Ahead of July 1 compliance deadline, Chicago agency releases updated guidelines and notices on city minimum wages, paid leave, fair workweek and required notices |  Smaller
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Ahead of July 1 compliance deadline, Chicago agency releases updated guidelines and notices on city minimum wages, paid leave, fair workweek and required notices | Smaller

The Chicago Department of Business and Consumer Protection’s (BACP) Office of Labor Standards (COLS) recently posted updates on its website regarding minimum wage, paid vacation and paid sick leave and sick leave obligations, new Fair Workweek thresholds, and updated required job notices . The deadline to comply with these obligations is July 1, 2024. Employers should review these new regulations carefully and ensure that new notices are published, attached to employees’ first paychecks, and sent to employees before the July deadline.

Minimum wage – effective from July 1, 2024

General minimum wage

A standard Chicago employer with four or more employees must pay its employees a new minimum hourly wage of $16.20 ($24.30 minimum overtime wage). Hourly youth workers must be paid $15.00 per hour (overtime: $22.50).

Tipped workers

The new minimum hourly wage for tipped workers is $11.02 (overtime for tipped workers: $19.12). Tipped youth workers must be paid a minimum hourly wage of $10.20 (overtime for tipped youth: $17.70).

For tipped employees, if the tip plus wage does not equal the standard minimum wage, the employer must make up the difference.

Notification and Posting Requirements

Notice of the current minimum wage must accompany each covered employee’s first paycheck and each year with paychecks issued within 30 days of July 1. This obligation applies to employers regardless of whether they have a business facility within the geographic boundaries of the City of Chicago.1

Additionally, for employers who have a facility within the geographic boundaries of the City of Chicago, the updated notice must be posted conspicuously at each facility located in Chicago. If the employer does not have a physical location, disseminating the notice through the employer’s internal communication channels satisfies this requirement.

Fair Workweek thresholds and notices – effective July 1, 2024

By now, covered Chicago employers will be familiar with the Fair Work Week regulation and its expected scheduling requirements. In summary, covered employers must post schedules 14 days before the start of the work schedule. Schedule changes at the employer’s initiative that do not fall within the scope of the exception will result in an obligation to provide covered employees with pay predictability.

New thresholds

Effective July 1, 2024, employees working for covered employers are covered by the regulation if their annual wages do not exceed $61,149.35 or $31.85 per hour. When the Fair Work Week regulation went into effect in 2020, the thresholds were $50,000 per year, or $26.00 per hour, and the thresholds changed annually, effective July 1. Most recently, from July 1, 2023 to June 30, 2024, the thresholds were $59,151.50 per year or $30.80 per hour. Given this recent increase, covered employers should review their pay and scheduling policies and procedures to ensure continued compliance by all covered employees.

Notification and Posting Requirements

An updated Fair Work Week notice must be issued to covered workers with their first paycheck and every year with their first paycheck on or after July 1.

Employers are required to publish the notice provided by BACP through the employers’ usual communication methods for such notices, whether in paper form or distributed electronically through employers’ internal communication channels. When submitting a paper advertisement, it must be printed and scaled to fill an 11-inch by 17-inch sheet of paper.

All notices must be posted in English and in any language(s) spoken by site employees who are not fluent in English and where BACP has made notices available in a language other than English.

Paid leave and paid sick leave – effective from July 1, 2024

Notification and Posting Requirements

Notice of paid leave and paid sick leave must be provided to the employee in several ways:

  • New employment announcement: : Notice of paid time off and paid sick leave must be provided to new employees with the employee’s first paycheck, either before the employee begins employment or as part of the onboarding process.
  • Annual notice: : Notice of Paid Vacation and Paid Sick Leave must be sent annually to each covered employee with a paycheck issued within 30 days from July 1. The annual notice may be given in paper or electronic form via the employer’s internal communication channels.
  • Workplace information/poster: : For employers who have a facility within the geographic boundaries of the City of Chicago, the updated notice must be posted conspicuously at each facility located in Chicago. For employers who do not have a facility within the geographic boundaries of the City of Chicago and for employers who employ remote workers in Chicago, the notice should be sent through the employer’s usual communication methods for such notices, either on paper or electronically. through the employer’s internal communication channels. Notice must be published in English and other languages ​​if at least 5% of employees in the workplace do not speak English.

Notification of wage theft

Notification and Posting Requirements

For employers who have a facility within the geographic boundaries of the City of Chicago, the updated notice must be posted conspicuously at each facility located in Chicago. If the employer does not have a physical location, electronic notification via e-mail or intranet satisfies this requirement.

Additional updated job alerts

BACP also updated anti-trafficking notices, directing employees to additional resources and where to file a complaint.

As with other notices, for employers who have a corporate headquarters within the geographic boundaries of the City of Chicago, the updated notice must be posted conspicuously at each Chicago facility. If the employer does not have a physical location, this requirement is met by electronic dissemination of the advertisement via the employer’s internal communication channels.

Footnotes

1 Currently, the first pay notice requirements for minimum wage and wage theft are slightly different than the requirements for paid time off and paid sick leave. BACP announced that it intends to standardize these requirements.