Paid Leave for All Act
Illinois has recently enacted the Paid Leave for All Workers Act guaranteeing all employees in the state a minimum of five paid days of leave each year. Illinois is the third state to mandate paid leave in the nation.
Employees may take the required leave for any reason, and employers may not require employees provide any sort of documentation or certification to use their leave time. Employers may require that the employee provide at least seven days’ notice for taking leave when the need for leave is foreseeable. If the need for leave was not foreseeable, the employee must provide notice as soon as practical.
Employers have two options for how leave may be calculated. They may “front load” the leave providing the required five days at the beginning of the year. The second option is to require employees earn their leave time. Employees must earn 1 hour of leave for each 40 hours worked until they have reached 40 hours of earned leave in the year. If an employer uses the accrual method to calculate leave, then employees must be permitted to carry over 40 hours of leave each year. Employers who “front load” leave are not required to carry over unused leave.
Employers are not required to pay unused leave at the termination of employment, but if an employee resumes employment with the same employer within 12 months, their unused leave at the termination of employment must be restored. Leave will begin to accrue at the beginning of employment, but employers may require employees to have been employed 90 days before utilizing their accrued leave time. Employees who are paid tips and commissions must receive at least the regular minimum wage for their leave time.
The Act permits municipalities to enact ordinances requiring greater amounts of leave. Employees in construction and transportation, subject to collective bargaining agreements, are exempt from the Act. Employees may only waive the requirements of the Act through a collective bargaining agreement that explicitly waives the requirements of the Act. Non-Union employees may not waive the requirements of the Act, and any contract purporting to do so will be unenforceable.
Employers must also post a notice, that the Illinois Department of Labor will prepare, in the same location as other required notices to employees.
Employers are required to maintain records of hours worked, paid leave accrued and used, and the balance of leave remaining for at least three years and must allow the Department of Labor to access the records during business hours.
The Act will be enforced by the Illinois Department of Labor which will investigate complaints of violations and may impose penalties of compensatory damages, fines between $500 and $1,000, equitable remedies such as reinstatement of employment, and payment of attorney fees incurred by the employee.
The Act takes effect January 1, 2024. Before that time, employers should review their leave policies and create or modify their existing leave policies to comply with the Act. The attorneys at our office have studied the new Act, and stand ready to assist you in complying with your new obligations.
CROWN Act
Effective January 1, 2023, the Illinois Human Rights Act has been amended to protect Illinoisans from discrimination in employment based on their hair. The Creating a Respectful and Open Workplace for Natural Hair Act, or CROWN Act amends the definition of race in the Illinois Human Rights Act to include “traits associated with race, including, but not limited to, hair texture and protective hairstyles such as braids, locks, and twists.” As a result, employers may not take action against, or refuse to hire, employees based hair styles historically associated with specific racial groups. Stylings and accessories that are protective of hair, such as wraps or braids, are also protected.
Employers may continue to enforce dress codes or grooming policies, but the details of such policies should be reviewed to ensure they don’t prohibit protected hair styles.
Non-Compete Agreement May be Banned
The Federal Trade Commission recently announced that it is beginning its rule-making process to entirely prohibit an employer’s imposition of non-competition agreements against employees. The Commission’s prohibition is based on the grounds that the non-competition agreements are an unfair business practice. No proposed rules have yet been announced.