Over the past few years, fair workweek initiatives have been gaining momentum across the U.S. In California, Illinois, Oregon, New York, and elsewhere, legislators have been called to pass laws that protect workers’ rights to a “fair workweek.” Fair workweek laws differ by city and state, but in general, they aim to make work more predictable, and thus less stressful, for hourly employees.
Grocery and restaurant chains are among the businesses most impacted by fair workweek laws. If found non-compliant, these businesses can face fines totaling millions of dollars. But there are reasons for smaller businesses to pay attention, too. The fair workweek trend isn’t over, and there’s growing evidence to suggest that fair workweek policies can actually save businesses money (if you implement the tools and processes to ensure you aren’t on the hook for penalties).
Below, we explain what fair workweek is, how it got started, and what it means for the future of business in retail and food service.
“Fair workweek” refers to the movement occurring in the U.S. right now to promote and protect workers’ rights to predictable work schedules. It marks a growing awareness of the negative effects that unpredictable schedules can have on the personal lives, health, and finances of hourly and part-time workers.
Those of us who’ve worked in retail or hospitality have experience working back-to-back closing and opening (“clopen”) shifts or being unable to take meal breaks. That’s been the reality in most shift-work jobs for as long as any of us can remember.
While this feels normal to folks who have lived the retail life, it’s not something the latest generation of shift-work employees are willing to accept. Newer retail workers will not abide the inconveniences of having to drop familial or school responsibilities because of a last-minute shift, or paying for an hour long bus ride to work, only to be sent home because business is slow and they’re no longer needed. They’re demanding input in their work schedules at a level that shift-work employees have never had before.
Fair workweek concepts aren’t new to employers of shift-work teams. Research has long shown that unpredictable scheduling (e.g. “on call scheduling” or “just-in-time scheduling”) is extremely stressful for workers and their families. Proactive retail managers have always understood this, and engaged teams with high productivity rates are often the hallmark of a well-managed schedule. In fact, great scheduling policies have been a huge employee retention factor for employers of choice in the retail industry at large, acting as a differentiator between restaurants or grocery stores recruiting from the same talent pool.
For employees, a fair workweek might mean having a predictable work schedule, enough work to make a livable paycheck, adequate meal and rest breaks, and having a say in when and how long they work.
For employers, fair workweek regulations often mean more paperwork (expensive administrative duties), a loss of a competitive differentiator in recruiting, expensive penalties when things don’t go according to plan, and confused employees who don’t understand the regulations.
In 2014, San Francisco became the first city in the U.S. to penalize large businesses for imposing unpredictable schedules and last-minute changes on hourly workers. The city passed two ordinances, which among other things required employers to post schedules in advance, compensate employees for schedule changes, give preference to existing workers, and provide “good faith” estimates to new hires. Other localities followed suit, and within a few years, many major retailers had stopped on-call scheduling altogether.
Today, more and more businesses are moving toward predictive scheduling in order to stay ahead of the rising trend. No one wants to get hit with a multi-million dollar fine for non-compliance.
The fair workweek movement came about due to increasing evidence that unpredictable schedules are harmful to employees. It’s not that hard to understand why an unstable schedule might be stressful to parents with small kids or detrimental to students in college. But there’s good reason to think that unpredictable schedules aren’t that great for businesses, either.
Think about it: an optimal schedule means having the right people in the right place at the right time. But with “just-in-time” scheduling, schedules aren’t necessarily staffed that way. What you get is harried workers who are stressed out, unengaged, and unprepared. They’re more likely to miss shifts and have lower productivity when they do make it to work. On-call scheduling might seem more flexible, but in reality it probably costs the business more money than it saves.
Tip: The best way to staff the right people at the right time is to build schedules in advance based on forecasted sales volumes and other key metrics.
Fair workweek laws are aimed at making work schedules more predictable and less stressful for employees. Depending on where you are, you might also hear these laws referred to as predictive scheduling laws, fair workweek ordinance, or fair scheduling legislation. Other terms for predictive scheduling include “advanced scheduling” and “secure scheduling.”
Laws very by state and locality, but in general, fair workweek laws require employers to:
While these requirements can seem like a burden to employers, there are benefits, too. For example, employees with predictable schedules tend to be healthier, more productive, and better performing than those without. They also tend to be happier, which is important for employee retention. On the other hand, low employee satisfaction is often a major cause of high employee turnover, which employers don’t want.
Fair workweek laws and predictive scheduling are being adopted all over the country. Here are some examples of well-known laws that have paved the way:
Oregon Predictive Scheduling Laws
In Oregon, retail, hospitality, and food service employers with 500 or more employees worldwide must comply with the state’s predictive scheduling law.
Businesses are required to:
(Note: Since July 1, 2024, Oregon law includes limited exceptions for schedule changes related to employees returning from protected leave under OFLA or paid leave.)
Chicago Fair Workweek Ordinance
Chicago’s ordinance applies to employers in seven key industries: building services, healthcare, hotels, manufacturing, restaurants, retail, and warehouse services. Businesses are covered if they have 100+ employees globally (or 250+ employees and 30+ locations for restaurants). Covered employees are those earning $32.60 or less per hour or $62,561.90 or less per year.
Employers must:
New York City Fair Workweek Law
NYC’s Fair Workweek Law applies to fast-food and retail businesses that are part of chains with 30 or more locations nationwide. Employers must:
To discourage businesses from ignoring or breaking fair workweek laws, these laws tend to come with hefty fines for violations. Ranging from $200 to $2,500, these fines apply each time a law is violated. On top of that, businesses can be held accountable for backpay if found non-compliant. You know all those $20 or $100 premiums you failed to pay workers over the course of a year? Those can suddenly add up to the price of a Ferrari. Or several Ferraris. In cases of repeated violations, businesses can be sued for millions of dollars.
The takeaway? If you don’t currently have a scheduling system that can post schedules in advance, track changes, and warn you before you schedule “clopens,” now’s a good time to take a look at TimeForge, an IGA Red Oval Partner.
TimeForge handles fair workweek regulations proactively, so you can stay compliant, minimize or eliminate penalties, and focus on running your business instead of keeping up with paperwork.
This article was originally published on Timeforge.com. To view the original article, click here.