Insights on Workplace Developments from LP’s Conversation with EEOC Vice Chair Jocelyn Samuels

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LP hosted a fireside chat with EEOC Vice Chair Jocelyn Samuels. The Vice Chair also shared invaluable insight on the Pregnant Workers Fairness Act (“PWFA”), emphasizing that pregnancy accommodations are a significant focus of the EEOC. The discussion underscored that the process for considering pregnancy accommodations is materially different from the process for disability accommodations and requires a different analysis. Audience members also asked specific questions about the Vice Chair’s thoughts on enforcement and guidance given the changing landscape of employment laws. 

Below are a few highlights from the discussion with Vice Chair Samuels.

Accommodations.

We discussed the three categories of employee accommodations: (1) disability, (2) religion, and (3) pregnancy. The discussion started off with understanding how to respond to disability accommodation requests, especially in the context of a remote work accommodation request and whether that was reasonable. The discussion delved further into the issues of essential functions and marginal functions for which employees are responsible. The Vice Chair pointed out that the accommodations process for disabilities and sincerely held religious beliefs should include a review of whether the employee’s essential functions, as opposed to marginal functions, can be completed. Marginal functions that are not essential functions cannot be relied upon to deny an accommodation.

We were also able to gain invaluable insight on the PWFA and learn that pregnancy accommodations are a significant focus of the EEOC, especially given that the regulations the EEOC published, which were finalized June 18, 2024, were mandated by Congress. The discussion underscored the importance of recognizing that the pregnancy accommodations and disability accommodations processes are not subject to the same analysis. A requested accommodation that may be unreasonable under a disability accommodation analysis may be reasonable under a pregnancy accommodation analysis. Further, the PWFA has specific limitations on when employers may request documentation. LP will be covering the PWFA further in its Annual Employment Law Webinar in September.

The Role of Diversity, Equity & Inclusion (DEI).

During the conversation with Vice Chair Samuels, we delved into the issue of DEI. Audience members raised questions about whether the heightened scrutiny of DEI programs should cause concern. Vice Chair Samuels reiterated that, despite pushback on DEI in the workplace, employers’ commitments to ensuring a diverse working population in a facially neutral manner are permissible. Employers are permitted to take steps to make their workforces representative of society, their customer base, or another specific group, but they need to exercise caution when those efforts hinge on protected characteristics like race. The employer’s goal should be to create workplaces where people from different backgrounds, socioeconomic statuses, and walks of life are represented. The best way to ensure this is through the interview process by asking questions about employee experiences.

As always, routine documentation and equal application of policies that management-level employees can reference when navigating these issues are key components of ensuring compliance.

We appreciate Vice Chair Samuels’ participation in the event. We will continue to provide updates on employment-related developments. To be kept up to date, subscribe to LP3. If you have questions, do not hesitate to reach out to LP’s Employment & Executive Compensation Group.

Workplace Compliance Concerns: A Discussion on the Impacts of AI, Remote Jobs, and DEI on Employment Practices

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LP is thrilled to host a fireside chat with EEOC Vice Chair Jocelyn Samuels on Tuesday, July 23 from 5:00-7:00 p.m. This is a unique opportunity to speak directly with the EEOC’s Vice Chair about issues that matter to your business. Among other topics, Samuels will discuss:

  • Managing remote workforces
  • Understanding how to best address generative AI tools in the workplace
  • Recognizing how DEI initiatives fit into the workplace
  • Considering how to address employee accommodation needs

Click here to register. This program has been approved for CLE credit and HRCI credit is pending approval.

Mid-Year Employment Law Compliance Requirements Your Business Should Be Familiar With

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Authored by Saman Haque

Check out our 2024 employment law checklist to refresh yourself on employment laws that your company should be compliant with along with some specific laws that recently became effective, including:

  • Chicago Paid Leave and Paid Sick & Safe Leave: Effective July 1, 2024, after a 6-month delay in implementation, Chicago’s newest ordinance requiring all employers in the city of Chicago to provide up to 40 hours of paid leave and 40 hours of paid sick leave for employers working in the city is finally in effect. 
  • Chicago’s Minimum Wage Increase: Effective July 1, the City of Chicago’s One Fair Wage Ordinance increased minimum wage from $15.00 per hour to $16.20 per hour for employers with 4 or more workers. 
  • Cook County’s Minimum Wage Increase: Effective July 1, Cook County increased minimum wage from $14.00 per hour to $14.05 per hour. 
  • Illinois Freelance Worker Protection Act: Effective July 1, nearly anyone hired or retained as an independent contractor in Illinois for compensation of at least $500 will be required to have a written contract memorializing the agreement, must pay the worker within 30 days after completion of services or delivery of product, and will be entitled to the same protections against discrimination, harassment, or retaliatory behavior that employees are protected from. 
  • Colorado Job Application Fairness Act: Effective July 1, employers will be prohibited from seeking any information that could reveal an applicant’s age including but not limited to attendance and graduation dates from educational institutions. Employers should ensure that information sought does not inadvertently reveal information about an applicant’s age. 
  • California Workplace Violence Prevention Plan: Effective July 1, all California employers that have 10 or more employees are required to implement a workplace violence prevention plan that creates policies to identify workplace hazards, implement routine assessments of potential workplace violence, conduct employee trainings, and create reporting and investigation processes. 
  • New York Paid Lactation Breaks Updated: Effective June 19, New York requires that employees be provided at least 30 minutes of paid break time to express breast milk for their nursing child up to three years follow the birth of a child. The State Department of Labor provided additional guidance that says 20 minutes once every three hours was a reasonable amount of time for breaks.

If you found this checklist helpful, subscribe to LP3. If you have questions, do not hesitate to reach out to LP’s Employment & Executive

EEOC Issues Final Updated Guidance on Workplace Harassment

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Author Saman Haque

On April 29, 2024, the Equal Employment Opportunity Commission (EEOC) published its updated enforcement guidance on workplace harassment. The long-awaited updated guidance comes six years after its previous attempts to issue guidance stalled and nearly twenty years after the agency last published guidance on workplace harassment. In that time, there have been notable legal developments, including the U.S. Supreme Court’s 2020 decision in Bostock v. Clayton County, which held that employees are protected from discrimination based on sexuality or gender identity.

Acting under its authorization to enforce federal employment discrimination laws that protect employees from harassment based on race, color, religion, sex (including sexual orientation, transgender status, and pregnancy), national origin, disability, age (40 and older), or genetic information, the EEOC’s guidance “updates, consolidates, and replaces the agency’s five guidance documents issued between 1987 and 1999, and serves as a single, unified agency resource on EEOC-enforced workplace harassment law.”

In a press release, the EEOC stated that the final guidance “reflects the EEOC’s commitment to protecting persons who are particularly vulnerable and persons from underserved communities from employment discrimination.”

Key Updates to the EEOC’s Guidance on Workplace Harassment

Among the final published guidance are the following notable updates:

  • Specific protections for LGBTQ+ employees’ rights in the workplace.
  • Confirmation that sex-based harassment includes harassment based on pregnancy, childbirth, or reproductive decisions (including decisions about abortion).
  • Over 70 examples of unlawful harassment to reflect a broad scope of workplace situations.
  • Recognition that harassment in the workplace can be by coworkers and supervisors, as well as by customers, contractors, and other third parties.
  • Acknowledgement of the impact of evolving and expanding digital technology, including social media, on the work environment.

Takeaways for Employers

In light of the updated guidance, employers should:

  • Consider updating policies. The new guidance includes specific references to harassment based on sexual orientation and gender identity, such as misgendering or “outing” an employee. Accordingly, employers may want to review their current policies to explicitly include gender identity as a protected characteristic in their equal employment opportunity and anti-harassment policies.
  • Provide robust training. Employers may also want to update their training programs to incorporate some of the updated examples of workplace harassment provided in the guidance. Examples specifically highlighting protected categories that employees often overlook is helpful in reenforcing that that an employer will not tolerate harassment of any kind.
  • Promote an inclusive culture. Employers should consider ways to promote inclusivity and prevent harassment in their workplace culture. For instance, employers can allow employees to add their preferred pronouns to email signatures and remote communication tools and consider including training for supervisors and managers on social and cultural competencies.
  • Consider jurisdiction-specific requirements. For instance, the recently enacted Chicago Human Rights Ordinance requires all Chicago employers to provide the following anti-harassment trainings on an annual basis:
    • One hour of sexual harassment prevention training for all employees
    • One additional hour of sexual harassment prevention training for supervisors and managers
    • One hour of bystander training for all employees

LP offers multiple training programs that meet the Chicago and Illinois requirements and incorporate the updated EEOC guidance to ensure employers are taking appropriate preventive measures to ensure a productive and safe workplace. If you would like to schedule a training, please reach out. A member of our Employment & Executive Compensation team would be happy to speak with you.

A Concise Summary of Chicago’s New Paid Leave Requirements

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Authored by Laura Friedel and Saman Haque

Chicago’s new Paid Leave and Paid Sick and Safe Leave Ordinance (“Paid Leave Ordinance”) is fast approaching on July 1, 2024. When it takes effect, employers will need to comply with new paid leave requirements that apply to all Chicago employees (including those who work from home in Chicago).

To help employers prepare for the July 1st effective date, we share this graphic summarizing the requirements of the new law.

Chicago Paid Sick & Safe LeaveChicago Paid Leave for Any Reason
Hours AvailableUp to 40 hours of Paid Sick Leave in a 12-month period.Up to 40 hours of Paid Leave in a 12-month period.
CarryoverUp to 80 hours; potentially more if not meaningfully allowed to access.Up to 16 hours unless frontload; potentially more if not meaningfully allowed to access.
Accrual RateAccrue 1 hour of each type for every 35 hours worked.Accrue 1 hour of each type for every 35 hours worked.
Accrual Start and FrontloadingEmployees begin accruing on their first day of employment, based on hours worked within the City of Chicago.

If an Employer chooses to frontload, they must provide the 40 hours of Paid Sick Leave within 30 days of employment.		Employees begin accruing on their first day of employment, based on hours worked within the City of Chicago.

If an Employer chooses to frontload, they must provide the 40 hours of Paid Leave within 90 days of employment.
Eligibility and Waiting PeriodsAny employee who works 80 hours in the City of Chicago in a 120-day period is eligible. Once an employee is eligible they remain eligible.

Employers may require employees be employed 30 calendar days before using Paid Sick Leave.		Any employee who works 80 hours in the City of Chicago in a 120-day period is eligible. Once an employee is eligible they remain eligible.

Employers may require employees be employed 90 calendar days before using Paid Leave.
Minimum IncrementsEmployers may require use in increments of at least 2 hours.Employers may require use in increments of at least 4 hours.
Notice & ApprovalIf foreseeable, may require not more than 7 days’ notice.May require 7 days’ notice and require pre-approval. May only deny if necessary based on reasonable, pre-established rationale.
Use & DocumentationMay be used for own or family member illness, injury, care, treatment; sexual or domestic violence; public health emergency.

Cannot request certification (documentation) until after the third consecutive day of Paid Sick Leave.		May be used for any reason.

Cannot request any documentation.
Payment on TerminationNot required to be paid on separation.

Note: If combined with PTO/Vacation, need to pay out all.		Depends on size of employer:

Small Employers (50 or fewer employees):
No payment required.

Medium Employers (51-100 employees): Up to 16 hours until 7/1/25, then up to 56 hours (or 40 if frontload).

Large Employers (101+ employees): Up to 56 hours
(or 40 if frontload).

Note: If combined with PTO/Vacation, need to pay out all.
Other Policy RequirementsAll policy changes must be provided to employees 5 days before effective. Policy changes to the employer’s paid time off policies that affect a covered employee’s right to final compensation for such leave must be provided to employees 14 days before effective.If denying, employer must provide written notice with a pre-established policy rationale (i.e., business/operational needs, staffing requirements, specific blackout days).

All policy changes must be provided to employees 5 days before effective. Policy changes to the employer’s paid time off policies that affect a covered employee’s right to final compensation for such leave must be provided to employees 14 days before effective.
Record Retention RequirementsEmployers must maintain employee census information (name, contact information, job title, ability to earn tips, hire date, rate of pay, hours worked per day and per week, and payment type (hourly, salary, commission, etc)).

Employers must maintain Chicago Ordinance employee data (date of eligibility under ordinance, hours accrue or awarded for each type of leave, hours used and dates of usage of each type of leave).		Employers must maintain employee census information (name, contact information, job title, ability to earn tips, hire date, rate of pay, hours worked per day and per week, and payment type (hourly, salary, commission, etc)).

Employers must maintain Chicago Ordinance employee data (date of eligibility under ordinance, hours accrue or awarded for each type of leave, hours used and dates of usage of each type of leave).

Additionally, we recently hosted a webinar on the Chicago Paid Leave Ordinance. You can view the webinar here.

For additional information, please see our recent articles on Chicago’s Paid Leave Ordinance:

Watch LP’s Chicago Paid Leave Ordinance Webinar: What You Need to Know Before the Law Takes Effect on July 1, 2024

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The effective date of Chicago’s new Paid Leave and Paid Sick and Safe Leave Ordinance (“Paid Leave Ordinance”) is fast approaching on July 1, 2024. When it takes effect, employers will need to comply with new paid leave requirements that apply to all Chicago employees (including those who work from home in Chicago).

To help employers prepare for the July 1st effective date, LP’s Employment & Executive Compensation Group recently hosted a webinar on the Chicago Paid Leave Ordinance. You can view the webinar here.

We will continue to provide information to help employers comply with the new law’s requirements. Stay tuned for a graphic summarizing the requirements in an upcoming LP3 email.

For additional information, please see our recent articles on Chicago’s Paid Leave Ordinance:

Chicago Paid Leave Requirements: What you need to know and do before July 1st

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Starting July 1, 2024, the Chicago Paid Leave Law will come into effect, impacting how businesses manage employee leave and benefits within the city.

Please join us for a complimentary webinar geared towards human resources professionals, in-house counsel, business owners, and senior leaders. We will review the new law and discuss what you need to do to be ready on July 1st.

Thursday, May 2, 2024 – 11:00 am – 12:00 pm CDT

Click here to register.

DOL Finalizes Updated Overtime Rule – What Employers Need to Know

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Author Saman Haque

On April 23, 2024, the Department of Labor announced final updated rules that expand overtime protections by increasing the salary thresholds to exempt a salaried executive, administrative, or professional employee from federal overtime pay requirements. The new rule will expand eligibility for overtime pay for millions of U.S. workers.

The final rule follows the DOL’s “extensive engagement with employers, workers, unions and other stakeholders.” The DOL issued its proposed rule in September 2023, to which it received over 33,000 comments.

What are the overtime rules?

Under the Fair Labor Standards Act (FLSA), employers must pay employees for hours worked over 40 per workweek, unless employees qualify for specific exemptions. Exemptions may apply to employees classified as bona fide executives and administrative or professional employees. The employees must pass a salary threshold and job duties test to qualify for these exemptions. While the job duties test remains the same, the final rule revised the salary thresholds.

What are the new salary thresholds?

Effective July 1, 2024, the salary threshold will increase to $43,888 (from $35,568). On January 1, 2025, the threshold will increase to $58,656. Beginning July 1, 2027, salary thresholds will be updated every three years based on current wage data.

The rule also adjusts the threshold for “highly compensated employees” to $132,964 on July 1, 2024, and $151,164 on January 1, 2025.

Who is covered by the updated rule?

The overtime exemption applies to workers who are employed as bona fide executive, administrative, professional, and outside sales employees, as well as some computer employees. As mentioned above, the new rule also impacts highly compensated employees, but they have a different salary threshold.

In a press call, Jessica Looman, administrator of the DOL’s Wage and Hour Division, said the July 1st increase will affect approximately one million workers, and the 2025 increase will affect approximately three million workers.

How should employers prepare for the July 1 effective date of the new rule?

Even though the new rule will likely receive pushback and legal challenges, employers should audit positions that are affected by the increases to the salary threshold test. Employers should review whether employees classified as exempt still qualify for the exemptions mentioned above. Employers must decide whether the change in salary threshold warrants increasing employees’ salaries to qualify for the exemptions or whether they should convert the employee to a nonexempt status. Employers must do this while keeping in mind that nonexempt employees are eligible for overtime wages. Employers should consider the impact of converting exempt employees to nonexempt status on employee morale, time-tracking policies, payroll systems, and compensation schedules.

If you have questions about the updated overtime rule or other labor and employment matter, do not hesitate to reach out to the Employment & Executive Compensation Group at Levenfeld Pearlstein.

Additionally, we will host a free a webinar on the new Chicago Paid Leave Ordinance on Thursday, May 2, 2024, from 11:00 am – 12:00 pm CDT. To register, click here.

Key Takeaways from the FTC’s Non-Compete Ban

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Authored by Laura Friedel, Peter Donati, and Jason Hirsh

Yesterday, April 23, 2024, the Federal Trade Commission (FTC) voted 3-2 to implement a new rule banning non-compete agreements for most U.S. workers. Specifically, the new rule prohibits employers from entering into or enforcing (or attempting to enter into or enforce) provisions that restrict workers from going to work for another employer or starting a business. Not only are employers prohibited from entering into non-compete agreements, but employers with active non-compete agreements must notify employees that the restrictions are void. However, the rule does not apply to agreements entered into as part of a bona fide sale of a business, and non-competes with certain “senior executives” that are in place as of the effective date of the rule (likely late August 2024) can remain in effect.

Business groups have already filed suit to block the rule on the grounds that the FTC exceeded its authority. If not blocked by the courts, the rule goes into effect 120 days from the date of publication in the federal register. Employers need to be aware of – and prepare for –if the rule becomes effective. Here are the key takeaways for businesses:

  • The rule prohibits non-compete agreements by classifying them as an “unfair method of competition.” It goes on to define a non-compete agreement as a requirement that prohibits or penalizes a worker for seeking or accepting work with a different person or operating a business, in each case, after their employment ends.
  • There are a couple of key exceptions to the general prohibition on non-competes:
    • The rule does not apply to non-competes entered into as part of a bona fide sale of a business, of a person’s ownership interest in a business, or of all or substantially all of a business’s assets.
    • Also, the rule does not apply to non-competes with “senior executives” that are in place before the rule’s effective date. “Senior executives” are defined as those who are making more than $151,164 annually and are in a “policy-making position.” “Policy-making position” is defined narrowly to include the CEO, COO and other officers and workers who have “final authority to make policy decisions that control significant aspects of a business.” The rule goes on to clarify that it is not enough if the worker advises or exerts influence over policy decisions and that it is not enough to have decision-making authority for only a subsidiary or affiliate of a common enterprise.
  • It is noteworthy that the rule does not prohibit non-solicitation agreements (i.e. prohibitions on soliciting clients or customers). However, the FTC left open the possibility that certain types of customer restrictions may be the functional equivalent of a non-compete – such as sweeping non-acceptance provisions (in which workers agree not just that they won’t solicit customers, but also that they won’t do business with them).
  • The rule applies to all workers, which includes not just employees but also independent contractors, consultants and others.
  • The rule does not specifically speak to workers who are also members, shareholders or partners in the business. As noted above, the rule allows restrictions that are tied to an individual’s sale of their interest in the business. However, the FTC’s comments suggest that the rule will apply to owners of a business to the extent they provide services to the business and are therefore “workers.” It remains to be seen where the line between seller of an interest and worker falls.
  • The rule requires that employers provide notice to any employees who are currently covered by non-compete provisions that are unlawful under the rule that those provisions are no longer enforceable. The rule includes a draft notice to be provided.
  • State law provisions that are more restrictive (such as California) remain in place. Essentially, the FTC rule sets a new floor. States can still take action to limit restrictive covenants above and beyond that floor.
  • Finally, note that the rule applies to both existing restrictions and new ones. So it is important to consider not just new agreements but also those you already have in place.

Unless a court puts the rule on hold, employers should be taking the following steps in the next 30-60 days:

  • Think about how you might use the exception for senior executives with existing covenants to your advantage. If you have agreements in place with individuals who you think may qualify as “senior executives,” confirm that they meet that definition and, if appropriate, make changes to their role or compensation so they do. If you have individuals who would qualify as senior executives and don’t currently have non-competes, consider whether to take advantage of this 120-day window to implement them.
  • Review existing agreements with an eye toward:
    • Confirming that confidentiality, non-disclosure and trade secret provisions are as strong as you need to protect your business.
    • Implementing non-solicitation provisions if they aren’t already in place.
    • Revising non-acceptance of business provisions to carve out situations where accepting business would be a prohibition on going to work with a new employer (for instance, going to work for a client or customer, or going to work for a company that also works with your client or customer)
  • If you have agreements in place that include non-compete provisions that violate the rule, either amend those agreements to remove those provisions or prepare to issue the required notices.
  • KEEP WATCHING OUR WEEKLY LP3 EMAILS. AS NOTED ABOVE, LITIGATION HAS ALREADY BEEN FILED TO BLOCK THE RULE. WE WILL KEEP YOU APPRISED OF DEVELOPMENTS.

If you have questions about the new rule, do not hesitate to reach out to LP’s Employment & Executive Compensation Group.

New Paid Leave Requirements for Chicago Employees Starting July 1 – What to Know and How to Prepare

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Authors Laura Friedel and Saman Haque

Effective July 1, 2024, employers will need to comply with new paid leave requirements that apply to all Chicago employees (including those who work from home from Chicago). The Chicago City Council passed the Paid Leave and Paid Sick and Safe Leave Ordinance (“Paid Leave Ordinance”) on November 9, 2023. Although the ordinance’s new requirements originally were slated to go into effect on January 1, 2024, an amending ordinance delayed the effective date for most obligations to July 1, 2024.

What changes take effect on July 1, 2024?

The Paid Leave Ordinance implements two separate requirements: (1) that employees earn up to 40 hours of paid leave for any purpose (“PTO”), and (2) that employees earn up to 40 hours of paid sick leave (“Paid Sick Leave”) per 12-month period. Under the ordinance, employees will accrue both PTO and Paid Sick Leave at a rate of at least one hour for every 35 hours worked. The Paid Leave Ordinance also requires that employers allow employees to carry over up to 16 hours of PTO and up to 80 hours of Paid Sick Leave each year, though employers may avoid the requirement to carry over PTO by “frontloading” the 40 hours of PTO each year (as described below).

Who is covered by the new rule?

The Paid Leave Ordinance applies to any employer with at least one employee, and to any employee who works at least 80 hours in Chicago during a 120-day period. Once an employee meets that threshold, they are deemed a “covered employee” for the duration of their employment with that employer.

Employers subject to a collective bargaining agreement with more generous paid time off should continue to comply with the collective bargaining agreement’s provisions.

What are the notice requirements?

Chicago employers must (1) post a notice of the new requirements, (2) adopt a written policy explaining PTO and Paid Sick Leave rights and responsibilities and share the policy with employees when they are hired, and (3) provide employees with PTO and Paid Sick Leave accrual and use information each pay period. Additionally, employers must provide a copy of their employment policies to workers with regular work duties in Chicago in the worker’s primary language. Finally, employers must give employees five calendar days’ notice of any changes to the PTO or Sick Leave policies and 14 days’ notice of any changes to other employment policies. Any required notices can be provided electronically with covered employees’ paychecks.

What are the requirements for employers with unlimited PTO policies?

If a Chicago employer has “unlimited” or “flexible” paid time off, the Paid Leave Ordinance requires that, at termination, they pay out 40 hours of PTO less any PTO the employee has used over the course of the previous 12 months. Employers with unlimited or flexible paid leave policies should make sure to track the use of paid time off by employees accurately to avoid paying out the full 40 hours. Employers who use an unlimited PTO policy should still give their employees notice of the law’s requirements and indicate “unlimited” on covered employees’ PTO statements.

How does the Paid Leave Ordinance impact employers with accrual-based PTO systems?

If an employer uses an accrual system, its employees must accrue both PTO and Paid Sick Leave at a rate of at least one hour for each 35 hours worked. Employers may cap accruals and use at 40 hours for each kind of leave in a 12-month period. Employers with an accrual system must allow employees to carry over up to 16 hours of PTO and up to 80 hours of Paid Sick Leave each year. Employers that use an accrual system must adopt a policy that explains the accrual rate.

What about employers with frontloading PTO systems?

Employers that frontload PTO and Paid Sick Leave must provide at least 40 hours of PTO and 40 hours of Paid Sick Leave at the beginning of each 12-month period. While employers who frontload don’t need to allow carryover of PTO into the new year, they still must carry over up to 80 hours of unused Paid Sick Leave (even though employees don’t have a right to use more than 40 hours in a year). Employers that frontload PTO and Paid Sick Leave should be aware that employees who quit early in the year will still be entitled to a payout for the full year’s allotment of PTO (or, if it is consolidated into a single bank, of the full bank).

How does the Paid Leave Ordinance impact employers outside Chicago?

The ordinance applies to Chicago employers and to employees of non-Chicago employers who physically work in Chicago for at least 80 hours in a 120-day period, including those working remotely.

Illinois employers outside of Chicago must comply with the Illinois Paid Leave for All Workers Act, which took effect on January 1, 2024. The Illinois Paid Leave for All Workers Act does not apply in Chicago or any other jurisdiction with an existing paid time off requirement. 

What should employers do to get ready for the new requirements?

Employers should:

  • Determine whether they will frontload or accrue for PTO and Paid Sick Leave.
  • Review existing policies to confirm compliance with the new ordinance and clearly explain how PTO and Paid Sick Leave will be handled.
  • Ensure payroll systems track and document time off availability and usage properly.
  • Confirm how notice will be provided each pay period.
  • Determine whether any employees who aren’t otherwise viewed as “Chicago employees” are physically present in the City of Chicago for work at least 80 hours in a 120-day period. If so, make sure they’re provided with the required PTO and Paid Sick Leave.
  • Update template separation letters to reflect new payment upon termination requirements.
  • Ensure your human resources team knows when and how PTO and Paid Sick Leave needs to be paid out.

LP’s Employment & Executive Compensation Group will host a webinar on the Chicago Paid Leave Ordinance on Thursday, May 2, 2024, from 11:00 am – 12:00 pm CDT. To register, click here.