February 10, 2026
Illinois legislation would assist small businesses struggling with the cost of the state’s new paid-leave mandate
Senator Chapin Rose (District 51) filed legislation to assist small businesses struggling with the added costs of Illinois’ new paid-leave mandate.
The bill, SB 3535, provides tax credits to small businesses for the cost of the paid-leave they provide their employees under the Paid Leave for All Workers Act.
“Small businesses have been hit hard by the state’s paid leave mandate,” said NFIB Illinois State Director Noah Finley. “This bill is a recognition of that fact. If it’s the state’s policy to insert itself into the employee-employer relationship and mandate paid leave, it should also be willing to pick up the bill instead of asking small businesses to shoulder the entire burden.”
To receive the tax credit, the employer must employ 50 or fewer full-time equivalent employees. The legislation would take effect on January 1, 2027.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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