Chicago Employers: Chicago recently amended its paid sick leave ordinance.
Effective December 31, 2023, Chicago employers must provide:
- 40 hours of paid sick time and
- 40 hours of paid time off which can be used for any reason.
Sick Time Key Points: Employees accrue 1 hour of sick time for every 35 hours worked, up to 40 hours per year. Up to 80 hours of paid sick time must carry over at year end. The law is silent on whether frontloading 40 hours upon hire and at the start of the year eliminates carryover obligations, and is silent on whether employers can impose an annual usage limit on sick time.
Paid Time Off (PTO) Key Points: Employees accrue 1 hour of PTO for every 35 hours worked, up to 40 hours per year. Up to 16 hours of unused PTO must carry over at year-end. If the employer frontloads 40 hours of paid leave upon hire and at the beginning of the year, then neither tracking accrual or carryover is required. The law is silent on whether employers can impose an annual usage limit on PTO. Consistent with existing Illinois State law, accrued, unused PTO must be paid out upon separation from employment.
The law adds a novel layer of complexity to the paid leave landscape and contains a number of other substantive and procedural requirements, including regarding use of existing policies for compliance.
Consult with counsel ASAP to ensure your policies are ready to go for the new year!