Tag Archives: Chicago

July 1, 2021 Increase to Chicago Minimum Wage….But No Change to Cook County Minimum Wage Despite Written Notices

Contributed By Michael Wong and Sara Zorich, June 25, 2021

It’s that time of year (again) for increases in minimum wage. However, this year is slightly different! In spite of the Cook County written notices that some employers may have received, the Cook County Minimum Wage for non-tipped employees is NOT increasing, as the unemployment rate for Cook County during the prior year was greater than 8.5%. However, the Cook County Minimum wage for tipped employees will increase on July 1st  from $6.00 to $6.60 to match the increase under Illinois law. For City of Chicago employers, the minimum wage for both tipped and non-tipped employees will increase on July 1st. To provide a full picture, the following chart shows the minimum wage for Illinois employers as of July 1, 2021:  

*    Increases to match the State minimum wage for tipped employees of $6.60.

** The employer size requirements are modified for small employers of Domestic Workers to $14.00/hr for (0-20 employees) but large employers remain 21+. Thus, any employee working as a Domestic Worker is eligible for the Chicago minimum wage

*** City of Chicago contracts and concessionaire agreements: $14.15 for non-tipped employees and $7.65 for tipped employees.

As a reminder, many municipalities in Cook County opted-out of the Cook County Minimum Wage and/or Paid Sick Leave ordinances. If your business is in Cook County (but not the City of Chicago), you must check whether or not the municipality that you are in opted-out and whether they opted out of both or only one.

REMINDERS:

2020 Change to Definition of Covered “Employer” Under Chicago Minimum Wage and Paid Sick Leave –

On July 1, 2020, the 2019 Amendment to the Chicago Minimum Wage and Paid Sick Leave ordinance, went into effect expanding what employers are covered. The new definition deleted the requirement that an employer have a business facility within the geographic boundaries of the City and/or be subject to license requirements. After July 1, 2020, the Chicago Minimum Wage and Paid Sick Leave ordinances defined an employer as any “person who gainfully employees at least one employee.”

Under this change, it can be interpreted that any employer who has an employee who performs at least two (2) hours of work within the geographic boundaries of the City, during any particular two-week period, must pay that employee the Chicago minimum wage for the time spent working within the City of Chicago and record the amount of paid sick leave accrued by that employee for the time spent working in the City!

As an example of the impact of this is the following scenario: a Colorado business sends its non-exempt employee to New York. The employee’s flight has a 2 ½ hour layover at O’Hare (O’Hare and Midway are both within the geographic boundaries of the City of Chicago). Technically under Chicago’s Paid Sick leave ordinance, the Colorado business would have to record the amount of paid sick leave that the employee accrued during the 2 ½ hours that the employee was “working” in Chicago and would be required to pay the Chicago minimum wage of $15.00/hr for the hours the employee was “working” in Chicago.

Any employer who has employees going into the City of Chicago, MUST review and understand their obligations and whether they are currently subject to the Chicago Minimum Wage and Paid Sick leave ordinances.

Chicago Paid Sick Leave Covers Employees in Outside Sales, Members of Religious Organizations, Student Employees of Accredited Illinois Colleges and Universities subject to the FLSA and DOT covered Motor Carriers

The 2019 Amendment to the Chicago Paid Sick Leave Ordinance also made changes to the definition of covered employees. In particular, the amendment specifically states employees covered by the Chicago Paid Sick Leave ordinance (but not the Chicago Paid Minimum Wage) include employees who work in outside sales, for a religious corporation or organization, are a student-employee of an Illinois college or university covered by the Fair Labor Standards Act, or are an employee of a motor carrier covered by the Department of Transportation.

This means that employees who work in outside sales, for a religious corporation or organization, are a student-employee of an Illinois college or university covered by the Fair Labor Standard Act, or are an employee of a motor carrier covered by the Department of Transportation, should be eligible to accrue up to 40 hours of paid sick leave each year under the Chicago Paid Sick Leave ordinance. As the Chicago Paid Sick Leave ordinance has specific requirements regarding accrual rate, carryover, caps, permitted uses, restrictions on use, requesting supporting documentation from employees, and employee notice, it is recommended that you contact experienced employment counsel regarding drafting a policy or questions about compliance.

Remember to Update Your Posters AND Provide written notices to Employees –  

Under the Chicago’s rules, employers have to post the most up to date minimum wage and paid sick leave posters and provide written notices to covered employees each year with the first paycheck after July 1st, whether by paper or electronic means. The City of Chicago posters for Chicago minimum wage and paid sick leave can be found on the City of Chicago webpages for Minimum Wage and Paid Sick Leave in English, Spanish, Polish, Chinese, Filipino and Korean.

Additionally, the Cook County website has posters for Minimum Wage and Sick Leave, but only in English.

The State of Illinois also has its Minimum Wage poster on its website in English or Spanish.

Employers who are unsure whether they must comply, what they must do to comply or are concerned about their policies complying should contact experienced employment counsel to mitigate exposures and minimize risk.

Is Your Company Ready For the Chicago and Cook County Sick Leave Ordinances Effective July 1, 2017?

Contributed by Sara Zorich and Beverly Alfon, May 3, 2017

51162387 - calendar on white background. 1 july. 3d illustration.

calendar on white background – July 1

The July 1st effective date of the Cook County and Chicago Sick Leave Ordinances is quickly approaching and employers must review their paid time off, sick and vacation policies now to ensure compliance with the new ordinances. Some of the key similarities and differences of the ordinances’ provisions are highlighted below:

Similarities:

  • Covered Employee – An employee who: (1) works for an  employer at least 80 hours within any 120-day period; and (2) performs at least 2 hours of work in Cook County (or the City of Chicago depending on the ordinance being applied) during any 2 week period — including driving through county (or city) for business purposes.
  • Accrual Rate – Employees earn 1 hour of earned sick leave for every 40 hours they work.
  • Cap – Employees can earn up to 40 hours of paid sick time per 12 month period.
  • Carryover – 20 hours for non-FMLA employers but if the employee is FMLA eligible, an additional 40 hours may be carried over for FMLA purposes only.
  • Permitted Use – Employee’s own or family member’s illness, injury, medical treatment or diagnosis, preventative care; also domestic violence or sexual assault, or public health emergency closure related to child’s school or care facility.
  • Family Member Definition – Employee’s child, legal guardian or ward, spouse, domestic partner, parent, spouse or domestic partner’s parent, sibling, grandparent, grandchild, including step and foster relationships, or any other individual related by blood or whose close association with the employee is the equivalent of a family relationship.
  • Restriction on Use – Generally, only 40 hours of paid sick leave may be used per 12 month period.  However, if the employee is eligible to carry over additional paid sick leave hours for FMLA purposes, up to 40 hours can be used for FMLA purposes only, and an additional 20 hours can be used for other purposes – for a total of 60 hours.
  • Employee Notice to Company – Employers can require the employee to give up to 7 days notice if need for leave is reasonably foreseeable (e.g., prescheduled appointments, court dates). Otherwise, the employee may give the employer notice of the need for leave as soon as practicable via phone, email or text message.
  • Payout – No payout at termination.
  • Posting Requirements – Both written notice with first paycheck after 7/1/17 and poster (to be created by the enforcing agency).
  • Documentation – An employee may be required to provide documentation to support absence of more than 3 consecutive work days.
  • Retaliation – No retaliation for using accrued sick leave under the ordinance.

Differences:

  • Employer coverage is only required if you have a “place of business” in Cook County, whereas in Chicago an employer is subject to the ordinance if they “maintain a business facility” in Chicago or are subject to Chicago’s business licensing requirements. This means that more employers outside of Chicago may be subject to the ordinance solely because they have a Chicago business license.

Key Issues to Consider

Employers must take the time to carefully review their existing policies to determine if their policies are compliant with the new ordinances or if changes need to be made. Issues for the company to consider include:

  • Do you have a paid time off or sick leave policy?
  • Have attendance and administrative processes been updated to reflect the requirements of the law (e.g., receiving notice of unforeseeable leave by phone, email, or text message)?
  • Are federal or local disability laws implicated by an employee requesting or taking leave, or returning to work from leave?
  • What procedures are in place to engage in the reasonable accommodation interactive process?
  • Have employment policies been vetted by experienced employment counsel?

Along with these general issues, there are some “tricky situations” employers with multiple locations must consider:

  • Will the company change its sick policy or create a new policy for all Illinois employees?
  • How to address and track when an employee triggers accrual when that employee’s normal business location is not in Cook County or Chicago?

The Cook County Commission on Human Rights has issued its proposed regulations governing the Ordinance which can be found under downloads on the Cook County website. Any entity can submit comments to the Cook County Commission on Human Rights by mail and/or email (human.rights@cookcountyil.gov) by May 8th.  SmithAmundsen is working on its submission to the commission for clarification of some of the proposed regulations.

It should be noted that certain municipalities have opted out of the requirements of the Cook County ordinance: Barrington, Bedford Park, Elmwood Park, Mount Prospect, Oak Forest, River Forest, Rosemont, Schaumburg and Tinley Park. More municipalities are expected to opt out prior to July 1.

Small Employers in Chicago Must Ban the Box, Too

Contributed by Steven Jados

Effective January 1, 2015, employers that have fewer than 15 employees and either maintain a business facility within Chicago’s city limits or are subject to any of the license requirements of Title 4 of the Chicago Municipal Code (or both), are prohibited from pre-screening applicants for employment based on criminal history.  Essentially, Chicago has taken the Illinois Job Opportunities for Qualified Applicants Act (otherwise known as the Illinois Ban-the-Box law), and applied it to the employers doing business in Chicago who are too small to be covered by the statewide law.

Chicago’s Ban-the-Box ordinance states:

Employers that are not subject to the Illinois Job Opportunities for Qualified Applicants Act, including the City of Chicago and its sister agencies, may not inquire about or into, consider, or require disclosure of an applicant’s criminal record or criminal history until after the applicant has been determined qualified for the relevant position and notified that he has been selected for an interview, or, if there is no interview, until after a conditional offer of employment is extended to the applicant.

The same three carve-outs in the Illinois Act are also present in the Chicago ordinance: (1) federal and state law exclusions based on certain crimes; (2) standard fidelity bond-related disqualifications; and (3) positions subject to the licensure requirements of the Emergency Medical Services Systems Act.  Chicago’s Ban-the-Box also does not prevent an employer from providing written notice of specific offenses that will disqualify an applicant from employment.

Additionally, the Chicago ordinance prohibits the city and its sister agencies, which include the Chicago Public Schools and Chicago Park District, among others, from automatically disqualifying an applicant based on criminal convictions discovered after the applicant is interviewed or given a conditional job offer.  The ordinance also provides nine factors that the city and its agencies are to consider when making an employment decision based on an applicant’s criminal past.

But perhaps the ordinance’s most significant provision is that any employer with a facility in Chicago or subject to the city’s Title 4 license requirements that uses an applicant’s criminal past as a complete or partial basis for rejecting the applicant must communicate that fact to the applicant when telling him or her of the rejection.  In light of the EEOC’s current enforcement strategy for employment decisions based on criminal records, an employer’s admission that it based an employment decision on an applicant’s criminal record could expose the employer to a substantial risk of legal liability.

Complaints of alleged violations of Chicago’s Ban-the-Box ordinance can be made to the Chicago Commission on Human Relations, and the penalties for violations may include fines of $100 to $1,000, and “license discipline” for city licensees.