Chicago to Require Paid Sick Leave

The Chicago City Council has approved an Ordinance (O2016-2678) that will require employers to provide paid sick leave to employees beginning July 1, 2017.

Eligible Employees:







To be eligible for paid sick leave under the Ordinance, the employee must: 

• Be covered by the City’s minimum wage law (that is, work within the City for at least two hours in any two-week period); and

• Work at least 80 hours for an employer within any 120-day period.

Accrual:







Employees begin accruing paid sick leave on July 1, 2017 or the first calendar day after their start of employment, whichever is later. Employees must generally accrue at least one hour of leave for every 40 hours of work. Employees who are exempt from overtime are assumed to work 40 hours in each workweek, unless their normal workweek is less than 40 hours.

Employers may cap accrual at 40 hours per 12-month period (calculated from the date that the employee’s accrual of leave begins).

Carryover:

Employers must generally allow employees to carryover half of their accrued, unused paid sick leave to the following 12-month period, up to a maximum of 20 hours. However, if the employer is subject to the Family and Medical Leave Act (FMLA), the employer must allow the employee to carry over an additional 40 hours of accrued, unused paid sick leave that the employee may use exclusively for FMLA purposes (provided the employee is eligible for FMLA). If an employee carries over and uses 40 hours of paid sick leave for FMLA purposes under this requirement, the employee is entitled to no more than an additional 20 hours of accrued paid sick leave in the same 12-month period.

Use:

Employees may begin using accrued paid sick leave on their 180th day of employment. Employers may generally cap use at 40 hours per 12-month period.  Employees may use paid sick leave when:

• They are ill or injured, or for the purpose of receiving medical care, treatment, diagnosis, or preventive medical care;

• A member of their family is ill or injured, or to care for a family member receiving medical care, treatment, diagnosis, or preventive medical care;

• They, or a family member, is the victim of domestic violence or a sex offense; or 

• Their place of business is closed by order of a public official due to a public health emergency, or they need to care for a child whose school or place of care has been closed by order of a public official due to a public health emergency. 

Employee Notice: 

When the need for leave is reasonably foreseeable (such as prescheduled doctor’s appointment or court dates for domestic violence cases), employers may require up to seven days' notice. If the need for leave is not reasonably foreseeable, employers may generally require notice as soon as is practicable via phone, e-mail, or text message. 

Documentation:

If an employee is absent for more than three consecutive work days, the employer may require certification that the use of paid sick leave was authorized under the Ordinance. Documentation from a licensed health care provider will satisfy this requirement. Employers are prohibited from delaying the start of leave because they haven’t yet received certification.

Employer Notice:

Employers must post a paid sick leave notice in a conspicuous place (in addition to the minimum wage notice already required) at each facility that is located within the geographic boundaries of the City and where any covered employee works. In the first paycheck employees receive after July 1, 2017, employers must also provide a notice of employees’ rights to paid sick leave (in addition to the minimum wage notice already required). Employees hired after July 1, 2017 must also receive this notice with their first paycheck. The City will make a form notice available that satisfies these requirements.

Relation to Paid Time Off (PTO) Policies: 

If an employer has a policy that grants employees PTO in an amount and a manner that meets the requirements of the Ordinance, there is no requirement for the employer to provide additional paid leave. 

Retaliation Prohibited:

Employers are prohibited from taking adverse action against employees for exercising, or attempting in good faith to exercise, any right under the Ordinance.

Compliance Recommendations:

Employers with employees working in Chicago should be prepared to provide paid sick leave in accordance with the requirements outlined above. Employers should update leave policies and forms to comply with these requirements.