Chicago paid leave and paid sick leave for restaurants

Chicago has an ordinance that requires covered employers to give employees paid leave that can be used for any reason and paid sick and safe leave. The amounts, the point at which an employee becomes eligible, the rules for employers of different sizes and the dates of recent amendments are set by the City, and they have changed. This guide does not repeat figures that it has not confirmed. It explains what a restaurant has to organize, which is a written policy, tracked balances, posted notices and a plan for paying out leave when someone leaves, and it tells you where to read the current rules.

Who is covered in a Chicago restaurant?

The ordinance covers employees who work in Chicago for an employer, once they have worked a minimum number of hours within a set period. That can include part-time servers, line cooks, bartenders and hosts. It applies to employers of any size, but some rules differ by the size of the employer, including the dates on which payout and notice rules begin. Check the City's guidance, from the Department of Business Affairs and Consumer Protection, for the category your business falls in.

How much leave is there?

Employees earn two kinds of leave: paid leave that can be used for any reason, and paid sick leave that can be limited to the sick and safety reasons the ordinance lists. The ordinance also sets rules on frontloading, which is giving the whole amount at the start of the year, on carryover, on notice before taking leave, on reasons for denying leave and on payout at separation. Your policy has to match those rules, so start from the City's published materials and not from a summary.

What must you give employees in writing?

Employers are expected to give a written policy explaining their leave notice rules and accrual rates, and to post the required notices at the workplace. Chicago businesses post public notices on the minimum wage, on paid leave and paid sick leave and on the Fair Workweek ordinance in a conspicuous place. Put the notices in the back hallway or the staff room, where every shift sees them, and put the policy in the handbook and in the onboarding packet.

What has changed recently?

The ordinance has been amended, and payout and enforcement rules have been phased in over time. Employees may also be able to bring a claim directly if the leave provisions are violated. Because the dates and conditions are specific to your employer size, read the current ordinance and the City's guidance, or ask an employment attorney, to confirm what applies to you today.

A worked example for a server

A server works 30 hours a week from March. Under an accrual policy, the server earns leave as hours are worked and, once eligible, can use it. In July, the server asks for Friday off for a family event and uses paid leave, which does not need a reason. In October, the server is ill and uses paid sick leave. When the server leaves the following spring, any unused paid leave may need to be paid out under the rules for your employer size. Your payroll system should track each balance separately.

How do you set up payroll?

1. Track paid leave and paid sick leave in separate balances.
2. Show balances on pay stubs or in an employee portal.
3. Record each use and the reason, only as the ordinance allows.
4. Pay leave at the employee's regular rate.
5. Plan for payout at separation and for any carryover.

How do you schedule around leave?

A busy Friday and an employee who asks for it off are a normal tension in a restaurant. The ordinance sets how much notice you can require and what reasons you may use to deny leave, so train managers on those rules and ask them not to improvise. Keep a log of requests and answers. When leave is approved, find cover early by asking for volunteers, and keep a short list of staff who want extra shifts.

What should you check each year?

Read the City's notices, update your policy and the posters, and check the status of any amendment. Ask your payroll provider whether its settings match your policy. Keep dated copies of every version of the policy, because a claim may ask what applied on a given date. Give managers a one-page summary so that every request for leave is answered the same way, and review it with your payroll provider whenever the City updates its guidance.

What about the state law?

The Illinois Paid Leave for All Workers Act applies to employees outside cities with their own paid leave rules. The guide on that Act explains how it works, and why a Chicago business follows the city ordinance rather than the state law.

More guides for your business:

• Illinois Paid Leave for All Workers Act for restaurants outside Chicago
• Chicago fair workweek rules for restaurants
• Illinois tipped minimum wage: state, Cook County and Chicago

More in the US guides for food businesses.