Proposed rules published for Chicago's Paid Leave Ordinance

The City of Chicago recently issued proposed rules on the imminent Paid Leave and Paid Sick and Safe Leave Ordinance, attached here for your convenience. The proposed rules largely reiterate the language found in the ordinance, though it does seem to attempt to clarify an open issue, namely what a Chicago employer who already offers paid time off and paid sick leave has to do in light of this new ordinance.  

According to the proposed rules, “those employers whose paid time off policies meet or exceed the three main requirements [of the Ordinance] are not required to provide additional leave or records beyond what is required to demonstrate compliance with [the Ordinance.]. However, other requirements of [the Ordinance], such as when an employee must be allowed to begin using Paid Leave or Paid Sick Leave, must still be followed.”  

The “three main requirements” are:

1. “accrual/grant of hours of Paid Leave and Paid Sick Leave” (i.e. 40 hours of paid leave and 40 hours of paid sick leave);
2. “carryover of Paid Leave and Paid Sick Leave from one Benefit Year to the next” (i.e. 16 hours of paid leave and 80 hours of paid sick leave); and,
3. “usage of Paid Leave and Paid Sick Leave” (i.e. 90 calendar days after their start date for paid leave and 30 days after their start date for paid sick leave). 

In other words, it appears the only way a Chicago employer who already has a paid leave policy can avoid making changes to such a policy is if they can show they are already offering the same amount of leave, the same amount of carryover and the same availability for usage as the ordinance.  

Interestingly, that section of the proposed rule closes out with, “It is a violation of the Chapter to change Paid Leave or Paid Sick Leave policies to avoid application or use of the [Ordinance].”  Frankly, this language leaves open more questions but seemingly makes clear that Chicago employers should use the next few weeks to get their paid leave policies in order to be in compliance by December 31.  In the meantime, we will continue to monitor the status of these proposed rules.