Cook County Earned Sick Leave Ordinance Cori Koskela Human Resources Consultant May, 2017

WHEN: WHO: Passed October 5, 2016 Effective July 1, 2017 Employers – all Employers with a place of business in Cook County Exceptions – government, union contracts in effect, railroad employees Employees – All Employees Full-time, part-time, temporary, seasonal, occasional, commissioned, tipped Must work at least 2 hours in an 80 hour two-week pay period in Cook County

WHO: - Some cities in Cook County have “opted-out” of the Ordinance – the Ordinance will not apply. These cities are listed below effective 5/2017. Arlington Heights Barrington Bedford Park Burr Ridge Elk Grove Elmwood Park Evergreen Park Hickory Hill Mount Prospect Oak Forest Palatine Palos Park River Forest Rosemont Schaumburg Streamwood Tinley Park Wheeling

WHAT: Accrued sick leave pay 1 hour sick pay accrued for every 40 hours worked For ALL hours worked - Excludes accrual for time paid but not worked (holiday, vacation, etc.) Includes all hours worked, including those over 40 in a week (overtime hours) For salaried exempt staff, you would use their normal work week (40 hours maximum per week even if they actually work more hours) Tipped employees are paid the minimum wage for paid sick hours New hires begin accruing sick pay at their hire - on their first hour worked – immediately Maximum accrual per year is 40 hours (5 days) in the “benefit year” There is no obligation to pay unused accrued sick pay at the end of employment You may “front-load” the sick pay and provide the full 40 hours at the beginning of a benefit year. However this cannot have been earned in the prior year. It must be an additional up-front benefit for the current year.

YOU OFFER SICK PAY NOW: If you currently provide sick leave pay benefits, your benefit must: Provide at least 1 hour sick pay per 40 hours worked Begin immediately upon hire And cover all employees If you provide PTO (where vacation, sick and other pay is included in one accrual) you must be clear that the sick leave portion is at least 1 hour per 40 hours worked, not a flat accrual such as 1.667 per pay period Your timekeeping software may need to be adjusted in some areas or modified

USE: Employees may use the paid sick leave in increments of hours as determined by the company, but limited to no more than 4 hours each use. Company can mandate a maximum of 4 hours off each time the employee uses the sick pay, or any lower level Waiting Period - New hires can begin to use their accrued sick leave pay after they have worked 180 hours (approx. 6 months @ 40 hours / week) Companies can require 7 days advance notice of use, if “foreseeable”, and if not, as soon as “practicable.” No medical or other documentation can be required unless the leave is for more than 3 consecutive work days, and the reason for the leave can not be required to be included on the documentation.

USE: Employees can use the sick pay for these absences: Employee’s physical or mental illness or injury Medical care, treatment diagnosis or preventative care or if recuperating from the same Victim of domestic abuse Victim of sexual violence of stalking Business is closed for that day/hours due to a public health emergency Employee’s family member is physically or mentally ill or injured Family member is victim of domestic abuse, or sexual violence of stalking Employee’s child’s school or place of care is closed due to a public health emergency

BENEFIT YEAR: CARRY-OVER: July 1, 2017 through June 30, 2018 unless different period is designated Each employee’s anniversary date (individualized accrual period) or The same date each year, but different than July through June (standardized accrual period) If your current policy starts the benefit year annually at January 1 (standardized accrual period), you must bridge the period from July 1, 2017 to January 1 with the mandated sick accrual CARRY-OVER: Hours accrued but unused at the end of the benefits year, or bridged period, are carried over at ½ of the year end balance Maximum of 20 hours carry-over for non-FMLA eligible companies (less than 50 employees Maximum of 40 hours carry-over for FMLA eligible companies

NEW MINIMUM WAGE: Also, the Ordinance included the first minimum wage for Cook County Cook County had historically the Illinois State minimum wage – currently at $8.25 per hour New minimum wage effective July 1, 2017 of $10.00 per hour Then Increases to $11.00 July 1, 2018 $12.00 per hour July 1, 2019 $13.00 per hour July 1, 2020 Chicago currently has a minimum wage of $10.50, which will increase to $11.00 July 1, 2017, and escalate by $.50 per year to $13.00 on July 1, 2019

CALL US NOW! Contact your Payroll Specialist as soon as possible if you wish to utilize Precision Payroll’s human resource management system to calculate and manage your company’s accrued sick leave, and any other paid leave or benefits you provide If you use a timekeeping software through Precision Payroll, and wish to use it to calculate and manage this accrued sick leave, please contact Gary Young at 630-242-1522 to modify the software.

ADDITIONAL RESOURCES We are providing these additional resources to further explain the new Cook County Sick Leave Ordinance Outline of the new ordinance with more specific information Link to the Ordinance webpage Link to the full Public Notice dated April 10, 2017 with clarifying details of the ordinance The draft poster, the final version is due soon, and must be posted by July 1, 2017

Copyright Precision Payroll of America We are happy to assist you with this benefits compliance issue and thank you for choosing Precision Payroll of America! Staff Contact information: Main phone number – 877-941-1040 and 630-887-3156 Cori Koskela 630-812-2392 ckoskela@myprecisionhr.com Leslie Day 630-785-2205 lday@myprecisionhr.com Gary Young 630-242-1522 gyoung@precisionpayroll.com Migration Team – Isolved – Patty Fritz 630-242-1525 pfritz@precisionpayroll.com Sales Support – Aggie Rardin 630-242-1533 arardin@precisionpayroll.com Executive Assistant to Tom Sodeika – Kiran Waheed 630-242-1531 kwaheed@precisionpayroll.com Tech Support techsupport@precisionpayroll.com Copyright Precision Payroll of America This is not legal advice. Please contact an employment attorney of Precision Human Resources for questions on this material.