New Chicago Paid leave and Paid Sick Leave Rules Finalized, Effective July 1, 2024
Chicago finalized the new Chicago Paid Leave and Paid Sick Leave Rules on May 1, 2024. Both the ordinance and the rules go into effect on July 1, 2024, and will require employers to annually provide up to 40 hours of Paid Leave and up to 40 hours of Paid Sick Leave to covered Chicago employees. Below, we highlight key provisions in the final rules that employers should keep in mind while updating their paid leave policies in anticipation of the July 1 compliance date. Definition of a benefit year The final rules define “benefit year” as the 12 consecutive-month period that an employer sets for an employee to receive Paid Leave and Paid Sick Leave benefits. Employers are permitted to set different dates for each employee (e.g., based on the anniversary date of employment) or synchronize all covered employees to have benefits granted at the same time (e.g., based on a calendar year or fiscal year). Employers who elect to synchronize the benefit year for all employees must ensure that ea...