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In the late night hours of November 9, 2023, the City of Chicago passed the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, a first-of-its-kind piece of legislation requiring employers to provide up to 40 hours of “paid leave” and 40 hours of “paid sick leave” per 12-month period.

Employers with Chicago-based employees are currently subject to the Chicago Paid Sick Leave Ordinance, requiring employers to provide up to 40 hours of paid sick leave to their covered employees. However, in addition to offering paid leave, this new ordinance fully replaces the current sick leave law, adding requirements for employers about how the leave shall be granted, carried over, and documented.

This ordinance will go into effect on December 31, 2023 and employers need to be ready. So, what’s new?

Eligibility

• Currently: Under Chicago’s Paid Sick Leave Ordinance, a “covered employee” is defined as an employee who, in any two-week period, works at least two hours while physically present within the City of Chicago. Domestic workers are exempt.
• New ordinance: Under the new ordinance, “covered employee” explicitly includes domestic workers, regardless of whether they are classified as employees, independent contractors, sole proprietors, or partnerships.

Accrual

• Currently: Under Chicago’s Paid Sick Leave Ordinance, employees earn one hour of paid sick leave for every 40 hours worked.

• New ordinance: Under the new ordinance, for every 35...

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