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Chicago Implements Expanded Paid Leave Ordinance with Employer Considerations Effective July 1st, 2024

The city of Chicago has finalized regulations for its new Paid Leave and Paid Sick and Safe Leave Ordinance which applies to employers with more than 50 employees in Chicago. This legislation significantly increases employee leave benefits based on work performed within the city.

The ordinance grants employees two distinct leave categories: paid leave (40 hours annually) and paid sick leave (another 40 hours annually). Notably, the ordinance allows for generous carryover provisions, with unused paid sick leave accumulating up to 80 hours year-to-year.

Employers are required to provide written notification to their workforce regarding the new policy. This can be done electronically through the company’s usual communication channels. The ordinance also offers employers some flexibility in leave management. Business needs can be used as justification for denying paid leave requests (though not sick leave requests).

To ensure proper implementation, the ordinance mandates detailed recordkeeping by employers for a period of five years. This includes data on employee leave accrual, usage, and eligibility.

In light of these changes, it is crucial that employers with more than 50 employees in Chicago should familiarize themselves with the ordinance and its regulations. Additionally, developing clear written policies and training management personnel on the new leave entitlements are essential for a smooth transition come July 1st.