Tag Archives: Chicago Paid Sick Leave Ordinance

House Republicans Try to Remedy Patchwork of Paid Sick Leave

Contributed by Beverly Alfon, November 10, 2017

Eight states, the District of Columbia, and more than 30 municipalities have enacted laws mandating differing paid leave requirements. Localities such as New York and San Francisco, have enacted some of the most aggressive sick leave requirements in the country. Employers doing business within the City of Chicago have also been left to deal with a trifecta of sick leave laws in 2017:  the IL Employee Sick Leave Act, the Cook County Paid Sick Leave ordinance, and the City of Chicago paid sick leave ordinance. All of this has resulted in an administrative nightmare for employers dealing with more than one set of sick leave requirements.

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On November 2, 2017, three Republicans in the U.S. House of Representatives, Reps. Mimi Walters (R-CA), Elise Stefanik (R-NY) and Cathy McMorris Rodgers (R-WA), introduced a bill, The Workflex in the 21st Century Act (H.R. 4219). Supporters of the bill tout that the legislation gives employees job flexibility, while also giving employers more certainty and predictability over their leave practices. The bill provides for a voluntary program that is comprised of a combination of guaranteed paid leave and increased workplace flexibility options to employees. The amount of paid leave required (ranging from 12 days up to 20 days) would depend on an employee’s tenure and the employer’s size.  At least one type of workflex option would also be made available to employees, which may include a compressed work schedule, biweekly work program, telecommuting program, job-sharing program, flexible scheduling or a predictable schedule.  The incentive for an employer is that participation in the program would shield it from the mish-mosh of paid leave obligations stemming from state and local laws currently in effect.

The bill would not require employees to use the workflex option in order to take advantage of the paid days off. Also, to be eligible for a workflex arrangement, an employee would have to be employed for at least 12 months by the employer and would have to have worked at least 1,000 hours during the previous 12 months. More details regarding the bill can be found here.

Bottom line: Where this bill will end up obviously remains to be seen, but it has strong support from the Society for Human Resource Management (SHRM), the U.S. Chamber of Commerce, National Association of Manufacturers, National Association of Women Business Owners and other employer groups. Until there is a solution to the administrative hopscotch required of employers whose employees work in different cities, counties and states, employers must do their best to stay on top of the applicable paid sick leave requirements and related rules and regulations, and adjust their policies and procedures accordingly.

City of Chicago Approves Paid Sick Time and Reminder… Chicago Minimum Wage Increases to $10.50 on July 1, 2016

Contributed by Sara Zorich and Mike Wong, June 28, 2016

City of Chicago Approves Paid Sick Time

On June 21, 2016, we posted a blog on the City of Chicago’s proposed ordinance mandating paid sick leave, including details about who it covers and how it could impact business owners.

On Wednesday, June 22nd, the full City council passed the ordinance. Effective July 1, 2017, part time and full time employees in Chicago will accrue 1 hour of sick leave for every 40 hours they work – with a cap of 5 days paid leave per 12 month period.

Employers can utilize their existing paid time off policies if they are more generous than the Chicago ordinance; however, the ordinance REQUIRES mandatory carry-over of accrued but unused sick time, which is something many paid time off policies do not allow. Chicago employers should begin reviewing their current sick time or paid time off policies to ensure compliance with the ordinance.  If Chicago employers do not have any policies in place, they will want to do so by July 2017.

Reminder… Chicago Minimum Wage Increases to $10.50 on July 1, 2016

Minimum WageLast year, the Chicago Minimum Wage Ordinance went into effect. This ordinance requires a mandatory yearly increase to the Chicago minimum wage. As of July 1, 2016, the Chicago Minimum Wage increases to $10.50/hr and the minimum wage for tipped employees increases to $5.95/hr with an applicable tip credit of $4.55 (i.e., $10.50 minus $5.95).

Unless an employee is exempt from overtime under the Illinois Minimum Wage Law (IMWL), employers subject to the Chicago Ordinance must pay employees overtime of 1.5 times the City’s minimum wage. This means that on July 1st, 2016, the Chicago’s minimum overtime wage will be $15.75 per hour (i.e. $10.50 times 1.5) and the overtime rate for tipped employees is $11.20 (i.e. $15.75 – $4.55).

Employers should check their record keeping and payroll systems to ensure this change is implemented as of July 1, 2016.