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Handling Illinois paid leave and Washington PFML in an employee handbook template

How to write Illinois paid leave and Washington PFML sections into an employee handbook template, with concurrency rules, remote work blocks and version control.

What to take away

  • Illinois paid leave (820 ILCS 192) took effect January 1, 2024. Employees accrue 1 hour of paid leave for every 40 hours worked, up to 40 hours in a 12-month period.
  • Washington paid family and medical leave (RCW 50A) is a state insurance program. The 2024 total premium was about 0.74% of wages, split roughly 28.57% employer and 71.43% employee, and collected only up to the Social Security wage base.
  • FMLA and each state program run at the same time when the reason qualifies under both, so the handbook needs one concurrency paragraph covering both states.
  • Every state subsection carries its own heading, its own figures, and a version number with an effective date.

Split the leave chapter into three layers

A standard employee handbook treats leave as one chapter. That structure holds in a single state and breaks in two.

The federal layer states FMLA eligibility, the 12-week entitlement, notice and certification. Build it from the Family and Medical Leave Act | U.S. Department of Labor rules rather than from an older handbook.

The state layer states accrual, use, notice and payout for one state only. The company layer holds what you add, such as a top-up payment or a longer leave period.

Keep the same subsection order in every edition. A reader in Chicago should not have to read Washington rules to find their own.

Settle the heading convention once. Policy templates format weighs numbered sections against plain subheads and says which survives repeated revision.

Illinois paid leave: what the subsection must state

Illinois separates paid leave for any reason from a sick-only bank. Most national templates carry only the second.

Illinois paid leave

Accrual rate
1 hour for every 40 hours worked, up to 40 hours per 12-month period
Front-loading
40 hours granted at the start of the period instead of accruing
First use
After 90 days of employment
Carryover
Up to 40 hours into the next period
Permitted use
Any reason, with no documentation required
Payout at separation
Not required by the Act unless your policy or a contract provides it

Put the accrual rate in the handbook, not only in payroll software. Employees check the number.

"Paid leave for all workers accrues at 1 hour for each 40 hours worked, up to 40 hours per 12-month period. It may be used after 90 days of employment, for any reason, and up to 40 unused hours carry over."

Illinois Paid Leave Subsection

  • State accrual rate and frequency
  • When balance becomes usable
  • Carryover rules at year end
  • Payout at separation
  • Time usable for any reason
  • No doctor's note for general bank

The Act asks for 7 days of notice when the need is foreseeable, and as soon as practicable when it is not. Do not demand a doctor's note for this bank.

Say whether the bank runs alongside your paid time off or replaces part of it, and which balance is drawn first. Before publishing, check the subsection against a policy templates checklist so the definition, the owner and the review date are all present.

Washington paid family and medical leave: premiums, cap and duty

Washington pays the benefit. The employer does not, though it collects the premium. The program has run since January 1, 2020 under RCW 50A.

Washington paid family and medical leave

Premium split
About 28.57% employer, 71.43% employee
Total rate, 2024
About 0.74% of wages
Total rate, 2025
About 0.92% of wages
Wage base, 2024
$168,600
Wage base, 2025
$176,100

Employers with fewer than 50 employees do not pay the employer share. Job protection after leave applies to employers with 50 or more.

State whether you top up the state benefit. If you do, give the formula, the cap and the duration. If you do not, one sentence saying so prevents surprises.

Example: a Seattle request that qualifies under two laws

An employee in Seattle needs six weeks for a serious health condition. The reason qualifies under FMLA and under Washington PFML, so both run together.

Pay comes from the state program plus any company top-up. Job protection comes from both laws, and the employee keeps the greater right where they differ.

"Leave that qualifies under both the FMLA and a state program runs concurrently. Where the two differ, the employee receives the greater protection."

Four weeks of bonding produces the same answer. Never write that state leave replaces FMLA, or that employees must exhaust paid time off first.

Remote work blocks a single-state template lacks

A policy templates guide separates policy from procedure, which keeps these blocks short enough to be read.

  • Reimbursementwhat the company pays for home internet and equipment, the cap, and how claims are submitted.
  • Overtime approvalwho approves it in advance, and the fact that unapproved hours are still paid.
  • Rest breaksthe same meal and rest rules off site, recorded the same way.
  • Leave schedulinghow a remote employee requests time off, and who covers the work.

Version control and the release sequence

One controlling handbook with state appendices beats a handbook per state. Separate editions let the concurrency paragraph drift.

Release in this order:

  1. Freeze the current handbook, copy it to a draft, and assign the next version number.
  2. Rewrite the Illinois and Washington subsections plus the concurrency paragraph.
  3. Have counsel licensed in each state review that state's subsection.
  4. Publish, collect signed acknowledgements, and diary a review date before the next legislative session.

Release the Handbook Revision

  1. Draft state subsections in controlling document
  2. Have employment counsel review FMLA and accrual
  3. Update version number and effective date
  4. Send acknowledgement to every employee

Use the Resources for Employers | U.S. Department of Labor page when a state insert raises a federal question.

Diary the review date now. Policy templates trends argues for an annual cycle over reacting to each new law.

Common questions

Does Illinois paid leave replace our sick leave policy?
No. It sits beside it. Keep both headings separate so employees do not assume the general bank is for illness only.
Do we pay out unused Illinois leave at separation?
Only if your policy or a contract says so. The Act does not require it, so the handbook should state your choice.
We have 30 employees in Washington. Who pays the premium?
The employee share only. Small employers skip the employer share but still withhold and remit the employee portion.
Can company PTO run at the same time as FMLA?
Yes, if the handbook says so and the reason qualifies. Name the order the balances are drawn down.

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