Cook County, Illinois recently published amended regulations implementing a law that requires employers to provide paid leave that employees can use for any reason. The regulations took effect immediately as of Oct. 2024.
The Details
Accrual Rate
Under the amended regulations, paid leave continues to accrue when employees are using the paid leave, at the same rate as if they were working (one hour for every 40 hours worked).
Rate of Pay
Employees with multiple job functions and who work for various rates should be paid an average of all hourly rates, or the greater of the minimum wage or lowest rate.
Employer Notice
Employers must provide each employee with a written policy that advises each employee of their leave benefits and rights. Employers must provide the written policy at the start of employment (or the date of initial accrual) and annually thereafter.
The policy must include:
- A summary of the Paid Leave Ordinance;
- A description of the benefit(s) offered by the employer;
- Coverage, the rate of accrual, permissible uses and prohibited employer practices;
- Contact information for the Cook County Commission on Human Rights (CCCHR); and
- An explanation of how employees can file a complaint with the CCCHR.
Employers must also display a workplace poster that advises employees of their leave benefits and rights.
The amended regulations clarify that employees who don’t work at a physical worksite should receive a copy of the workplace poster via the normal method of communicating workplace policies (e.g., email, worker portal, company intranet).
Payout Upon Termination
The law requires employers to pay the value of unused paid leave if the leave is credited to the employee’s paid time off bank or employee vacation account. Payout of paid leave credited to an employee’s paid time off bank or employee vacation account is required within 15 days of the employee’s termination, resignation, retirement, or other separation.
Employers should additionally consider their vacation payout obligations under the Illinois Wage Payment and Collection Act. For example, an employer provides 40 hours of sick leave and 40 hours of vacation time. In this example, any unused vacation time must be paid out. Unused sick leave would not be required to be paid out.
Interplay with the Federal Family and Medical Leave Act (FMLA)
The federal FMLA rules and regulations, including notification requirements, take precedence over the county’s paid leave law and an employer’s paid leave policy when an eligible FMLA employee uses FMLA leave.
Per FMLA rules, an employer may require FMLA-eligible employees to use accrued paid leave, paid sick or family leave for some or all of the FMLA leave period prior to taking unpaid FMLA leave. Absent an employer requirement to use accrued paid time off for FMLA leave, an FMLA- eligible employee may choose whether to use accrued paid leave or unpaid leave for FMLA leave purposes pursuant to the FMLA rules and regulations.
Next Steps
Employers should: