AIRLINE INDUSTRY CHALLENGES CHICAGO’S PAID LEAVE ORDINANCE
October 18, 2024
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Effective July 1, 2024, the Chicago Paid Leave and Paid Sick and Safe Leave Ordinance (“the Ordinance”) entitles eligible employees to paid leave. Chicago employers with more than one employee must offer paid leave to employees that work at least 80 hours within a 120-day period within the city limits.
Paid Leave
Employees accrue one hour of paid leave for every 35 hours worked, up to a maximum of 40 hours, in a 12-month period. This leave can be used for any purpose, although employers may deny the requests at their discretion. Employers may require employees to take this leave in at least four-hour increments. Employers must allow employees to carry over up to 16 hours of unused paid leave, unless employers “frontload” the leave by granting covered employees 40 hours of paid leave on their first day of employment or the first day of the 12-month accrual period. Until July 1, 2025, all employers with 51 to 100 employees are required to payout up to 16 hours of unused paid leave upon termination from employment, while employers with more than 100 employees are required to payout all unused paid leave upon termination. After July 1, 2025, all employers with over 50 employees must pay all unused paid leave upon termination.
Paid Sick and Safe Leave
Similar to paid leave, employees are entitled to one hour of paid sick and safe leave for every 35 hours worked, up to a maximum of 40 hours, in a 12-month period. This leave can be used to recover from illness, take care of a family member, address domestic violence, and during public health emergencies. Employers may require employees to take this leave in at least two-hour increments. Employers must allow employees to carry over up to 80 hours of paid sick leave. Unlike paid leave, employers are not required to payout unused sick leave upon termination from employment.
Airlines Challenge the Ordinance
In June, Airlines for America (“A4A”) challenged the Ordinance in the United Stated District Court for the Northern District of Illinois, arguing that the Ordinance is preempted by the Airline Deregulation Act and the Railway Labor Act. Airlines and airline associations have challenged similar paid leave laws in other jurisdictions on similar grounds, yielding mixed results. Notably, A4A successfully challenged a Massachusetts sick leave law and Delta Air Lines won a case against New York City’s paid sick leave law, while A4A lost its challenge against Washington’s paid sick leave law.
The Chicago case is still pending, and the Ordinance remains in effect for employers, including those in the airline industry.
This Aviation Blog is intended to keep readers current on developments in the law. It is not intended to be legal advice. If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202-659-6665 or dderco@eckertseamans.com; Jay Julien at 202.659.6648 or jjulien@eckertseamans.com, or Samantha Walter at 412.566.1920 or swalter@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.
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