Vote stalled on bid to expand paid time off for Chicago workers
CHICAGO (CBS) -- A key City Council committee on Monday delayed a vote on a measure to provide Chicago workers with up to 12 days of paid time off per year, amid pushback from the city's business community.
The City Council Committee on Workforce Development had been set to vote on an ordinance that would have allowed all Chicago workers to earn up to six days of paid sick leave and six days of paid time off for any reason every year.
That's more than double the five days of paid time off that will be required by a statewide mandate taking effect in Illinois on Jan. 1, and would be the most paid time off required by any major city in the U.S. New York requires five days of paid time off and Los Angeles requires six.
Michael Jacobson, president and CEO of the Illinois Hotel and Lodging Association called the proposed paid time off rules in Chicago "the most costly and burdensome paid leave requirements in the country."
The proposal has the support of Mayor Brandon Johnson, whose deputy mayor of labor relations, Bridget Early, told aldermen "workers should not have to choose between their health and financial security."
However, before aldermen could actually begin debating the proposed ordinance on Monday, Workforce Committee chair Ald. Michael Rodriguez (22nd) recessed the meeting until Thursday morning, a potential signal that supporters did not have the votes to approve the proposal and send it to the full City Council for Wednesday's council meeting.
Chicago already requires employers to provide up to five days of paid sick leave per year.
Originally, supporters of the expanded paid leave ordinance had proposed an even more sweeping plan that would have allowed workers to earn one hour of paid time off for any reason for every 15 hours worked, with no cap on how much time they could earn in a given year. For a full-time worker who averages 40 hours a week, that would have meant at least 16 days of paid time off a year.
But after three weeks of negotiations with various business groups, the city's labor unions and other supporters of expanded paid leave agreed to scale back their proposal to allow for workers to earn up to six days of paid sick leave and six days of paid time off for any reason per year.
However, negotiations fell apart over the issue of reimbursing workers for unused paid time off when they leave the job.
Brad Tietz, vice president of government relations for the Chicagoland Chamber of Commerce, said business leaders had proposed providing up to 10 days of paid sick leave and paid time off per year, without giving employers the right to pre-approval of any time off, in exchange for not requiring businesses to reimburse workers for unused time off when they leave the job.
"We came to the table in good faith, because we want to reach a compromise on this," Tietz said, urging aldermen to hold off on voting on the paid time off plan to allow more time for negotiations.
Tietz said business and labor leaders have been negotiating the paid time off ordinance for only three weeks, and should get more time to find common ground.
However, Chicago Federation of Labor president Bob Reiter said labor leaders approached the business community last year to work out a deal on paid time off, but business leaders "weren't interested" and didn't agree to start talking until the last few months.
Under the proposal now before the Workforce Committee, employees could roll over up to 10 unused sick days from one year to the next, and up to three days of other paid time off per year. While employers would not be required to reimburse workers for unused paid sick time when they leave the job, they would be required to pay out up to nine days of other unused paid time off.
Illinois Restaurant Association President Sam Toia said the ordinance would hit small and minority-owned businesses the hardest, particularly after the City Council recently voted to phase out the subminimum wage for tipped workers, adding another expense for employers.
Toia said business leaders don't oppose providing more paid time off to workers, but simply want more time to negotiate a deal that works for both sides.
"I'm always willing to come to the table. I'd rather be at the table than on the menu," he said.
Opponents also argued that business owners could be unfairly punished for honest mistakes, pointing to fines of $1,000 to $3,000 for any violation of the ordinance, including recordkeeping requirements.
"Creating difficult regulations and steep penalties jeopardizes the success of small businesses," said Scott Baskin, CEO of the Small Business Advisory Council. "This is a harsh punishment which would and could put a small business out of business."
Baskin argued the ordinance should be amended to allow businesses to correct honest mistakes before they face potential fines. Business leaders also argued the city should set up a "fair regulation process" for alleged violations before imposing fines.
It's unclear if any changes will be made to the proposal before the Workforce Committee reconvenes on Thursday.
Johnson's office said talks will continue on the proposal this week.
"The mayor deeply understands and supports the need for earned leave for Chicagoans. Our administration is committed to true collaboration and co-governance with all stakeholders and looks forward to continued conversation this week around supporting workers and working families, and using the full force of government to sustain economic vitality in our city," a mayoral spokesperson said in an email.
