Workforce Bulletin

The Chicago Department of Business Affairs and Consumer Protection (BACP) Office of Labor Standards (OLS) adopted new rules for administering Chicago’s Fair Workweek and Paid Leave and Paid Sick and Safe Leave Ordinances. The new rules were published on May 18, 2026, and went into effect on June 1, 2026. A separate blog post addressing the new rules to the Fair Workweek Ordinance can be found here. Without re-hashing all the details about compliance obligations under the Paid Leave and Paid Sick and Safe Leave Ordinance, here’s a summary of what’s important to know as these rules go into force.

Employers in Chicago: new rules may require your attention, especially if you employ workers in cooperation with another employer or operate within any of the industries covered by the city’s Fair Workweek Ordinance.

In its first merits decision this term, the Supreme Court provided a straightforward application of textualism to demonstrate that in cases challenging administrative action under the Administrative Procedure Act (APA), Congress’s delegation of authority to the agency must be clear. Only in this case, Congress got it right. In future challenges to agency action, counsel and affected parties should take into account the ability of Congress to limit those challenges.

A Unanimous SCOTUS Analysis

As we summarized previously, a unanimous U.S. Supreme Court (per Jackson, J.) held in Bouarfa v. Mayorkas that the revocation of an approved visa petition under 8 U.S.C. §1155 by the Secretary of Homeland Security (the “Secretary”) is the kind of discretionary decision that falls within the agency’s purview pursuant to authority that is delegated by Congress. In this case, the Secretary revoked a visa based on a sham-marriage determination, relying on the language of Section 1155 that grants broad authority to the Secretary to revoke an approved visa petition at any time, for “what he deems to be good and sufficient cause.” The revocation was challenged through the agency and then federal courts. At each turn, the agency’s determination was upheld, with the District Court and the Court of Appeals for the Eleventh Circuit both holding that, in the context of enacted legislation outlining the agency’s powers, courts are precluded from reviewing the Secretary’s decision.

On August 23, the United States Court of Appeals for the Fifth Circuit issued its much-anticipated decision in Restaurant Law Center v. United States Department of Labor.  In one of the very first federal appellate court rulings since the Supreme Court overruled Chevron USA Inc. v. Natural Resources Defense Council, Inc.  this year, the unanimous three-judge panel concluded that the Department of Labor’s 2021 Final Rule regarding tipped employees and the minimum wage, commonly known as the “80/20 Rule” or the “80/20/30 Rule,” is both contrary to the pertinent statutory text and  arbitrary and capricious.  As a result, the court vacated the rule.

Background: Minimum Wage, the Tip Credit, Dual Jobs, and 80/20

The Fair Labor Standards Act (the “FLSA”) allows employers to count a portion of tips received by a “tipped employee” toward satisfying the federal minimum wage obligation.  The statute defines a “tipped employee” as “any employee engaged in an occupation in which he customarily and regularly receives more than $30 a month in tips.”  That portion of the statute has been in place, largely unchanged, since 1966.  Whether an employee counts as a “tipped employee” determines whether the employer may pay a reduced hourly wage of as low as $2.13, so long as the tips suffice to make up the difference to minimum wage.  Employees who are not tipped employees must receive at least the full minimum wage directly from their employer.

In 1967, the Department of Labor issued a regulation positing that workers may have more than one job with an employer, one of which involves tips and one or more of which does not.  The example the Department used was a hotel employee who works some shifts as a server in the hotel restaurant and other shifts as the hotel’s maintenance person.  The so-called “dual jobs” regulation took the position that the employer may pay the lower hourly wage, known as taking the tip credit, for the time spent in the tipped occupation of server, but not for the time spent in the untipped maintenance occupation.

With the holidays right around the corner, and local governments grinding to a halt during the holiday season, the City of Evanston, Illinois recently announced that it will postpone enforcement of its Fair Workweek Ordinance (the “Ordinance”) from September 1, 2023 until January 1, 2024. Although directly affecting just a relatively small number of employers that have a presence in Chicago’s neighboring municipality, the Ordinance is complex and notable for a novel hazard pay mandate.

The Ordinance Untangled

In May of 2023, Evanston’s City Council approved ...

On June 21, 2021, the U.S. Department of Labor (DOL) announced a new proposed rule related to when an employer may take a tip credit and pay a lower minimum wage to tipped employees performing so-called tipped and non-tipped duties.  The proposed rule appeared in the Federal Register on June 23, 2021 and is open for public comment until August 23, 2021.  The proposal shows employers the new road that President’s Biden’s administration is paving, which is a sharp turn away from the Trump administration’s approach.

The Fair Labors Standards Act (FLSA) allows employers to pay ...

On June 11, 2021, Illinois and the City of Chicago entered Phase 5 of its five-stage reopening plans. As part of the transition, Illinois released Executive Order 2021-12 (the “Phase 5 Reopening Order”) and new Phase 5 Guidance. Chicago also issued Phase 5 Recommendations and provided a helpful graphic that provides additional recommendations, which apply to all businesses. For Illinois and Chicago businesses, Phase 5 means a lifting of many COVID-19 restrictions across industries. Although businesses can start operating closer to normal, Phase 5 is a new normal that ...

In a flurry of activity into the wee hours of June 2, 2021, Illinois legislators concluded a spring session that saw the passage of numerous measures that will affect employers in the state across the span of the employment relationship. Among the most significant of the many bills heading to Governor Pritzker for signature are acts amending the Artificial Intelligence Video Interview Act, the Equal Pay Act, the Victims’ Economic Security and Safety Act (“VESSA”), and the Freedom to Work Act. It is expected that Governor Pritzker will sign all of the above-mentioned bills.

On May 25, 2021, both houses of the Illinois General Assembly approved an amendment to the State’s Wage Payment and Collection Act (“the Act”).  The change would require employers who violate the Act to pay damages of 5% of the amount of any underpayment of wages, compensation, or wage supplements for each month following the date of payment during which the amount(s) owed remain unpaid.  This represents a 150% increase to the penalty, as the statutory rate before this amendment was 2%.  The measure will take effect immediately upon signature by Governor J.B. Pritzker.

The Act

The Illinois Employee Sick Leave Act (“Act”) is what is known as a “kin care” law; i.e., it generally requires Illinois employers that provide paid or unpaid personal sick leave benefits to their employees to allow employees to use such leave to attend to a covered family member’s illness or injury, “on the same terms” as the employees would use their sick leave benefits for their own illness or injury. A “covered family member” means an employee's “child, stepchild, spouse, domestic partner, sibling, parent, mother-in-law, father-in-law, grandchild ...

The Illinois “Stay at Home” Order took effect at 5:00 p.m. on March 21, 2020, and will last through April 7 (full text here).  This post will briefly summarize the Order’s application to Illinois businesses, and then provide a one-stop-shop index pointing you to Epstein Becker & Green, P.C. (“EBG”) and governmental resources to help you comply with existing and COVID-19-specific federal, state, and local regulations.

What Does “Stay at Home” Mean for My Business?

The Order requires “all individuals currently living within the State of Illinois” to “stay at home ...