Effective Date of New Chicago Paid Leave Ordinance Delayed

On Dec. 13, the Chicago City Council voted unanimously to delay the Dec. 31, 2023 implementation of the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance to July 1, 2024. Until then, the Chicago Paid Sick Leave existing ordinance will remain in effect. It requires employers to allow employees to earn one hour of paid sick leave for every 40 hours worked. The accrual rate in the existing ordinance is a bit different from the accrual rate in the new ordinance, which is one hour for every 35 hours worked. The new accrual rate will go into effect July 1, 2024.

The existing ordinance does not require employers to provide paid leave in addition to the required paid sick leave. Therefore, the paid leave provisions of the new ordinance will not go into effect until July 1, 2024. (For a summary of the key components of the new ordinance, please see our Nov. 15 alert on the ordinance.)

According to Chicago newspapers, following the passage of the new ordinance, several local business associations, such as the Illinois Restaurant Association, the Chicagoland Chamber of Commerce, and the Illinois Hotel & Lodging Association, voiced concerns that small businesses would not be able to meet its requirements. It is unclear whether these concerns played a role in the decision to delay the implementation of the New Ordinance.

Clark Hill attorneys are prepared to work with employers to navigate the challenges posed by the new ordinance. For more information, please contact Jon Vegosen at jvegosen@clarkhill.com, Renee Fell at refell@clarkhill.com, or the Clark Hill attorney with whom you regularly work.

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