Table Of Contents
Chicago Fair Workweek: A Comprehensive Guide
Chicago’s Fair Workweek Ordinance is a critical piece of legislation designed to give employees predictable schedules and improved work-life balance. For small business owners and managers in industries like retail, hospitality, and healthcare, understanding these regulations is essential to maintain compliance and foster a positive workforce. Chicago joins a growing trend of cities enacting “secure scheduling” laws, and the city’s Department of Business Affairs and Consumer Protection (BACP) is charged with enforcing these rules. In this guide, we’ll break down the main requirements of the Ordinance, explain who it covers, and suggest practical steps to help ensure that your business stays on the right side of the law.
Since taking effect on July 1, 2020, the Fair Workweek Ordinance has evolved to include new rules for employers regarding advance notice of schedules and additional compensation called “predictability pay.” By 2022, the advance notice requirement extended from 10 days to 14 days, further underscoring the city’s commitment to stable and predictable schedules. This article offers a comprehensive overview of these provisions, how they apply to you, and where to find official resources—such as the Municipal Code of Chicago, Chapter 1-25—for deeper reference.
1. Name & Enforcing Agency
The legislation is officially known as the Chicago Fair Workweek Ordinance. As noted, enforcement responsibilities lie with the Chicago Department of Business Affairs and Consumer Protection (BACP). This agency sets guidelines, investigates complaints, and oversees compliance efforts.
Key Links:
– Chicago Department of Business Affairs and Consumer Protection (BACP)
– Chicago Fair Workweek Ordinance Official Page
2. Coverage
Not every Chicago business falls under the Fair Workweek Ordinance. Your obligations depend on both the size and nature of your enterprise:
- Covered Industries: Building services, healthcare, hotels, manufacturing, restaurants, retail, and warehouse services.
- General Employer Size Threshold: You must have at least 100 employees globally to be considered a “covered employer.” In addition, non-profit organizations must have 250 employees globally to fall under this Ordinance.
- Restaurant-Specific Threshold: Restaurants must have at least 30 locations worldwide and a total global headcount of 250 employees.
- Employee Earnings Threshold: Employees who earn at or below $29.35 per hour or $56,381.85 per year (salaried) in 2023 are included, with these figures subject to annual inflation adjustments.
- Geographical Requirement: The Ordinance typically applies to employees who work at least two hours in Chicago over the course of two weeks.
This coverage model ensures that large or widespread businesses maintain fair scheduling practices, while also applying to nonprofits and certain large-scale restaurant chains. To confirm your status or clarify complexities, you can consult BACP’s Fair Workweek resources.
3. Advance Scheduling
The Ordinance requires covered employers to provide a written work schedule well in advance. Initially set at 10 days, the notice period increased to 14 days on July 1, 2022. Here’s what you need to know:
- Written Schedule: The schedule must detail all shifts, including start and end times, location, and any on-call requirements.
- Method of Delivery: The notice can be posted in a conspicuous spot at work or distributed electronically, as long as every employee can easily access it.
- Voluntary Shift Changes: Employees may request to trade or pick up shifts within the same schedule, but employers must still abide by Ordinance guidelines when approving changes.
In a busy environment, forecasting your labor needs two weeks in advance can be challenging. Some businesses turn to scheduling software like Shyft to help automate shift assignments and keep employees informed in real time. This kind of tool can be invaluable for ensuring compliance with the 14-day advance notice requirement.
4. Predictability Pay
If you need to modify an employee’s schedule after posting it, the Ordinance requires you to pay additional compensation, commonly called predictability pay. The specifics:
- Additions or Alterations: For any shift or schedule alteration that increases hours or moves a shift to a different time, you owe the employee one hour of extra pay at their regular rate.
- Reductions or Cancellations: If you cut an employee’s scheduled hours or cancel a shift, you owe the employee 50% of the wages they would have earned during the canceled or reduced period.
- Exceptions: Situations like a mutually agreed-upon shift swap between employees, or an unforeseen emergency declared by civil authorities, can sometimes exempt the employer from predictability pay.
Ultimately, predictability pay incentivizes employers to create accurate schedules and honor them. It also compensates workers for the disruption of last-minute changes, many of whom balance multiple jobs or personal commitments.
5. Extra Hours for Part-Timers
Unlike some other major U.S. cities that have “first offer to part-timers” rules, the Chicago Fair Workweek Ordinance does not require employers to offer available hours to part-time staff before hiring new workers. However, employers should still be mindful of broader labor laws and local workforce needs. Maintaining a reliable crew may mean giving priority to current employees who request more hours. Doing so can help you steer clear of potential legal complications, boost morale, and keep turnover low.
6. Rest Between Shifts (“Right to Rest”)
One unique provision is the “right to rest” mandate, ensuring that employees are not overworked with back-to-back shifts:
- 10-Hour Gap: If an employee is scheduled for two shifts within 10 hours of each other, they have the right to decline the second shift.
- Premium Pay: If the employee consents to working the second shift anyway, the employer must pay them at 1.25 times their regular rate for any hours that fall within that 10-hour window.
This provision aims to reduce worker fatigue and help individuals maintain a healthier balance between work and personal life. As an employer, you can minimize scheduling headaches by adjusting your rota so that staff get the recommended rest period.
7. Retaliation Prohibited
Employers are strictly forbidden from taking adverse actions against employees who exercise their rights under the Ordinance. Prohibited retaliation includes reducing hours, demoting, or disciplining employees for making a complaint or cooperating in an investigation.
Maintaining a non-retaliatory environment is not just about compliance; it fosters trust and communication among your team. If you inadvertently violate the Ordinance and an employee raises concerns, it’s usually better to address the situation quickly rather than risk further scrutiny or complaints to BACP.
8. Recordkeeping & Posting
Ensuring proper documentation is essential for legal compliance. Specifically, the Ordinance states:
- Record Retention: Employers must keep relevant payroll and scheduling records for at least three years and must produce them upon request from BACP.
- Mandatory Posting: Covered employers are required to display the official Fair Workweek notice in a conspicuous place (like a breakroom). The official City of Chicago BACP webpage offers downloadable versions of the required poster.
Failure to post notices or keep adequate records can lead to penalties and undermine your compliance efforts. It’s a straightforward process: just print the poster and keep it visible, and maintain well-organized files of all schedules and payroll data.
9. Enforcement & Penalties
The Chicago Department of Business Affairs and Consumer Protection takes the lead in investigating potential violations. They can impose penalties and mandate employer restitution. Here’s an overview:
- Fines: Depending on the nature of the violation, fines can be levied per offense or per impacted employee.
- Restitution: BACP may order employers to compensate workers for lost wages or unpaid predictability pay.
- Private Right of Action: After satisfying administrative requirements, employees may file a lawsuit seeking damages and other remedies.
Addressing complaints swiftly is crucial. Small businesses often have limited resources to handle litigation, making proactive compliance a wise investment. Keep in mind that willful non-compliance or repeat violations are likely to draw more severe penalties.
10. Emergency Provisions
Real-life emergencies happen—severe weather, unexpected power outages, or other catastrophic events can force rapid scheduling changes. The Ordinance allows certain exemptions from predictability pay if the schedule change results from:
- Declared Emergencies: Orders from local, state, or federal authorities (e.g., disaster declarations).
- Acts of Nature: Extreme weather events or similar incidents beyond your control.
- Unforeseen Circumstances: Widespread utility failures or other issues that genuinely couldn’t have been anticipated.
Employers must document the reason for the schedule change to use these exemptions. If you anticipate a potential emergency scenario (e.g., severe weather), communicating with employees early and keeping thorough records can shield you from misunderstandings or legal troubles later.
11. Additional Topics
Interaction With Other Laws: Chicago’s Fair Workweek Ordinance is separate from, yet complementary to, other labor laws such as the Chicago Minimum Wage Ordinance and Illinois state labor regulations. You must comply with all applicable legislation simultaneously.
Cook County Considerations: While Cook County has its own rules on minimum wage and sick leave, there is currently no separate, broader fair scheduling law for businesses operating outside Chicago but within Cook County. Nonetheless, some local municipalities may choose to opt in or out of certain county ordinances.
Collective Bargaining Agreements (CBA): A valid CBA can waive these Fair Workweek requirements if such a waiver is explicitly negotiated and clearly spelled out in the contract.
12. Resources
If you need more details, here are direct links to official resources and forms:
- Full Ordinance Text: Municipal Code of Chicago, Chapter 1-25
- BACP Fair Workweek Webpage: Official Info, Posters, and Forms
- Contact BACP: Phone: 312-74-GOBIZ (744-6249), Email: BACPFairWorkweek@cityofchicago.org
Summary
Chicago’s Fair Workweek Ordinance is structured to promote greater predictability in scheduling for workers in select industries. From giving two weeks’ notice of work schedules to paying “predictability pay” for changes, each requirement aims to ensure transparency and fairness. While the law can be complex for small business owners—especially those juggling multiple labor regulations—the basics revolve around giving employees adequate notice, compensating them for last-minute changes, and providing sufficient rest between shifts. Establishing internal processes or using scheduling platforms like Shyft can streamline compliance and help avoid costly fines or disputes. Ultimately, adhering to these regulations benefits employees and fosters a more trusting, stable workforce.
Conclusion
For small businesses operating in Chicago, the Fair Workweek Ordinance represents both a regulatory responsibility and an opportunity to improve employee satisfaction. Meeting scheduling requirements and documenting policies thoroughly can significantly reduce the risk of penalties, legal issues, and turnover. Whether you are a restaurant chain, a healthcare facility, or a growing retail shop, consistent communication with your employees about shifts and responsibilities goes a long way toward remaining compliant and maintaining trust.
Stay proactive by implementing scheduling best practices, planning ahead for peak periods, and maintaining open lines of communication to manage any necessary schedule adjustments. Remember that emergencies may provide exceptions, but clear documentation is still required. Additionally, always keep an eye on any changes to the law—particularly those that might increase wage thresholds or alter advance notice requirements.
Finally, consider designating a compliance lead or partnering with an HR consultant if you’re still unsure about the details of the Ordinance. By taking these steps, you can confidently navigate the complexities of Chicago’s Fair Workweek requirements.
FAQ
What businesses are subject to Chicago’s Fair Workweek Ordinance?
Covered employers typically have at least 100 employees globally (250 for nonprofits), operate in certain industries (like retail, hospitality, or manufacturing), and schedule employees in Chicago who earn at or below the defined wage threshold. Restaurants have a specialized threshold of 30 global locations and 250 employees in total.
Is offering extra hours to part-time employees mandatory?
Chicago’s Fair Workweek Ordinance does not require employers to offer extra shifts to part-timers before hiring new staff, unlike some city laws elsewhere. However, you must still meet other scheduling rules and remain aware of any related state or local guidelines.
How does predictability pay work?
If you change an employee’s schedule after the 14-day advance notice window, you typically owe them an extra hour of pay for additions or shifts to new times. For canceled or reduced shifts, you owe 50% of the wages the employee would have earned for those scheduled hours.
Can employees waive the rest-between-shifts rule?
Employees can voluntarily agree to work a second shift that starts within 10 hours of the previous shift. If they do, they must be paid at 1.25 times their regular wage for the hours that cut into the 10-hour rest period.
What happens if my business violates the Ordinance?
Penalties can include fines, as well as restitution to employees for unpaid wages or predictability pay. BACP may investigate complaints and seek back pay. Employees also have the right to pursue a private legal action if administrative processes do not resolve their concerns.