The Chicago City Council achieved a milestone by approving the Chicago Paid Time Off Ordinance.
This groundbreaking policy ensures paid time off and sick leave for all workers in the city. This ordinance guarantees up to five days of paid time off and an additional five days of sick leave, marking a significant advancement in paid time off legislation at the municipal level in the U.S.
“Today is a great day for the workers of Chicago, the businesses of Chicago, and the future of Chicago,” said Mayor Brandon Johnson. “This ordinance, accomplished through compromise and collaboration, is an important step on the path to revitalizing the economy of our great city.
“Working families are the lifeblood of our city, and I am proud that our city has delivered for them once again.”
A statement issued by Mayor Johnson’s office cited research that indicates that implementing paid sick time and paid time off can effectively lower costs associated with absenteeism and turnover within businesses.
Accordingly, employees with access to paid time off tend to stay in their positions for extended periods, resulting in higher wages that are subsequently circulated within their local communities. Conversely, the absence of comprehensive paid leave policies disproportionately exacerbates economic insecurity among lower-paid workers and their families.
“Working class Chicagoans deserve a day off when they need it,” said Ald. Mike Rodriguez, chair of the Workforce Development Committee and sponsor of the Chicago Paid Time Off Ordinance. “The Chicago Paid Time Off Ordinance is a common-sense, compromise approach that supports working people, helps businesses by increasing worker productivity and worker retention, and boosts our economy. I am proud to have sponsored this historic piece of legislation.”
The business organizations supporting the Paid Leave ordinance include the Illinois Hispanic Chamber of Commerce, the Business Leadership Council, the Chicago Urban League and the Chatham Business Association. Individual businesses supporting the ordinance include Back of the Yards Coffeehouse, Chicago Fair Trade, Chicago Dance Supply, Mashallah, The Quarry Events Center, Imani Bakery and Windy City Whiskey & Barbecue.
The IHCC said, “The Illinois Hispanic Chamber of Commerce acknowledges the efforts made to provide relief for small businesses with fewer than 50 employees, while we still have some concerns, we support the paid leave ordinance.”
Negotiations led to several compromises within the proposal, including adjustments to the required number of days, an extended rollout of the private right of action, and an exemption for small businesses with fewer than 50 employees, relieving them from the obligation to pay out unused paid time off.
Implementing the Paid Leave Ordinance follows significant legislative accomplishments for the Johnson Administration since assuming office. In May, the City Council unanimously endorsed a plan to permanently establish an outdoor dining program that proved instrumental in sustaining Chicago’s restaurants and bars during the challenging COVID-19 pandemic.
Furthermore, earlier this month, two pro-business ordinances were introduced, focusing on outdoor dining and reduced permitting requirements to bolster small businesses and foster development in Chicago’s communities.
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