Chicago had three new ordinances take effect July 1, 2024, which alter important aspects of Chicago employment law. The ordinances are: (1) the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance, (2) the One Fair Wage Ordinance, and (3) Chicago’s Minimum Wage Ordinance.
Chicago Paid Leave and Paid Sick and Safe Leave Ordinance
Under the new ordinance, employers are required to provide eligible employees with up to 40 hours of paid sick leave per 12 months that may be used with qualifying reasons. Employees also receive an additional 40 hours of paid leave per 12 months which may be used for any reason. The accrual rules remain the same; for each 35 hours worked, the employee earns one hour of sick leave and one hour of paid leave for any purpose. The final rules allow employers to establish a 12-month period of their own choosing, the period must simply be 12 consecutive months. Employees may also carry over up to 80 hours of paid sick leave and up to 16 hours of paid leave. To be eligible an employee must work at least 80 hours in a 120-day period.
Penalties for violating the Ordinance are fines ranging from $1,000 to $3,000 per offence. Violating the notice provisions will result in a fine of $500 for the first violation and $1,000 for subsequent violations.
One Fair Wage Ordinance
The One Fair Wage Ordinance phases out the subminimum wage for tipped employees by increasing the tipped minimum wage by eight percent annually until its total elimination in 2028. Service industry workers who were earning the subminimum hourly wage of $9.48 will now receive $11.02 an hour. This will eventually increase to $15.80, and employees will still receive tips.
Employers who violate this Ordinance are subject to fines between $500 and $1,000 per offence. Each day violations continue constitutes a separate offense.
Minimum Wage Ordinance
As of July 1, 2024, the Chicago minimum wage applies to all employers with 4 or more employees. Chicago’s minimum wage has increased from $15.08 to $16.20 an hour and will continue to increase annually according to the Consumer Price Index or 2.5%, whichever is lower. For youth workers the minimum wage is now $15 per hour.
For the rest of Cook County, the minimum wage has increased to $14.05.
With these three ordinances coming into effect, it is important that Chicago employers update their policies to remain compliant. Increasing the minimum wage is a national trend and employers across the country must ensure that their policies are up to date with the ever-changing wage laws of their city, county, or state.
Brody and Associates regularly advises management on complying 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
