fired, retire, or otherwise separate. The Illinois Department of Labor has said this plainly: employers have no obligation to pay out accrued but unused hours at separation.2Illinois Department of Labor. Paid Leave for All Workers Act FAQ If you know you are leaving, use the hours before your last day or they disappear. (An employer’s own vacation or PTO policy may promise a payout, but that is separate.)

Retaliation Is Illegal

Your employer cannot punish you for using paid leave, filing a complaint, or supporting a coworker’s rights under the law. That includes counting your leave against you in performance reviews, promotions, discipline, or no-fault attendance systems.7Illinois General Assembly. Illinois Code 820 ILCS 192/25 – Retaliation Prohibited If your workplace runs a points-based attendance system, charging you points for taking this leave is unlawful.

Filing a Complaint

If your employer denies leave you are entitled to, retaliates against you, fails to pay you, or refuses to let you accrue hours, you can file a complaint with the Illinois Department of Labor. You have three years from the date of the violation.8Illinois General Assembly. Illinois Code 820 ILCS 192/30 – Department Responsibilities

Complaints can be submitted online through the Department’s paid leave complaint form, or on a paper form emailed to DOL.PaidLeave@illinois.gov or mailed to the Department’s Chicago office.9Illinois Department of Labor. File a Workplace Complaint The Department reviews the complaint and may request more information, issue a warning, or schedule a hearing.

If a violation is found, the employer owes you the actual value of the unpaid leave, compensatory damages, a penalty between $500 and $1,000, and reasonable attorney’s fees and expert witness costs.8Illinois General Assembly. Illinois Code 820 ILCS 192/30 – Department Responsibilities The Department has subpoena power and can conduct depositions during an investigation.