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A Concise Summary of Chicago’s New Paid Leave Requirements

Date

May 15, 2024

Read Time

4 minutes

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Chicago’s new Paid Leave and Paid Sick and Safe Leave Ordinance (“Paid Leave Ordinance”) is fast approaching on July 1, 2024. When it takes effect, employers will need to comply with new paid leave requirements that apply to all Chicago employees (including those who work from home in Chicago).

To help employers prepare for the July 1st effective date, we share this graphic summarizing the requirements of the new law.

Chicago Paid Sick & Safe LeaveChicago Paid Leave for Any Reason
Hours AvailableUp to 40 hours of Paid Sick Leave in a 12-month period.Up to 40 hours of Paid Leave in a 12-month period.
CarryoverUp to 80 hours; potentially more if not meaningfully allowed to access.Up to 16 hours unless frontload; potentially more if not meaningfully allowed to access.
Accrual RateAccrue 1 hour of each type for every 35 hours worked.Accrue 1 hour of each type for every 35 hours worked.
Accrual Start and FrontloadingEmployees begin accruing on their first day of employment, based on hours worked within the City of Chicago.

If an Employer chooses to frontload, they must provide the 40 hours of Paid Sick Leave within 30 days of employment.
Employees begin accruing on their first day of employment, based on hours worked within the City of Chicago.

If an Employer chooses to frontload, they must provide the 40 hours of Paid Leave within 90 days of employment.
Eligibility and Waiting PeriodsAny employee who works 80 hours in the City of Chicago in a 120-day period is eligible. Once an employee is eligible they remain eligible.

Employers may require employees be employed 30 calendar days before using Paid Sick Leave.
Any employee who works 80 hours in the City of Chicago in a 120-day period is eligible. Once an employee is eligible they remain eligible.

Employers may require employees be employed 90 calendar days before using Paid Leave.
Minimum IncrementsEmployers may require use in increments of at least 2 hours.Employers may require use in increments of at least 4 hours.
Notice & ApprovalIf foreseeable, may require not more than 7 days’ notice.May require 7 days’ notice and require pre-approval. May only deny if necessary based on reasonable, pre-established rationale.
Use & DocumentationMay be used for own or family member illness, injury, care, treatment; sexual or domestic violence; public health emergency.

Cannot request certification (documentation) until after the third consecutive day of Paid Sick Leave.
May be used for any reason.

Cannot request any documentation.
Payment on TerminationNot required to be paid on separation.

Note: If combined with PTO/Vacation, need to pay out all.
Depends on size of employer:

Small Employers (50 or fewer employees):
No payment required.

Medium Employers (51-100 employees): Up to 16 hours until 7/1/25, then up to 56 hours (or 40 if frontload).

Large Employers (101+ employees): Up to 56 hours
(or 40 if frontload).

Note: If combined with PTO/Vacation, need to pay out all.
Other Policy RequirementsAll policy changes must be provided to employees 5 days before effective. Policy changes to the employer’s paid time off policies that affect a covered employee’s right to final compensation for such leave must be provided to employees 14 days before effective.If denying, employer must provide written notice with a pre-established policy rationale (i.e., business/operational needs, staffing requirements, specific blackout days).

All policy changes must be provided to employees 5 days before effective. Policy changes to the employer’s paid time off policies that affect a covered employee’s right to final compensation for such leave must be provided to employees 14 days before effective.
Record Retention RequirementsEmployers must maintain employee census information (name, contact information, job title, ability to earn tips, hire date, rate of pay, hours worked per day and per week, and payment type (hourly, salary, commission, etc)).

Employers must maintain Chicago Ordinance employee data (date of eligibility under ordinance, hours accrue or awarded for each type of leave, hours used and dates of usage of each type of leave).
Employers must maintain employee census information (name, contact information, job title, ability to earn tips, hire date, rate of pay, hours worked per day and per week, and payment type (hourly, salary, commission, etc)).

Employers must maintain Chicago Ordinance employee data (date of eligibility under ordinance, hours accrue or awarded for each type of leave, hours used and dates of usage of each type of leave).

Additionally, we recently hosted a webinar on the Chicago Paid Leave Ordinance. You can view the webinar here.

For additional information, please see our recent articles on Chicago’s Paid Leave Ordinance:


Filed under: Employment & Executive Compensation

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