e-Alerts

e-Alert: Chicago Updates Fair Workweek Ordinance

By August 3, 2022 No Comments

Background

Effective July 1, 2022, Chicago amended its Fair Workweek Ordinance which was implemented in 2020. Covered employers under the ordinance must now post work schedules at least 14 days in advance. Should an employee not be provided the 14-day notice they are subject to additional pay and may be able to decline to work a shift. The amendment also increases the covered employees’ wages threshold. This amendment coincides with the Chicago minimum wage increase for employees and tipped employees effective July 1, 2022.

Summary

A Chicago employer is covered under the Fair Workweek Ordinance if they meet all of the following criteria:

  • Operate in a covered industry:
    • Building Services
    • Healthcare
    • Hotels
    • Manufacturing
    • Restaurants
    • Retail
    • Warehouse Services
  • Employs 100 or more employees in all of its locations; this includes inside and outside of Chicago. This number increases to 250 for not-for-profit organizations
  • The global count of employees includes 50 covered employees
  • Franchise restaurants must globally have 30 locations, 250 employees, and own at least four locations in Chicago

An employee is considered a covered employee under the Fair Workweek Ordinance if they meet all of the following criteria:

  • An employee or temporary worker on assignment for 420 hours within an 18-month period
  • Completes most of their work in a covered industry while physically present in Chicago
  • Earns an annual salary of $56,381.85 or $29.35/per hour or less
  • These amounts reflect the increase under the amended ordinance. The wage threshold was previously $50,000 annually and $26.00/per hour

The new amendment requires:

  • Covered employers to post work schedules 14 days in advance
    • This increased from the previous 10-day notice
  • Covered employees have the right to decline the schedule change if it is made less than the 14-day time period
    • This increased from the previous 10-day notice

If the posted schedule changes after the notice was provided, there is a right to predictability pay. A covered employer must pay one hour at the employee’s regular hourly rate per shift for any schedule change that alters the date or time of a shift with no loss of hours or cancels or reduces hours from a regular or on-call shift with more than 24 hours notice.

Employer Next Steps

    1. Employers should post the updated Fair Workweek Notice in a conspicuous location within the workplace.
    2. Employers should review all covered employees’ annual salary or hourly rate to ensure they capture newly covered employees under the amended wage threshold.
    3. The Chicago Office of Labor Standards has released FAQs related to their Fair Workweek Ordinance.
    4. If you are a Full-Service or Virtual HR client and would like our assistance with reviewing or updating any relevant policies, please email us.
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