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Posted on April 24, 2026May 6, 2026

Fair Workweek Laws Explained: A Guide for Employers [2026]

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 schedules and last-minute shift changes have long created financial instability and operational challenges in hourly workplaces. In response, a growing number of U.S. jurisdictions have introduced Fair Workweek laws to improve schedule predictability and transparency.

What are predictive scheduling or Fair Workweek laws?

“Fair Workweek laws” is a commonly used term for a set of local labor regulations, also known as predictive scheduling laws, that aim to give employees more predictable, stable work schedules. The term has evolved into a catch-all for a growing set of local and state regulations aimed at addressing “just-in-time” scheduling practices.

There is no single federal Fair Workweek law in the United States. Instead, individual jurisdictions have enacted their own rules under different names. For example, New York City, Chicago, and Philadelphia use “Fair Workweek,” while others, such as Oregon, Seattle, and San Francisco, use different terminology but enforce many of the same requirements.

At their core, these laws are designed to reduce the uncertainty and financial instability that can result from last-minute scheduling changes in hourly workplaces.

Although requirements vary by location, most Fair Workweek laws include a common set of rules:

  • Advance notice of schedules: Employers must provide work schedules in advance, typically 14 days.
  • Predictability pay: Employees receive additional compensation if schedules are changed after posting.
  • Right to rest: Employers must provide a minimum number of hours between shifts or pay a premium if the employee agrees to work.
  • Right to decline shifts: Employees can refuse certain last-minute or “clopening” shifts without penalty.
  • Good faith estimate: Employers must provide an estimate of expected work hours at the time of hiring.
  • Access to additional hours: Existing employees are often given priority for additional shifts before new hires.

Many laws also include recordkeeping requirements and protections against retaliation.

In practice, Fair Workweek laws apply to a relatively small portion of the U.S. workforce—primarily large employers in industries like retail, hospitality, and food service—but they can have a significant operational impact on businesses that meet coverage thresholds.

Enforcement and risk also vary widely by jurisdiction. Some cities, like New York, have pursued large, high-profile enforcement actions, while others rely more on complaint-driven enforcement. As a result, compliance priorities often depend as much on location as on the law itself. Even so, compliance isn’t something employers can afford to overlook, as violations can still surface through complaints and lead to penalties.

Where are Fair Workweek laws being implemented?

Oregon (Statewide Predictive Scheduling Law)

Oregon is the only place where predictive scheduling laws are being implemented statewide so far.

Covered employers

Employers in the retail, hospitality, and food service industries with 500 or more employees worldwide

Advance notice period

  • Written work schedules at least 14 days in advance, including on-call work
  • Good faith estimates upon hiring
  • Employees may decline shifts that are not included in the posted schedule.

Predictability pay

Employees are entitled to additional compensation when schedules are changed without sufficient notice:

  • One hour of additional pay at the regular rate, in addition to wages earned, when:
    • Time is added to a shift (30 minutes or more)
    • The date or start/end time of a shift is changed without reducing hours
    • An additional shift or on-call shift is added
  • Half the employee’s regular rate of pay for lost hours when:
    • Hours are reduced
    • Changes that result in loss of shift hours
    • A shift is canceled
    • An on-call shift is not ultimately worked

Rest hours and clopening

There must be a 10-hour rest period between shifts. Employees can decline the rest period and be paid at time and a half. 

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.

Berkeley, CA (Fair Workweek Ordinance)

Berkeley’s Fair Workweek Ordinance applies to employers in certain industries, with coverage thresholds that vary by sector.

Covered employers

Employers operating in the City of Berkeley with 10 or more employees in Berkeley, and:

  • 56 or more employees globally in industries such as retail, hospitality, healthcare, building services, manufacturing, and warehouse services
  • 100 or more employees globally if they are:
    • Restaurant employers
    • Franchisees in the retail or restaurant industries
    • Nonprofit organizations in covered industries

Advance notice period

  • Written work schedules at least 14 days in advance, including on-call work
  • Good faith estimates upon hiring

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 worker.

Emeryville, CA (Fair Workweek Ordinances)

Emeryville’s Fair Workweek Ordinance applies to retail and fast food employers, including certain franchise businesses.

Covered employees

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

Advance notice period

  • Written work schedules at least 14 days in advance
  • Good faith estimates upon hiring
  • Employees can decline unscheduled hours given less than the notice.

Predictability pay

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

Rest hours and clopening

Employers must pay time and a half pay for any hours worked for shifts that are less than 11 hours apart. Employees have the right to decline shifts less than 11 hours apart.

Exceptions

Predictability pay is not required in certain situations, including:

  • Employee-initiated changes, such as voluntary shift swaps or requests to modify a schedule
  • Minor schedule adjustments, including changes of 10 minutes or less before or after a shift
  • Events outside the employer’s control, such as natural disasters or utility failures
  • When employees work past their scheduled shift to complete a transaction that results in a commission or tip
  • Mutually agreed-upon changes, where employees voluntarily accept additional work in advance

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 in at least 4-hour increments.

Recordkeeping requirements

Employers must maintain records for at least three years.

San Francisco, CA (Formula Retail Employee Rights Ordinance)

San Francisco’s Formula Retail Employee Rights Ordinance (FRERO) applies to large chain retail businesses with standardized operations.

Covered employers

Formula retail establishments with 40 or more locations worldwide and 20 or more employees in San Francisco, including janitorial and security contractors.

Advance schedule notice period

  • Written work schedules at least 14 days in advance
  • Good faith estimate of hours upon hiring

Predictability Pay

Employees are entitled to predictability pay for schedule changes made with less than 7 days’ notice, including:

  • Added or changed shifts
  • Reduced or canceled shifts
  • Unused on-call shifts

The amount of pay varies depending on the type and timing of the change.

Exceptions

Predictability pay is not required in certain situations, including:

  • Threats to employee safety, property damage, or events outside the employer’s control
  • Employee-initiated schedule changes or shift swaps
  • When an employee fails to report to work or is sent home for disciplinary reasons

Equal treatment for part-time employees

Employers must provide part-time employees with the same starting hourly wage and access to promotions as full-time employees performing similar work.

Los Angeles City, CA (Fair Workweek Ordinance)

Los Angeles’ Fair Work Week Ordinance applies to large retail employers operating within the city.

Covered employers

Retail businesses with 300 or more employees globally

Advance notice period

  • Work schedules at least 14 days in advance
  • Good faith estimate of hours upon hiring
  • Employees may decline hours or shifts added after the notice period.

Predictability pay

Employees are entitled to additional compensation when employers make changes to the posted work schedule:

  • 1 hour of pay at the regular rate for each employer-initiated change that:
    • Increases scheduled hours by more than 15 minutes, or
    • Changes the date, time, or location of a shift
  • Half the employee’s regular rate of pay for hours not worked when:
    • Scheduled hours are reduced by 15 minutes or more
    • An on-call shift is not worked

Rest hours and clopenings

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 to shifts following an insufficient rest period.

Exceptions

Predictability pay is not required in certain situations, including:

  • Employee-initiated schedule changes
  • Voluntary shift coverage for absent employees
  • Reductions due to disciplinary action or policy violations
  • Additional hours accepted voluntarily under the ordinance
  • Events outside the employer’s control

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.

Recordkeeping requirements
Employers must maintain records for at least three years.

Los Angeles County, CA (Fair Workweek Ordinance)

Los Angeles County’s Fair Workweek Ordinance, effective July 1, 2025, expands predictive scheduling requirements to retail employers operating in unincorporated areas of the county.

Covered employers

Retail businesses with 300 or more employees globally that operate in unincorporated areas of Los Angeles County.

Advance notice period

  • Work schedules at least 14 days in advance
  • Good faith estimate of hours upon hiring
  • Employees may decline hours or shifts added after the notice period.

Predictability pay
Employees are entitled to additional compensation when employers make changes to the posted work schedule:

  • 1 hour of pay at the regular rate for each change to a scheduled date, time, or location that:
    • Does not result in a loss of work time, or
    • Results in additional work time of more than 15 minutes
  • Half the employee’s regular rate of pay for hours not worked when:
    • Scheduled work time is reduced by 15 minutes or more
    • An on-call shift is not worked

Rest hours and clopening

  • Employees may decline shifts scheduled less than 10 hours apart
  • Employees may agree to work such shifts, but must provide written consent and be paid time and a half for those hours.

Access to hours for existing employees

Employers must offer additional hours to current employees before hiring new staff or using contractors or staffing agencies.

Exceptions
Predictability pay is not required in certain situations, including:

  • Employee-initiated schedule changes, such as requests to modify a shift or voluntary shift swaps
  • Voluntary acceptance of additional hours, including when covering for another employee’s absence, provided the employee is informed that the change is voluntary and consents.
  • Reductions in hours due to violations of law or company policy
  • Events outside the employer’s control, such as natural disasters or public emergencies

Recordkeeping requirements

Employers must maintain records of work schedules, schedule changes, and employee consent for at least three years.

Chicago, IL (Fair Workweek Ordinance)

Chicago’s Fair Workweek Ordinance applies to employers across several industries and includes both employer-size and employee-wage thresholds.

Covered employers

  • Employers with 100 or more employees globally in the following industries:
    • Building services
    • Healthcare
    • Hotels
    • Manufacturing
    • Retail
    • Warehouse services
  • Restaurant employers with 250 or more employees and at least 30 locations globally
  • Covered employees are those earning $32.60 per hour or less, or $62,561.90 per year or less

Advance notice requirements

  • Notice of work schedules at least 14 days in advance
  • Good faith estimate of work hours upon hiring

Predictability pay

Employees are entitled to additional compensation when schedules are changed after posting:

  • 1 hour of pay for changes made with less than 14 days’ notice

For changes made with less than 24 hours’ notice:

  • 1 hour of pay if employers add hours, or there is no loss of hours
  • Half pay for hours not worked if hours are reduced

Exceptions
Predictability pay is not required in certain situations, including:

  • Threats to employees, employers, or property, or when authorities advise against work
  • Utility failures at the workplace
  • Natural disasters or severe weather events
  • War, civil unrest, strikes, or public emergencies
  • Voluntary shift trades or coverage between employees
  • Schedule changes mutually agreed upon in writing
  • Employee-requested schedule changes
  • Reductions in hours due to documented disciplinary action

Access to hours for existing employees

Employers must offer additional shifts to qualified employees before hiring new staff. If shifts are not accepted, they may be offered to temporary or seasonal workers.

Recordkeeping requirements

Employers must maintain records of work schedules, schedule changes, predictability pay, and employee consent for at least three years.

Evanston, IL (Fair Workweek Ordinance)

Evanston’s Fair Workweek Ordinance closely mirrors Chicago’s, applying to employers in several hourly industries with both size and location thresholds.

Covered employers

Employers with:

  • 100 or more employees globally, including franchises, in the following industries:
    • Hospitality
    • Retail
    • Warehouse services
    • Manufacturing
    • Building services
  • Food service and restaurant employers with 30 or more locations globally and 300 or more employees globally

Advance notice requirements

  • Notice of work schedules at least 14 days in advance
  • Good faith estimate of work hours upon hiring

Predictability pay
Employees are entitled to additional compensation when employers make changes to the posted work schedule:

  • 1 hour of pay per impacted shift when:
    • Hours are added after the 14-day notice period
    • The date or time of a shift is changed with no loss of hours after the 14-day notice period
    • Scheduled hours are reduced with more than 24 hours’ notice
  • When scheduled hours are reduced with less than 24 hours’ notice:
    • Up to 4 hours of pay, or the number of hours in the scheduled shift (whichever is less)
  • On-call shifts:
    • If the employee is not compensated (or paid below their regular rate):
      • They are owed predictability pay if called in
      • They are owed up to 4 hours of pay (or scheduled hours, whichever is less) if not called in
    • If the employee is paid at their regular rate during the on-call shift, no additional predictability pay is required if they are called in

Rest hours and clopening

Employees must provide written consent to work shifts scheduled less than 11 hours apart. If they work such shifts, they must be paid time and a half.

Access to hours for existing employees

  • Employers must offer additional hours to existing employees before hiring new staff.
  • Employers must offer interested employees the opportunity to work up to 35 hours per week before hiring new employees.
  • Additional hours may be offered across locations, not just the employee’s primary worksite.

New York City, NY (Fair Workweek Law)

Fair Workweek rules in New York City apply separately to fast food and retail employers, with different requirements for each sector.

Covered employers

  • Fast food establishments that are part of a chain with 30 or more locations nationally
  • Retail employers with 20 or more employees in New York City

Advanced notice requirements

Fast food employers

  • Must provide work schedules at least 14 days in advance

Retail employers

  • Must provide work schedules at least 72 hours in advance
  • Employers cannot cancel a shift or add shifts without employee consent
  • Require on-call shifts 

Predictability Pay

Fast food employers

  • Must provide premium pay for schedule changes made after the notice period
  • Pay ranges vary depending on the timing and type of change (e.g., additions, reductions, or cancellations). It can cost $10-$75 per change, less than the notice period.

Retail employers

Retail laws do not include predictability pay. Instead, employers may face penalties and damages for violating scheduling requirements.

Rest and clopening

Fast food employers

Employers cannot schedule employees to work shifts with less than 11 hours between shifts (“clopening”) unless:

  • The employee is given the opportunity to decline
  • The employee provides written consent
  • The employer pays a $100 premium for each clopening shift worked

Retail employers

  • No specific rest period or clopening requirements

Access to hours for existing employees

Fast food employers

  • Must offer additional work hours to current employees before hiring new staff

Retail employers

  • No specific access to hours requirements

Exceptions

Fast food employers

Fast food employers are not required to provide premium pay in certain situations, including:

  • Threats to employee or employer safety or property
  • Public utility failures or transportation disruptions
  • Natural disasters or declared states of emergency
  • Severe weather conditions
  • Employee-initiated schedule changes (e.g., time-off requests or shift swaps)

Retail employers

No formal exceptions apply; instead, employers must comply with strict scheduling requirements, and violations may result in penalties.

Recordkeeping requirements

Fast food and retail employers must maintain records for at least three years.

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

Philadelphia, PA (Fair Workweek Law)

Philadelphia’s Fair Workweek law applies to large employers in retail, hospitality, and food service industries.

Covered employers
Employers with 250 or more employees globally and 30 or more locations globally, including chains and franchises in:

  • Retail
  • Hospitality
  • Food service

Advance notice requirements

  • Notice of work schedules at least 14 days in advance
  • Good faith estimate of work hours upon hiring
  • Employees may decline additional hours not included in the posted schedule

Predictability pay
Employees are entitled to additional compensation when schedules are changed after posting:

  • 1 hour of pay at the regular rate when:
    • Time is added to a scheduled shift
    • The date, time, or location of a shift is changed with no loss of hours
  • Half the employee’s regular rate of pay for hours not worked when:
    • Scheduled hours are reduced
    • An on-call shift is not worked

Rest hours and clopening

Employees must receive at least 9 hours of rest between shifts

If they agree to work with less than 9 hours between shifts:

  • They must provide written consent
  • Employers must pay a $40 premium for each clopening shift

Access to hours for existing employees

Employers must offer available work hours to existing employees before hiring new staff.

Recordkeeping requirements

Employers must maintain records for at least 2 years.

Seattle, WA (Secure Scheduling Ordinance)

Seattle’s Secure Scheduling Ordinance applies to large retail and food service employers and includes scheduling protections.

Covered employers

  • Retail and food service establishments with 500 or more employees worldwide
  • For full-service restaurants, coverage applies only if the employer also has 40 or more full-service locations worldwide

Advance notice requirements

  • Notice of work schedules at least 14 days in advance
  • Good faith estimate of work hours to new hires

Predictability pay

1 hour of pay at the regular rate when:

  • Hours are added to a shift
  • The date or time of a shift is changed

Half the employee’s regular rate of pay for hours not worked when:

  • Work hours are reduced
  • An on-call shift is not worked

Rest hours and clopening

Employees should receive at least 10 hours of rest between shifts. If they agree to work shifts less than 10 hours apart, they must provide consent, and employers must pay time and a half for those hours.

Exceptions

Predictability pay is not required in certain situations, including:

  • Employee-initiated schedule changes or shift swaps
  • Voluntary coverage for absent employees
  • Reductions due to disciplinary action
  • Events outside the employer’s control (e.g., natural disasters, utility failures, or public emergencies)

Access to hours for existing employees

  • Employers must offer additional hours to current employees before hiring externally
  • Employers must post available hours for at least 3 days
  • Employees must be given at least 2 days to accept the additional hours

Recordkeeping requirements

Employers must maintain records for at least 3 years. 

Anti-retaliation and enforcement risks

Compliance with Fair Workweek rules starts with getting schedules right. But beyond that, the law is also strict about how employers respond when workers actually use these protections. This is where anti-retaliation rules come in, and they’re baked into Fair Workweek ordinances. 

Aside from scheduling rules, most Fair Workweek ordinances also include safeguards that protect employees when they exercise their rights. In practice, this means employers can’t punish or disadvantage workers for things like declining shifts that don’t meet notice requirements, requesting predictability pay, raising concerns, or filing complaints.

These protections show up across major jurisdictions. For example:

  • New York City (fast food) makes it illegal to fire, reduce hours, or otherwise penalize employees for exercising their Fair Workweek rights.
  • Chicago and Philadelphia include similar language prohibiting retaliation against employees who assert their rights or participate in investigations.
  • Seattle also prohibits retaliation against employees for exercising their rights under the Secure Scheduling Ordinance.

The key takeaway is that compliance doesn’t end at scheduling. Even if your policies look right on paper, decisions like cutting hours, changing shifts, or disciplining employees after they raise concerns can create additional violations. 

Even if the scheduling issue itself seems small, how you respond can create a bigger problem. Retaliation can come with its own penalties.

Recordkeeping and documentation

Across many jurisdictions, employers are expected to keep track of work schedules, when they were posted, any changes made, and whether employees agreed to those changes. In some cities, records must be kept for a set period, often 2 to 3 years, and may be reviewed if a complaint or audit arises.

Good documentation can make a big difference. It helps show what actually happened in the event of a dispute, whether proper notice was given, and whether an employee consented to a shift change or clopening.

Some issues don’t come from the schedule itself. In some cases, they stem from being unable to prove what was communicated or agreed to. Keeping clear, consistent records across locations and managers can go a long way in reducing that risk.

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.

Invest in the right software

Fair Workweek laws are just one of the many employment regulations that businesses must comply with. Many businesses invest in scheduling and payroll solutions to automate key areas like shift notifications and predictability pay to help ensure they 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:

  • Shift scheduling and labor forecasting: Workforce.com uses data that predicts demand, including historical sales, foot traffic, booked appointments, and weather information.
  • 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 in the app, and you can also print it. 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 any predictability pay they may be entitled to when certain conditions are met. 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’s shift swapping feature allows qualified staff to take on 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 your employees’ timesheets and hours worked.  
  • Recordkeeping: Workforce.com centralizes records, making them easily accessible. In the event of an audit or when you need to retrieve these records, everything is organized and readily available.

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.

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. Provide them with resources to ensure that company policies align and comply with 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. Compliance is important, but it shouldn’t be the only driver behind workplace policies. Strong scheduling practices also play a key role in supporting employees and maintaining a stable workforce.

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. 

Posted on May 18, 2021June 29, 2023

Predictive scheduling laws: What they cover and how to comply

Over the past five years, the United States has seen a wave of new predictive scheduling laws aimed at providing employees with more predictable work schedules.

These predictive scheduling laws are designed to provide stability to individuals so that they can attend to their child care, health, education and, in many cases, second jobs. Early predictive scheduling laws only applied to retail establishments and restaurants, with limited penalties and no private right of action (i.e. employees could not sue for violations of the law).

However, more recent predictive scheduling laws cover a much broader array of industries, with far more draconian penalties, and allow for employee-initiated class action litigation. While these laws are well intentioned, they do present significant challenges for employers in terms of staffing, costs, document retention and general compliance.

This is because the legislation is relatively new and varies by city. Moreover, these laws often require dramatic departures from historical hiring and scheduling practices. The result is a patchwork of new laws, with limited guiding precedent and substantial penalties for noncompliance. As an employer, you would do well to heed these laws and take appropriate steps to ensure you are compliant.

Where have predictive scheduling laws been passed?

Many jurisdictions have considered, or are considering, passing predictive scheduling laws. So far, two states — Vermont and Oregon — and eight municipalities — San Francisco, Berkeley, Emeryville, San Jose, Seattle, New York, Chicago and Philadelphia — have passed laws. The laws in these jurisdictions are similar but different enough to discourage larger employers from creating company-wide policies and procedures for national compliance. Looking at 2021 and beyond, that list is likely to grow. Connecticut, Illinois, Maine, Michigan, Minnesota, New Jersey, North Carolina and Rhode Island all have predictive scheduling laws or equivalents under consideration.

Though most laws require employers to pay their employees predictability pay when their schedules are changed without advance notice, many laws contain different requirements regarding the amount of predictability pay owed, as well as exceptions to predictability pay entitlement. Accordingly, the differences in predictive scheduling laws not only require different scheduling policies, they require tailored and distinct payroll practices as well. Failure to properly pay employees under predictability pay rules can create federal and state wage and hour exposure as well.

It is also worth noting that some states have gone in the opposite direction, prohibiting the use of predictive scheduling legislation. Since 2017 Tennessee, Georgia, Iowa and Arkansas have all made it illegal for local government to require employers to adopt scheduling or hiring practices other than those already required by federal law.

What do predictive scheduling laws require?

While predictive scheduling laws from many of the jurisdictions contain several nuanced differences, there are general requirements that are common to many of them.

  • Advance notice of work schedule, generally at least 14 days.
  • A written estimate of each employee’s anticipated work schedule (at the time of hire).
  • Predictability pay in the absence of sufficient advance notice of work schedule.
  • Exceptions to eligibility for predictability pay.
  • A right to rest requirement to prevent “clopening” (i.e. no employee should be required to close up at night and open up the next day), as well as amplified pay for close-in-time work shifts.
  • Offers of additional hours to current part-time employees before hiring a new employee.
  • Posting requirements.
  • Stringent documentation and document retention requirements. This generally includes work schedules, written scheduling estimates, documents evidencing predictability pay, and documents related to offers of additional hours.

Though not common, some jurisdictions, such as Seattle and Philadelphia, encouraged employers to engage in an “interactive process” with employees who request a modification to their work schedules. Notably, this idea of an “interactive scheduling process” is one that has endured and presents additional managerial burdens for employers.

How to comply with predictive scheduling law

  1. Determine applicability. Employers operating in a jurisdiction with a predictive scheduling law in place should first determine whether they qualify as a “covered employer” under the applicable law. While many laws only apply to certain employers in the restaurant and retail industries, other laws have a more expansive definition of “covered employer.”
  2. Create policies and forms. Once an employer determines that it is covered, it should develop policies and forms tailored to each applicable law. Sample forms that would be helpful to have on hand include, but are not limited to: a notice of change in work schedule, a notice of offer of additional hours, an estimate of work schedule and hours, and a template work schedule. Additionally, employers should consider maintaining working checklists that managers can use to ensure compliance.
  3. Train managers. Once the policies and forms are prepared, employers should train their managers on the applicable laws, as they will largely be responsible for facilitating and documenting compliance.
  4. Ensure proper data maintenance. Because compliance with predictive scheduling laws requires retention of a high volume of documents, employers should ensure they have proper mechanisms in place for storing documents and data.
  5. Audit for compliance. In order to ensure compliance with any applicable predictive scheduling laws, employers should periodically conduct internal audits to ensure policies are being followed and documents retained.
  6. Use technology to predict staffing needs. In order to avoid predictability pay, employers may want to use technology and data analytics provided by software such as Workforce.com to anticipate future staffing needs. Setting schedules based on reliable data may decrease the need for unanticipated scheduling changes and thus reduce the likelihood of predictability pay.
Predict staffing requirements
Workforce can track your wage costs against your income over time and automatically recommend
the best staff schedules based on predicted demand.

Predictive scheduling compliance doesn’t need to be a problem

If you run a business that is affected by predictive scheduling laws, or think that it may become a reality in your state soon, then it’s easy to look at these new requirements and only see the additional administrative burden. There are benefits to businesses, however.

Academic research has shown that employees with stable, predictable schedules are happier, healthier and more likely to stay with their employer for the long term. You can also mitigate many of the requirements of predictive scheduling by using labor compliance software from Workforce.com to manage your employees. Not only does it handle the collection and auditing of shift data, it can keep track of relevant labor legislation and automatically warn you if any of your workers’ shifts are in breach of the law wherever you operate. So don’t be afraid of predictive scheduling. It’s easier to comply with than you think, and can make your business run more smoothly.

Posted on November 13, 2020June 7, 2022

The fair workweek squeeze on employer scheduling

restaurant, hourly, fair workweek

Employers are experiencing an intrusion of regulations and disruption around how they operate. Fair workweek laws have sprouted up across the country in numerous large cities including New York, Philadelphia and Chicago, and statewide in Oregon and New Hampshire. The recent wave of new rules affects scheduling for hourly workers in retail, hospitality and other sectors.

Many aspects of business are constrained by important rules to maintain safety, free trade, environmental standards, equity, and transparency in the marketplace. Fair workweek, or FWW, scheduling laws present a challenge that goes beyond rates of pay and fines, though. Such scheduling laws are disruptive in the way the rules restrict how employers operate and schedule work.

The intent of fair workweek laws may be to strike a balance between two interests (employer and employee) regarding the schedules people work and when they are asked to work them in order to deliver predictable and stable schedules. But despite the intent of balance, the reality is that FWW laws permeate deeply into the employer operations, dictating specifics about how the employer organizes and manages shift work in their business.

If an employer is not equipped to manage FWW, they can face higher operating costs and fines. These regulations put a significant burden of change and cost onto employers while providing a meaningful upside for workers. With added responsibility, it’s important for employers to understand these laws and their implications in the field.  

The employer is not simply one side of this balancing equation. They are caught in the middle between regulators and employees, which requires more delicate navigation. In addition, natural forces of the marketplace such as the weather, the economy, landlords and competitors, major events, and unexpected events such as the COVID-19 pandemic ensure an environment of constantly moving parts for employers to navigate.

Fair workweek disruptors for employers and employees

For employers, these disruptors are very real, unpredictable and largely out of their control. To stay afloat, employers need to control how they react and how they operate. 

A successful business is agile and smart. It faces the impacts to its business and makes changes to adjust various operating aspects, including schedules. Often these changes must happen quickly and without notice. 

Not every schedule change is huge. It could mean changing operating hours for a day or two each week or needing more workers one evening. A more significant change could encompass pivoting to drive-up service, staggering shift start times or transitioning more workers to part time. 

Also read: Ethics and the future of workforce management

The constant for employers is change and uncertainty. The FWW constant is that the rules apply to situations regardless of the degree of schedule change.

Workers face real and unpredictable forces as well. The weather, car trouble, a sick family member, the demands of school or a spouse’s job can change how they operate. 

Having unpredictable schedules and variable hours week to week can put a disruptive strain on the personal lives of employees putting them in the middle of their job and their personal demands. So why are we here?

The origins of fair workweek

The FWW movement was born out of concern for the employee side of the shift work equation. Voices grew loud about how the schedule volatility burden was being put onto workers. From the worker’s perspective, employers over-tilted on solving for the impact outside forces have on their business. Workers were living through highly optimized schedules that entailed last-minute shift changes, minimal advance notice of schedule assignments and awful “clopening” shifts.

Employers weren’t intending to rely on haphazard work schedules to keep their business running. They didn’t look closely enough at the human side of scheduling to understand the impact these schedules were having on their people.

Managers weren’t using a methodology for scheduling that produced high quality schedules for workers. Because employers didn’t quantify the impact of schedules on worker experience and the cost to their business, they missed realizing that focusing only on business issues wasn’t good for their overall employee health and system of operating. Employees wanted a move away from this business-centric approach to a more worker-centered model.

Regulators certainly couldn’t remove the volatility in the marketplace that causes employers to change schedules. And they couldn’t eliminate the personal situations employees face that necessitate needing predictable, stable schedules. But the regulators could, through FWW laws, remove the volatility that employees experience around schedules.

Searching for a new scheduling model

In comes the squeeze. FWW has put employers in the middle of marketplace VUCA (volatility, uncertainty, complexity, and ambiguity) and workers. Employers are in a real pinch – the laws prescribe how employers must act and react. The economic laws of nature also mandate terms and conditions. To even out the strain of uncontrollable external volatility and uncertainty on the one side and rigid internal employee-focused scheduling rules on the other, employers have to operate differently. 

The way forward is to “operate differently” not just simply “schedule differently.” FWW rules circumscribe more than just assigning and changing schedules. FWW rules apply to several business functions before and after a schedule. 

FWW rules must be part of hiring and reporting, scheduling and compensating, training and operational performance. The rules are different in each jurisdiction and more localities and states will add new laws. Managing the complexity and ambiguity is a challenge.

Operationally, FWW will change how employers forecast labor demand, how they convert demand into shift schedules, how they assign employees to shifts, how they react to real-time disruptions or changes in their business, how they plan for the cost of labor, the scheduling and payroll systems they use, who and how they hire, and how their company survives and thrives. 

For employers looking to navigate these new regulations, there are important steps to take:

  • Recognize that FWW is much more intrusive than a minimum wage increase or paying a premium. FWW compliance will change how you run your business.
  • Incorporate FWW into your financial planning. Prepare for a 3- to 9 percent increase in labor costs to account for additional wage premiums paid to workers.
  • Assess your readiness to align to the FWW rules. Be certain of what you need to do. Use an independent third party to assess how fair workweek processes are handled and to identify gaps in processes, technology, and training.
  • Assign a fair workweek owner who is responsible for FWW transformation and sustainment. Task this person with documenting the risk profile for the organization and creating a plan for training, controls and system changes.
  • Define what good FWW alignment and compliance look like for your business and your people. Set goals for compliance and develop plans to achieve them such as updating procedures, incorporating incentives, adding new KPIs, etc.
  • Assess your technology platforms (payroll, HR systems, and employee scheduling software) and determine their ability to handle the required processes, payments, scheduling checks and document retention required.

The objectives of the fair workweek are well-intentioned, but the realities can be adverse for businesses. It will take time, investment, and adjustments for employers to rebalance the scales of FWW. 

The pressures of FWW mandates coupled with the extreme conditions of the marketplace today put a spotlight on labor scheduling. Fair workweek requires adjustments to processes, systems and how people are scheduled. Getting the changes right will lead to improvements in employee satisfaction and managed increases in labor cost.

Posted on June 12, 2020June 29, 2023

Employee scheduling after the COVID-19 pandemic

remote work, mask

Employee scheduling was getting a facelift even before COVID-19, and in the aftermath of the pandemic, employers have even more to think about when it comes to scheduling employees.  

The 2010s brought a number of state or local predictive scheduling laws into effect, giving employees much needed stability but complicating the scheduling process for managers. Meanwhile, the COVID-19 pandemic highlighted the lack of sick or paid leave for many hourly workers and the struggles employers go through when employees can’t come to work fo COVID-19-related reasons.

David Kopsch, principal consultant at Mercer, explained the major employee scheduling issues employers are encountering and ways to address those challenges.

Also read: Leave management should be as simple as submit, approve and hit the beach

software, compliancePredictive scheduling laws across the United States

In a nutshell, these predictive scheduling laws require employers to notify employees in advance of what their schedules will be. Some cities require as low as 72 hours notice while others require as high as two weeks. 

The goal is to reduce uncertainty in employees’ schedules so that they can plan for responsibilities like child care, school or other jobs.   

Also read: How far in advance must a work schedule be posted?

The most frequently discussed part of these laws is the advance notice on schedule, Kopsch said, but they also contain many other provisions, like recordkeeping requirements and providing compensation for schedule changes.

Something else significant in these laws are rules that let employees have a certain amount of time off between the end of the last shift and the beginning of the next one, Kopsch said. For example, if an employee closes shop around 10 p.m., the same employee is not opening the site at 6 a.m. There are safety reasons for this, but these rules also exist to ensure that employees get enough sleep or rest between shifts. 

While making the lives of employees easier, these laws have also added another layer of complexity for managers who must create schedules. 

COVID-19 complications to employee scheduling

With the pandemic, hourly employees are facing a variety of situations in which they may not be able to come into work. They may be sick or suspect that they may have the coronavirus. They may face child care lapses due to school closures or other circumstances. 

This can hurt employees’ wages and has the potential to impact their eligibility for bonuses, overtime or benefits, Kopsch said. Employers also face extra pressure when employees don’t come into work. 

Some employers may need to adjust their staffing models due to COVID-19, Kopsch said. As businesses start reopening, one reality is that they may have to spend more time in the mornings cleaning and sanitizing the location. Perhaps the business will have to be open less hours during the day and run on a reduced schedule, which also has the impact of a reduced workforce or giving employees less hours.    

Also read: Shift scheduling strategies can be improved through technology

Communication with payroll providers 

Managers must ensure they are communicating with their payroll provider through this all. 

“In these times of reduced schedules, there’s more interaction with payroll providers and technology to update the systems and adjust for the changes in how the workforce is working and coming to work,” Kopsch said. 

For example, he noted a tactic some retailers are using in which they’re paying hourly workers slightly higher wages or offering some type of bonus to motivate and retain employees. 

“If you introduce a new pay element, that’s one more item that you have to ensure [that you’re being] compliant. And that goes back to working with a payroll provider,” he said.

Also read: Shift schedule templates are a basic food group to workforce management

Communication with employees

Managers can also take on certain best practices to keep employees engaged and in the loop. Clearly communicating open and closing times is important. Also, make sure to be clear when employees should arrive for their shift. There may be extra precautions to take before their shift starts, like sanitizing or training. 

Reopening a business after the pandemic is complicated, and clear communication can help simplify it.

Technology can also simplify the communication between employers and employees. 

“We’re seeing technology as something being reviewed more and more by employers as a way to support employees as well as a way to communicate with them and help them understand what is available in terms of what schedules are available and getting and receiving communication.,” Kopsch said.

Posted on June 10, 2020April 11, 2023

How far in advance must a work schedule be posted?

time off, PTO, scheduling

Predictive scheduling laws have changed the way many businesses make their schedules. While there are many details in these rules — like record keeping requirements and providing compensation for schedule changes — what people most talk about is employers’ responsibility to provide employee schedules in advance.

Also read: Shift swap software empowers managers and employees to take charge of scheduling

The purpose of these laws is to give employees more predictability and stability, providing them a chance to plan ahead. If they know their work hours in advance, they will more likely be able to plan for a second job, child care or other responsibilities that must be planned in advance.

Still, these laws mean that businesses must stay compliant with new regulations, and for employers with multiple locations across the country, they may have different rules to comply with. Following is some of the basic information about each of these laws. 

Also read: Employers grapple with laws about work schedules

How far in advance must a work schedule be posted?

The timing varies. Currently, there are several laws in cities across the United States. Four cities in California have predictive scheduling laws: San Francisco, Emeryville, San Jose and Berkeley. Other cities and municipalities include New York, Seattle, SeaTac and Philadelphia. Chicago joins these July 1, 2020.

Meanwhile, Oregon is the only state with such a law in effect, while New Hampshire and Vermont have more limited scheduling-related laws.

These laws have specific stipulations for which businesses must comply to the rules, and they also have many other details employers must be familiar with. However, looking at this from a more basic point of view, here is how much notice employers whom the laws apply to must give employees in each location:

  • San Francisco: 14 days notice; went into effect March 1, 2016. 
  • Emeryville: 14 days notice; went into effect July 1, 2017.
  • San Jose: No advance notice component, but employers must offer additional hours to existing, qualified part-time employees before hiring more employees; went into effect March 13, 2017.
  • Berkeley: No advance notice component, but employees may request flexible or predictable working arrangements twice per year and after a major life event.
  • New York: 14 days notice; went into effect Nov. 26, 2017.
  • Seattle: 14 days notice; went into effect July 1, 2017.
  • SeaTac: No advance notice required, but employers must offer additional hours to existing, qualified part-time employees before hiring more employees   covers only large hospitality employers and transportation employers.
  • Philadelphia: 10 days notice; went into effect April 1, 2020. 
  • Chicago: 10 days notice; goes into effect July 1, 2020.
  • Oregon: 14 days notice; went into effect August 8, 2017.

Complying with predictive scheduling laws

How far in advance must a work schedule be posted? These regulations provide clear numbers on the minimum employers must do, but that doesn’t mean they can’t go above and beyond that.

Employees are beginning to return to work after months of quarantine. The conversation around predictive scheduling will have to evolve because of the coronavirus, said Ari Hersher, partner at Seyfarth law firm. Employers can begin improving on the communication they have with employees.

“Employers should do what they can to communicate as far in advance about their anticipated schedule as possible,” he said, adding that the clients he works with that are subject to predictive scheduling laws give up to 21 days notice on schedules. 

Managers can communicate scheduling in advance and explain the flexibility needs of the business at the same time, creating an open line of communication between employer and employee.

“Employers can say, ‘We’ll give you 30 days notice, but please understand that our scheduling needs are volatile,’ ” he said. “People should [try to] understand each others’ needs and be mindful of them.”

David Kopsch, principal consultant at Mercer, agreed that giving more notice will benefit employers right now. The return-to-work environment is stressful. Employers must create employee work schedules without knowing what sort of customer demand to expect, and some employees may be fearful to return to work in a customer-facing job.

Organizations can provide schedules to employees up to four weeks in advance, Kopsch said. From there, they can call and confirm with employees three weeks in advance, make whatever changes are necessary and officially post the schedule two weeks ahead of time, which would allow employers to comply with any of the predictable schedule laws. 

“We are seeing much more communication coming from employers, and what [employers] are sharing with us is employees like it,” Kopsch said. “They like this high level of communication. They like the engagement and the concern and empathy that employers are demonstrating,”

 

Posted on June 2, 2020June 29, 2023

Employers grapple with laws about work schedules

payroll, software

Chicago’s fair workweek law goes into effect on July 1, 2020. 

Chicago joins the ranks of other cities like San Francisco, Emeryville, San Jose, Berkeley, New York City, Seattle, SeaTac and Philadelphia that have predictive scheduling laws. Oregon, meanwhile, is the only state with one of these laws in effect, while New Hampshire and Vermont have more limited scheduling-related laws. 

The past few years has seen a wave of predictive scheduling laws, making it a hot topic in industries like retail and hospitality, said Ari Hersher, partner at Seyfarth law firm. Hersher described predictive scheduling as “the next big thing” — much like a wave of paid sick leave laws that began surging in the late 2010s and created a patchwork of local and state laws across the United States. COVID-19 has only increased this trend of paid sick leave laws.

Also read: Shift scheduling strategies can be improved through technology

shift scheduling, technologyThe COVID-19 pandemic has had a few notable impacts on fair workweek laws in 2020, he added. Industries like retail, food service and hospitality that have been greatly impacted by the pandemic are also the industries primarily impacted by predictive scheduling laws. While COVID-19 has not stopped cities and states from enacting the laws currently in place, it’s uncertain if new laws will continue with the same momentum as they did pre-pandemic.

“It remains to be seen what will happen post-COVID. I think there will be an interesting push and pull,” Hersher said. “There will be a strong desire to not overly restrict these businesses like retail that have been so devastated by the coronavirus, but also [give] all these employees — who may have kids out of school or need to work multiple jobs in order to manage — the scheduling stability and notice that they can manage their lives.”

COVID-19 aside, these laws already exist in several municipalities. Hersher went over these laws about work schedules and how employers can work with them. 

Also read: How to reduce compliance risk

The meat of these laws 

Laws vary by city or state, but they generally include four common provisions, according to the National Retail Federation. These provisions are: 

  • Advanced posting of schedules.
  • Employer penalties for unexpected schedule changes.
  • Record-keeping requirements for employers. 
  • Prohibitions on requiring employees to find replacements for scheduled shifts if they are unable to work.

Predictive scheduling laws are meant to address common concerns hourly employees have, including unpredictable, unstable and often insufficient work hours. As a 2018 Economic Policy Institute article explained, “Employers in some industries have increasingly adopted scheduling practices that leave workers in desperate need of additional work yet hampered in their ability to actually seek supplemental work elsewhere or find a new job altogether.”

Certain scheduling practices that some employers adopt “shift more of the risk and costs of doing business from firms onto their employees,” the article continued. For example, they may require employees to maintain “open availability” for all hours the store is open, giving them basically no input in the days or times they work. 

Also read: Leave management should be as simple as submit, approve and hit the beach

Impact on employers

These laws put a strain on employers, for whom most scheduling changes aren’t intended, Hersher said. Employees may call in a few days or hours before their shift starts, leaving employers little time to find a replacement. They need flexibility to create good schedules.

Also read: Predictive Scheduling Laws — What Are They, Where Do They Exist and Employers’ Reaction

The financial penalties for breaking predictive scheduling laws are substantial for employers, he added. 

In addition, some employers may have to comply with multiple predictive scheduling laws, depending on what states or cities they operate in. Complying with this patchwork of laws is complicated and requires different workplace policies for different locations. 

The Society for Human Resource Management suggests that employers should audit their locations. “A centralized staffing model can quickly become outdated, or even worse, a liability. Location-specific policy changes may need to be made, and managers may require retraining on how to handle staffing shortages.” 

Also read: 3 Steps to Navigating Effective Wage and Hour Compliance

Potential solutions

Using predictive analytics to create schedules weeks in advance is one solution to avoid overstaffing and  understaffing, Hersher said. Certain technology solutions may help, too, if they can help employers take different regions’ predictive scheduling laws into account as they create schedules.

Communication is also key. Some newer predictive scheduling laws include the “suggested interactive process,” he said. This is optional but encourages employers to have a dialogue with new employees. Usually, when someone begins an hourly job, their manager tells them what their days and hours will be. With the interactive process, the new employee can have their say in the conversation. “I have another job or other responsibilities these days and times, but what about this schedule instead?”

The employer has the ultimate decision over the employee’s schedule, Hersher said, but having that conversation can help employees feel respected and heard. 

Laws about work schedules during the COVID-19 pandemic 

Fair workweek laws are still in place and being enforced in the midst of COVID-19, Hersher said. For example, in San Francisco the Office of Labor Standards Enforcement is continuing to pursue complaints, file investigations and move forward with these laws like before. On a city-to-city basis, there are realistically different enforcement levels, he said,  but it’s important to remember that municipalities or agencies don’t need to pause their enforcement work in light of store closures. 

“Retail is already facing a lot of challenges. And whether the government wants to put a lot more financial burden on their existence is something they’ll really have to consider,” Hersher said. “It’s a delicate balance to come up with a law that doesn’t force shops to close but is also protective to employees.” 

Hersher believes the conversation around predictive scheduling will have to evolve because of coronavirus. 

While predictive analytics generally can help businesses with employee scheduling, it will be much more difficult to predict scheduling needs for the next year and half or so because of the pandemic, he said. Historical data from previous years may not be applicable in post-pandemic times, and businesses don’t know to what degree people will return to restaurants and stores.

He suggested that employers do what they can to create schedules far in advance and focus on honest conversations with employees. 

“Employers can say, ‘We’ll give you 30 days notice, but please understand that our scheduling needs are volatile,’ ” he said. “People should [try to] understand each others’ needs and be mindful of them.”

Employers can also communicate to all their employees and explicitly ask who would want additional hours if they become available and what other days and times they could work. Taking a proactive measure like this can help both sides in helping employees get more hours and helping employers get the people they need. 


 

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