Illinois' Paid Leave for All Workers: A Guide

Originally published November 13, 2023. Reviewed and updated August 10, 2026.

Illinois employers have had time to implement the Paid Leave for All Workers Act, but that does not mean every policy or payroll setup is working correctly. Questions continue to arise about part-time employees, frontloading, carryover, existing PTO policies, remote workers, and the difference between statewide and local paid leave rules.

At Lift HCM, we help Illinois employers connect approved leave policies to payroll, timekeeping, and HR administration. This guide explains the statewide law in plain language, identifies the decisions employers still need to make, and points you to separate resources for Chicago, Cook County, payout rules, and implementation audits.

Quick Answer: The Illinois Paid Leave for All Workers Act, commonly called PLAWA, generally allows covered employees to earn up to 40 hours of paid leave during a 12-month period. Employees can use the leave for any reason without providing documentation. Most Illinois employers are covered regardless of size, but employees covered by the Chicago or Cook County paid leave ordinances follow those local rules instead of statewide PLAWA.

What Is PLAWA? Paid Leave for All Workers Act

The Illinois Paid Leave for All Workers Act is a statewide law that took effect January 1, 2024. It requires most Illinois employers to provide covered employees with paid leave that can be used for any reason.

Unlike traditional sick leave, PLAWA leave is not limited to illness, medical appointments, or caregiving. An employee may use it for personal needs, family responsibilities, rest, travel, or another reason without telling the employer why the leave is needed.

The Illinois Department of Labor, known as IDOL, administers the law and publishes the official notice, FAQs, administrative rules, complaint form, and other employer resources.

Which Illinois Employers and Employees Are Covered?

PLAWA applies to employers of all sizes. The Illinois Department of Labor says that small businesses, nonprofits, and religious organizations are included. Covered workers can include full-time, part-time, seasonal, temporary, and on-call employees.

The law generally protects employees who primarily perform work in Illinois for an employer that does business in Illinois. An employer headquartered outside Illinois may still have obligations when an employee primarily works in the state. An Illinois home address alone does not automatically decide coverage if the employee primarily works elsewhere.

The law contains limited exemptions. According to the Illinois Department of Labor's PLAWA FAQs, exempt groups include:

• Independent contractors, generally
• Certain railroad and airline employees
• Certain part-time student employees and short-term employees of higher education institutions
• Certain construction employees covered by a collective bargaining agreement
• Certain employees covered by a collective bargaining agreement in delivery, pickup, and transportation services
• Employees of school districts organized under the Illinois School Code
• Employees of park districts organized under the Illinois Park District Code

Collective bargaining agreements require special attention. IDOL explains that employees covered by an agreement in effect on January 1, 2024, were not entitled to PLAWA leave under that agreement. After an agreement expires, any waiver of PLAWA must be explicit, clear, and unambiguous in the new agreement. Employers with unionized employees should have labor counsel review the applicable agreement.

Does PLAWA Apply in Chicago and Cook County?

Statewide PLAWA does not govern employees and employers covered by the Chicago or Cook County paid leave ordinances. Both local ordinances were enacted before PLAWA took effect, so IDOL directs covered employers to the appropriate local agency.

• For employees covered by the City of Chicago ordinance, use the Chicago Paid Leave and Paid Sick and Safe Leave resources.
• For employees covered by the Cook County ordinance outside Chicago, use the Cook County Paid Leave Ordinance and Regulations.
• For other covered Illinois employees, use statewide PLAWA and IDOL guidance.

This is an important correction to the original version of this article. Employers do not simply choose between PLAWA and a local ordinance. Coverage depends on the employee, the work performed, the employer, and the applicable local law.

If you have employees in more than one jurisdiction, map where each employee performs work and have counsel confirm the applicable rule set. Do not base the decision only on the employer's headquarters or an employee's mailing address.

How Do Employees Earn Paid Leave Under PLAWA?

Employers may use an accrual method or a frontloading method. Both can comply with PLAWA, but they create different administrative responsibilities.

Accrual Method

Under the accrual method, employees earn at least one hour of paid leave for every 40 hours worked, up to 40 hours in a 12-month period. Accrual begins on the employee's first day of work.

Only hours actually worked count toward accrual. Paid leave, other PTO, and unpaid leave do not count as hours worked for this calculation. Nonexempt employees receive accrual credit for all hours worked, including hours above 40 in a workweek, until they reach the annual limit.

FLSA-exempt employees are generally treated as working 40 hours per week for PLAWA accrual. If the employee's regular workweek is less than 40 hours, accrual is based on that regular schedule. These rules are explained in IDOL's accrual and frontloading FAQs.

Frontloading Method

Frontloading gives employees the leave they are expected to earn at the beginning of the employer's 12-month period or at the start of employment. Employers may prorate frontloaded leave for a midyear hire or an employee expected to work fewer hours.

Part-time frontloading requires monitoring. If a part-time employee works more hours than expected, the employer must provide additional accrual at the statutory rate, up to the 40-hour annual limit. If the employee works fewer hours than expected or leaves during the year, the employer cannot take back or require repayment of properly frontloaded leave.

The frontloading approach can reduce carryover administration, but it may provide employees with more leave earlier in the year than they would have earned under accrual.

When Can Employees Use PLAWA Leave?

An employer may require an employee to wait up to 90 days after employment begins before using accrued PLAWA leave. Accrual still begins on the first day of employment.

Employees may take leave for any reason and generally cannot be required to disclose the reason or provide documentation. Employers also cannot require employees to search for or locate someone to cover their work before taking protected leave.

Employers may require employees to use PLAWA leave in increments of up to two hours. An employer may allow smaller increments. A different rule can apply when the employee's scheduled workday is shorter than the employer's minimum increment or when a qualifying preexisting policy applies, so policy language should be reviewed carefully.

Can Employers Require Advance Notice or Use Blackout Dates?

Employers may create reasonable written procedures for requesting leave. Under Section 200.310 of the PLAWA administrative rules, a policy may require up to seven days of advance notice when the need for leave is foreseeable. For unforeseeable leave, the policy may require notice as soon as practically possible.

The same rule allows employers to deny a request in limited circumstances based on operational needs, but only when:

• The basis for denial is disclosed in a written policy
• The policy identifies limited operational circumstances in which a request may be denied
• The policy is applied consistently to similarly situated employees
• Employees still have a meaningful opportunity to use the leave they are entitled to receive

This means an employer may establish carefully defined blackout periods or staffing rules. It does not mean managers can deny requests informally whenever the schedule is inconvenient.

Employers must provide the written policy to employees and communicate changes. If a policy includes notice requirements, those requirements need to align with the statute and administrative rules. Have employment counsel review any restriction before managers begin applying it.

How Much Must Employees Be Paid During PLAWA Leave?

Employees should generally receive their regular hourly rate when using PLAWA leave. Employees who receive tips or commissions must receive at least the full applicable minimum wage or their agreed base hourly wage, whichever is higher, according to IDOL guidance.

Employers should confirm that the payroll earning code for PLAWA leave uses the correct rate and does not accidentally include or exclude premiums that the applicable rules treat differently. Test tipped, commissioned, salaried, and hourly employee scenarios instead of validating only one employee type.

Does an Existing PTO Policy Satisfy PLAWA?

An employer does not necessarily need to create an additional 40-hour leave bank. IDOL states that an existing vacation, PTO, or personal leave policy may satisfy PLAWA if employees receive at least 40 hours per year and may use that time for any reason.

The complete policy still matters. Employers should review eligibility, accrual, access, notice, documentation, rate of pay, and protection against retaliation. A policy that provides 40 hours but restricts all use to illness would not provide the same any-reason benefit.

Unlimited PTO requires a fact-specific review. IDOL may consider whether employees could realistically take at least 40 hours for any reason and whether they received the correct pay. The word “unlimited” alone does not establish compliance.

Combining PLAWA leave with vacation or general PTO can also affect what must be paid when employment ends. For a detailed explanation, read Illinois Paid Leave Laws: Payout Rules for Employers.

What Happens to Unused PLAWA Leave?

Unused accrued PLAWA leave carries into the next 12-month period. Even when leave carries over, an employer may limit an employee to using 40 hours during a 12-month period if the written policy complies with the law.

Employees who receive properly frontloaded leave are not entitled to carry unused PLAWA leave into the next 12-month period under the statewide law. The employer provides the new frontloaded amount for the new period instead.

PLAWA does not generally require unused statutory paid leave to be paid when employment ends unless the leave is credited to a vacation or general PTO bank. Illinois vacation-pay rules can then apply. Employers should keep policy language, system codes, and separation procedures aligned with the intended treatment.

IDOL also permits an employer and employee to agree in writing, on an annual basis, to pay unused accrued PLAWA leave at the end of the 12-month period instead of carrying it forward. Review IDOL's unused-time guidance and consult counsel before using this option.

What Notices and Records Must Employers Maintain?

Employers must display the official PLAWA notice in a conspicuous location. IDOL makes the notice available in multiple languages through its required posters and disclosures page.

If an employer uses a written paid leave policy with terms or conditions beyond the statutory baseline, the administrative rules require that policy to be made available in English and in additional languages commonly spoken by the workforce. Employers that normally communicate electronically should also provide the policy through their regular electronic communication method.

Employers must maintain records showing information such as hours worked, leave accrued or provided, leave taken, and the remaining balance. PLAWA records generally must be retained for at least three years and made available as required. Employees may request information about their paid leave balance even though PLAWA does not require the balance to appear on every paystub.

What Happens If an Employer Violates PLAWA?

Employees may file a complaint with the Illinois Department of Labor if they believe an employer denied paid leave, paid the wrong amount, retaliated against them, failed to maintain records, or did not display the required notice.

Under Section 200.540 of the administrative rules, most violations can carry a civil penalty of $2,500 per offense. Notice-posting violations can result in a $500 penalty for the first audit violation and $1,000 for a subsequent audit violation. Additional damages or relief may be available depending on the violation.

The goal should not be to manage only for the penalty amount. Incorrect balances, inconsistent manager decisions, and unclear policies also create employee complaints, payroll corrections, and lost trust.

Illinois PLAWA Questions Employers Frequently Ask

Do Part-Time Employees Receive PLAWA Leave?

Yes. Covered part-time employees accrue leave based on hours worked. Employers that frontload a prorated amount must monitor actual hours and provide additional accrual when an employee works more than expected, up to the annual limit.

Can an Employee Use PLAWA Leave Without Being Sick?

Yes. Employees may use PLAWA leave for any reason or no stated reason. Employers generally cannot require a doctor's note or another explanation for using the statutory leave.

Does PLAWA Require the Leave Balance on a Paystub?

No. Statewide PLAWA does not require the balance to appear on the paystub. Employers must maintain accurate records and provide balance information when an employee requests it.

Can an Employer Give an Attendance Point for Using PLAWA Leave?

No. An employer cannot treat the protected use of PLAWA leave as a negative factor in discipline, evaluation, promotion, or a no-fault attendance policy. Different rules may apply to employer-provided leave above the statutory benefit when the employer has a valid written policy.

Can Employers Require Employees to Use PLAWA Before Unpaid Leave?

No. IDOL says an employee may choose whether to use PLAWA leave before unpaid leave or use unpaid leave first. PLAWA may run concurrently with FMLA in circumstances where substitution of paid leave is permitted or required under FMLA rules.

Does PLAWA Apply to Remote Employees?

It can. IDOL generally looks at whether the employee primarily performs work in Illinois for an employer that does business in Illinois. Employers should review remote and hybrid arrangements individually, especially when employees move or regularly work across state lines.

Keep Your Illinois Paid Leave Policy and Payroll Setup Aligned

The Illinois Paid Leave for All Workers Act gives most covered employees access to up to 40 hours of paid leave for any reason. For employers, the continuing challenge is making sure the written policy, employee location data, payroll configuration, manager practices, and records all follow the same rules.

Start by confirming which jurisdiction applies. Then review whether you accrue or frontload leave, whether an existing PTO policy satisfies the law, how unused balances are treated, and whether employees and managers understand the request process.

Lift HCM helps employers translate approved leave policies into practical payroll, timekeeping, reporting, and employee self-service workflows. If your current setup relies on manual calculations, inconsistent leave codes, or repeated corrections, explore our HR administration solutions and workforce management and time tracking tools, or contact us to discuss what a configuration review could include.

This article is for educational purposes only and does not constitute legal advice. Paid leave coverage and requirements can vary based on the employee, work location, employer, collective bargaining agreement, policy design, and current agency guidance. Consult qualified legal counsel before adopting or changing a leave policy.