THE SKINNY ON CHICAGO’S PAID SICK LEAVE ORDINANCE

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While you were likely out on vacation or enjoying a neighborhood festival, the City of Chicago’s Paid Sick Leave Ordinance went into effect.

WHAT: The ordinance set the minimum standards for paid sick leave. Employees must work at least eighty (80) hours within any one hundred twenty (120) day period, and if they do, sick days can be used after one hundred eighty (180) days of employment.

WHO (Part 1): Employers who employ four (4) or more employees.

WHO (Part 2):  Commission based employees are covered at the greater of their base rate or the minimum prevailing wage.

WHO (Part 3):  The ordinance is subject to certain exclusions. An example of the same is outside salespeople.

WHEN (Part 1): After July 1, 2017.

WHEN (Part 2):  An employee can use a minimum of forty (40) hours paid sick leave per year.

WHEN (Part 3):  Upon termination or resignation, the employer need not pay unused sick days to the former employee.

HERE: Only employee hours worked within the city limits count towards accrual.

ACCRUAL VS. GRANT: Frontloading, i.e., an immediate grant prevents accrual and carryover. Accrual is different for employers, is subject to the Family Medical Leave Act (“FMLA”). Non-FMLA covered employees are granted forty (40) hours no later than working one hundred eighty (180) days for the employer.

CARRYOVER: If the employer is subject to FMLA, then forty (40) hours can be carried over to the next benefit year, otherwise an employee can carry over twenty (20) hours.

USAGE: A covered employee may use a maximum forty (40) hours of accrued sick leave during a year.

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