The Chicago Department of Business Affairs and Consumer Protection (“BACP”) issued final rules (the “Rules”) implementing the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (the “Ordinance”). Published on May 18, 2026, the rules took effect on June 1, 2026.
While the Rules largely reinforce existing requirements rather than create significant new obligations, they provide important clarification on employee eligibility, leave administration, documentation obligations, and employer liability. Employers with employees working in Chicago should review their policies and practices to ensure they comply with the updated Rules.
Key Changes
Coverage of Employees
The Rules confirm employees are covered once they work 80 hours in Chicago during any 120-day period. Note, coverage depends on where the work is physically performed, not where the employer is located.
Combined PTO Policies
Employers may continue using a single PTO policy instead of separate Paid Leave and Paid Sick and Safe Leave banks. However, the policy must satisfy all requirements of the Ordinance, including accrual or frontloading, carryover, permitted uses, and notice requirements.
Expanded Definition of “Place of Care”
The Ordinance already provides that protected Paid Sick Leave may be used when a child’s “place of care” becomes unavailable. The Rules clarify a child’s place of care includes more than schools and daycare centers. It includes sites where childcare is provided by a relative, babysitter, or friend. If that childcare becomes unavailable for a qualifying reason, the employee may use Paid Sick Leave.
Leave Abuse
The Rules recognize employers may investigate suspected leave abuse and discipline employees when there is objective evidence of misuse. Examples include repeated sick leave before or after weekends, holidays, vacations, or paydays, or after another leave request has been denied. Employers should apply attendance policies consistently and must avoid taking action based solely on protected leave use.
Joint Employer and Successor Liability
The Rules also address joint employer and successor liability. Employers using staffing or HR agencies, or those involved in mergers or acquisitions, should review who is responsible for compliance under the Ordinance. In the event of noncompliance, both parties can be liable.
Administrative Guidance
The Rules provide additional clarification on:
- Accrual and frontloading of leave;
- Carryover requirements;
- Calculating pay while an employee is on leave;
- Documentation employers may request;
- Notice and posting requirements; and
- Recordkeeping obligations.
Key Takeaways for Employers
Employers with employees working in Chicago should:
- Review Paid Leave and combined PTO policies for compliance with the final Rules and Ordinance requirements;
- Review payroll and leave administration practices for proper accrual, carryover, and pay calculations;
- Update employee handbooks, notices, and postings, if needed;
- Train managers on the Rules governing leave requests, documentation, and suspected misuse;
- Review staffing arrangements and business transactions for potential joint employer or successor liability issues and identify which party is responsible for compliance; and
- Consult counsel to review leave policies, handbook language, and leave administration practices to ensure compliance with the Ordinance.
Conclusion
Although many of the final Rules clarify existing requirements rather than create new ones, they provide important insight into how Chicago intends to enforce the Ordinance. Reviewing policies now can help reduce the risk of employee complaints and enforcement actions.
Brody and Associates regularly advises management on compliance with the latest local, state, and federal employment laws. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or (203) 454-0560.
