Chicago, Illinois to Require Paid Sick Leave

APPLIES TO

Employers with at least one covered employee in Chicago, Illinois

EFFECTIVE

July 1, 2017

QUESTIONS?

Contact HR On-Call

(888) 378-2456

The Chicago City Council recently amended the Chicago Minimum Wage Ordinance (“Ordinance”) to include paid sick leave (“PSL”), effective July 1, 2017.  Employers who do not already offer sufficient paid time off, or have not already adjusted their business policies and practices to provide paid sick leave to eligible employees, plan for compliance with the Ordinance.  A recap of key provisions of the Ordinance includes the following:

  1. Eligibility:
    • Individuals: anyone working (1) at least two hours for a covered employer within the geographic boundaries of Chicago in any particular two-week period, and (2) at least 80 hours for a covered employer in any 120-day period.
    • Employers: entities of any size that (A) maintain a physical business facility within the geographic boundaries of Chicago, or (B) are subject to one or more of the City of Chicago’s licensing requirements.
    • Exemptions: workers subject to a bona fide collective bargaining agreement are not eligible for paid sick leave.
  2. Usage: Employees can begin using PSL after 180 days of employment.  PSL can be taken in minimum increments of four hours or less per day.  Employees cannot use more than 40 hours of PSL per 12-month period, unless allowed by the employer.
  3. Accrual:
    • Rate: One hour of PSL per 40 hours worked, beginning on the first calendar day after the date of hire, or July 1, 2017, whichever is later. PSL accrues in hourly increments only.
    • Cap: Employers can cap PSL accrual to 40 hours per 12-month period.  The 12-month period begins on the date PSL starts to accrue.
    • Carryover: Employees can carry over half of their accrued, unused PSL, up to a maximum of 20 hours, to the following 12-month period.  If the employer is covered by the Family and Medical Leave Act, covered employees can carryover up to 40 hours of accrued, unused PSL for the exclusive use of FMLA purposes, in addition to the standard 20 hour maximum carryover.
    • Frontload: Employers may choose to frontload PSL rather than track accrual.
  4. Workplace Notices: Covered employers must conspicuously display a poster at each of their Chicago facilities and provide employees a notice of their right to PSL with distribution of their first paycheck.
  5. Employee’s Notice: Employees can be required to provide up to seven days’ advance notice for reasonably foreseeable leave (example: prescheduled health care provider appointments).  Certification can be required after three consecutive days of absence.

Action Items

  1. Review the text of the ordinance here.
  2. Contact ManagEase at (888) 230-3231 for assistance in drafting and implementing paid sick leave policies and procedures for compliance with the Ordinance.

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.

© 2016 ManagEase, Incorporated.

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