Chicago, IL: Final Rules for Paid Leave and Paid Sick Leave Ordinance Issued
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APPLIES TO All Employers with Employees in Chicago |
EFFECTIVE July 1, 2024 |
QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
On April 30, 2024, the Chicago Department of Business Affairs and Consumer Protection published the final rules interpreting the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, which goes into effect on July 1, 2024. The Ordinance will replace the Chicago Paid Sick Leave Ordinance that is currently in effect and will provide Chicago employees with up to 40 hours of Paid Sick Leave per 12-month period, as well as an additional 40 hours of Paid Leave per 12-month period usable for any reason. Key aspects of the final rules are summarized below.
Definition of 12-month Period. The final rules allow employers to establish a 12-month period of the employer’s choosing, so long as the period is made of consecutive months (e.g., employee’s work anniversary, the calendar year, a contract year, or a fiscal year).
Carryover of Unused Leave. The final rules confirm that carryover is required under the Ordinance, and that any carryover is in addition to the Paid Leave and Paid Sick Leave the employee will earn in the next 12-month period. Employees may carry over up to 80 hours of Paid Sick Leave and up to 16 hours of Paid Leave from one 12-month period to the next.
In lieu of accruing time, employers may choose to frontload 10 hours of Paid Leave and 40 hours of Paid Sick Leave to employees on the first day of the designated 12-month period. The final rules indicate that frontloading the 40 hours of Paid Leave will alleviate the employer’s Paid Leave carryover obligation, but frontloading 40 hours of Paid Sick Leave will not alleviate the employer’s Paid Sick Leave carryover obligations, meaning, employers must comply with the carryover obligations for Paid Sick Leave regardless of whether applying a frontloading or accrual method.
Denial of Requests for Paid Leave. The final rules instruct employers to consider the following factors when evaluating the denial of an employee’s request for Paid Leave:
- Whether granting Paid Leave during a particular time period would significantly impact business operations;
- Whether the employer provides a need or service critical to the health, safety, or welfare of the people of Chicago;
- Whether similarly situated employees are treated the same for the purposes of reviewing, approving, and denying Paid Leave; and
- Whether the employee has meaningful access to use all their Paid Leave over the 12-month period.
Under the rules, any denial of Paid Leave must be in writing and must include the pre-established policy rationale for the denial. This written denial must be issued to the employee immediately upon the denial determination.
Using Paid Leave and Paid Sick Leave. The final rules include a new provision which allows employers to restrict use of Paid Leave or Paid Sick Leave to the employee’s regular work week, which means that employees may be prevented from accessing their otherwise available Paid Leave or Paid Sick Leave during scheduled mandatory overtime or on weekends.
Employer Paystub, Notice and Posting Requirements. The final rules modify several of the Ordinance’s requirements for employer notification and postings:
- Workplace Poster – The final rules indicate that employers must post the City-created, required workplace poster in other languages if at least 5% or more of employees at a jobsite are not literate in English.
- Employee Notification – Employers must provide a notice of the employer’s Paid Leave and Paid Sick Leave policies with the first paycheck subject to the Ordinance or prior to the commencement of the employee’s employment. Annually thereafter, employers must provide a similar notice, by paper or electronic means, to employees with a paycheck issued within 30 days of July 1.
- Frontloading Notification – If the employer frontloads time, the final rules instruct the employer to make written notification of the fact and the availability of hours to employees at the beginning of the 12-month period.
Action Items
- Review the final rules here.
- Revise Paid Leave and Paid Sick Leave policies and procedures for compliance with final rules.
- Have appropriate personnel trained on requirements for Paid Leave and Paid Sick Leave.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase