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Chicago City Council Unanimously Approves Earned Sick Pay for Most Employees

Posted on in Pay Laws

paid sick leave in Chicago, Arlington Heights business lawyersBusinesses in the Chicago area have had to power through many changes over the last couple of years. A newly passed city ordinance, which will require that most employers allow their employees to earn paid sick leave, has now been added to that list of changes. The following information can help you understand the legal framework and minimum requirements.

Earned Sick Pay Ordinance Employer Requirements

The ordinance, which goes into effect on July 1, 2017, requires that all Chicago employers provide at least some sort of earned sick pay program to their employees. At a minimum, workers should be able accrue five sick days per year at a rate of one earned hour per 40 hours worked, which can be used once they have completed a six-month probationary period with the company. Employees can "cash in" this time if they are ill, need to care for a sick child or elderly parent, or in the event of a domestic violence situation. If the time goes unused, at least 2.5 of the hours can be rolled over into the next year for their use.

Some companies will be considered "exempt" because they already have a provision that provides paid sick leave or paid time off to their employees that meets or exceeds the new requirements. Others may have high turnover rates, or a consistent flow of short-term workers (such as the fast food industry) that will limit the amount of paid sick pay they must offer. However, all companies must be able to at least meet the minimum requirements outlined by the new ordinance.

How Will Your Company Be Affected?

Chicago is the 34th jurisdiction in the United States to pass a mandated earned sick leave ordinance. It is said to be more "business-friendly" than those in other areas, with net financial estimates indicating that the ordinance will only lead to a 1.5 percent labor increase for Chicago's business sector. However, smaller businesses may experience more strain than larger corporations when it comes to meeting the requirements and covering an employee's shift for paid sick leave.

A. Traub & Associates can help your company prepare for the impending changes and ensure that you meet all the regulations and minimum requirements of the new ordinance. Backed by more than 15 years of experience in the legal business sector, we can also help you develop creative solutions and preventative measures to help you avoid any legal pitfalls along the way. Contact our Arlington Heights, IL business law attorneys today to learn more. Call 847-749-4182.

Sources:

http://chicago.suntimes.com/news/council-says-most-city-businesses-must-provide-5-sick-days-a-year/

http://www.cityofchicago.org/city/en/depts/mayor/press_room/press_releases/2016/june/Allow-Workers-to-Earn-Sick-Days-to-Strengthen-Protections-for-Working-Chicagoans.html

 

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