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Leave accrual rate changes in 2024

If you have operations in any of the jurisdictions listed below, please be aware that new paid leave accrual requirements will go into effect there starting January 1, 2024. Reach out to your Payroll Specialist or Time Support if you need assistance with updating your paid leave policies to reflect these changes.


This fall the California Legislature and Governor passed and signed into law significant changes to the state’s paid leave statute. The change increases the amount of leave under the law from 24 hours to 40 hours. This increase could have a number of consequences on employers, including the amount of sick leave employees can use in a single year. The law also increased the accrual cap from 48 hours to 80 hours. These changes will take effect on January 1, 2024.


The state of Illinois recently adopted a new paid leave law that would require almost all employers in the state to provide up to 40 hours of paid leave per year to eligible employees. This paid leave may be used for any purpose. Paid leave under the law accrues at a rate of one hour for every 40 hours worked, but the accrual must be calculated on a fractional basis in 15-minute increments.

The City of Chicago has delayed the adoption of a more generous accrual rate for its paid leave ordinance, from one hour for every 40 hours worked to one hour for every 35 hours worked. Initially set to go into effect January 1, 2024, this change will now be effective July 1, 2024.


The State of Minnesota passed a new paid leave law that requires all employers with at least one employee in the state working 80 or more hours in a year to participate. Paid leave accrues under the statute at a rate of one hour for every 30 hours worked with an annual cap of 48 hours.

These cities maintain their own paid leave ordinance on which the state law was largely based. Some provisions in these city ordinances conflicted with the state’s new law. In response, the cities have both adopted changes to their ordinances to align them more closely with state law. Neither change alters the accrual of paid leave under the ordinances. These changes go into effect on January 1, 2024


This document is provided solely for informational purposes and does not constitute legal advice or create an attorney-client relationship. Its content is general in nature and may not address individual circumstances or specific legal issues. For legal advice tailored to your situation, please consult with your legal counsel.

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