We wanted to remind Chicago employers that, starting July 1, 2025, if they have 51 to 100 covered employees, they must pay out all Paid Leave for Any Reason (PLFAR) on separation of employment or transfer.
Until June 30, 2025, they are required to pay out up to 16 hours of unused PLFAR on separation of employment or transfer.
Large employers (100+ covered employees) are required to pay out all unused PLFAR upon separation of employment or transfer (no change there from the previous law).
Small employers (1 to 50 covered employees) are still not required to pay out unused PLFAR upon separation of employment or transfer.
For additional information:
- Reminder: Chicago Paid Sick Leave and Paid Sick and Safe Leave Coming to Effect (VensureHR)
- Chicago Paid Leave and Paid Sick Leave
- Chicago Business Affairs and Consumer Protection Resources
Need help understanding how changes to employment laws will affect your business?
Learn more about how Vensure's Illinois PEO services can help you navigate complex employment laws and keep your business compliant.
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