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Author: janareserva

Posted on March 5, 2025March 12, 2025

Practical Ways to Simplify Payroll and HR with Employee Self-Service

Summary

  • Employee Self-Service (ESS) systems can relieve some of management’s administrative burden and give employees access and control over their HR and payroll details.
  • Not all ESS systems are created equal. Businesses need an intuitive and fully integrated system to get the most value.
  • An all-in-one platform with built-in ESS can transform HR, payroll, and workforce management for hourly workforces.

Running a business is a constant balance between strategic planning and day-to-day admin tasks. Big-picture planning fuels growth, while essential administrative duties keep operations running smoothly. However, maintaining this balance is easier said than done. 

Admin work can take up a lot of time, and managers and business owners can quickly find themselves buried in paperwork instead of being on the ground, supporting their teams, and creating employee engagement initiatives. To ease this burden, many turn to employee self-service systems. But how do these systems actually function?

Workforce.com has employee self-service (ESS) features, from onboarding to payroll. Let’s break down how they work and how they can save business owners a ton of time.

Getting it right from onboarding

HR tasks involve a lot of paperwork, but managers don’t have to handle it all. Employees can take charge of some of this administrative work and have more autonomy over their personal details. 

Workforce.com’s onboarding system makes it easy for new hires to get set up. Within minutes, new hires can submit their personal and contact information, bank details, I-9s, and W-4s without physical paper forms. This not only speeds up the process but also eliminates double data entry, reduces mistakes, and ensures accurate pay. 

Managers can also streamline processes by uploading key documents, such as company handbooks, role-specific materials, or a list of faqs, to ensure that every employee has exactly what they need from day one.

“One of the exciting features that I’ve really enjoyed with the Workforce.com platform is the HR onboarding portion because they have a feature that allows me to upload documents. So, for instance, I can upload a document that says ‘front of the house server benefits’ for our bakers. I can have a different set of benefits and upload that document in a PDF form where they can open up their cell phones and see it right there. And that’s been a really good thing, as well as the policy manual. It makes it available to everybody,” shares Shelly Archer, Human Resources Manager at Shipley Do-nuts.

Faster updating of employee information

Workforce.com’s HR software, employees can quickly update their details whenever a life event requires it, such as a move, a name change, or a new bank account. Instead of going through HR or filling out paperwork, they can simply update their information directly through their profile in the company’s HRIS.

Easier management of timesheets and PTO 

Accurate employee clock-ins and outs are the backbone of accurate payroll processing, but things can get tricky when employees forget to log their hours or when clunky systems fail to track time properly.

Workforce.com’s time and attendance system tracks employee time accurately. Employees can clock in and out through a shared tablet at work or on their mobile device. No matter where they are, whether on-site or remote, their hours and breaks are recorded correctly.

Employees can also review and correct their time logs should there be any mistakes or discrepancies. Instead of constantly chasing down timesheet corrections, managers can focus on more important things.

“One of the features I was most excited about with Workforce.com is the employee’s ability to edit their own time punches. If they did forget to clock in, they can submit it. Of course, it still gets reviewed. At the end of the day, it’s just one less step,” says Bobby Archer, General Manager at Shipley Do-nuts. 

Beyond tracking hours, employees also get complete visibility over their leave balances. They can plan ahead, submit time off requests, and ensure that nothing falls through the cracks, like a PTO request form that gets buried in email or miscommunication due to having multiple channels.  

“We wanted our employees to be able to see how many PTO days they have. We also want them to be able to see their clock-in and clock-out times. So that way they can know and plan personally on their end how to pay their bills and what to expect,” Shelley shared when she talked about their goal of giving their employees the ability to view their information and how Workforce.com helped them provide a way to do that. 

See Workforce.com in Action: Shipley Do-Nuts’ Success Story

Visibility into all things payroll

Employees shouldn’t jump through hoops to access their payroll information. With Workforce.com’s payroll software, they can easily access their pay stubs, tax documents, direct deposit information, benefits details, and complete payroll history. 

There’s no need to wait for HR or finance to pull reports. Employees can generate and view their own payroll info anytime, all in one place. This means fewer email requests, less back-and-forth, and a faster, more seamless way for staff to get the details they need whenever they need them. 

An all-in-one solution makes things easier

Employee self-service is a feature that’s great to have, but what makes a huge difference is having a single solution where all things that can make or break payroll are in a single, integrated platform. 

Juggling separate systems for time tracking, scheduling, HR and payroll is time consuming, puts you at risk of potential errors, and can disrupt workflows. When data is scattered across multiple platforms, every step takes longer and the risk of mistakes only increases. A single, connected solution simplifies the process. 

“Prior to Workforce.com, we were using four different platforms. We had an online service that would send out the new hire paperwork and I would have to process it manually. We had a clock-in and clock-out system that was web-based. We had another scheduling system that was also web-based. As far as the payroll processing, we had an actual person with whom I would send our payroll through another system. Integrating all of those together has saved so much time. It takes me 95% less time doing what I’m doing now with Workforce.com.” Shelley further explained.

Tips for Implementing an Efficient Employee Self-Service Software

Implementing an ESS portal or system is beneficial both for employees and employers. Aside from taking some of the admin load away from managers and HR teams, it also enhances the employee experience.

To make ESS systems truly effective, here are a few tips:

Keep it all in one place

Employee self-service is meant to streamline processes, but using multiple platforms defeats the purpose. Choose an integrated system so employees don’t need to juggle different apps or logins. 

Prioritize ease of use

The best ESS system is not the one with the most bells and whistles. It’s one that’s easy for staff to use. Make sure that your ESS is intuitive and minimize the learning curve as much as possible.

Employees should be able to view and update their personal data, emergency contacts, tax withholdings, and other HR information without hitches.

Keep it mobile

These days, mobile access is no longer optional. A mobile-friendly ESS or dedicated mobile app allows staff to handle work info on the go, whether checking pay stubs, submitting time-off requests, or updating personal details. It’s all about making things as convenient as possible and allowing them to do these tasks without waiting until they’re at a computer.

Gather feedbackRegularly check in with staff and get feedback about what they think of the platform. Identify areas that work well for them and determine which parts need improvement. Their input helps refine the system and ensure it stays as efficient and user-friendly as possible. Be ready to adjust to make the most out of the system.

Make the switch to Workforce.com

Switching to a new system can feel like a big leap, especially when you’re used to current platforms. However, making the move could be one of the best decisions for your business, especially if you want to lessen the administrative burden for your team.

“It would be in a company’s best interest to switch over sooner rather than later because you would be wasting a tremendous amount of time. Workforce.com helped us improve our efficiency,” Shelley said. 

Discover how Workforce.com helped Shipley Do-nuts and numerous other businesses across the globe. Book a call today.

Posted on March 3, 2025March 3, 2025

California Pay Transparency Law: How to Comply and Promote Fair Pay

Summary

  • California has strict pay transparency laws that require employers to include pay ranges in job postings. Current employees also have the right to request pay scale information at any time.
  • While these laws promote fairness and build trust, they can also create challenges, particularly with recordkeeping and other administrative tasks.
  • HR and payroll software can simplify compliance and help businesses stay organized.

Pay transparency is a strategy to attract talent and retain current staff. In California, pay transparency is backed by a series of regulations, one of the most recent being Senate Bill 1162. 

With the bill’s enactment, employers in California must be upfront about pay scales and clearly communicate them to candidates and current employees. While the bill intends to promote transparency, retention, and engagement, putting it into practice isn’t always straightforward, especially for employers who handle various job positions, locations, and levels of expertise. 

​​So, what does the bill require, and how can hourly workforces implement these rules? Let’s take a closer look.

What is California Senate Bill 1162?

California SB 1162 is legislation that aims to promote transparency in pay scale disclosure. It requires employers to reveal pay ranges in job postings, submit pay data reports, and take steps to uphold pay transparency in the state. It went into effect on January 1, 2023.

Essentially, this bill encompasses transparency with job listings, current employees’ right to know, and recordkeeping and applies to California employers with 15 or more employees. Here are some fundamental points that the bill entails:

  • Employers must disclose the pay range for a position in any job listing. If you employ a third-party recruitment agency, they should also include pay information in their job descriptions and job posts. 
  • Should current employees request it, employers must provide the pay scale of their position. 
  • Employers must keep records of each employee’s job title and wage history for the duration of the employee’s employment and three years after the end of employment. This information must always be ready for inspection by the Labor Commissioner’s Office. 
  • If an employee files a complaint and pay records are not available, it could be a point against the employer in court. 
  • Failure to comply can result in investigations by the Labor Commissioner. If violations are proven, penalties can be imposed. 
  • If someone is “harmed” based on this legislation, meaning they didn’t get any pay information as stated in the law, they can sue the company or seek legal remedies by taking them to court.

SB 1162 basically makes pay information more transparent and accessible, helps employees understand how much they can earn, and ensures that companies have the pay records and information to justify their pay decisions.

Other California Laws on Pay Transparency

California is known for having some of the most comprehensive employment laws, such as overtime pay and cell phone usage laws. The state takes the same thorough approach to pay transparency and disclosure requirements. Aside from SB 1162, here are other relevant state laws.

Pay Data Reporting

Under Senate Bill 973, private employers with 100 or more employees must submit an annual report on pay data to the California Civil Rights Department. SB 1162 expanded this and included rules on pay scale transparency and record keeping. The annual pay data report must cover pay information by race, ethnicity, and gender with specific job categories and is due every second Wednesday of May.

Salary History Ban

Aside from pay transparency and reporting, California Assembly Bill 168 also prohibits employers from asking about an applicant’s salary history or using their past pay information to make a salary offer. Employers, however, can ask applicants for their expected salary.

Wage Theft Protection Act

This act requires employers to provide a notice that contains specific information once they hire an employee. It should include:

  • Rate or rates of pay and if it’s paid by the hour, shift, day, week, salary, piece, or commission. 
  • Overtime rate
  • Applicable allowances that count toward minimum wage, such as for meals or lodging
  • Regular payday
  • Employer details such as name and other names they do business under, physical and mailing address, telephone number
  • Contact details of employer’s worker’s compensation insurance carrier
  • Any other necessary information deemed by the Labor Commissioner

Should the said notice change, employees must be notified in writing within seven calendar days unless the changes are reflected on the next pay stub or another legal notice with the updated details is issued within seven days. 

Whistleblower Protection and Anti-Retaliation Law

California offers another layer of protection for employees who report disparities in pay information. Under this law, an employer cannot retaliate against an employee who discloses information to law enforcement, an investigative body, or someone with authority to address the issue about a law violation, a regulation not being followed, or unsafe working conditions. 

Employees are also protected if they refuse to participate in activities they believe would break the law. Even if an employee hasn’t reported anything but the employer suspects they did, that employee is still protected under whistleblower laws. 

If an employer retaliates against a whistleblower, they may be required to reinstate the employee’s employment and work benefits, pay lost wages and civil penalties, and take other actions to comply with the law. 

The Impact of Pay Transparency Laws on Hourly Teams

Pay transparency laws can pose both advantages and challenges for hourly workforces. Such legislation helps enhance the employee experience, promote retention, and build trust. However, it can also come with administrative challenges, especially with recordkeeping and managing pay scales for each role. 

Benefits

Greater wage transparency

Employees value transparency, especially with pay ranges and information. Pay transparency laws promote fairness and avoid any wage disparities. Such regulations also open the floor for better wage discussions, which can lead to higher morale and increased job satisfaction.

Improved hiring and retentionIncluding pay ranges in job listings helps attract job seekers who are not only interested in the role but also comfortable with the offered compensation. This speeds up the hiring process by filtering out those with mismatched salary expectations. It also helps with retention because when employees know the pay range upfront, they’re less likely to feel blindsided or dissatisfied later on.

Challenges

Consistency with pay scales

Staying on top of pay ranges can quickly become complicated when wages vary by location or experience level. 

For example, the cost of living across cities can impact salary ranges. Typically, pay rates are higher in cities like San Francisco due to the higher cost of living compared to smaller towns, making it challenging to balance out pay ranges across multiple locations. 

Roles can also differ significantly, even if they share the same title. The same position might carry different responsibilities depending on the team or location. Additionally, ensuring pay equity between new hires and existing employees can be tricky.

With all of these factors in play, employers must carefully document pay ranges, justify their pay decisions, and comply with pay transparency regulations.

Wage increases and bigger budget allocations

Employers may have to allocate bigger wage budgets to maintain pay equity. Pay transparency laws may also prompt current employees to request wage adjustments if they find that their current pay is on the lower end of the scale. 

Recordkeeping

Complying with pay transparency laws involves meticulous recordkeeping. This can be especially true for big workforces that need to keep detailed records of all job titles and wage histories of employees across multiple locations. 

Employees’ preferences for specific shifts

For employers offering shift differential pay, transparency can influence employee preferences. Once pay differences are made clear, less popular shifts might become more desirable, leading to imbalances in shift coverage. Employers may need to rethink their differential pay strategies to ensure all shifts are adequately staffed.

How to Avoid Non-Compliance with Pay Transparency Laws

California’s pay transparency laws come with a lot of fine print, and it’s easy to unintentionally slip into non-compliance. To help you navigate these regulations, here are practical strategies to keep you on the right track:

Implement smart recruitment practices

Never forget to include pay ranges and other components of employee compensation on your job listings. This level of transparency not only keeps you compliant but also helps you attract job applicants who are comfortable with the pay offered, speeding up the hiring process.

Workforce.com’s applicant tracking system simplifies this by allowing you to use in-store QR codes to attract local talent. When candidates scan the code, they can instantly view the job opening and pay range. You can even add a follow-up question to confirm that they’re aware of the compensation package before proceeding with the application.

Optimize recordkeeping for audits 

Managing multiple pay rates is complex, and manual processes can quickly lead to errors and compliance issues. Automating recordkeeping is vital to staying organized and compliant. With the right system, you can easily store, retrieve, and sort pay data. No need to scramble to gather information during audits or employee requests. 

An automated solution keeps all pay info in one place, making it simple to pull up details anytime. If the Labor Commissioner knocks or an employee asks for their records, you’ll be ready.

Workforce.com makes it easy to keep employee records and pay data organized. Staff can access their information, and management can quickly pull reports for audits or compliance checks.

Keep employees informed of any pay-related information

Pay transparency isn’t just about disclosing wage ranges—it’s about keeping employees consistently informed. In addition to providing access to their wage details, make sure to issue regular pay stubs. Automating this process reduces administrative work and ensures compliance.

Pay stubs should clearly outline their wage rates, earnings, overtime, deductions, and withholdings. Workforce.com’s payroll software automatically generates detailed pay stubs each payday, giving employees easy access to their payment breakdowns and salary information.

Define pay criteria for pay variations

You need to keep a record of pay data and justify assigning pay ranges to a particular role. Establish a clear policy that defines your pay scale criteria, such as experience, location, shift differentials, and team assignments. Communicate these criteria to employees so they understand how pay ranges are determined.

Provide training and support to HR and managers

Pay discussions can be sensitive, and managers must know how to handle them appropriately. Provide training and guidance on how to effectively address pay scale inquiries and manage pay adjustment requests. Equip them with the information and talking points that will allow them to explain company decisions clearly. 

Simplify compliance with Workforce.com

Complying with pay transparency involves handling data and keeping its integrity intact. Workforce.com is an end-to-end HR, payroll, and scheduling system designed for the needs of hourly teams, including labor compliance. It helps eliminate the administrative burden that can come with complying with intricate laws such as California’s pay transparency laws. It has one source of information, which means that the chances of errors or things falling through the cracks are minimized. 

Discover how different businesses stay on top of labor laws while keeping their teams efficient with Workforce.com. Book a call today. 

Posted on February 14, 2025February 14, 2025

California Overtime Laws Explained: What Employers Need to Know

Summary

  • California has some of the most comprehensive employment laws in the country, including overtime rules.
  • Compliance can be tricky because there are many nuances and rules that employers need to understand and implement.
  • Payroll software can ensure that workers entitled to overtime compensation in California are paid correctly and simplify compliance for employers.

California has some of the strictest overtime laws in the country, ensuring that employees are paid fairly for the extra hours they work. However, due to these strict rules and recent court decisions, many employers struggle to get it right, which can lead to costly lawsuits and hefty fines. 

If you’re running a business in California, understanding overtime rules and staying updated with the regulations is crucial to staying compliant and paying your workers correctly. This guide will explain who qualifies for overtime, how it’s calculated, and best payroll practices to get it right. 

Knowing the difference between California’s overtime rules and federal overtime laws

Under the Fair Labor Standards Act (FLSA), non-exempt employees earn overtime pay if they work more than 40 hours in a workweek at a rate no less than one and a half times their hourly rate. This is also known as time and a half pay.

Sounds simple, right? Well, California has its own rules. According to the California Division of Labor Standards Enforcement (DLSE), overtime applies when an employee works more than 8 hours in a single workday or over 40 hours in a single workweek. Additionally, for especially long shifts, California law requires double-time pay, a rule that goes beyond federal law.

When federal and state laws differ, the more beneficial rule to the employee prevails.Here’s a brief breakdown of how federal and California overtime rules differ:

RuleFLSA LawCalifornia Law
When overtime pay takes effectOver 40 hours a weekOver 8 hours in a workday or 40 hours in a workweek
Overtime pay rate1.5x of regular rate after 40 hours1.5x after 8 hours a day
2x after 12 hours a day
Seventh consecutive dayNA1.5x for first 8 hours
2x after 8 hours
Double timeNA2x regular rate after 12 hours a day or after 8 hours on 7th consecutive workday

Key areas of CA overtime rules that employers must know

California’s overtime laws are strict, and understanding them is essential for staying compliant and ensuring employees are paid correctly. Below are some of the most important areas employers should know when handling overtime pay.

Regular rate of pay

Understanding an employee’s regular rate of pay is at the core of calculating overtime pay in California. So, what is it exactly?

The regular rate of pay refers to compensation for the work done, and it goes beyond a worker’s hourly wages. It could also include commissions, piecework earnings, and salary. The regular pay rate should never be lower than the applicable minimum wage. 

It’s important to note that bonuses may or may not be included when computing the regular rate of pay. If it’s a nondiscretionary bonus or bonuses tied to work performance or output, it’s typically included in the computation of the regular rate of pay. Discretionary bonuses, meanwhile, are not included since they are bonuses or rewards that are not usually incentives that are discussed before work commences or are given during special occasions. 

Alternative workweek schedules and multiple pay rates

What if your employees don’t work the standard 8-hour workday, 40-hour workweek? If your employees work on an alternative schedule, like 10 hours a day for 4 days or 12 hours a day for 3 days, the computation for weekly overtime will still apply once you hit the 40-hour mark for the workweek. 

Meanwhile, if an employee has two or more pay rates, the overtime computation will be based on a weighted average based on their total earnings for the workweek. 

Commissions and piecework payments

California employees earning commission or piece-rate pay have two ways to calculate their regular rate of pay for overtime. First, they can use the commission as the regular rate of pay and calculate overtime by one and one half times (1.5x) that rate for hours exceeding 8 hours in a day or two times(2x) for any hours beyond 12 in a single day. 

Meanwhile, another way to calculate is to get a regular hourly rate from all the earnings. You do that by adding up all earnings for the week (including commissions and overtime pay) and dividing it by the total number of hours worked (including overtime hours). For each overtime hour, an employee gets an extra .5 pay for hours over 8in a day or 40 in a week or an extra 1x pay for hours over 12 in a day. 

If a team works together on a piece-based pay, the total number of pieces made is divided among the workers. The regular rate is calculated by dividing their earnings by their work hours. The regular rate cannot be less than the minimum wage.  

Unauthorized employee overtime

What employees work overtime and it’s not authorized? Employers still need to pay up. Workers are entitled to overtime pay if they “suffered or permitted to work, whether or not required to do so, ” meaning that it is work that the employer knew or should have known about. 

In such cases, employers can discipline their workers if they incur unauthorized overtime, but workers must still be paid.  

Collective bargaining agreements

According to California’s Labor Code, allows some exemptions from state overtime rules if a valid collective bargaining agreement meets specific conditions such as a clear outline of overtime rates and rules, a regular hourly wage that is at least 30% more than the state minimum wage, and providions for wages, hours, and working conditions.

CBAs in construction, hospitality, motion picture and TV production, healthcare can often modify overtime rules.

Who’s entitled to overtime pay in California? 

Most hourly employees qualify for overtime. Salaried employees may also be eligible if their job duties don’t meet exemption requirements. Typically, executives, administrative professionals, and some high-level salaried employees are exempt, but employers must ensure they meet the strict exemption criteria.

When should employees receive overtime pay? 

Overtime must be paid by the next regular payday, but not later. Regular wages for hours worked must be paid on time according to the usual pay period. Only overtime can be deferred to the next regular pay period.

The cost of noncompliance to California overtime rules

Non-compliance to California overtime laws can set your business back big time. It can result in repayment of unpaid wages, penalties, massive settlements, and expensive lawsuits.

Take the case of AOCLSC. While the company didn’t admit to the allegations, it settled a $920,000 lawsuit filed for allegedly failing to pay the correct hourly, minimum, and overtime wages under California law. The complaint also included failure to provide meal breaks, rest periods, and accurate wage statements.

As a result of the settlement, non-exempt employees who worked for the company in California between May 8, 2019 and May 15, 2023. The same goes for the Private Attorneys General Act class of AOCLSC employees who worked between June 1, 2021, and May 15, 2023.

Then there’s Alvarado v. Dart Container Corporation of California, which underscores just how precise overtime calculations must be. It centered around how the regular rate of pay for overtime calculations was computed, especially with a flat-sum bonus involved. In this lawsuit, the plaintiff received a $15-dollar bonus for working the weekend, and the court ruled that the bonus should be included in calculating the regular rate of pay. 

Again, this further reiterates that employers should carefully examine all the remunerations an employee receives because even seemingly minor bonuses can impact payroll calculations.

The takeaway? Getting overtime laws wrong, even unintentionally, can lead to financial consequences and wage claims. California’s wage and hour laws have comprehensive rules and protections to ensure employee are paid fairly. However, they can be complex, and employers must correctly calculate regular pay rates, bonuses, and overtime wages to avoid costly mistakes.

Payroll best practices for complying with CA overtime rules

California overtime laws can be complicated, nuanced, and constantly evolving, with court rulings shaping how they’re applied. But with the right payroll practices, California employers can stay compliant, avoid mistakes, and pay employees accurately.  

Classify employees correctly from the start

Misclassifying employees is one of the biggest (and most expensive) mistakes employers make. Get employee classifications correct upon onboarding. If you get this right from day one, you’ll properly calculate accurate wages, pay proper overtime, and comply with the rules. However, that can be easier said than done, and you should double-check whether a worker’s duties meet the overtime pay criteria. 

Many assume salaried employees are automatically exempt from overtime, but that’s not always true. Some salaried workers still qualify for overtime, depending on their job duties and earnings. Always double-check the latest state and federal rules to properly classify employees.

Track employee time accurately

Overtime calculations are only as good as your timekeeping system. Wage and overtime calculations will depend on employee time logs. You should have a system that accurately records total hours of work, break and rest times, and hours of overtime, not just for accurate pay computations but also for proper recordkeeping. 

If you ever face an audit or a wage dispute, having clear, reliable time records can protect your business and prove compliance. Invest in a digital time-tracking system that makes it easy to maintain accurate records and minimize errors.

Calculate the regular rate of pay correctly

A miscalculated regular rate of pay can easily land you in legal hot water and result in unpaid wages. Overtime pay is based on this rate, so it must include all eligible earnings like commissions, piecework, and nondiscretionary bonuses. Get this wrong, and you risk underpaying employees, leading to potential lawsuits and penalties.

Automate compliance at critical steps

Compliance mistakes often happen when things slip through the cracks. Automation can safeguard your team from committing unintentional violations. Implement a system that alerts you when you’re about to hit unplanned overtime, an employee missed a meal or rest period, there are discrepancies in time logs, or when you’re creating schedules that can create unnecessary overtime.

Optimize schedules to minimize overtime

Overtime isn’t necessarily bad, but it’s often unavoidable when demand is high. However, excessive or unplanned overtime can drain your budget and create compliance risks.

Using labor forecasting, you can prevent unnecessary overtime, ensure proper staffing levels, and avoid last-minute surprises. With demand-based scheduling, you can pay overtime when it’s needed, but never by accident.

Workforce.com payroll can simplify compliance with CA overtime laws

Workforce.com is an all-in-one system designed to handle complex labor laws and ensure you release accurate pay every payday.

Payroll compliance starts long before payday. It begins with onboarding, time tracking, scheduling, and shift management. Workforce.com streamlines each step to reduce errors, prevent compliance risks, and ensure workers are paid correctly. 

  • Onboarding is automated; employees enter their details, eliminating double data entry and reducing errors.  
  • Time and attendance tracking records employee time logs, daily overtime, and ensures employees take meal and rest breaks.
  • Alerts will be sent when employees fail to take breaks, are about to exceed their legal work limits or hit unplanned overtime.
  • Accurate payroll calculations based on employee classifications, overtime rates, and state-specific rules that are automatically factored into payroll. 

See Workforce.com in action and discover how it can help you ensure compliance in California and beyond. Book a call today. 


This information is for general purposes only and should not be considered legal advice. While we strive to keep it updated, laws and regulations can change at any time. It’s always a good idea to consult with a legal professional or relevant authorities to compliance with the most current standards.

Posted on February 7, 2025February 9, 2025

Are DEI programs at risk? What the new executive orders mean for businesses

Within his first few days back in office, President Trump issued executive orders halting DEI programs in federal agencies. On January 20, the first executive order directed the shutdown of federal DEI programs. Federal DEI staff were also put on leave, and federal grantees had to discontinue DEI practices deemed discriminatory or preferential.

The next day, the White House published another executive order emphasizing merit-based opportunities, individual initiative, and hard work. It also instructed the Attorney General to recommend strategies for enforcing civil rights laws and ways to “encourage businesses to end illegal discrimination and preferences, including DEI.”

While the definition of “illegal DEI” remains unclear, these executive actions and the Supreme Court ruling on affirmative action in college admissions have prompted some private sector companies to rethink their DEI policies.

How businesses are responding

While the executive orders primarily target federal agencies, grantees, and contractors, their impact was also felt across the private sector as companies reassess their DEI commitments.

Even before these orders, some major corporations had begun scaling back DEI initiatives. Last year, Walmart discontinued its DEI training and chose not to renew its racial equity center, instead shifting its language to emphasize “belonging“. Similarly, Target ended its three-year DEI goals and will no longer participate in diversity-focused surveys, including HRC’s Corporate Quality Index. McDonald’s announced restructuring its DEI efforts, transitioning its diversity team into a broader Global Inclusion Team, and will conclude its Supply Chain’s Mutual Commitment to DEI pledge.

However, some businesses are standing firm. Costco shareholders turned down a proposal to evaluate their current DEI practices. Cosmetics brand e.l.f. also has a similar stance and reaffirmed its commitment, maintaining its policies despite broader industry pullbacks.

What does it mean for your business?

Should you roll back your DEI programs? While recent executive orders may create pressure to scale back, it would be best to evaluate your policies before making any drastic changes. 

Workplace fairness should always be a priority whether you have formal DEI initiatives or not. If you manage an hourly team, here are some ways to practice fairness and equality across your organization. 

Hire without bias. If your hiring process includes explicit demographic quotas, it may be legally risky under the new executive orders. Instead, focus on qualifications, skills, and experience rather than factors like race, age, or gender. Use structured hiring practices that prioritize job-related qualifications. Workforce.com’s HR platform allows hiring teams to set preliminary screening questions on job listings, helping filter candidates based on essential qualifications, not personal demographics.

Distribute work hours fairly. Shift assignments should be fair and consistent to avoid unintentional favoritism. Use a scheduling system that allows you to distribute work hours and overtime evenly among team members. Workforce.com’s scheduling software enables managers to allocate work hours based on demand, availability, maximum hours allowed, and other compliance requirements.

Audit your current policies. While there’s still no definitive list of practices or policies deemed “illegal” under the executive orders, it’s wise to assess your current policies for anything that could be interpreted as preferential treatment. Review existing DEI programs to ensure they focus on merit, skills, and equal opportunity rather than demographic-based preferences. In addition, if your company receives federal grants or is a federal contractor, ensure that your policies align with the latest executive directives to avoid compliance risks.

Do businesses need to abandon DEI practices? Not necessarily, but they have to do it smarter. Focus on fairness, merit, and equal opportunity so that policies can remain compliant, maintain an inclusive work environment, and stay pace with evolving federal regulations. 

Posted on January 31, 2025

HR Trends for Hourly Workforces in 2025

Summary

  • 2025 will be filled with new and familiar trends, and business leaders must devise strategies specific to hourly teams to maintain employee retention and remain competitive. 
  • This year, there would be increased emphasis on employee experience, continuous AI adoption, and a potentially bigger labor gap with tighter immigration rules. 
  • An all-in-one HR technology can help hourly teams stay ahead of the trends and overcome staffing challenges.

This year, hourly workforces will face a mix of old and new challenges, from labor shortages to technological advancements and a maze of shifting compliance rules. HR leaders and managers must step up in 2025 to retain top talent and stay competitive, or risk widening the labor gap and losing their team to competitors.

So, what’s coming up on the horizon? Check out these top HR trends you’ll want to watch when managing your hourly workforce this year.

1. Staffing and hiring challenges with stricter immigration laws

With stricter immigration laws and ongoing labor shortages, hourly workforces face a greater challenge in attracting and retaining talent.

According to the Bureau of Labor Statistics, foreign-born workers account for 18.6% of the U.S. civilian labor force. With stricter immigration laws, a bigger labor shortage challenge could be looming.

While the crackdown targets undocumented migrants, even legal, documented workers may struggle to stay in the U.S. when mass deportation separates them from their families. This uncertainty can push them to leave, creating vacancies in industries that heavily depend on hourly workers.  Worse, some immigrants may not aspire to come to the U.S. for work at all. 

For instance, in Nebraska, one of the top meat producers in the U.S., businesses are already grappling with a massive labor shortage. For every 100 jobs, there are only 39 workers to fill them, and Nebraskans fear that the gap will only get bigger. 

So, what does this mean for employers? They must fight hard to not only hire and attract talent but also maintain employee satisfaction.Another key area is tightening the vetting process. While undocumented workers have rights, knowingly hiring them is illegal for employers. This creates an added challenge for HR professionals to ensure their vetting procedures are foolproof, preventing penalties or complications from accidentally hiring ineligible individuals.

How to stay ahead:

HR departments need a system that streamlines talent acquisition, quickly assesses qualifications, and ensures new hires and existing staff stick around. 

Workforce.com’s HR system can augment recruitment by allowing you to post job openings across your business locations. You can even generate QR codes for job postings, making it easy for interested applicants to scan, read job descriptions, and start their application process. 

Set custom questions to quickly qualify candidates, like their experience, available hours, and whether they have the qualifications and documentation to work in the U.S. 

Plus, Workforce.com helps your managers retain current staff by offering flexibility with shift swapping and advanced scheduling. It also tracks people analytics such as performance, highlighting areas for training, upskilling, and development.

2. AI adoption in HR processes will continue

Artificial intelligence will continue to play a role in HR this year. While we have seen its adoption in the previous years, the trend will continue in 2025. More and more organizations will adopt AI in human resources to eliminate admin tasks, repetitive processes, and paperwork. 

However, AI can be a double-edged sword in workplaces. Sure, it can make things easier and faster, but questions remain about its impact on work quality, particularly with the rise of generative AI tools. Some even call for regulatory rules, prompting organizations to develop policies governing how employees use AI at work. 

How to stay ahead:

Focusing on how AI can bring the most value is key to making the most of it. For hourly teams, labor forecasting is key. Workforce.com has long used AI to help organizations anticipate demand and avoid overstaffing or understaffing. 

Workforce.com labor forecasting system utilizes AI to analyze sales, booked appointments, historical foot traffic, seasonal trends, weather, and other business-specific indicators. For example, hospitals can factor in ICU bed availability, while hotels can account for bookings and reservations. Considering these variables, the platform accurately forecasts staffing needs for each shift, helping you curb overstaffing, reduce overtime costs, and improve decision-making around schedules.

3. Shifting labor laws pose new challenges to HR

As if labor compliance was not complicated enough, a new administration in place in 2025 could throw even more curveballs.

Case in point: President Trump’s move to end “illegal” discrimination in DEI programs. In a recent executive order, he ordered DEI programs within federal agencies. While it does not directly ban DEI programs in the private sector, the order imposes requirements on federal contractors and grant recipients, potentially increasing scrutiny of DEI policies. This could create pressure for private companies to adapt to the shifting political and regulatory landscape.  

In addition, there are changes slated to happen this year, such as increases in minimum wage laws in some states and the enactment of paid leave laws in some cities.  

How to stay ahead:

Employers should carefully balance compliance with federal directives and maintaining fair practices to support their teams and prevent long-term workforce challenges. For hourly workers, this can be as simple as being mindful of how shifts and overtime are distributed. Workforce.com makes this easier by giving managers a clear, real-time view of how many hours each team member works. This helps ensure everyone gets the right amount of hours or shifts.

Labor compliance is tricky, but automation can simplify the process. HR teams can stay on top of labor regulation developments through systems with a compliance engine, such as Workforce.com.

Workforce.com ensures compliance for hourly teams at every stage of HR management—covering employee classification, wage and overtime calculations, adherence to allowable work hours, and compliance with break time rules. From hiring and onboarding to scheduling and payroll, managers can trust they’re operating within state and federal laws every step of the way. 

4. A new emphasis on employee experience

For white-collar and salaried workers, a good employee experience often means hybrid work setups, the freedom to do remote work, and opportunities for long-term career development. But hourly workers, who are typically onsite and part of operations that may run around the clock, have quite different needs. So, what does a positive employee experience mean for them? 

Hourly workers desire work-life balance, too, but in a different way. For frontline teams, it’s about knowing their schedules in advance, allowing them to plan for childcare, a second job, or personal time off. Flexibility also means having options for how they work, like swapping shifts with coworkers or picking up extra shifts without a lengthy approval process.

Employee well-being will also be a focus in HR strategies in 2025. It’s about offering programs such as counseling services, mental health programs, and wellness initiatives tailored to the needs of hourly workers. This could mean offering flexible work options, encouraging regular breaks, and ensuring that workers have a safe space to express concerns without fear of stigma.

HR teams should also consider upskilling, reskilling, and defining career paths for hourly staff. Consider offering certification programs or opportunities to learn new technical skills. It’s also time to define growth paths for these teams. Can they move into higher-paying roles? Is there a path to salaried positions? Answering these questions can make a big difference in retaining and engaging hourly employees as well as addressing any skill gap in your business.

How to stay ahead:

Much of the employee experience for hourly employees involves admin processes, which can be easily streamlined with the right technology. Workforce.com simplifies scheduling with its labor forecasting and scheduling software. Create demand-based shifts in minutes and notify staff weeks in advance. If you’re in a city or state with predictive scheduling or Fair Workweek laws, this tool also helps ensure compliance.

Shift swapping or shift replacements is another area where Workforce.com can make it easy for managers. The system eliminates long approval processes and back-and-forth communication. Managers can quickly offer vacant shifts to qualified employees, who can pick them up with a single click using the employee app.Since most of this admin work is done, HR leaders and managers now have time to optimize hiring practices, spend more time coaching their teams, devise career trajectories, determine appropriate training for their employees, which they can also track using Workforce.com’s performance management module.

5. Prioritizing constant feedback and review process

Another continuing trend into 2025 is focusing on more dynamic feedback and breaking free from rigid timelines like annual reviews. This is especially important for hourly workforces, where the fast-paced environment calls for real-time input and adjustments.

How to stay ahead: 

Operational issues can’t wait until the next performance review. Managers need a system that enables them to give and receive feedback in real-time. Workforce.com can prompt employees to rate their shifts at the end of the day. Using this feedback, managers can see what’s working and what needs improvement. This approach helps maintain a good work environment, resolve issues early and keep them from escalating over time.

6.  Access to wages and pay transparency

Businesses will maximize payroll technology to offer more flexibility and options to employees. This year, the focus will continue on giving employees the option to access their wages before payday. This can serve as a great middle ground for companies that can’t yet increase salaries or augment benefits.

Transparency around wages and payslips will remain a key priority. Employees expect an easy way to view their payslips and understand how their wages are calculated, especially for hourly staff.

How to stay ahead:

It’s all about having an efficient payroll platform, one that’s housed in the same ecosystem as HRIS and time and attendance tracking. Payroll is not just about processing paychecks. It’s about ensuring that all the data used to calculate employee pay is accurate, starting with employee qualifications and time logs. Workforce.com streamlines this process, making it easy for you and your employees to access accurate pay information, including payslips.

7. Integration between HR, workforce management, and payroll will be a top priority.

With all the changes and disruptions this year, organizations need a system that will allow them to streamline their recruitment, create worthwhile onboarding processes, track employee time accurately, schedule employees according to classifications and preferences, and pay them accurately. It is all about breaking down silos between these processes, and businesses would likely seek a system that streamlines all of these.

How to stay ahead:

Innovative businesses would stay ahead by ensuring their systems operate well together. Even better, they opt for a platform where everything is housed in a single system.

Workforce.com eliminates silos between HR, workforce management, and payroll. All processes operate within one ecosystem, ensuring a single source of truth and smooth coordination across the board. With a unified platform, managers have less digital upkeep, as they only need to log in once to manage everything—no switching between multiple applications.

Staying ahead with Workforce.com

Organizations that work hard will lead the pack, especially with everything happening in the business, technology, and labor landscape. They must focus on creating strategies to attract new workers, retain their current teams, and ensure profitability and maintain a good workplace culture simultaneously. 

Workforce.com handles the admin side, so you can focus on the big picture. It adapts to market shifts, labor law changes, and trends, streamlining every step of the employee journey.

Ready to see how Workforce.com can help your business? Book a call today.

Posted on November 21, 2024November 26, 2024

7 HR Tactics for Handling the Retail Holiday Surge

Summary

  • Retail businesses are expected to add 520,000 seasonal jobs in the last quarter of 2024. While this number is slightly lower than last year’s, the race to hire seasonal workers remains tight.
  • Labor forecasting is vital for retailers to determine the ideal staffing levels they need in time for the holiday shopping peak season. On top of that, they must speed up hiring and onboarding for seasonal roles.
  • Workforce.com can help retailers stay ahead with smart labor forecasting, easy hiring and onboarding, and streamlined workforce management.

The holiday shopping season is fast approaching, and retail businesses must be ready for surging foot traffic and online sales. But it’s not just how you manage inventory or come up with marketing strategies to attract shoppers. It’s about having the right staffing strategies in place to provide the best customer experience whether in-store or online. And the onus is on HR and managers to recruit and onboard seasonal workers, manage unpredictable schedules, and avoid burnout during a very busy time of year. 

Typically, retail businesses hire seasonal workers such as sales assistants, warehouse staff, stockroom workers, delivery drivers, and customer service representatives to handle the surge in demand and ensure a smooth shopping experience.

According to the National Retail Federation (NRF), 200.4 million people shopped from Thanksgiving, Black Friday through Cyber Monday in 2023. Both online and brick-and-mortar stores felt the rush, with 121.4 million people making in-store purchases and 134.2 million buyers online.

While spending may slightly cool down this year, retail businesses still need to prepare for higher demand than other quarters. And prices and offers aren’t the only areas where competition is fierce. Retail businesses should also step up to strengthen staffing and recruitment strategies.

The race to attract seasonal workers

Although slightly lower than last year, market projections show that the retail industry is still expected to add 520,000 seasonal jobs in the last quarter of 2024, down from 564,200 seasonal jobs in 2023. That said, the competition for seasonal workers remains tight, and retailers must act fast to fill staffing gaps before the shopping rush hits.  Big retailers are not holding back. They rolled out aggressive tactics like nationwide hiring events and on-the-spot interviews. They know that while consumer spending may dip, shoppers will still spend—just more carefully. If you have a solid client base and strong customer loyalty, you need to be prepared for your demand to soar. Here are seven practical tips to help you prepare:

1. Identify your unique staffing needs.

Labor forecasting software integrates with your point-of-sale system, using its historical sales data to predict upcoming labor needs. You can also manually upload other kinds of demand data like appointments, foot traffic, and more – just use whatever makes the most sense for your business. A machine learning algorithm combines all of this data with economic trends, weather forecasts, and staff availability to let you know exactly how many workers you need for each shift; this makes your scheduling and hiring decisions much easier. Plus, it’ll help you determine whether you need more seasonal hires or if adding extra hours and overtime will do the trick.

2. Strengthen your hiring strategy.

As you gear up for the shopping season, a robust hiring system is vital to attracting top talent without getting buried in admin tasks. 

Job boards are great for spreading the word, but why stop there? An applicant tracking system (ATS) like Workforce.com lets you generate QR codes for your job openings, print them, and place them in your retail stores. Interested applicants simply scan the code and submit their application. 

To save time, you can set up pre-qualifying questions about availability, experience, and credentials. This way, only the best candidates move forward to interviews, and you only spend time with those who meet your criteria. 

Workforce.com’s ATS helps you track applications, spot roadblocks, and identify what’s causing delays. This will ensure that you lock in the workers you need for the season.

3. Fast-track onboarding and training for seasonal hires.

The thing with the shopping season is that you need to onboard seasonal workers fast. Unlike regular hires, you don’t have the luxury of 30-60-90 day milestones to fully integrate them. Seasonal workers need to be onboarded and be up and running right away. A good onboarding system will let you do just that. 

Start by streamlining the paperwork. Workforce.com captures all the necessary new hire information—personal details, bank information, W-4s, and more—all without the hassle of paperwork. Newly hired seasonal workers can log into the system and input their information directly, eliminating manual data entry. 

While seasonal employees might have fairly straightforward jobs, they still need training. Even experienced sales associates need orientation about popular items, store layout, and return policies.

Even if you’re running an e-commerce platform, seasonal workers still need to learn how to navigate the online store, order queues, waybill processing, inventory management, and checkout process.

To get seasonal workers up to speed, consider implementing a buddy system where you pair them with full-time employees so they can learn the ropes faster and be ready to perform their best.

4. Streamline how you delegate tasks.

Operations during the peak holiday season will only be as smooth as how you communicate tasks and expectations. When working with seasonal workers, you must assign responsibilities clearly and precisely.

Workforce.com’s task management system allows you to delegate responsibilities and send out to-do lists. Seasonal workers are instantly notified of their tasks, can check off completed items, and even provide proof of completion, all in real-time, through the Workforce.com app. It’s a simple way to ensure everything gets done right when needed.

5. Optimize schedules based on demand.

Understaffing can be a disaster, but overstaffing isn’t cost-effective either. To remain profitable, you need to schedule shifts based on demand. 

While you can’t predict demand perfectly, there are plenty of indicators to guide your scheduling decisions. Looking at historical data is a great start (as we covered earlier), but scheduling isn’t a “set it and forget it” task. You’ll need to keep optimizing as the season unfolds. 

When the season is in full swing, you must monitor your wage cost metrics and see where to optimize. How much foot traffic are you getting? Is there a weather forecast that can affect that? Do you need to add more workers? Cut back on hours? Or maybe just shuffle your workers to balance overstaffed and understaffed areas? 

At the same time, you can also tap your team for feedback. Workers are on the front lines and can give you valuable insights on what’s happening on the ground. Have them rate their shifts and share where improvements are needed and what’s working well. Their feedback can provide information to fine-tune your schedules and operations.

Workforce.com’s scheduling system allows you to do just that. You can compare scheduled wage costs with sales data in real-time, seeing where to optimize labor levels. It also has a shift rating system where your team can provide feedback about things like communication, management, and more.

6. Ensure complete oversight of your workforce.

The holiday rush can get hectic, and managers need a streamlined way to oversee their teams. With orders to fulfill, shipments to send out, and a store to run, it can take time to juggle staff scheduling, time tracking, and attendance issues. 

That’s where Workforce.com can step in and make things easier. The app lets managers see who’s clocked in and who’s running late. In case of no-shows or last-minute absences, you can automatically offer vacant shifts to available, qualified staff. Filling the gaps only takes a few clicks, whether via desktop or mobile app. Need to send a quick message to the team? The app has that covered, too. 

Workforce.com also notifies managers if an employee is about to go into overtime. Before they clock in the extra hours, you can decide whether it’s worth extending their hours or if their tasks can wait until the next day.

7. Know what labor laws apply to seasonal employees.

Hiring seasonal employees allows you to scale your team during busy periods. However, you must also be aware of any labor laws that apply to seasonal workers to ensure they are paid correctly and treated fairly, safeguarding you from legal issues.

According to the FLSA, non-exempt seasonal workers should receive minimum wage and overtime pay if they work more than 40 hours a week.

If hiring students or teens for seasonal work, you must also be mindful of child labor laws to ensure they’re only scheduled for the appropriate number of hours and times of day.

Also read: Child Labor Laws by State + Federal (2024)

What about taxes? Per IRS rules, the same tax withholding rules apply to seasonal employees as that of other employees. 

Plus, depending on specific criteria, seasonal employees may be entitled to benefits such as unemployment insurance, workers’ compensation, healthcare, retirement benefits, and paid sick leave.


The holiday shopping season is a massive opportunity for retailers to boost sales, increase brand recognition, and gain new customers. To make the most of it, you need a solid plan and an efficient system to help you stay agile and organized. Workforce.com is the perfect system for this busy time of year, giving you the right tools to optimize your staffing levels as the season unfolds.

Discover how Workforce.com can help you stay ahead not just this holiday shopping season but all year round. Book a demo today.

Posted on November 12, 2024November 13, 2024

10 Tips for Designing a Better Hiring Process

Summary

  • The hiring process is an employer’s first chance to make a good impression. It needs to be seamless to attract the best candidates.
  • 86% of HR professionals say that recruitment is becoming more like marketing. And in today’s competitive labor market, it’s easy to see why.
  • Applicant experience is crucial for keeping top candidates engaged and maintaining a good employer brand. Streamlining recruitment using technology can transform a good hiring experience into a great one.

In a tight labor market, hiring can make or break your chances of capturing quality new hires. It is often the first touchpoint between a company and potential new employees, and an excellent first impression is everything. A clunky approach to hiring will not only slow things down but also deter quality people from applying.

If you’re looking to attract qualified candidates fast while keeping things efficient, it might be time to rethink the hiring process. In this post, we’ll dive into 10 practical tips to improve your recruitment strategy.

1. Focus on setting clear hiring goals.

All of your recruitment initiatives will stem from your hiring goals. They act as your jumping point; if you’re unclear about these, you risk wasting resources and missing out on filling the company’s staffing needs. 

When determining what your hiring efforts should aim for, here are questions you need to ask yourself:

  • What are the staffing gaps, operational needs, or business needs you must address? Is it filling roles for a new business location, or is it to replace team members who left? 
  • What are the specific roles needed to fill the gap? 
  • What are the characteristics of an ideal candidate? 
  • What are the specific skills or experience candidates must have? 
  • What soft skills must they possess? Consider your company culture and define what characteristics would make a hire fit to work with the team. 
  • How fast should you be able to hire?

Talent acquisition requires significant effort, and you should focus your energy on defining hiring goals that drive business results.

2. Create clear job ads. 

“What’s in it for me?” – This is the question your job descriptions should answer for potential candidates. 

Try to frame your job listings through the applicant’s POV. First, the listing should cover the basics of the job role, which includes what’s expected in terms of tasks and responsibilities. Second, it should paint a picture of how an ideal candidate would fit in the organization, which can allude to the type of working environment you offer. 

Let’s discuss wording. Avoid overly technical jargon and internal corporate speak. Potential candidates won’t care much for those. Instead, keep your wording concise and direct and language neutral.

Here are crucial elements that your job descriptions should cover:

  • Job title
  • Duties and responsibilities
  • Required skills, competencies, and qualifications 
  • Preferred qualifications or nice-to-haves
  • Working location
  • Benefits
  • Salary range

In addition to the basics, you can include more information about the team they will be part of and brief details about the organization. 

Writing job descriptions can be time-consuming. We’ve curated a list of job description templates to give you a headstart. Feel free to download them and customize them according to your specific requirements. 

3. Be smart with advertising open positions. 

Generally, hiring teams utilize job boards and social media sites like LinkedIn to reach as many candidates as possible. While those are great, there are other opportunities to get the word out. 

Consider placing job postings in your place of business. Of course, no one has time to read a job description if they are just passing by your cafe or retail store, so why not simply print out a QR code that leads to the details of your job opening?  

Workforce.com’s Applicant Tracking System (ATS) lets you print customized QR codes that link to online job applications. Any interested applicant can simply scan the code and apply straight from their mobile devices, and you will be alerted when submissions come in. 

But before you go broadcasting an open position to the public, think about the roles you’re trying to fill. Consider hiring from within to reduce the time and resources it takes to onboard a new employee.

What about referrals? Nothing beats word-of-mouth advertising. Your current employees can be your best ambassadors since they have first-hand experience. They can share insight into company culture far better than any job posting you publish.

4. Get serious about employer branding.

Better branding attracts better candidates. In fact, 86% of HR professionals agree that recruitment is becoming more like marketing, according to a study. And with today’s challenging labor market, it’s easy to see why. Like marketing, you need to understand your target audience—your ideal candidates—and find ways to stand out.  

To get leadership on board, here’s a compelling stat: a strong employer brand can reduce the cost-per-hire by up to 50%. Plus, half of job seekers won’t consider working for a company with a bad reputation. In short, employer branding isn’t just nice to have; it’s crucial for staying competitive. 

Start by improving the hiring experience. Use data to track candidate experience and satisfaction, communication frequency, and key metrics like time-to-hire. Streamlining these processes with applicant tracking technology enhances efficiency and leaves a positive impression on candidates. Remember, every interaction counts, and a smooth hiring process can make all the difference. 

Keep in mind that negative stories spread fast these days, whether it’s a poor recruitment experience or a toxic work environment. With social media and online forums, you don’t want to be trending for the wrong reasons.

So, how do you build a strong employer brand? It starts with your core: a healthy company culture. Today’s candidates can spot inauthenticity a mile away, so your efforts need to be genuine. Once you establish strong values, they’ll naturally shape how you hire and manage talent on a daily basis.

5. Use technology to streamline the process.

There’s a lot of work that goes into hiring. Without the right tools to help you stay organized, you run the risk of mishandling important information, wasting time, and hiring the wrong people. Consider using an HR platform or an applicant tracking system (ATS) to streamline your hiring process. 

Workforce.com is a prime example of one such system. Its HR suite significantly reduces time spent sifting through resumes and onboarding new hires. Here’s how it improves your recruitment efforts: 

  • It helps you get more applicants. Every time you create a new job posting, you can generate a QR code associated with the listing and post it in your business to make access to applications easier. Workforce.com also collates all previous applications and the positions a person is interested in. When you post new job listings that match a previous applicant’s interests, the system notifies this talent pool, automatically getting you more traction from the moment you post the new job.
  • It helps you with the selection process and pre-qualifies applicants quickly by setting up role-specific questions about availability, experience, and requirements. This enables you to screen candidates before scheduling interviews, weeding out those who don’t meet your criteria upfront.
  • It reduces data reentry by using one user profile across hiring, HR, and payroll. Since the whole employee lifecycle is synced in Workfore.com, applicant information from the hiring stage is automatically brought into a new hire’s payroll and HR profile. This means that once someone fills out an application, they have essentially already filled out about 80% of their employee profile. If you decide to hire them, all of this information is used—there’s no need to create multiple profiles with repeat information. 
  • It helps you onboard new hires right away. Within minutes, your new hires can fill out onboarding forms, provide their personal information, and submit their W-4s and I-9s. No lengthy paperwork and manual entry is needed.
  • It helps you track recruitment metrics. It gives you an overview of hiring progress, spotting delays, and identifying roadblocks. Plus, it covers all your locations, so you can see who needs extra recruitment support.

An ATS is great for hiring, but one that’s housed in the same HR system as onboarding and payroll is a game-changer and can save a significant amount of time. It streamlines the entire journey—from recruitment to onboarding to that first paycheck. 

6. Eliminate unconscious bias.

We’re human, and we’re naturally wired to have biases. However, if these biases are left unchecked during the hiring process, they can lead to poor decisions. Take steps to eliminate anything clouding your judgment from focusing on what a candidate truly offers. 

Reduce unconscious bias by focusing solely on an applicant’s technical skill sets instead of their demographic details such as gender, race, and age. Furthermore, you can view job applications with redacted names or personal information so their skills and experiences are front and center.

7. Improve how you interview. 

The interview stage is crucial for applicants and the company to get to know each other better. It’s an opportunity to assess technical skills and values, making it the ideal time to evaluate cultural fit alongside qualifications. And you do that by asking the right questions. 

Whether you utilize structured questions or free-flowing discussions is your prerogative. But regardless of what route you choose, make sure that it helps you evaluate applicants objectively.

Structured interview questions help you gauge how applicants fare against each other. This interview style makes it easy to compare and judge applicants based on their answers to a series of important and relevant questions.

On the other hand, a less structured approach can better reveal a person’s values, personality, and soft skills, helping you assess their cultural fit. Unstructured interviews can also make applicants feel more comfortable during interviews. 

Ultimately, the goal is to find the best fit for the role. Whether you prefer a structured or flexible interview style or a mix of both, ensure it leads to a fair and informed hiring decision.

8. Understand who you’re hiring. 

Not all hiring processes are the same, especially when it comes to salaried versus hourly roles. Your recruitment approach should adapt to each, from sourcing, screening, onboarding, and compliance. 

For instance, recruiting a line cook for one of your restaurants is a much different process than hiring a finance manager for an insurance agency. Hourly roles often require a faster and leaner process to meet urgent staffing needs. Having a system that lets candidates apply easily and keeps unnecessary data and timelines to a minimum is ideal.

In contrast, hiring for salaried positions usually involves multiple interview stages and a more thorough vetting process. For these hires, it’s crucial to have a comprehensive applicant tracking system that monitors each stage efficiently and keeps candidates engaged throughout the process.

Ultimately, hiring for hourly positions prioritizes speed, volume, and efficiency, while salaried roles focus on depth, fit, and long-term alignment. Understanding these nuances allows you to tailor your hiring processes and shapes how you manage time tracking, shift scheduling, and payroll for each type of hire.

9. Always communicate with applicants.

You don’t want to be labeled as an employer who ghosts applicants, do you? 

While you will undoubtedly need to prioritize some applicants over others, you should never leave unqualified candidates hanging. Keep candidates informed every step of the way —from confirming their application to updating them on the next steps, whether they qualify for an offer or not.  

Additionally, offer a channel for applicants to reach out when they want to follow up or ask a question. This will help them feel at ease and keep strong candidates engaged in the process.

10. Regularly evaluate your hiring process.

As new technologies and trends emerge, your hiring process can quickly become outdated. Conduct regular assessments of your hiring process and practices. Identify what works, spot areas for improvement, and tackle any roadblocks. A flexible, evolving hiring process keeps you aligned with market shifts, maintains efficiency, and positions you to attract top talent.

Fill roles faster and simplify your recruitment process with applicant tracking software

Workforce.com hiring app

Hiring hourly employees? Workforce.com’s online hiring system can help you find the best talent to fill your staffing needs.

Workforce.com is end-to-end HR, scheduling, and payroll software for hourly teams.

The cloud-based platform features an applicant tracking system that streamlines hiring—from posting job advertisements to pre-qualifying candidates, interviewing them, and eventually onboarding them—all without lengthy paperwork or double entry.

Discover how Workforce.com can help you with hiring and more. Book a demo today. 

Posted on October 21, 2024October 21, 2024

How to Manage Compliance for Contractors

Summary

  • Managing contracted employees (1099s) fundamentally differs from managing typical W-2 staff.
  • Employers are legally responsible for correctly classifying workers according to the FLSA, IRS, and any applicable state-based rules. However, the line between employees and contractors can easily get blurred.
  • Workforce.com helps streamline contractor compliance management by ensuring workers are treated according to their classifications.

Suppose you are considering hiring independent contractors for a specific job. Or maybe you already employ a few. Have you done all of your research to handle them compliantly? If not, this guide is for you.

Strict labor standards govern how to properly classify and manage independent contractors, otherwise known as 1099 workers. Let’s examine how to stay on top of these rules and safeguard your business from legal risks.  

Why hire an independent contractor?

Hiring independent contractors offers flexibility, especially when you need help for short-term projects. Unlike full-time employees, contractors usually come in with the expertise required to start working right away, meaning less time spent on training and onboarding. 

Another advantage is cost-effectiveness. Contractors are not entitled to overtime pay, employee benefits like health insurance or retirement plans, or perks like paid vacations and promotions. You also avoid expenses like unemployment insurance and tax contributions that generally come with traditional employment. 

While engaging independent contractors gives you flexibility, there are risks involved. Misclassification is the biggest one. Since contractors are not entitled to the many lucrative benefits of regular employment mentioned above, misclassifying an employee as a contractor can result in serious legal trouble, fines, back taxes, and even lawsuits. Because of this, it is vitally important to understand what qualifies someone as a contractor. 

Key legal guidelines for managing independent contractors

Employee Classifications

Correctly classifying a worker as a contractor is the first step to staying compliant. At the federal level, the Fair Labor Standards Act (FLSA) uses a six-factor test that evaluates the “totality of circumstances” around the working relationship. With this assessment, businesses can determine the correct classification while considering crucial aspects such as control, independence, and the nature of work. These factors are:

  • Opportunity for profit or loss depending on managerial skill
  • Investments by the worker and the potential employer
  • Degree of permanence of the work relationship
  • Nature and degree of control
  • Extent to which the work performed is an integral part of the potential employer’s business
  • Skill and initiative

It’s important to note that the FLSA doesn’t assign a rule defining whether someone should be a contractor or an employee. Instead, it evaluates the facts of each situation to determine the working relationship and whether the worker is truly independent and doesn’t rely on the business like an employee would. 

Aside from federal rules, businesses must also check if there are state rules that govern how they should differentiate contractors from employees. In California, for instance, a worker is classified by default as a standard W-2 employee unless all of the following conditions are met: 

  • The worker is free from the control and direction of the hiring entity in connection with the performance of the work
  • The worker performs work that is outside the usual course of the hiring entity’s business
  • The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed. 

In essence, a worker in California can only be classified as an independent contractor if they have autonomy over how and when they perform their tasks, as long as they complete their responsibilities. Also, the work must be fundamentally different from what the business does; For instance, a hospital commissioning people to construct a new building wing. Lastly, the worker must be independently engaged in an established trade and offer services to multiple clients.

Understanding the difference between independent contractors shapes how you manage payroll and benefits. Full-time employees are protected by wage and hour laws, ensuring they’re paid at least minimum wage and receive overtime pay. Full-time employees are also protected under meal break rules depending on the state. On the other hand, 1099 workers aren’t generally covered by these rules. Independent contractors are paid according to their contracts. In addition, they are not entitled to certain benefits, such as health insurance and workers’ compensation.

IRS Rules

Employers must also look at IRS guidelines because these will define how active their role is when handling taxes for their workers. It will also dictate how they report workers’ compensation, the types of forms to submit, and whether or not they would be legally liable to withhold taxes.

Employers withhold and deposit income taxes, social security taxes, and Medicare taxes from employee wages. On top of that, they also match contributions to SSS and Medicare taxes. But it’s a different situation for contractors. Employers generally don’t deduct income taxes from the contractor’s payment and don’t need to match contributions. 

So, under IRS rules, what factors will help you gauge whether a worker should be classified as an employee or contractor?

  • Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?
  • Financial: Are the business aspects of the worker’s job controlled by the payer? (these include things like how a worker is paid, whether expenses are reimbursed, who provides tools/supplies, etc.)
  • Type of relationship: Are there written contracts or employee type benefits (that is, pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

Like California’s ABC Test, the IRS guidelines also consider the level of autonomy workers have over their jobs. Employers typically have less control over how contractors fulfill their tasks and don’t dictate the methods and tools workers use. 

The IRS also considers how financially dependent workers are on their employers. Contractors typically cover their own costs, such as transportation and equipment, whereas employees rely on their employers for those provisions. 

Employees typically have an ongoing relationship with an employer, while contractors typically work for a set period on specific tasks or projects and aren’t as involved in a company’s core operations. 

Classifying employees correctly is also a prerequisite for filing the correct forms and determining whether you must file a W-2 or 1099. Employers typically file W-2s for full-time and part-time employees, reporting all wages, compensation, and tax withholdings for the year.

On the other hand, form 1099 shows how much an employer pays an independent contractor in a tax year. You must file a 1099 if a contractor earns $600 or more annually. These 1099 forms will not include tax withholdings since contractors calculate and submit them to the IRS independently.

OSHA Regulations

The Occupational Safety and Health Administration (OSHA) requires employers, including those using contractors, to adhere to safety regulations and keep workplaces free from hazards to prevent injury or death.

OSHA has general safety regulations that apply to most workplaces, but specific guidelines exist for construction, maritime, and agriculture industries. If you’re in any of those sectors, it would be wise to know these regulations.

Typically, OSHA regulations cover the following areas: 

  • Safety training requirements include construction safety training, such as handling scaffolding, fall protection measures, and ladder safety.
  • Handling hazardous tasks, including hazard communication standards, proper labeling, data sheets, and training on handling hazardous substances.
  • Personal protective equipment (PPE) for specific working environments, including hard hats, gloves, goggles, or respirators, should meet OSHA standards.
  • Rules that must apply when multiple employers are present in a worksite, which is typical for big projects involving contractors and subcontractors. The company that hired them, the controlling employer, is responsible for following OSHA rules. This means that they must check for hazards, ensure safety standards are followed, especially with heavy equipment, and have a system to report and address safety concerns. 

Aside from training, employers are also responsible for communicating such rules and ensuring that contractors have the safety training needed for the job.

How to build an effective contractor compliance management policy

Employing third-party contractors differs from managing employees, but your legal obligations remain just as important. It’s crucial to have a dedicated compliance strategy for employing contractors to reduce risks and avoid violations. Here are some practical tips:

Establish rules and guidelines for classifying contractors.

A significant part of contractor compliance is classifying them correctly, so you must have a process for doing so.

Before hiring, vet potential workers carefully. Assess the task or job and how you plan to oversee it. From there, you can determine whether a part-time worker or a contractor is the right fit. Getting the classification right from the start ensures compliance with tax filings, payroll, and other regulations.

Create airtight contracts.

Contracts and agreements between you and contractors must clearly outline the scope of work, duties and responsibilities, and payment terms. Draft them with the regulations in mind. To avoid legal missteps, ensure these agreements comply with FLSA, IRS, and OSHA regulations.

Avoid scope creep. 

The law is very clear on factors that dictate whether a worker qualifies as an independent contractor. Remember that it all comes down to their financial and behavioral independence. Be careful not to overstep legal boundaries that could change their classification.

The key is consistency. Set clear rules for overseeing the job and adhere to the contract’s terms. Your treatment of contractors should remain uniform and standard throughout the project.

Provide necessary training. 

Safety training is a must for hiring contractors. Ensure they complete all required health and safety training before the project begins. 

It’s also in your best interest to train your managers on the legal principles governing contractors and employees. This can equip them during the vetting process and help them better manage projects in accordance with regulations. 

Set regular progress check-ins. 

See to it that the process stays on course. Establish regular check-ins where contractors submit performance reports detailing their deliverables, remaining tasks, and any challenges they face. This keeps you informed and allows for timely adjustments if needed.

At the same time, conduct routine assessments or audits from your end to track how the project is progressing. This helps ensure that contractors are set to meet deadlines and follow safety and health regulations. Regular check-ins keep the projects on track and minimize potential issues before they become bigger problems.

Stay abreast of relevant rules and regulations.

Labor laws can change at any time, so employers must stay up-to-date. Case in point: US Department of Labor’s final rule on worker classification. Previously, the law only looked at the economic dependence of workers on their employers. The more economically dependent a worker was on the employer, the more likely they were to be considered an employee. However, the changes take a broader approach and now consider the “totality of circumstances” when classifying workers. 

Streamline the process with technology. 

Contractor compliance can be complicated, requiring new administrative tasks and management processes for your managers and HR. However, technology can simplify some processes involved with working with contractors, such as onboarding, time tracking, payroll, and documentation.

Workforce.com simplifies contractor compliance

Managing employees is complicated enough, and adding contractors into the mix can come with its own set of challenges. But don’t let this discourage you from getting contractors for specialized projects, especially if they provide more flexibility. 

There’s a way to manage contractors in a more streamlined way. Here’s how Workforce.com can help. 

Onboarding 

Workforce.com’s onboarding system lets 1099 workers easily and independently submit all necessary paperwork, bank details, and contracts to employers. This self-service portal relieves the administrative burden from the employer and ensures all information is in place for contractors to get paid correctly.

Time tracking

Depending on the contract, contractors submit timesheets before they get paid, but you can simplify the process with Workforce.com’s time and attendance system. Instead of dealing with paperwork, contractors can log in and out through the time clock, automatically generating timesheets based on their time punches.

You can set up a Workforce.com on-site or you can allow contractors to clock in and out through their own device via the Workforce.com app. This ensures accurate time tracking across multiple locations, making recordkeeping more manageable and ensuring contractors are paid on time, especially if specific hours were agreed upon.

Scheduling & task management

Workforce.com also has a scheduling system that contractors can use to plan their work accordingly. They can build and assign shifts, create to-do lists, and communicate with other workers to more easily map out where and when work gets done.

PayrollWorkforce.com’s payroll system can simplify how you pay contractors. Along with your W-2 staff, the system will also automatically process payment for your 1099 workers based on hours worked and the terms of their contract. At the end of the year, Workforce.com will also provide you with all necessary 1099 forms, which your contractors will use to file their taxes.

Recordkeeping

Workforce.com keeps all contractor records organized in one place, helping you access everything in case of audits or compliance reviews. It stores contracts, timesheets, IRS forms, and other important documents related to each project, helping you stay on top of everything and remain compliant. 

Ready to improve how you manage contractor compliance? Book a demo and see how Workforce.com can help.

Posted on October 13, 2024October 15, 2024

California’s Meal and Rest Break Laws: What Employers Need to Know

Summary

  • California requires employers to provide their staff with a meal break and several rest breaks, depending on shift length.
  • Due to waiver conditions, industry-specific exceptions, and confusing legal jargon, complying with these rules is tricky.
  • Misunderstanding is no excuse for getting rest breaks wrong in California. Employers must equip themselves to schedule, track, and pay rest breaks correctly to avoid legal trouble.

Employee meal and rest break laws vary by state. Some lack regulations, while others have strict guidelines – the most stringent being California.

So, if you’re an employer in California, how do you know if you’re implementing meal and rest breaks correctly? Let’s break down what you need to know about these rules, what happens when you break them, and practical tips to ensure you remain compliant. 

What are California’s Meal and Rest Break Laws?

According to California’s Labor Commissioner’s Office, also known as the Division of Labor Standards Enforcement (DLSE), most non-exempt employees in California are entitled to distinct categories of breaks: a meal break and a rest break.

Meal Breaks

  • Employees who work more than five hours in a day are entitled to a 30-minute unpaid lunch break.
  • Employers must provide an additional 30-minute unpaid meal break to employees working more than 12 hours in a day.

Several conditions must be met to satisfy the requirements for a reasonable meal break. Employees must be fully relieved of all their duties, the break must go uninterrupted, and the employer cannot discourage or prevent it. Employees must also be free to use the time as they see fit. Whether they eat lunch, leave the premises, or take a quick nap, it’s their prerogative.

Failing/refusing to give a meal break

If an employer fails to provide a reasonable meal period, they owe the employee one extra hour of pay at the regular rate for each day they do not receive a meal break. This is what is known as premium pay.

If an employee’s meal break is less than 30 minutes, and they never agreed to end their break early in writing, it is considered “interrupted” and must be paid, along with the one additional hour of premium pay for a missed break.

Employees who do not receive premium pay have the right to submit a wage claim to the Labor Commissioner’s Office.

Waiving meal breaks

Can meal break times be waived? Yes, but only under certain circumstances. Both employer and employee can agree to waive the meal break if a shift is 6 hours or less. At the same time, employees can skip the second 30-minute meal break, provided they took the first meal break and worked more than 10 but less than 12 hours. 

Waiving breaks should not be standard practice and should only be agreed to if a meal break will prevent an employee from completing an essential task. Employers should always properly document waived breaks in writing to protect themselves from unclaimed wage lawsuits.

On-duty meal breaks

There are cases when employees can’t be fully relieved of their duties during meal breaks or leave the premises while on break. If that’s the case, the rules for on-duty meal periods will apply, and these are the following: 

  • If an employee must remain at the work site or facility during the meal period, the meal period must be paid. 
  • On-duty meal periods are only allowed under certain conditions where the nature of the job makes it impossible for workers to be free of all of their duties while on break. Examples are sole employees in a coffee kiosk, night shift workers in a convenience store, or security guards stationed alone.
  • Both employer and employee must agree in writing. The document should state the terms of the on-duty meal period and explicitly state that the employee can cancel the agreement anytime if they no longer wish to have on-duty meal breaks.
  • On-site meal breaks should only happen for real, job-related reasons requiring employees to stay on the premises, not just because the employer and employee agree. The nature of the work should make it necessary for employees to remain at the job site, even during meal breaks.

Rest Breaks

  • Employers must provide a ten-minute paid rest period for every four hours worked or a significant fraction thereof.
  • As much as possible, the break should be taken around the middle of the work period.
  • The 10-minute rest break should start when an employee reaches a proper place to rest away from their work area. Employers must provide a suitable place for rest that’s separate from the restroom and available during work hours.
  • If a rest break is not provided, the employee is owed an additional hour of premium pay at their regular pay rate.

As with meal breaks, employees must be free from job responsibilities during their rest period. Furthermore, employees must not be on call during this time. Employees working at most three and a half hours are not entitled to rest breaks.

Employees can skip their rest breaks, but it must be their choice without any pressure or influence from the employer. It’s also wise to document every time a break is missed or skipped – an employer should have in writing why a break was skipped and if the employee agreed to it.

What makes compliance with California’s break time laws challenging

Due to the sheer complexity of California’s break laws, it can be difficult for employers to get everything right, even if they have the best intentions. Here are some of the most common roadblocks employers face regarding California meal and rest break laws:

Complying with industry-specific rules and exemptions

Aside from the basic rules around unpaid meal breaks and paid rest periods, California employers must also ensure that they follow applicable industry-specific regulations and exemptions. Here are some examples of such:

  • Employees in the motion picture industry must not work for more than 6 hours without taking at least a 30-minute break but not exceeding an hour. After that, employers must provide a second meal break no later than 6 hours after the previous one has ended. (IWC Order No. 12)
  • Hot meals and drinks must be provided for production employees working after 12 midnight.  (IWC Order No. 12)
  • Performers engaged in strenuous activities, such as swimmers, dancers, and skaters, shall have additional interim rest periods during shootings and rehearsals.  (IWC Order No. 12)
  • Rest breaks can be staggered in the construction, drilling, logging, and mining industries to prevent disruptions in operations. If a break is missed, it must be provided within the same workday; otherwise, the employer must pay a penalty for the missed break. (IWC Order No. 16)
  • Healthcare industry workers who work shifts longer than 8 hours may voluntarily waive their right to one of their two meal periods, provided that there’s a written agreement signed by the employer and employee. Employees can revoke the waiver with at least one day’s written notice. (IWC Order No. 4)
  • Employees who are directly responsible for the care of children under 18 years old or still in the foster system who need 24-hour care and employees who are working in 24-hour residential care facilities for the elderly, blind, and developmentally disabled individuals may be required to work on-duty meal periods without extra pay, especially if they must meet regulatory standards. This applies if:
    • The employee eats with the residents and is provided the same meal for free.
    • The employee is solely responsible for the residents, and a free meal is provided during the day shift.

Incorrect interpretations

Legal jargon is notoriously ambiguous and sometimes difficult to understand. Regardless, incorrectly interpreting California’s break laws can result in costly lawsuits—case in point: Bono Enterprises, Inc. vs. Bradshaw.

Bono Enterprises Inc., operating under the business name American Temporary Services (ATS), was a temporary work agency that supplied roughly 1,000 Californian employers with a workforce. One of their clients is a manufacturing plant in Modesto. ATS temp workers were not given security clearance in the plant, which resulted in them remaining in the plant premises during their 30-minute meal breaks.

Several employees filed complaints for not receiving paid wages for lunch periods when they had no choice but to stay on the premises. However, ATS argued that the wording of the rule is vague and unclear.

Furthermore, employees are relieved of all work duties during their meal breaks and can access an on-site cafeteria and relaxation areas. 

The commissioner ruled in favor of the employees, and the court agreed with their interpretation. The ruling emphasized that unpaid meal breaks must allow employees to spend their time as they choose, including leaving the premises. Being restricted on-site meant they could still be under the employer’s control, which violates the law.

This case clearly illustrates how easily the law can be misunderstood and reminds employers to tread carefully and err on the side of caution. It’s best to seek legal advice when in doubt or faced with unclear regulations. 

Tracking break times 

While it’s not the employer’s job to police how employees spend their break time, it is their duty to ensure that breaks are provided as required by the law. 

The challenge comes with determining which breaks are paid and unpaid and knowing when an employee qualifies for premium pay. Employers must also ensure the system isn’t misused to gain extra pay, such as manipulating break times to extend paid hours. And let’s not forget documentation and keeping track of waivers. These tasks add to the already heavy workload of HR workforce management.

Stay on top of California Labor Laws with Workforce.com

California meal and rest breaks are not only difficult to understand but also tricky to implement. Luckily, a payroll system like Workforce.com can help you automatically ensure employees receive what they are entitled to.

Here is how Workforce.com handles breaks in California:

Properly identifying paid and unpaid meal breaks

Workforce.com helps you identify which meal breaks are unpaid and when premium pay will apply. 

Employees clock in and out for meal breaks on Workforce.com’s time clock app. If they return early, you can set up shift questions asking if they are coming back by choice. If so, the break remains unpaid. However, if they answered no and indicated their manager asked them to return early, it would be an interrupted, paid break. Managers are notified in these cases to verify the situation.

Automated timesheet attestations

When staff clock out of their shift, you can prompt them with a series of questions certifying the accuracy of their timesheets. If no meal or rest breaks were taken, Workforce.com will give the employee an option to sign a waiver indicating whether or not they agreed to take their break. Every attestation and break waiver is filed securely in your document library, which you can refer to in case of an external audit or lawsuit.

Ensuring breaks are properly scheduled

Managers can easily customize and schedule compliant breaks in Workforce.com’s scheduling system. These breaks can be configured to automatically apply to any shift that meets the minimum required length. These preventative workflows ensure correct breaks are always scheduled with minimal manual effort.

Notifications and alerts

With Workforce.com’s mobile employee app, employees get reminders to take their breaks and clock in and out for meal and rest periods. At the same time, managers can also receive notifications if any of their team members seem to have missed their breaks. This way, they can investigate and address any issues quickly. 

Automated premium payments

When an employee fails to receive or misses a break, Workforce.com’s payroll system automatically calculates the correct premium payment amount they are owed based on their time logs and pay rate. This additional pay is reflected on the timesheet and properly paid out on payday.

Learn more about how Workforce.com’s payroll and scheduling system can help you easily manage rest breaks in California. Book a demo today.

Posted on September 25, 2024September 25, 2024

Predictive Scheduling Laws Explained: A Guide for Employers [2024]

Summary:

  • Inconsistent shifts and sudden schedule changes place undue financial and logistical stress on the lives of employees outside of work. 
  • Predictive scheduling laws address this issue by mandating advance notice for schedules and premium pay for sudden shift changes. However, navigating these laws can be challenging due to varying city and state regulations.
  • Employers navigate predictive scheduling laws with specialized software that accounts for local labor ordinances, enforces fair scheduling practices, automates predictability pay, and maintains records.

Unpredictable shifts and last-minute changes have long been sources of financial instability and stress among hourly workers. In response, some cities nationwide have implemented predictive scheduling laws, also known as Fair Workweek laws, to create more predictable and transparent schedules for employees. 

While predictive scheduling laws are intended to improve worker well-being and foster a healthier workplace, it is not always easy for employers to implement these new standards. Understanding the ins and outs of these ordinances is essential to avoid penalties and maintain workforce satisfaction and productivity. 

Whether managing a retail chain, restaurant, hotel, or any business with hourly staff, this article will help you balance operational flexibility with legal compliance. 

What are predictive scheduling or Fair Workweek laws?

Predictive scheduling laws are ordinances that promote fair schedule processes, including giving sufficient notice to employees about their work schedules. 

While Fair Workweek ordinances may vary city by city, they typically include the following:

  • Advance notice of work schedules, typically 14 days in advance
  • Predictability pay or premiums when schedules change after the notice period
  • Right to rest between shifts or clopening bans
  • Right to decline shifts made past the advance notice or opportunities for extra hours
  • Good faith estimates of work schedules upon hiring

The impact of unpredictable schedules on workers

Unpredictable schedules are a significant source of disruption in workers’ personal lives. Employees cannot properly budget for the month, make plans with acquaintances, or reliably fulfill other obligations without an appropriate degree of certainty in their work schedule.

For shift-based workers, flexibility means knowing their work schedules well in advance, not the day before a shift so that they can plan for childcare, doctor’s appointments, second jobs, studies, and other obligations.

Financial pain points are another issue workers must contend with when their schedules are unpredictable. It’s hard for them to anticipate their earnings and manage their budgets when their income is erratic.

In response, some cities have passed rules around predictive scheduling to help alleviate such challenges for employees. So, which places implement Fair Workweek ordinances?

Where are predictive scheduling laws being implemented?

Oregon

Oregon is the only place where predictive scheduling laws are being implemented state-wide so far. 

Covered employers

Businesses in the retail, hospitality, and food services industries that have at least 500 employees

Advance notice requirements

  • 14 days in advance, including on-call work
  • Good faith estimates upon hiring
  • Employees can decline shifts that are not included in the written work schedule.

Predictability pay

Employees are entitled 1 hour at regular rate of pay plus wages if the following changes are made without advance notice:

  • Additional 30 minutes or more to a shift
  • Date or time change of a shift with no loss of hours
  • Additional work or on-call shift

Employees are entitled to half of their regular rate of pay if:

  • Hours are subtracted from the shift before or after they report for duty
  • Changes result in loss of shift hours
  • A shift is canceled
  • When they are scheduled for on-call work but are not called in

Rest hours and clopening

There must be a rest period of 10 hours in betweeen shifts. Employees can decline the rest period and be paid time and a half pay. 

Exceptions

Additional pay is not required for schedule changes due to natural disasters or events outside an employer’s control, such as floods, earthquakes, tsunamis, wildfires, extreme temperatures, war, or explosions. 

California

Berkeley

Covered Employers

  • Employers in the City of Berkeley with 10 or more employees in the:
    • Building services, healthcare, hotel, manufacturing, retail, or warehouse services with 56 or more employees globally
    • Restaurant industry and has more than 100 employees globally
  • Franchisees primarily engaged in the retail or restaurant industries associated with a network of franchises that employ 100 or more globally
  • Non-profit organizations in the building services, healthcare, hotel, manufacturing, retail, warehouse services, or restaurant industries and employ 100 or more globally

Advance notice requirements

  • 14 days or two weeks’ notice
  • Good faith estimate for new employees
  • Employees have the right to decline hours that are added after the notice period.

Predictability pay

  • 1 hour of predictability pay for any schedule change made between 1 and 14 days before a shift.
  • Up to 4 hours of predictability pay (or the number of hours reduced, whichever is less) for cancellations or reduced hours with less than 24 hours’ notice.
  • 1 hour of predictability pay for adding, changing, or moving a shift with less than 24 hours’ notice.

Rest hours and clopening

Employers must allow employees to decline shifts that occur less than 11 hours apart.

Exceptions

Predictability pay is not applicable to employee-initiated shift swaps or changes. It is also not owed for grace periods of 10 minutes before and after a shift.

Access to hours for existing employees

Employers must offer any additional hours to existing part-time employees before hiring new staff or temporary workers. 

Emeryville

Covered employers

Employers with nonexempt full-time, part-time, on-call, contract, and seasonal employees that are in:

  • Retail with 56 or more employees globally
  • Fast food with 56 or more employees globally or 20 or more employees in Emeryville

This includes franchisees associated with a franchisor or a network of franchisees with more than 12 locations globally. 

Employers located outside the city but employ workers performing work in Emeryville are also covered.

Advance notice requirements

  • 14 days in advance
  • Good faith estimate to new employees
  • Employees can decline unscheduled hours given less than the notice.

Predictability pay

  • If a schedule change is made between 1 and 14 days before the shift, employees receive 1 hour of pay for any affected shift.
  • For cancellations or reduced hours with less than 24 hours notice, employees get the lesser of 4 hours of pay or the originally scheduled hours.
  • Any other changes made within 24 hours will give employees 1 hour of pay.

Rest hours and Rest hours and clopening

Employers must pay time and half pay for any hours worked for shifts that are less than 11 hours apart.

Exceptions

Predictability pay does not apply to employee-initiated shift swaps or for grace periods of 10 minutes or less before and after a shift. The same goes for an employee who works past the schedule to finish a transaction.

Access to hours for existing employees

Employers must offer additional hours to existing qualified part-time employees until they reach 35 hours of work in a calendar week. 

San Francisco

Covered employers

Formula Retail establishments with at least 40 stores worldwide and 30 or more employees in San Francisco, including janitorial and security contractors.

Advance notice requirements

  • 2 weeks in advance
  • Good faith estimate to new hires

Predictability pay

  • 1 to 4 hours of pay for schedule changes made with less than 7 days’ notice
  • 2 to 4 hours of pay if an employee is on-call but not called in to work

Exceptions

Predictability pay is not applicable when:

  • There is a threat to the safety of employees’ and employers’ property, public utility failure, Acts of God, or causes outside the employer’s control.
  • An employee scheduled to work cannot come in and did not provide at least 7 days’ notice.
  • An employee failed to report to work or was sent home.
  • An employer requires the employee to work overtime.
  • An employee swaps shifts with a co-worker or asks for a shift change.

Access to hours for existing employees

Employers must first offer additional work to existing part-time employees as determined by the employer or if the part-timer has done similar work. 

Los Angeles

Covered employers

Retail businesses with 300+ employees globally

Advance schedule notice period

  • 14 days notice
  • Good faith estimate for new employees
  • Employees reserve the right to decline hours, shifts, and work locations made after the advance notice period.

Predictability pay

  • 1 hour at the regular rate for any increase in hours over 15 minutes
  • 1 hour at the regular rate for changes in the date, time, or location without changing the hours
  • Half the regular rate for a reduction in hours by 15 minutes or more
  • Half the regular rate for on-call hours when the employee isn’t called to work

Rest hours and Rest hours and clopening

Employees must not work a shift that starts less than 10 hours from the previous shift. Otherwise, employees must provide written consent, and time and a half pay applies for shifts following an insufficient rest period.

Exceptions

Predictability pay does not apply if:

  • An employee initiated the schedule change.
  • An employee agrees to cover an absent employee’s shift, provided the employer informs them that it’s voluntary and they can decline.
  • The employee’s hours are reduced due to a violation of law or company policy.
  • The employee accepts additional hours offered under section 185.05.
  • The employer’s operations are affected by legal issues or force majeure.

Access to hours for existing employees

Employers must offer work to current employees at least 72 hours before hiring a new employee or using a contractor, temporary service, or staffing agency to perform work. 

Illinois

Chicago

Covered employers

  • Employers that have at least 100 employees globally in the building services, healthcare, hotels, manufacturing, and warehouse services industries
  • Restaurant businesses with 250 employees and 30 locations
  • Employers with employees earning less or equal to $31.85 per hour or less than or equal to $61,149.35 in a year

Advance notice requirements

  • 14 days’ notice
  • Written estimate of work hours for new employees

Predictability pay

  • 1 hour of pay for every affected shift if the employer subtracts, adds, and changes shifts with no loss of hours after the 14-day notice period
  • 1 hour of additional pay for every affected shift when an employer adds hours or changes shifts with no loss of hours less than 24 hours before a shift
  • 50% of pay for lost hours when the employer subtracts hours less than 24 hours before a shift starts

Rest hours and clopening

Employees can decline shifts that start less than 10 hours after their last shift. If they work a shift within that time, they must be paid 1.25 times their regular rate.

Exceptions

Predictability is not applicable in cases of:

  • Threats to employers, employees, property, or when authorities advise against work.
  • Utility failures (electricity, water, gas, or sewer issues) at the workplace.
  • Natural disasters like floods, earthquakes, tornadoes, or blizzards.
  • War, civil unrest, strikes, safety threats, or pandemics.
  • Shift trades or coverage agreed upon by employees.
  • Schedule changes mutually agreed upon by employee and employer, confirmed in writing.
  • Schedule changes requested by the employee, confirmed in writing.
  • Reduction in hours for documented disciplinary reasons.

Access to hours for existing employees

Employers must first offer extra shifts to qualified employees. If no employees accept, the shifts can be offered to temporary or seasonal workers who have been with the employer for at least two weeks.

Evanston

Covered employers

Employers with:

  • 100 or more employees globally, franchises included, in the hospitality, retail, warehouse services, manufacturing, and building services industries
  • At least 30 locations globally and 300 employees in the food service and restaurant industry

Advance notice requirements

  • 14 days notice
  • Good faith estimate for new employees

Predictability pay

  • 1 hour of predictability pay if employers add hours or change the date/time of a shift after the 14-day notice period, with no loss of hours.
  • 1 hour of predictability pay if employers reduce hours from a regular or on-call shift with more than 24 hours notice.
  • If less than 24 hours notice is given, employees may receive up to 4 hours of predictability pay, depending on the number of hours affected.
  • For on-call employees not called in, the employer must pay half of the missed hours or 4 hours, whichever is less, if the employee isn’t being paid their regular rate.

Rest hours and clopening

Employees must be paid 1.5 times their regular rate for any hours worked less than 11 hours after their last shift. They must provide written consent to work within this 11-hour window.

Access to hours for existing employees

Employers must offer extra shifts to qualified employees first. If no employees take the shifts, they can be offered to temporary or seasonal workers who have been with the employer for at least two weeks.

New York

New York City

Fair Workweek rules in New York City apply to two work sectors — fast food and retail industries.

Covered employers

  • Fast food establishments that are part of a chain and are one of 30 or more establishments nationally.
  • Retail employers that operate one or more retail establishments in New York City

Advance notice requirements

  • Fast food businesses must give regular schedules that stay the same week-to-week and must give schedules 14 days in advance. 
  • Retail employers must give 72 hours’ advance notice of work schedules. Shift additions and cancellations are prohibited with less than 71 hours’ notice, and there must be no on-call shifts. 
  • Workers can accept or decline additional work time.

Predictability pay

  • Fast food employers must pay $10 to $75 for every change made to a shift after the notice period for 
  • Retail employers must pay $300, as well as damages, to the affected workers. A fine of $500 can also be imposed. It could be more if the employer violated the law before.

Rest hours and clopening

Fast food employers are not required to pay premiums for schedule changes due to:

  • Threats to employees’ or employers’ property
  • Public utility failure or public transport shutdown
  • Natural disasters such as fire or flood
  • Federal, state, or local state of emergency
  • Severe weather conditions that can compromise employee safety
  • Employee-initiated changes such as time off requests, using sick leaves, arriving late, or needing to leave early (must be adequately documented)

More about New York City’s Fair Workweek Laws for Fast Food and Retail Businesses

Pennsylvania

Philadelphia

Philadelphia

Covered employers

Employers with more than 250 employees worldwide and 30 or more locations worldwide, including chains and franchises in the service, retail, and hospitality industries.

Advance notice requirements

  • 14 days’ notice
  • Good faith estimate upon hiring an employee
  • Employees may decline additional work hours not posted in the schedule after the notice period.

Predictability pay

  • 1 hour of regular rate of pay when the employer adds time to a scheduled shift. The same applies when changes are made to the date, time, or location with no loss of hours. 
  • Half of the regular rate of pay for any scheduled hours the employee does not work due to reduced hours from a regular or on-call shift. The same applies when an on-call shift is canceled.

Rest hours and clopening

There should be a rest period of at least 9 hours between shifts. Otherwise, an employee must consent in writing. Employers must also pay $40 for each clopening shift.

Access to hours for existing employees

Before hiring new employees or using subcontractors or staffing agencies, the employer must first offer available shifts to existing employees.

Washington

Seattle

Covered Employers

  • Retail and food service establishments with at least 500 employees worldwide
  • Full-service restaurants that have at least 40 full-service locations worldwide

Advance notice requirements

  • 14 days advance notice
  • Good faith estimate for new employees
  • Employees can decline hours not in the originally posted schedules

Predictability pay

  • 1 hour of pay for hours added to a shift or when the date or time is changed
  • Half of the hours not worked when an employee is sent home early
  • Half of the hours not worked when an employee is scheduled for on-call work but is not called in

Rest hours and clopening

There must be 10 hours of rest in between shifts. Employees are entitled to time and a half pay for clopening hours that are less than 10 hours apart. 

Exceptions

Predictability pay is not applicable when:

  • The employee asked for the changes in schedule or traded shifts with a co-worker. 
  • The employee responded to a message about available hours because another employee couldn’t work.
  • The employee replied to a message about hours available due to unexpected customer needs.
  • The reduction in hours was due to discipline.
  • The change was due to threats, public official recommendations, utility failures, natural disasters, or legal issues.

Access to hours for existing employees

The employer must offer extra hours to current employees before hiring external candidates, subcontractors, or temporary workers. Employers must post a notice of available hours for three days. Employees have two days to decide if they want the extra hours before the employer hires outside help.

Compliance Tips for Fair Workweek Ordinances

Implementing predictive scheduling laws into your operations can be complicated – it’s easy to overlook crucial details if your policies aren’t thorough. Here are some practical tips to help your business remain on the right side of the law.

Stay abreast of ordinances in your place of business

Only a handful of cities have an ordinance for predictive scheduling, but this could change in the future. It’s best to stay informed about any updates or new regulations in your area.

Keeping up with changes is crucial if you’re in a city or state that has existing Fair Workweek laws. For example, New York City previously required fast food employers to provide a good faith estimate of work hours to new hires, but this was replaced with a mandate for regular week-to-week schedules.

Check with local and state governments regularly for updates on employment laws and scheduling practices to ensure your business remains compliant.

Invest in predictive scheduling software

Predictive scheduling laws are just one of the many employment regulations that businesses must comply with. Many businesses invest in scheduling and payroll solutions that help mitigate predictive scheduling headaches. Software like this automates key areas like shift notifications and predictability pay, ensuring that you meet Fair Workweek standards.

Workforce.com, a scheduling and payroll platform designed for hourly workforces, specializes in predictive scheduling and Fair Workweek compliance. Here’s how it can help:

  • Shift scheduling and labor forecasting – Avoid over or understaffing with demand-based schedules. Workforce.com can use data that indicates possible demand, such as historical sales, foot traffic, booked appointments, and even weather information, so you can schedule the correct number of staff for each shift well in advance.
  • Alerts and announcements—A critical part of Fair Workweek ordinances is ensuring employees are notified of posted schedules in time. Workforce.com makes this easy—once a schedule is published, employees are notified through the app, and you can also print the schedule. A robust communications feature lets you send announcements about schedule updates and live chat with staff and managers to maximize transparency and efficiency.
  • Pay rules – Assign pay rules to each employee, including those predictability pay they may be entitled to when certain conditions get triggered. Once set up, these rules are automatically applied during payroll, eliminating the need for manual entries and calculations.
  • Employee tags and classification – Assign tags to covered employees of predictive scheduling rules to ensure they receive the correct pay when predictability pay conditions are met. You’ll also receive automatic alerts when scheduling an employee at risk of working a clopening shift.
  • Shift swapping – Workforce.com has shift-swapping functionality that allows qualified staff to take up vacant shifts. This helps automate the process and provides a simple way to track and record shift changes. 
  • Payroll – Another crucial part of complying with predictive scheduling laws is ensuring covered employees are paid what they’re owed, including applicable predictability pay. Workforce.com automatically computes wages, overtime, deductions, and predictability pay premiums based on timesheets and hours worked by your employees. 
  • Recordkeeping – Employers are required to maintain records of schedules and documentation related to Fair Workweek compliance. Workforce.com centralizes this information, making it easily accessible. In the event of an audit or when you need to retrieve these records, everything is organized and readily available. 

Train managers and HR teams

Managers and human resources are at the frontline of implementing predictive scheduling laws. Train them to understand the specifics of these ordinances and how to communicate them to staff. As a crucial part of compliance, they must have the training and resources to ensure company policies align with and adhere to applicable labor laws.

Why fair scheduling practices matter

Fair scheduling practices are essential to any hourly workforce, regardless of whether predictive scheduling laws exist in your area. Equitable workplace policies should not just stem from the need to comply – they should begin with the desire to equip and support your employees.

A consistent and transparent scheduling system minimizes scheduling conflicts, reduces absenteeism, improves retention, and provides flexibility for hourly staff. This should be standard practice, whether mandated by law or not. Discover how Workforce.com helps you implement best practices with employee scheduling, payroll, and HR for hourly workforces. Book a demo today. 

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