New Chicago Paid Leave Ordinance to Take Effect Dec. 31

Posted On: November 28, 2023 | By:

Chicago has expanded its paid leave mandate with an ordinance that requires 40 hours of paid leave (PL) plus 40 hours of paid sick leave (PSL) as of Dec. 31, 2023. The new ordinance replaces the city’s current paid sick leave law.

Covered Employers and Employees

The new law covers all employers that employ at least one person. Employees are covered if they perform at least two hours of work while physically present within the geographic boundaries of Chicago in any two-week period.

Accrual and Carryover of PL and PSL

Leave begins to accrue on Jan. 1, 2024, or the first day of employment, at the rate of one hour each of PL and PSL for every 35 hours worked. Employers may cap accrual at 40 hours of PL and 40 hours of PSL per 12-month period. Frontloading of PL and PSL is allowed, and employers that frontload 40 hours of PL are exempt from the PL carryover requirement explained below.

Employers must allow carryover into the following year of 16 hours of accrued PL and 80 hours of accrued PSL. On Jan. 1, 2024, any accrued PSL that was due to roll over under the city’s previous paid sick leave ordinance must be transferred to the employee’s accrued PSL under the new ordinance.

Use and Payout of PL and PSL

After 90 days of employment, PL may be used for any reason. PSL may be used after 30 days of employment for specific reasons related to the health and care of employees and their families, including domestic violence and public health.

Employers must pay out accrued PL, but not PSL, on separation of employment or transfer outside Chicago. Employers with 50 or fewer employees are exempt from this requirement, and employers with between 51 and 100 employees have a modified payout requirement until Dec. 31, 2024.