The City of Chicago published amended rules governing the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance. These amendments took effect on June 1, 2026, and introduced several significant changes that employers operating in Chicago must be aware of. 

New Joint Employer Provisions Expand Liability Exposure

The amendments introduce an entirely new rule addressing joint employment. Under this provision, joint employment occurs when the essential terms and conditions of a worker's employment are controlled by two or more entities. Critically, all joint employers are responsible both individually and jointly for compliance with all applicable provisions of the ordinance. The rule expressly states that joint employment may arise in situations involving temporary staffing agencies, lead agencies, professional employer organizations, or other entities serving similar functions. 

Employers that use temporary day laborers should evaluate whether their relationships with such agencies could trigger joint employer status under these new provisions. Covered employees who are jointly employed must be counted by each employer, regardless of whether their names appear on that employer's payroll. 

Successor Employer Liability for Accrued Leave

Employers involved in mergers, acquisitions, asset purchases, or workforce restructuring should ensure that leave balances are accurately tracked and transferred. Transactions involving the sale or transfer of employees must include the transfer of covered employees’ accrued Paid Leave and Paid Sick Leave to a successor employer; otherwise, the deal constitutes a violation of the ordinance. Both the original and successor employer, as well as any joint employer, are individually and jointly liable for any such violation. 

Clarification of FLSA-Exempt and Non-Exempt Accrual

The amendments also clarify accruals for employees subject to different overtime classifications under the Fair Labor Standards Act. Non-exempt employees now expressly accrue Paid Leave and Paid Sick Leave on all hours worked, including overtime hours. For exempt employees, the accrual rate is capped at 40 hours per work week. Employers should review their accrual tracking systems to ensure they are properly distinguishing between these two categories.

Employer-Favorable Discipline and Abuse Provisions

One significant addition is an employer-friendly rule, Rule PTO 2.17, which expressly authorizes employers to take disciplinary action, up to and including termination, against employees who abuse or misuse Paid Sick Leave. The rule provides illustrative examples of abuse, including patterns of use of unscheduled Paid Sick Leave adjacent to weekends, holidays, vacation, or paydays; taking scheduled Paid Sick Leave on days when other leave has been denied; and taking Paid Sick Leave on days when the employee is scheduled to work undesirable shifts. 

Employers should incorporate clear anti-abuse provisions and document patterns of misuse into their policies to reflect this change. While the new rule provides meaningful authority to address abusive leave practices, employers should exercise caution to ensure that any disciplinary action is well-documented and applied consistently to avoid retaliation claims.

Alternative Policy Flexibility

The new Rule PTO 2.08 permits employers to establish alternative policies allowing covered employees to accrue up to 80 hours of paid time off, provided the policy meets or exceeds all requirements of Section 6-130-030. Employers were previously required to maintain separate policies for paid leave and paid sick leave. This new rule provides greater flexibility in designing a uniform or consolidated PTO policy, provided it meets the minimum requirements.

Request for Certification Documentation 

The amendments further modify the certification threshold for Paid Sick Leave. Under the prior rules, an employer could require certification for absences that exceeded three workdays, i.e., at the fourth absence. Rule PTO 2.16 now permits certification when a covered employee is absent for three or more consecutive workdays, allowing employers to request documentation slightly sooner in the absence cycle. Relatedly, a new restriction in Rule PTO 2.13 prohibits employers from requiring a covered employee to appear in person or deliver any document to the employer at a worksite or administrative office as a precondition to using Paid Sick Leave or as a condition of returning to work. Policies that include such a requirement will have to be revised.

Removal of Sections 

The amended rules removed the article detailing the complaint-filing process and city investigation procedures, as well as the express rule permitting the waiver of the ordinance’s requirements for existing bona fide collective bargaining agreements. Employers with unionized workforces should assess the impact of this change on existing and future collective bargaining agreements.

Expanded Definition of "Place of Care" for Child-Related Sick Leave

The amendments added new Rule PTO 2.07(b), which permits use of Paid Sick Leave when a covered employee's child's place of care has an unscheduled closure. The rule broadly defines "place of care" to include not only professional organizations such as childcare centers and after-school programs, but also informal providers such as paid babysitters, family, and friends who supervise children. Employers should be aware that this significantly expands the circumstances under which employees may invoke Paid Sick Leave for childcare disruptions.

Conclusion

The amendments represent a significant expansion of employer obligations under Chicago's Paid Leave and Paid Sick Leave framework, including joint-employer liability, successor-employer responsibilities, and alternative policies. Employers should act promptly to update their policies, assess their workforce arrangements, and consult counsel to minimize compliance risk. We will continue to monitor developments as the city implements these amended rules, and we encourage clients to reach out to our team with any questions about how these changes affect their organizations.