Necessary Paid Time Off for Employees

Are you an Illinois employer? Do you present paid day without work (PTO) to your workers? Starting in 2024, offering paid day without work is not a alternative—it’s a state mandate. In March 2023, Illinois Governor JB Pritzker signed SB208 into legislation, requiring Illinois paid depart.

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

Illinois paid depart: What to know

A handful of states that require employers to supply paid sick depart to workers. However Illinois is just the third state, behind Maine and Nevada, to require that employers give workers paid day without work for any motive. 

Below 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 accordance with Illinois Governor JB Pritzker:

Employers profit from permitting workers to are inclined to the pressing private issues of their lives. Employees’ productiveness will increase, they usually usually 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 legislation, together with the accrual fee and carryover necessities, to remain compliant. 

What’s the accrual fee?

The Illinois paid depart accrual fee 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 without work at 40 hours per 12-month interval, or 5 days. 

You should not have to make use of the accrual technique. You possibly can select to frontload hours for workers as a substitute. When you frontload hours, present every worker with 40 hours of paid day without work firstly of the yr. 

Do the Illinois PTO legal guidelines apply to all employers?

The Illinois paid day without work 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 building and parcel supply industries 

Employers topic to the Metropolis of Chicago and Prepare dinner County paid sick depart ordinances should observe native legal guidelines as a substitute of state legislation. 

Employers who have already got a coverage that gives a minimum of 40 hours of paid day without work in a 12-month interval don’t have to make modifications. 

When can workers accrue and take depart? 

Workers accrue paid day without work starting January 1, 2024 or instantly once they start employment. 

Workers can take earned day without work starting March 31, 2024, or 90 days following the beginning of their employment.

What are the qualifying causes for paid day without work?

Workers can take paid day without work for any motive, which can embrace:

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

Workers don’t want to offer documentation backing up why they took their earned day without work. 

Nevertheless, employers can set up a paid day without work coverage that units guidelines for depart (e.g., advance discover necessities for trip). You should 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 rely upon whether or not you frontload time or use the accrual technique. 

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

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

Do it’s important to embrace 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 point out the variety of sick depart days out there 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 have to show PTO balances on pay stubs. 

What do employers have to do?

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

1. Undertake a paid day without work coverage: If you have already got a paid day without work coverage that meets The Paid Depart for All Employees Act’s necessities, you don’t want to change your coverage. In any other case, create a PTO coverage that complies with the state mandate.
2. Notify workers: Make sure that workers know in regards to the paid day without work legislation and their rights. Add your PTO coverage to your worker handbook and hold all required labor legislation posters.
3. Monitor Illinois paid depart: Monitor every worker’s earned and used paid day without work, together with the present stability. Illinois requires that employers monitor paid day without work for any motive. 

You should utilize payroll software program to arrange accrual guidelines, monitor paid depart balances, and pay workers for day without work.

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

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

Illinois paid day without work: Fast information

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

• All Illinois employers should present paid depart starting January 1, 2024
• 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 day without work for any motive
• You should utilize payroll software program to trace and handle workers’ earned and used day without work

For extra data on Illinois paid day without work, try the FAQ web page on Illinois’ web site.

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