Compliance / Chicago

Chicago Fair Workweek Ordinance

Restaurants with $50M+ global revenue + 250 employees (or 30+ locations) owe 14-day advance schedules and predictability pay.

What it is

Chicago's Fair Workweek Ordinance took effect July 2020 and was strengthened in 2023. Covered employers must publish work schedules at least 14 days in advance and pay 'predictability pay' to employees when schedules change after that window. The ordinance also creates a 'right to rest' — employees can decline shifts scheduled less than 10 hours after their prior shift ended.

Who it applies to

Restaurants meeting BOTH:
• Globally: 250 or more employees AND $50M+ in global gross revenue
OR 30 or more locations globally with $50M+ in global gross revenue
• AND with employees in Chicago city limits

Sit-down restaurants under these thresholds and most independents are exempt. Coverage flips on at the corporate-parent level — a single franchise location of a covered chain still counts.

What compliance looks like

1. Schedule at least 14 days in advance, posted in the workplace and given to each employee in writing or electronically.
2. Predictability pay for schedule changes inside the 14-day window:
• Adding hours: 1 hour at the employee's regular rate per shift, per change
• Reducing hours by 24+ hours notice: 50% of pay for the lost hours
• Reducing hours by less than 24 hours notice: 100% of pay for the lost hours
3. Right to rest (10-hour break). If you schedule a shift less than 10 hours after the employee's last one, they can decline. If they accept, you owe 1.25× their regular rate for that shift.
4. Offer additional hours to existing part-time staff before hiring new workers. Post available shifts internally for 3 calendar days.
5. Records. Keep schedules + change records + predictability-pay records for 3 years.
6. Notice + posting. Provide each new hire a written estimate of the work schedule. Post the official Fair Workweek notice in the workplace.

Penalties for non-compliance

Predictability pay owed but not paid: up to $500 per affected employee.
Failure to provide right-to-rest premium: 1.25× the original rate + statutory damages.
Failure to post the required notice: $300–$500 per occurrence.
Retaliation against an employee who asserts rights: $1,000 per occurrence + reinstatement + back pay.

Enforcement is via the Chicago Office of Labor Standards. They run targeted investigations in restaurants, retail, and warehousing — those are the three priority industries in their published enforcement plan.

How Panko helps

We track Chicago BACP and Office of Labor Standards announcements. Pro Tips for Chicago specifically call out predictability-pay risk windows (e.g., right before a long weekend when schedules tend to drift). Pro members get push notifications for new Fair Workweek guidance or rule revisions.

Sources

Citizen, but for restaurants

Pro members get a push the moment this rule changes — new rate, new guidance, new court ruling. Plus city-specific Pro Tips that flag the compliance windows that matter for your operation.

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Panko Alerts publishes this as compliance reference, not legal advice. Laws change. Penalties listed are statutory maximums — actual enforcement varies. Consult an employment lawyer or your state DOL before acting on edge cases.