Chicago Employers, Get Ready to Double Up on Paid Time Off
In 2017, the City of Chicago enacted a paid sick leave ordinance requiring employers with employees in Chicago to provide at least 40 hours of paid time off for specific sick-leave related reasons. Beginning on January 1, 2024, Chicago employers will be required to provide their Chicago employees with double the amount of paid time off – 80 hours – with 40 of the hours to be used for specific sick-leave related reasons and the other 40 hours to be used for any reason.
The text of the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance can be found here.
Although the City is expected to provide further guidance on the Ordinance, we prepared a chart comparing the key provisions of the 2017 Ordinance and the 2024 Ordinance. The changes are somewhat drastic and expansive. For example:
- The 2017 Ordinance required 40 hours of paid sick leave, whereas the 2024 Ordinance requires 40 hours of paid sick leave (“Paid Sick Leave”) plus another 40 hours of paid leave (“Paid Leave”) that can be used for any reason.
- The 2017 Ordinance did not require accrued and unused sick time to be paid at the time of separation. The 2024 Ordinance, however, requires some employers to pay accrued, but unused, Paid Leave at the time of separation. Further, certain employers with unlimited paid time off policies could be required to pay employees for unused paid time off.
- Sick leave under the 2017 Ordinance accrued at the rate of 1 hour for every 40 hours worked. All paid leave under the 2024 Ordinance must accrue at the rate of 1 hour for every 35 hours worked.
Given the looming January 1, 2024 effective date of the Ordinance, employers should take immediate steps to ensure their paid time off policies are in compliance.
If you have any questions about this alert or require assistance in updating and implementing a paid leave policy for your Illinois workforce, please contact Amy M. Gibson or the Aronberg Goldgehn attorney with whom you regularly work.