On May 1, 2024, Chicago published rules for its Paid Leave and Paid Sick and Safe Leave Ordinance that begins July 1, 2024. The Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (Ordinance) replaces Chicago’s current paid sick leave law and creates additional leave protections. While the Ordinance was originally scheduled to take effect on December 31, 2023, the Chicago City Council voted to delay the effective date to July 1, 2024.
To recap, the new ordinance will guarantee two banks of leave, one for paid sick leave, and one for paid leave that may be used for any reason of the employee’s choosing. This means that covered Chicago employees are entitled to use up to 40 hours of paid sick leave per year and another 40 hours of paid leave to use for any reason.
The Ordinance also includes payroll provisions regarding the lag time before payment of leave, employee notification, and final pay in which employers are required to pay for unused paid leave and paid sick and safe leave upon termination of employment based upon employer size starting July 1, 2025.
Next Steps
Employers should begin preparing for the Ordinance by updating their policies and procedures to comply with the new law, including providing the applicable notice, adjusting their payroll systems, updating their employee handbooks, and providing training for management and HR personnel on the updated leave law. At the time of this post, the model notice had not yet been made available; however, it is expected that it will be located here.
