A coalition of business groups and small-business owners is urging the City Council to reject the Chicago paid leave proposal that would devastate businesses and nonprofits of every size and kind across the city. Businesses understand that access to paid time off is crucial for workers and their families, which is why we reached an agreement earlier this year on the current statewide law of five days and made repeated efforts to negotiate in good faith to reach a compromise on a paid leave policy that is fair and balanced for both workers and businesses. However, the proposal currently before the City Council — which would provide 15 days of paid leave — ignores the concerns of the business community. It will instead put in place the most expensive and complicated form of paid leave in the country. The proposal is opposed by the Chicagoland Chamber of Commerce, Greater Englewood Chamber of Commerce, Hospitality Business Association of Chicago, Illinois Health and Hospitals Association, Illinois Hispanic Chamber of Commerce, Illinois Hotel & Lodging Association, Illinois Manufacturers’ Association, Illinois Restaurant Association, Illinois Retail Merchants Association, Little Village Chamber of Commerce, Pilsen Chamber of Commerce, and the Building Owners and Managers Association of Chicago.




Most expensive paid leave in the country

Jack Lavin, president of the Chicagoland Chamber of Commerce, said the guaranteed payout was one stumbling block — but not the only one — standing in the way of what he called “the most expensive, most expansive, most complicated paid leave in the country.”

The coalition proposed a compromise that offered the broadest paid leave policy of all major U.S. cities, doubling the amount of time off Illinois workers receive from five days to 10 days while limiting cost increases for businesses, providing businesses the ability to ensure continuity of operations, and limiting exposure against excessive liabilities for businesses. Organized labor groups rejected the compromise and instead insisted on implementing a policy that nearly triples the new, yet-to-be-implemented, state paid-time-off requirements and inflicts a tremendous financial burden on businesses across Chicago.

The proposal before the City Council also requires businesses to pay employees for days not taken, which is not required by the state of Illinois or other large cities like New York or Los Angeles. In addition, it does not include a small business exemption and, combined with the rushed implementation timeline, leaves businesses, especially small businesses without large human resources departments, vulnerable to the threat of significant penalties and lawsuits for minor infractions.

“No other city is at 10 days. They want to start it two months from now, and if you don’t comply, you can be sued. There’s no small-business exemption. And you’re setting them up to be sued,” Lavin said. “New York has five days. No payout. This is 10 days, double New York. L.A. has six days. No payout. No other major city has a payout. This is 40% higher than L.A,” he told the Sun-Times.



“That is why we successfully reached an agreement”
For Chauncey Rice, associate vice president of government relations for the Illinois Retail Merchants Association, businesses know their strongest asset is their people and support by providing employees with paid leave.

“ That is why we successfully reached an agreement on the state law of five days, which is considered a model of effectiveness and simplicity for the employee and employer. However, the proposal before the City Council will have an outsized impact on the businesses that anchor our neighborhoods,” Rice said “It’s because of policies like this that retailers of every type and size, including pharmacies, grocers, restaurants, and hardware stores, are increasingly unable to keep their doors...