Definitions and eligibility (Section 10)
- Redefines who is considered an employee under the Act, with notable inclusions and exclusions:
- Excludes:
- Employees engaged in transportation of goods through Illinois (including certain vessel operators documented by the U.S.).
- Employees who can freely decide when they perform duties (time-and-day flexible workers).
- Employees of employers with fewer than 15 employees.
- Retains inclusion of domestic workers (with expanded scope to include independent contractors, sole proprietors, and partnerships in this Act).
- Other exclusions remain from prior law (e.g., certain federal employee classifications, short-term college student employees under specific conditions).
- Expands employer definition to include state/local government entities and certain government agencies (while carving out school districts and park districts in some contexts).
Provision and accrual of paid leave (Section 15)
- Employees working in Illinois earn and may use a minimum of 40 hours of paid leave in a 12-month period, or a pro rata amount if the employer provides more than 40 hours.
- Accrual: 1 hour of paid leave for every 40 hours worked.
- Exempt employees for overtime purposes accrue leave based on their regular workweek (with the 40-hour baseline unless their regular week is less).
- Employers may set a reasonable minimum increment for using paid leave (not to exceed 2 hours per day).
- Employers voluntarily providing 1 hour of leave per 40 hours worked in 12 months are exempt (as before).
- Provisions about initial accrual, carryover, and pro rata service are described, including how leave can be front-loaded on hire or at the start of a 12-month period (with limitations on carryover and use).
Leave policy design and notice (Section 15, subsections h, i)
- Employers may require foreseeable leave with 7 days’ notice; nonforeseeable leave requires reasonable notice.
- Written notice of the paid leave policy must be provided, and updates communicated within 5 days of changes.
- Employers may not require employees to find a replacement worker as a condition of taking leave.
- Provisions for how leave interacts with other paid leave and documentation requirements are addressed.
Carryover and termination (Section 15, subsections i, j)
- Unused paid leave generally carries over year to year, up to the statutory 40-hour annual cap unless the employer caps or otherwise modifies per policy.
- There is explicit language that unused paid leave is not required to be paid out at termination, unless otherwise provided by policy or applicable law.
Transfer, rehire, and reinstatement (Section 15, subsection k)
- Accrued leave follows the employee if transferred within the same employer to a different division/entity/location.
- If separated and rehired within 12 months by the same employer, previously accrued but unused leave can be reinstated.
Interaction with payroll and benefits (Section 15, subsections l, m)
- Paid leave should not be improperly credited to other paid-time-off banks unless allowed by employer policy.
- If paid leave is credited to PTO or vacation accounts, unused leave should be paid on termination to the same extent as vacation time is under existing law.
- During leave, employers must maintain health coverage under the group plan at no reduced level with employee continuing to pay their share if applicable.
Collective bargaining and local/state exemptions (Section 15, subsection n)
- The Act preserves rights to bargain collectively and allows waivers of paid leave requirements in bona fide CBAs if explicitly stated in clear terms.
- Certain protections remain for state agencies, and distinct exemptions apply to construction industry workers and some national/international parcel delivery roles under existing CBAs.
Waivers and local ordinances (Section 15, subsections o, p)
- Waivers of rights under this Act in CBAs must be explicit and in unambiguous terms.
- The Act does not apply to employers already covered by municipal or county ordinances that grant paid leave, unless those ordinances would require paid leave under the national framework; if local ordinances exist or are amended after the Act’s effective date, they must provide equal or greater benefits.
Department of Labor responsibilities and enforcement (Section 30)
- Illinois Department of Labor administers and enforces the Act, with authority to conduct investigations, issue notices of violation, and refer matters to an Administrative Law Judge.
- Complaints may be filed within 3 years after an alleged violation.
- Remedies include actual underpayment, compensatory damages, penalties, equitable relief, and attorneys’ fees (as applicable).
Penalties and enforcement (Section 35)
- Civil penalties for violations:
- First offense: up to $250
- Second offense (after cure period of 14 days): up to $1,000
- Third or subsequent offense: up to $2,500
- Penalties may be waived at the Department’s discretion; penalties are deposited into the Paid Leave for All Workers Fund to support enforcement.
Note: This summary reflects the introduced text as of February 10, 2026. For final status, amendments, or enacted language, consult the latest legislative materials.
