Counselor’s Corner JULIE CARDOSI Law Office of Julie A. Cardosi, P.C. Mandated Paid Leave for Employees Around the Corner — Will Your Dealership Be in Compliance with the Illinois PLFAW? In January 2023, the Illinois General Assembly passed the Paid Leave for All Workers Act (“PLFAW”)1 and as of the writing of this article, the legislation is expected to be signed into law by Illinois Governor Pritzker and once signed, will become effective January 1, 2024. This new law will require most all Illinois employers to provide employees up to 40 hours of paid leave which employees can take “for any reason of the employee’s choosing” during a designated twelve-month period. The PLFAW broadly defines “employers” and will essentially apply to all private employers regardless of size, including franchised automotive dealerships, and certain public employers including state and local governmental units and agencies.2 The new law will cover these employees working in Illinois whether full-time, part-time, temporary, short-term, exempt or non-exempt, with certain specifically carved out exceptions (i.e., employees defined in federal Railroad Unemployment Insurance Act or Railway Labor Act; employees working in construction industry covered by a collective bargaining agreement; etc.). Under the PLFAW, employees will be able to earn and use up to a minimum of 40 hours of paid leave (or a pro rata number of hours of paid leave), during a 12-month period which the employer designates in writing, such as in employment policies or an employee handbook. Employers can choose to “frontload” the leave on the first day of employment or the first day of a designated 12-month period, or use an accrual method (e.g., employees’ paid leave accrues at rate of 1 hour of paid leave for every 40 hours worked up to a minimum of 40 hours paid leave, or greater amount if the employer elects to provide more than 40 hours of paid leave).3 Employees may also determine how much paid leave they need to use, but employers are permitted to establish a reasonable minimum increment for the use of paid leave not in excess of two hours per day. In calculating the paid leave under the PLFAW, employers must pay the employee’s standard hourly rate of pay. For employees whose wages also include commissions, in calculating their paid leave, they must be paid at least the full minimum wage applicable in the jurisdiction in which they’re employed. Under the PLFAW, employers will not be permitted to require any documentation or certification of the need to take leave; however, employers may require up to seven calendar days’ notice of “foreseeable” leave if the employer has a written policy provided to employees outlining the notice requirements and procedures. This written policy must be provided to the employee on the employee’s first day of employment, or on January 1, 2024, whichever is later. If the leave is not foreseeable, employees must provide notice as soon as practicable. Employers will also not be allowed to interfere 15 illinoisdealers.com
RkJQdWJsaXNoZXIy ODQxMjUw