Updates: Chicago Paid Sick Leave Ordinance
The Chicago Paid Sick Leave Ordinance took effect July 1, 2017. Under this ordinance, covered employees earn one hour of sick leave for each 40 hours worked, up to a maximum of 40 hours in a 12-month period, as more fully described in our prior Benefit Beat articles in the February, 2020 and July, 2017 editions.
A recent Ordinance corrects what is said to be a scrivener’s error to clarify that the following types of employees are, in fact, covered by the paid sick leave ordinance:
- An outside salesperson (regularly engaged in making sales or obtaining orders or contracts for services where most of such duties are performed away from the employer’s place of business);
- A member of a religious corporation or organization;
- A student at, and employed by, an accredited Illinois college or university; and
- Motor carriers regulated by the U.S. Secretary of Transportation or the State of Illinois.
Further, recently issued rules provide employer notice obligations and record keeping requirements, as summarized below.
Employer notice/posting requirement
Employers are required to provide a notice of the paid sick leave benefit to their covered workers. In addition, the notice is required to be provided with the employee’s first paycheck beginning on or after July 1, 2020, and it must be provided annually thereafter.
The City’s Department of Business Affairs and Consumer Protection has prepared a model notice (available in English and Spanish) that can be downloaded for displaying in their worksite locations, as well as provided with the employee’s first paycheck. The posting can also be provided electronically through the employers’ usual internal communication channels. The notice must be provided in English, as well as any other language spoken by employees at the workplace who are not proficient in English.
Record keeping requirements
Employers are required to maintain the following records for employees for a minimum of five years:
- Name, mailing address, telephone number, and email address of each employee;
- Job titles and whether they are tipped, non-tipped or perform duties of both tipped and non-tipped positions;
- Date of hire;
- Date each employee was eligible to use paid sick leave, and number of hours of paid sick leave accrued by or awarded to each employee;
- Dates and number of hours each employee used paid sick leave;
- Rates of pay and hours worked each day and each workweek by each employee;
- Type of payment (hourly rate, salary, commission, etc.), straight-time and overtime pay, and total wages paid to each employee in each pay period;
- Additions and deductions from each employee's wages for each pay period, together with an explanation of such additions and deductions; and
- Dates of payment of each pay period for each employee.
For a business who employs tipped employees, these employers must also maintain the following records:
- The gratuities received during each work day;
- The amount by which the wage of each employee has been deemed to be increased by gratuities as determined by the employer;
- Hours worked each work day in which the employee does not receive gratuities, and total daily or weekly straight-time payment made by the employer for such hours; and
- Hours worked each work day in which the employee received gratuities, and total daily or weekly straight time earnings for such hours.
The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.