Obligatory Paid Time Off for Employees

Are you an Illinois employer? Do you present paid break day (PTO) to your workers? Offering paid break day is not a selection—it’s a state mandate. In March 2023, Illinois Governor JB Pritzker signed SB208 into regulation, requiring Illinois paid depart.

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

Illinois paid depart: What to know

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

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

Offering workers with paid depart 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 exterior work.”

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

What’s the accrual charge?

The Illinois paid depart 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 break day at 40 hours per 12-month interval, or 5 days. 

You don’t have to make use of the accrual technique. You possibly can select to frontload hours for workers as an alternative. In the event you frontload hours, present every worker with 40 hours of paid break day at the start of the yr. 

Do the Illinois PTO legal guidelines apply to all employers?

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

Nevertheless, The Paid Depart for All Employees Act does exclude:

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

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

Employers who have already got a coverage that gives no less than 40 hours of paid break day in a 12-month interval don’t have to make modifications. 

When can workers accrue and take depart? 

Workers accrue paid break day instantly once they start employment. 

Workers can take earned break day 90 days following the beginning of their employment.

What are the qualifying causes for paid break day?

Workers can take paid break day for any motive, which can embody:

• Sick depart
• Trip
• Childcare
• Psychological well being causes
• Medical appointments

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

Nevertheless, employers can set up a paid break day coverage that units guidelines for depart (e.g., advance discover necessities for trip). You will need to talk your coverage to workers forward of time. The Illinois Division of Labor will present extra data on this sooner or later. 

Can workers carry over unused depart?

Carryover guidelines depend upon whether or not you frontload time or use the accrual technique. 

Employers who frontload hours at the start of the yr can require that workers use it or lose it earlier than the following 12-month interval. 

In the event you use an accrual system, it’s essential to let workers carry over as much as 40 hours to the following 12-month interval. 

Do you need to embody Illinois paid time stability on pay stubs?

Some states require that employers show paid depart data on worker pay stubs. For instance, California requires employers to indicate the variety of sick depart days obtainable 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). Nevertheless, employers don’t have to put workers’ paid depart balances on pay stubs.

Employers should keep information and supply paid depart stability data to workers who request it.

What do employers have to do?

Employers should adjust to the Illinois PTO legal guidelines. To take action, it’s essential to:

1. Undertake a paid break day coverage: If you have already got a paid break day coverage that meets The Paid Depart for All Employees Act’s necessities, you don’t want to switch your coverage. In any other case, create a PTO coverage that complies with the state mandate.
2. Notify workers: Ensure that workers know in regards to the paid break day regulation and their rights. Add your PTO coverage to your worker handbook and grasp all required labor regulation posters.
3. Observe Illinois paid depart: Observe every worker’s earned and used paid break day, together with the present stability. Illinois requires that employers observe paid break day for any motive. 

You should utilize payroll software program to arrange accrual guidelines, observe paid depart balances, and pay workers for break day.

With Patriot’s payroll software program, you possibly can pay workers with ease.

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

Illinois paid break day: Fast info

In the event you’re an Illinois employer, it is best to know the next key info about The Paid Depart for All Employees Act:

• All Illinois employers should present paid depart
• Employers should present one hour of paid depart for each 40 hours labored
• Employers can cap paid depart at 40 hours per 12-month interval
• Workers can use paid break day for any motive
• You should utilize payroll software program to trace and handle workers’ earned and used break day

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

This text has been up to date from its unique publication date of October 23, 2023.

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