The City of Chicago recently introduced a new Paid Leave and Paid Sick and Safe Leave Ordinance which outlines the types of paid leave eligible employee can take. The ordinance applies to all employees who perform at least 80 hours of work within a 120-day period, including domestic workers.

Employers are required to provide various types of paid leave. For every 35 hours worked, an employee accrues an hour of both Paid Leave and Paid Sick Leave. Accrual is capped at 40 hours for each leave type. Payment for paid leave must be made at the standard rate along with benefits.

Employers are allowed to set a reasonable minimum increment for usage of either form of paid leave. Workers can start using accrued total Paid Sick Leave no later than the 30th day of employment and Paid Leave no later than the 90th day of employment.

Employers may choose to frontload paid leave or allow for carryover to the next 12-month period. However, employers can limit the amount of unused leave that carries over while those choosing frontload must provide the leave on the first day of employment or the first day of the 12-month period.

Upon termination or when an employee ceases to be a Covered Employee, employers are obligated to pay out the remaining unused Paid Leave. This amount differs depending on the employer size—the larger the business, the more Paid leave payout required upon termination.

Employers must post the ordinance notice in the same place where other labor and employment laws are posted. Employers must also maintain records regarding paid leave for five years.

Violations of the ordinance can result in fines or employees may bring claims to the City Department of Business Affairs and Consumer Protection. Damages can be three times the full amount of any leave denied or lost due to the violation, plus interest, along with costs and reasonable attorney’s fees.