Chicago paid leave laws require employers to provide employees with up to 40 hours of paid leave for any reason and up to 40 hours of paid sick leave annually under Chicago Substitute Ordinance SO2023-0002980. This comprehensive ordinance ensures workers have access to both general-purpose paid time off and specific sick leave protections.
The law establishes a unique dual-track system that provides employees with flexible paid time off, while maintaining dedicated sick leave benefits, creating one of the most comprehensive leave policies in the nation.
Common Questions About Chicago Paid Leave
Understanding Chicago paid leave requirements is essential for maintaining workplace compliance and supporting employee well-being. The law establishes specific guidelines for both types of leave while providing comprehensive worker protections. Here’s what you need to know to stay compliant.
Who can take paid leave in Chicago?
Any employee who works in Chicago at least 80 hours in any 120-day period can take this leave. Once employees become eligible, they remain eligible for the duration of their employment.
Which employers have to provide this leave?
All employers must provide this leave to Chicago employees.
How much leave do employers need to provide?
Employees accrue one hour of paid leave and one hour of paid sick leave for every 35 hours worked in Chicago, up to 40 hours each per year. Exempt employees are presumed to work 40 hours per week unless they typically work less, in which case accrual is based on their normal workweek.
What can Chicago paid leave be used for?
The ordinance provides two types of leave: paid leave can be used for any reason and paid sick leave can be used for:
- Employee’s own illness, care, or treatment (including mental health and substance abuse)
- Family member’s illness, care, or quarantine
- Domestic violence or sex offense-related needs
- Workplace or school closure due to public health emergency
- Compliance with public health orders or healthcare provider recommendations
How does this relate to other types of leave?
Employers can use existing paid time off or unlimited time off policies to comply if they provide at least as much leave and allow for the same reasons. Employees can choose whether to use paid leave or paid sick leave before using other available leave types.
Can employers limit how many hours of sick leave employees use in a year?
While employers can cap annual accrual at 40 hours for each type of leave, there is no use cap. Employees can use any amount of accrued leave they have available.
Can employers provide all the leave at once instead of letting it accrue?
Employers can frontload both types of leave (40 hours each) at the start of the benefit period. Frontloading eliminates the need to carry over paid leave, but paid sick leave must still carry over regardless of frontloading.
Do employers have to carry over unused leave?
Employees can carry over up to 16 hours of paid leave each year, amounting to up to 80 hours of paid sick leave. Carryover rules differ for unlimited time off policies and frontloaded leave arrangements.
What is the smallest amount of leave an employee can use?
Employers can require minimum use increments of 4 hours for paid leave and 2 hours for paid sick leave.
What notice do employers and employees need to provide?
Employers must provide notice during onboarding, annually with paycheck, and display postings in languages spoken by 5% or more of employees. They must also provide regular updates about available leave balances on each payday.
Employees must provide:
- Up to 7 days’ notice and pre-approval for paid leave
- Up to 7 days’ notice for foreseeable sick leave
- Notice as soon as practicable for unforeseeable sick leave
What verification can employers ask for?
Employers cannot require verification for paid leave used for any reason. For paid sick leave exceeding three consecutive workdays, employers can request verification of the need for leave, but employees can choose the form of documentation.
Are employees’ jobs and benefits protected when they take this leave?
Yes, employers must maintain group health coverage during leave. Payout requirements at separation vary by employer size:
- 50 or fewer employees: No payout required
- 51 or more employees: Must pay out all unused paid leave (beginning July 1, 2025)
Simplify Chicago Paid Leave with SixFifty
Navigating Chicago’s dual-track paid leave requirements can be complex. SixFifty’s solutions streamline the process, ensuring your policies align with both types of leave requirements while reducing the administrative burden on your HR team. We’re here to keep you compliant—even as paid leave laws change.
Want to see how it works? Schedule a free demo today!
