A mere one month following the enactment of the landmark Chicago leave ordinance, it is being modified. On December 13, 2023, the Chicago City Council voted to delay certain portions of the new Paid Leave and Paid Sick Leave Ordinance for 6 months, see last month’s Benefit Beat article here. Chicago’s current paid sick leave ordinance will remain in effect until June 30, 2024.
Specifically, the ordinance, which takes effect December 31, 2023, will now delay the applicability date for the leave accrual, payout, and certain other provisions as more fully described below.
Importantly, the December 31st effective date remains in place, meaning that employers subject to the ordinance will not need to comply with the Illinois Paid Leave for All Workers Act which takes effect January 1, 2024.
Beginning July 1, 2024, a covered employee is one who has worked at least 80 hours in any 120-day period within the city’s geographic limits. Previously, a covered employee is one who, in any two-week period, performs at least two hours of work while physically present within the geographic boundaries of the city.
Accrual of Leave
Covered employees accrue one hour of both paid leave and paid sick leave for every 35 hours worked up to 40 hours in a 12-month period beginning July 1, 2024, previously January 1, 2024.
Payout upon Termination
The amending ordinance requires medium size employers (51-99 covered employees) to pay out up to 16 hours of unused paid leave on separation or transfer until July 1, 2025 (previously December 31, 2024). Beginning July 1, 2025 (previously January 1, 2025), a medium size employer must pay out all unused paid leave on separation or transfer.
Employers must provide employees with a written paid time off policy in each covered employee’s primary language. Employer must provide employees with a 14-day notice of any change to the policy.
Employers must retain records for five years. Records retained must include employee names, addresses, hours worked, pay rates, number of paid leave and paid sick leave hours earned each year, and dates on which paid leave and paid sick leave was used and paid.
Employers must comply with the recordkeeping requirements above for each employee whose regular work duties take place within the geographical boundaries of Chicago, even if that individual does not meet the definition of a covered employee and is not entitled to paid leave or paid sick leave.
Employers will want to keep an eye on the City of Chicago’s Office of Labor Standards website for future guidance.
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