The City of Chicago announced updated Fair Workweek (advance notice of work schedules) ordinance regulations effective July 1, 2026. Now is the time to review and refresh your scheduling policies.
The ordinance requires covered employers to provide eligible employees with at least 14 calendar days’ advance notice of work schedules. The ordinance may require employers to provide additional compensation, or allow employees to reject schedule changes, when schedules are changed without sufficient notice.
Who is a Covered Employer?
YOU ARE A COVERED EMPLOYER IF:
A. you are an employer within the City of Chicago boundaries;
B. engaged in one of the seven industries covered by the ordinance,
1. building services;
2. healthcare;
3. hotel;
4. manufacturing;
5. restaurant;
6. retail; or
7. warehouse services;
AND
C. employ 100 or more employees globally (250 or more, if you are a non-profit corporation) (see below to see how to determine if you meet the global threshold);
AND
D. employ at least 50 “Covered Employees” as defined by the ordinance (see below how to determine who is a “Covered Employee”).
Who is a “Covered Employee”?
A “Covered Employee” is an individual who:
A. performs work for an employer as an
1. employee, OR
2. day or temporary labor service employee for at least 420 hours within an 18-month period;
AND
B. performs the majority of their work in one of the seven covered industries (building services, healthcare, hotel, manufacturing, restaurant, retail, or warehouse services);
AND
C. performs the majority of their work within City of Chicago boundaries (based on the number of hours the employee worked inside versus outside of the City boundaries in the prior 90 days);
AND
D. earns
1. an hourly rate less than or equal to $33.85/hour as an hourly employee; or
2. a salary less than or equal to $64,945.55/year
(both are viewed pre-tax, before deductions are made).
How do I calculate if I have 100 “global employees” and 50 “Covered Employees”?
You determine if you employ 100 or more employees worldwide by counting the average number of employees globally during a 12-month period. If you are a new business with no 12-month history, you count the average number of global employees during the previous 90-day period.
You determine if you employ 50 Covered Employees by counting the average number of Covered Employees during a 12-month period. If you are a new business with no 12-month history, you count the average number of Covered Employees during the previous 90-day period.
A calculation that is not a “whole number” is rounded down; i.e., an average of 58.8 global employees is rounded down to 58 global employees.
An Initial Estimate of Work Schedule must be provided prior to or on the start of employment
Before or at the start of employment, employers must provide Covered Employees with a dated written “good-faith estimate” of the projected days and hours of work for the Covered Employee’s first 90 days of employment. The estimate must include:
A. the Covered Employee’s expected average weekly working hours;
B. the Covered Employee’s expected workdays;
C. the Covered Employee’s expected shifts or work times; and
D. any expected on-call shifts.
The estimate must be a “reasonable prediction” based on forecasts, historical scheduling data, or other relevant information as chosen by the employer. It cannot be so broad that it effectively provides no meaningful guidance, such as, for example, listing possible shifts anywhere between 12:00AM and 11:59PM.
How much advance notice of schedules is required?
Employers must provide Covered Employees with at least 14 calendar days written notice of their schedule. The 14 calendar days are counted backwards from the first day listed in the new schedule.
For Covered Employees who are on leave (such as paid leave, paid sick leave, PTO, etc.), new hires, and Covered Employees who have been transferred, promoted, or assigned a new job classification, the employer can provide a written work schedule that runs through the last date of the currently posted schedule.
Are there any Covered Employees exempted from advance notice of schedules?
The advance scheduling requirements do not apply to:
A. union employees when the collective bargaining agreement clearly and unambiguously waives ordinance protections;
B. “self-scheduling” employees who voluntarily select shifts through a mutually agreed self-scheduling system; and
C. employees working ticketed events at venues that regularly host ticketed events (meaning sporting, entertainment, civic, charitable or other event held at a venue with a capacity of at least 5,000 people and that requires a ticket for admission).
What has to be included in the notice of schedule?
Schedules must be date- and time-stamped when posted and include:
A. the beginning and end dates of each workweek;
B. scheduled hours, days, times, locations, and any on-call shifts; and
C. the names (at least 1st initial and full last name) of all current Covered Employees assigned to each location, including employees not scheduled during the period.
Covered Employees who are victims of domestic or sexual violence—or whose family or household members are victims—may request that their names not be displayed on posted schedules. As neither the ordinance nor regulations provide how this right is to be communicated, we advise including it in either your handbook, posted policies, internal website, or on the posted schedules.
How should the schedules be distributed?
Schedules may be
A. posted in the workplace (in conspicuous spots where Covered Employees can see it);
B. using the employer’s usual employee communication methods (such as flyers in paychecks, etc.); or
C. both ways.
Upon a Covered Employee’s request, the schedule may be sent electronically (e.g., text, email).
Can the schedule be changed after it is posted?
Yes. An employer may change a posted schedule without penalty (as described below) at least 14 calendar days before the 1st affected date listed on the schedule. This means that if the employer distributes a schedule 21 days in advance, the employer must make any schedule changes at least 14 calendar days before the schedule takes effect.
What are the penalties if a schedule is not changed before the 14-day deadline?
There are multiple penalties if a schedule is changed inside the 14-day advance notice period:
A. a Covered Employee may decline previously unscheduled hours;
B. the employer must pay the Covered Employee 1 additional hour of pay (“Predictability pay”) for each “changed shift.”
“Predictability pay” is calculated on an hourly basis using the Covered Employee’s regular rate of pay (including any shift differentials, but not including overtime, holiday pay, or any other premium rates). Predictability pay must be separately noted on pay stubs or other wage statements;
“Changed shifts” include:
1. adding extra hours to a shift;
2. changing a shift’s date or time by more than 15 minutes, even with no loss of hours; or
3. canceling or reducing hours from an on-call shift with less than 24 hours’ notice;
C. if the Covered Employee’s hours are canceled or reduced (including if an employee is sent home before the end of a scheduled shift) with less than 24 hours’ notice, the Covered Employee is entitled to 50% of their regular pay rate for each of the affected hours.
Are there exceptions to the 14-day notice requirement and penalties?
Yes. Penalties do not apply when schedule changes result from:
A. unforeseeable events caused by
1. public utility failures (such as power outages);
2. acts of nature (such as a blizzard closing roads);
3. war;
4. “for cause” written disciplinary action against the Covered Employee;
B. changes voluntarily agreed upon in writing (which is dated and time-stamped) by the Covered Employee;
C. changes requested in writing (which is dated and time-stamped) by the Covered Employee, including the use of paid leave, sick leave, PTO, etc., and “shift swaps.”
Additionally, manufacturing employers that have orders canceled or delayed, healthcare employers dealing with an unexpected increase or decrease in the need for healthcare providers, and venues with canceled banquets or ticketed events may be exempted from any penalties for failing to provide adequate notice of work schedule changes under the law.
Do I have to change a Covered Employee’s schedule if requested to do so?
No. But you have to deny the request in writing within 3 days of the request being made.
Are there other instances where a Covered Employee can refuse to work as scheduled?
Yes. Covered Employees may decline shifts that begin less than 10 hours after the end of their previous shift. A shift begins on the calendar day when it starts. Covered Employees may, in writing, voluntarily agree to work shifts starting within 10 hours of their previous day’s shift. This written consent may be situational or on an ongoing basis and consent can be revoked at any time.
If a Covered Employee voluntarily agrees in writing to work:
A. a shift less than 10 hours after the end of the previous day’s shift,
B. a double shift that is less than 10 hours after the previous day’s shift,
C. less than 10 hours following the end of a shift that spans 2 calendar days, the employer must pay 1.25 times the Covered Employee’s regular rate for the affected shift. This premium is commonly referred to as “right to rest” pay.
When a Covered Employee works a “split shift” (where hours are broken up into 2 or more parts with unpaid free time in between), the Covered Employee only has to be paid “right to rest” pay for the portion of the split shift starting less than 10 hours after the end of the previous day’s shift or following the end of a shift that spans 2 calendar days.
The “right to rest” pay must be separately noted on pay stubs or similar wage statements.
There are rules on who and how an employer may offer additional work hours to its employees.
Before assigning additional shifts to any temporary or seasonal workers, employers must first offer available shifts to qualified (as deemed by the employer) Covered Employees.
Employers with multiple locations must first offer additional hours to qualified Covered Employees at all locations before offering those hours to temporary or seasonal workers who have worked for the employer for 2 or more weeks in the preceding 12 months.
When practicable, additional hours should first be offered to part-time Covered Employees.
Employers may divide available hours among several Covered Employees to avoid overtime or any other additional premiums or benefits.
Predictability pay is not required when additional shifts are accepted through this process.
Any offer of additional shifts must be in writing. The offer must, for each additional shift, include:
A. the location of the shift;
B. start and end time;
C. whether the shift is temporary (including the specific dates coverage is needed) or recurring;
D. required qualifications and any provided training;
E. the procedure that must be followed to accept the additional shifts, including the time and date of any deadline.
There are posters and notices to be distributed.
Each employer with Covered Employees is required to post an 11” by 17” notice of rights in the workplace, publish it electronically, or include it as part of the employer’s handbook. In addition, employers will be required to provide each new Covered Employee with the written notification at the time of hire.
The new Fair Workweek poster, along with other Chicago employment law-related posters can be found, in multiple languages, here:
https://www.chicago.gov/city/en/depts/bacp/supp_info/public-notices.html
What records need to be kept?
Employers must maintain all scheduling and payroll records for at least 3 years. These records may be created, maintained, and stored electronically. These records include
A. each Covered Employee’s name;
B. each Covered Employee’s mailing address, telephone number, and email address;
C. each Covered Employee’s occupation and job title, as well as whether each Covered Employee receives tips or performs duties of both tipped and non-tipped positions;
D. each Covered Employee’s hire date and, if applicable, termination date;
E. payroll records showing the amounts paid and hours worked per week;
F. information relating to paid Predictability pay;
G. the location(s) where each Covered Employee worked;
H. any Covered Employee’s written consents;
I. the number of global employees;
J. documentation showing the compliance (dates, methods of distribution, etc.) with the law’s various posting requirements; and
K. any handbooks, etc.
Employers are also required to produce copies of these records to Covered Employees upon reasonable request.
Can employers use employee scheduling complaints when making decisions?
Employers are prohibited from retaliating against a Covered Employee for exercising any rights under the ordinance or requesting changes to their working arrangement.
Does the ordinance allow employees to file lawsuits?
Yes. But employees must first file a complaint with the Chicago Department of Business Affairs and Consumer Protection. Complaints must generally be filed within 2 years of the alleged violation. The Department must conduct an investigation before the employee is allowed to file a lawsuit in court.
What kind of fines can be levied by the City and what damages can employees recover for violations?
Employers face fines of $300.00 to $500.00 for each separate violation. Each day a Covered Employee’s rights are affected counts as a separate violation.
Prevailing employees can recover monetary damages, including lost predictability pay, as well as attorneys’ fees and costs.
If you would like more information on the Chicago Fair Workweek Ordinance, you can either view the City’s website, here:
https://www.chicago.gov/city/en/depts/bacp/supp_info/fairworkweek.html
Although the Illinois Department of Human Rights (IDHR) recently withdrew its proposed regulations implementing these amendments (we assume many comments were submitted -the Illinois Department of Human Rights actually cancelled the public hearing on the proposed regulations, to go back to the drawing board), Illinois employers remain legally obligated to comply with the statute. The withdrawal of the regulations does not delay or eliminate the law’s requirements. The law expands employers’ obligations when using AI when making certain employment decisions. The law affect every employer using AI technology in recruiting, hiring, performance management, discipline, and any other employment-related processes.
WHAT DO THE AI AMENDMENTS REQUIRE?
The IHRA now prohibits employers from using AI in a discriminatory manner against applicants or employees based on characteristics protected under the IHRA (age, race, religion, etc.).
It also requires employers to provide notice (to employees and applicants) when AI is used in employment decisions relating to:
A. recruitment;
B. hiring;
C. promotion;
D. renewal of employment;
E. selection for training or apprenticeship;
F. discharge;
G. discipline;
H. tenure; and/or
I. any terms, privileges, or conditions of employment
(collectively, the “covered employment decisions”).
The law also forbids the use of zip codes as a proxy for protected classes under the IHRA.
How is AI defined?
The IHRA defines AI as any machine-based system that infers, from input it receives, how to generate outputs such as predictions, content, recommendations, or decisions that can influence physical or virtual environments. This includes “generative” AI, such as automated computing systems that produce simulated human-produced content.
DO WE HAVE TO COMPLY WITH THE LAW SINCE THE REGULATIONS WERE WITHDRAWN?
Yes, employers remain obligated to comply with the AI amendments to the IHRA despite the lack of any regulations to guide compliance. While the proposed regulations were withdrawn, they provide some insight into how IDHR may interpret and enforce the law. The abandoned regulations can serve as a practical guide until new proposed regulations are issued.
WHAT WOULD THE WITHDRAWN PROPOSED REGULATIONS HAVE REQUIRED?
When notice of AI usage would have been required
The withdrawn proposed regulations would have required employers to provide notice whenever AI is being used to “influence or facilitate” a covered employment decision. The withdrawn regulations would have required notice not only when AI itself made a covered employment decision, but when AI tools were used to assist human decision-makers in making a covered employment decision.
Examples in the proposed regulations when notice needed to be provided included the use of:
A. computer-based assessments or tests that
i. make predictive assessments;
ii. measure skills, dexterity, reaction time, or other mental, physical abilities, or characteristics;
iii. measure personality traits, aptitude, attitude, or cultural fit; or
iv. screen, evaluate, categorize, or recommend;
B. resume-screening tools;
C. AI to direct job ads, recruiting materials, or activities to targeted groups, areas, or populations;
D. AI to analyze facial expressions, word choice, or voice in online interviews, videos, or interview transcripts;
E. AI to analyze data acquired from third parties;
F. AI to measure, monitor, or evaluate productivity, performance, accuracy, or compliance for the purpose of generating scores, ratings, or flags used in discipline or corrective action; or
G. AI to assign work tasks, schedules, or specific assignments that affect compensation, bonuses, or other employment benefits.
The withdrawn regulations would NOT have required notice when
A. AI was used to design job postings, generate images, or text for promotional purposes;
B. word processing, graphic design, and spreadsheet software was not used to infer, from the information input, how to generate outputs with respect to covered employment decisions; or
C. the employer did not use any AI features included on a computer system.
Who would have needed to receive notice
While the statute only requires “employees” be provided notice when AI is used in connection with a covered employment decisions, the withdrawn regulations would have required notice to be given to employees, as well as any applicable labor union, before AI is used in any covered employment decisions. These proposed regulations mandated that notice be provided annually, as well as within 30 days of the adoption of any new or substantially new AI system.
While the statute’s definition of “employee” does not specifically include “applicants” (only “applicants to apprenticeships”), the withdrawn regulations also required notice be provided to prospective employees and applicants when AI is used in the hiring process.
How notice would have needed to be provided
The withdrawn regulations required the notice to be distributed via employee handbooks and policy manuals; posted where other workplace posters are hung; or posted on company intranet or external website sites.
Notice to prospective employees and applicants was to be included in the job notice or job posting itself.
What information would have to be included in the notice
The statute does not list what information the notice must contain. The withdrawn proposed regulations detailed the information needed to be included in the notices, specifically:
A. the product name of the AI system;
B. the names of the developer and vendor of the AI system, if any;
C. the employment decisions affected by the use of AI;
D. which covered employment decisions the AI system was being used for;
E. the purpose of the AI system, including listing any personal or employee data being collected or processed, such as summarizing resumes, scoring resumes according to a presented criteria, analyzing video interviews, evaluating text exchanges with a chatbot, etc.;
F. positions for which the AI is used;
G. the contact person for questions about the use of AI systems; and
H. the right to request reasonable accommodations and instructions on how to do so.
The records that employers would be required to maintain
The statute contains no AI-specific record-retention requirements. However, the withdrawn proposed regulations would have required employers to retain, for 3 years:
A. all AI notices, postings, and disclosures; and
B. all records of the use of AI systems in covered employment decisions;
RECOMMENDED STEPS UNTIL WE HAVE NEW REGULATIONS
Until new proposed regulations are issued, employers need to:
A. conduct an inventory of all AI-enabled employment tools;
B. identify where/if AI influences recruiting, hiring, promotion, discipline, performance management, or termination decisions;
C. review vendor contracts and request information to be included in the required notices. This will require you to ask for AI-related information from each third-party vendor who:
i. provides assistance to you in making covered employment decisions (think of a website that aggregates and ranks resumes or applicants and any Human Resources technology vendors) and
ii. provides AI systems that assist you in making covered employment decisions.
D. prepare and publish AI notices and policies in handbooks, internal websites, where employment posters are posted, and in job postings;
E. make sure you update document-retention policies to include AI-related documentation; and
F. start training personnel and managers on AI-related obligations.
For many of you, the greatest challenge will not be whether AI is being used, but identifying all the places (such as third-party vendors) where AI tools are used in connection with covered employment decisions. You should begin by asking your technology and Human Resources vendors what AI they use in providing services for you. This is something you need to get a handle on as soon as possible.
On May 15, the State published notice that it adopted the Department’s second set of proposed regulations relating to the Illinois Day Labor & Temporary Staffing Act effective April 28, 2026. There is nothing in these regulations addressing how benefits are to be calculated.
You can access them here (go to page 607):
https://www.ilsos.gov/content/dam/departments/index/register/volume50/register_volume50_20.pdf
Things of which to be aware:
Charging Filing/Lawsuits
(1) Interested parties still get to sue.
(2) The Department may still issue a right to see letter even if a problem has been fixed.
(3) Agencies have the right to file a charge against a client who fails to provide the information needed for the equal pay determination. See Section 260.505.
Registration
(4) A staffing agency needs to register each branch office and other location on an annual basis.
Before Assignment
(5) Before assignment, the client must disclose safety hazards to the staffing agency. See Section 260.530.
Employment Notices, Application Receipts and Other Notices to Employees
(6) Agencies: Make sure your employment notices include what is set forth in Section 260.400 – there are many requirements, so please work with your counsel to ensure your notice meets the requirements. If there is a template on the Department of Labor website, please do not assume it meets the requirements. Note that information regarding hazards and labor disputes can be provided on the employment notice or a separate document.
(7) Agencies must inquire before dispatch as to “whether a strike, lockout, picket, bannering, hand billing or other work stoppage exists because of a labor dispute” at the place of assignment. See Section 260.402. Set up a system to do this. If the answer is yes, make sure you provide the temporary worker a right to refuse the assignment. {Note that the IDOL did not correct is mistake in Section 260.4023(c), which refers to Section 260.400(a)(9); Section 260.400(a)(9) does not exist!).
(8) Agencies: Remember that when the employee hits the 720 hour mark in a 12 month period (or 4160 hours in a 48 month period), a new employment notice with additional information must issue.
(9) Agency application receipts need to be detailed as well – see Section 200.408. This is particularly important when you are using a third party service through which you source your personnel. Again, if the Department of Labor issues a template, do not assume it meets the requirements.
Hazards and Safety Training
(10) Agencies must provide general safety training about all existing job hazards at the assignment, and requires agencies to discuss this with the client. Please review Section 260.404 carefully, including what an agency must ask its clients about.
(11) Make sure clients are aware of their training responsibilities under Section 260.406.
(12) Make sure clients are aware of their hazard notification responsibilities under Section 260.530.
(13) Recordkeeping requirements under Section 260.410 have been enhanced – please review these, especially those relating to training and hazards.
Equal Pay
(14) Everyone: Make sure you understand when and how to determine the “equal pay” to which a qualifying employee is entitled – see Section 260.445. Make sure you look at the definitions section at the beginning of the Regulations to ensure the comparable employee of the client is correct.
(15) Remember that the Bureau of Labor Statistics calculation can only be made at the client’s discretion. See Section 260.445(a)(2).
Equivalent Benefits – we do not have any regulations on equivalent benefits yet
Placement Fees
(16) If an agency uses placement fees, make sure you review Section 260.470.
The Illinois Department of Labor has been busy. Last week it also issued proposed regulations relating to the use of AI in personnel-related decisions. Take a look, starting pn page 224:
https://www.ilsos.gov/content/dam/departments/index/register/volume50/register_volume50_20.pdf
OSHA has issued an updated workplace poster, but you need not replace your old poster- it is completely up to you!
Those of you subject to the Family & Medical Leave Act have probably seen this happen – health care providers fail to complete certification forms properly and/or fully. The United States Department of Labor now has a “how to” guide for health care providers that you can give your employee along with the certification form:
ALERT – Both the FTC non-compete and USDOL rules have been held invalid. Please contact your S&A attorney if you need more information.
Executive, Administrative and Professional Exemptions
Yesterday the U.S. Department of Labor (DOL) issued new rules to take effect on July 1, 2024, increasing the minimum salary requirements for employees to be eligible for the executive, administrative, and professional exemptions from overtime pay under the Fair Labor Standards Act (FLSA). The changes are, as of:
*July 1, 2024, to $844 per week from $684 per week (or $43,888 annually, currently $35,568 annually); and
*Jan. 1, 2025, to $1,128 per week (or $58,656 annually).
The Highly Compensated Employee Exemption
The new rule also impacts the exemption for highly compensated employees (HCE). An HCE is currently deemed exempt from the payment of overtime under the FLSA if:
*The employee earns total annual compensation of $107,432 or more, which includes at least $684 per week paid on a salary or fee basis; and
*The employee’s primary duty includes performing office or non-manual work; and
* The employee customarily and regularly performs at least one of the exempt duties or responsibilities of an exempt executive, administrative or professional employee.
Thus, for example, an employee may qualify as an exempt HCE if the employee customarily and regularly directs the work of two or more other employees, even though the employee does not meet all of the other requirements in the standard test for exemption as an executive.
The total annual compensation level for the HCE exemption will increase from its current $107,432 per year as of:
*July 1, 2024, to $132,964 per year; and
*Jan. 1, 2025, to $151,164 per year.
The DOL plans on increasing the salary amount every three years beginning July 1, 2027, absent unforeseen economic or other conditions.
So, are you telling us more people are going to be overtime eligible?
Yes, that is exactly what we are saying.
How do we calculate the annual or weekly salary? What is included?
An employee’s regular rate of pay for overtime purposes is not simply the employee’s hourly rate of pay, annual salary, or weekly salary. Under the FLSA, an employee’s regular rate of pay is based on “all remuneration” earned from employment (with some specific exceptions, such as vacation pay or 401(k) contributions). This can include non-discretionary bonuses, commissions, shift differentials, and can even include some non-cash payments depending on the circumstances.
To calculate the overtime premium for an employee paid on an annual salary basis, divide the annual salary by 52 (weeks) to calculate the employee’s weekly salary. Add in any other compensation paid during that pay period. Divide the weekly salary and any additional compensation by the number of hours worked in the workweek. This is your regular hourly rate for this workweek. You then need to calculate the overtime hourly rate. Because you have already accounted for the overtime hours once in calculating the regular hourly rate, you will need to multiply the regular hourly rate by 0.5 (instead of 1.5) to get the overtime hourly rate. You then multiply the overtime hourly rate by the number of hours worked in the pay period over 40 hours and add that to the employee’s compensation for the workweek.
To calculate the overtime premium for an employee paid based on a weekly salary basis, take the weekly salary and add in any other compensation paid during that pay period. Divide the weekly salary and any additional compensation by the number of hours worked in the workweek. This is your regular hourly rate for this workweek. You then need to calculate the overtime hourly rate. Because you have already accounted for the overtime hours once in calculating the regular hourly rate, you will need to multiply the regular hourly rate by 0.5 (instead of 1.5) to get the overtime hourly rate. You then multiply the overtime hourly rate by the number of hours worked in the pay period over 40 hours and add that the employee’s compensation for the workweek.
What do we do now?
Develop a strategy to make any necessary changes to workforce and your budgets by the July 1, 2024, deadline. Such strategies could include:
The information you obtain at this site is not, nor is it intended to be legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters, and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.
All photographs were taken by Roark Johnson and provided courtesy of our client, Shoreline Sightseeing.
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