Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.
On June 25, 2021, the Chicago City Council passed Ordinance No. O2021-2182 (the “Ordinance”), part of Mayor Lightfoot’s Chi Biz Strong Initiative. The Ordinance, which takes effect August 1, 2021, creates new wage theft protections and expands the covered reasons for use of paid sick leave. The wage theft provisions of the Ordinance take effect 10 days after passage and publication (i.e., July 5, 2021), and the paid sick leave provisions take effect August 1, 2021.
Wage Theft Protections
A significant provision of the Ordinance is the establishment of Chicago’s first-ever wage theft protections. Under this provision, an employer is liable for wage theft where it fails to timely pay a covered employee. Wage theft includes the non-payment of any wages required for work performed, as well as paid time off (including Chicago paid sick leave) and contractually required benefits.
An employee may file a claim with the Office of Labor Standards or a civil action, but not both. In either type of action, the employer may be held liable for the amount of any underpayments and damages of either: (i) 2% of the amount of any underpayments for each month following the date of payment during which such underpayments remain unpaid; or (ii) the amount specified by the Illinois Wage Payment and Collection Act, if the amount in the state law is greater.1 These penalties are in addition to the penalties available to employees for an employer’s failure to comply with its Chicago paid sick leave obligations.
Paid Sick Leave Expansion
The Ordinance also modifies and expands the covered reasons for use of Chicago paid sick leave:
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Current Covered Reasons for Use |
Covered Reasons for Use Effective August 1, 2021 |
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The employee is ill or injured, or for the purpose of receiving medical care, treatment, diagnosis, or preventive medical care |
The employee is ill or injured, or for the purpose of receiving professional care, including preventive care, diagnosis, or treatment, for medical, mental, or behavioral issues, including substance abuse disorders |
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A covered family member is ill or injured, or to care for a family member receiving medical care, treatment, diagnosis, or preventive medical care |
A covered family member is ill or injured, or ordered to quarantine, or to care for a family member receiving professional care, including preventive care, diagnosis, or treatment, for medical, mental, or behavioral issues, including substance abuse disorders |
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The employee, or a covered family member, is the victim of domestic violence or a sex offense |
The employee, or a covered family member, is the victim of domestic violence or a sex offense (stalking, aggravated stalking, cyber stalking) |
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The employee’s place of business is closed by order of a public official due to a public health emergency |
(No Change) |
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The employee needs to care for a child whose school or place of care has been closed by order of a public official due to a public health emergency |
The employee needs to care for a family member whose school, class, or place of care has been closed |
|
(New Reason) |
An employee obeys an order issued by the mayor, the governor of Illinois, the Chicago Department of Public Health, or a treating healthcare provider, requiring the employee: to stay at home to minimize the transmission of a communicable disease, to remain at home while experiencing symptoms or sick with a communicable disease, to obey a quarantine order issued to the employee, or to obey an isolation order issued to the employee |
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Federal Family and Medical Leave Act eligible purposes |
(No Change) |
Posting and Notice Obligations
Currently, the Chicago paid sick leave ordinance contains a workplace posting requirement. The Ordinance indicates that such posting must also address the employee’s ability to seek redress for wage theft.2
As a reminder, employers additionally have an individual notice obligation under the Chicago paid sick leave ordinance to be satisfied within the next month: employers must provide a copy of the City-created notice to employees with a paycheck issued within 30 days of July 1.3
Next Steps
Prior to August 1, we recommend that employers revisit their paid sick leave policies in Chicago to ensure compliance with these new requirements. In addition, as noted above, employers should monitor the OLS website for an updated version of the City-created workplace posting.
See Footnotes
1 Illinois House Bill 118 was recently sent to the governor for signature. If passed, House Bill 118 would increase damages an employee is entitled to from 2% to 5% of the amount of any underpayments in wages for each month following the date of payment during which such underpayments remain unpaid.
2 Employers should monitor the Chicago Office of Labor Standards’ (OLS) website for the Paid Sick Leave ordinance for an updated version of the workplace posting.
3 Chicago Ordinance O2020-3985 amended the paid sick leave ordinance in September 2020 to require that individual notice be provided annually with a paycheck issued within 30 days of July 1, rather than with the first paycheck issued to an employee on or after July 1. The Chicago Paid Sick Leave Rules, which were last updated effective July 1, 2020, do not yet reflect this change.
