The Chicago Fair Workweek Ordinance went into effect in 2020. In a previous article, we discussed how the ordinance brought predictability to employee scheduling by requiring employers to provide 10 days’ notice of an employee’s schedule. As of July 1, 2022, covered Chicago employers will be required to either give employees 14 days advance notice of their calendar workweek schedule, or make a “predictability payment.” Below are several FAQs for employers ahead of the July 1 deadline.
WHAT IS A COVERED EMPLOYER?
Employers are subject to the ordinance if they primarily operate in a “covered industry,” and globally employ 100 or more employees (250 or more for non-profits), 50 of whom are “covered employees.”
WHAT ARE THE COVERED INDUSTRIES?
WHAT IS A COVERED EMPLOYEE?
An individual who performs work for an employer:
WHAT ADVANCE NOTICE MUST EMPLOYERS GIVE TO COVERED EMPLOYEES?
WHAT IF SCHEDULE CHANGES ARE MADE AFTER THE ADVANCE NOTICE DEADLINES?
There are a few scenarios here. First, the employer must post amended schedules within 24 hours of making changes to the schedule. The covered employee has the following rights:
The ordinance does provide exceptions for things like mutual agreement for changes and outside events beyond the employer’s control.
WHAT IF AN EMPLOYER NEEDS TO FILL ADDITIONAL SHIFTS?
Any additional available shifts that are not accepted by regular covered employees should be offered to part time covered employees first, and then to temporary or seasonal workers who have worked for more than two weeks.
HOW SOON CAN EMPLOYERS HAVE COVERED EMPLOYEES BEGIN ANOTHER SHIFT?
A covered employee is entitled to at least 10 hours between shifts. Otherwise, the employer must pay at a rate of 1.25 times the regular rate for that shift.
WHAT IF THE EMPLOYER IS SUBJECT TO A COLLECTIVE BARGAINING AGREEMENT?
The ordinance can be clearly waived in a collective bargaining agreement and does not affect the validity of any existing agreements.
ARE THERE ANY POSTING REQUIREMENTS?
Yes, the Department of Business Affairs and Consumer Protection will issue a form notice that must be posted in a conspicuous place and provided with the first paycheck of any covered employee.
WHAT ARE THE PENALTIES FOR NON-COMPLIANCE?
Employers are subject to a fine of $300-$500 for each offense, per covered employee, per day, and covered employees may bring a civil action following certain administrative steps. Covered employees who prevail are entitled to compensation plus litigation costs, including expert and attorney fees. In other words, employers face very serious liability for non-compliance, so now is the time to ensure that you are in compliance.
For more information or questions about the new Chicago Workweek Ordinance, please contact a member of Gould & Ratner’s Human Resources and Employment Practice.