Chicago Enacts Additional Amendments to its Paid Sick Leave Ordinance

On May 20, 2020, the Chicago City Council approved Substitute Ordinance 2020-2343 (“SO2020-2343”), the anti-retaliation ordinance to protect employees from adverse employment action taken due to COVID-19. Also included in SO2020-2343, are substantive revisions to Chicago’s Paid Sick Leave Ordinance (the “PSLO”) that will take effect July 1, 2020. The amendments come a little more than one week after Chicago's Department of Business Affairs and Consumer Protection (“BACP”) finalized its paid sick leave rules to account for changes to the PSLO the city council had previously made, which were scheduled to take effect on July 1. 

Paid Sick Leave Ordinance Amendments

The city council claims the amendments were needed to correct a “scrivener’s error that erroneously removed groups previously subject to the paid sick leave” provisions. Therefore, SO2020-2343 reverses some of the amendments previously enacted in December 2019 that were set to take effect July 1, 2020. As a result, SO2020-2343 redefines employee coverage effective July 1.

Type of Employee

July 1, 2017 Ordinance

Original July 1, 2020 Amendments

(SO2019-8537)

New July 1, 2020 Amendments

(SO2020-2343)

An outside salesperson

Not Covered*

Not Covered

Covered

A member of a religious corporation or organization

Not Covered*

Not Covered

Covered

A student at, and employed by, an accredited Illinois college or university

Not Covered*

Not Covered

Covered

Motor carriers regulated by the U.S. Secretary of Transportation or the State of Illinois

Not Covered*

Not Covered

Covered

*Originally, Chicago’s PSLO adopted the definition of “employee” in Illinois’s Minimum Wage Law (“IMWL”). The IMWL excludes from its definition of an employee these four types of employees.

The original July 1, 2020 amendments to the definition of employer coverage remain intact. As we previously discussed, effective July 1, the Ordinance will apply to all employers with at least one covered employee, regardless of whether the employer has a Chicago worksite or is subject to business license requirements.

Employers should be aware that the PSLO does include individual employee notice requirements. Therefore, employers of employees that are now considered covered employees effective July 1 must provide those individuals with the paid sick leave notice along with their first paycheck subject to the PSLO.

Revised Paid Sick Leave Rules

On May 12, the Chicago BACP published the revised paid sick leave rules, effective July 1. Notable changes include:

  • New employer notice requirements.
    • Employers may satisfy the workplace posting requirement through their usual methods of communication for such notices, whether by physical posting (measuring 11x17 inches) or electronic notice (via email or other internal communication).
    • Employers may also satisfy the first paycheck individual notice requirement with either physical or electronic notice.
    • Employers must now provide individual notice to employees on an annual basis with their first paycheck on or following July 1.
    • All notices must be provided in English and any language(s) spoken by employees at the facility who are not proficient in English and in which the Department has made a notice available (as of now, only Spanish).
  • New recordkeeping requirements for employers with tipped and non-tipped employees: records must identify whether an employee is tipped, non-tipped, or performs duties of tipped and non-tipped positions.
  • New complaint filing procedures to align with CHI 311, Chicago’s non-emergency services platform.

Next Steps

Due to these last-minute changes to employee coverage under the PSLO, employers are encouraged to consult their employment counsel before July 1, 2020 to ensure they are on track to satisfy their compliance obligations.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.