Fair Workweek laws, which aim to protect workers from unpredictable work schedules, are becoming more commonplace. Retailers need to understand how those laws affect them and their businesses.
In essence, Fair Workweek laws aim to make business scheduling practices fairer and more predictable for employees. They require companies to give employees ample notice of work schedules, and they also provide penalties for last-minute schedule changes. Employers may have to compensate workers in instances where work schedules are changed or cancelled.
These laws often come into play in industries that rely heavily on part-time, hourly or shift-based workers. Many retail businesses fall under that description.
Here’s a brief history describing how Fair Workweek laws came into being:
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The issue of unstable work schedules gained attention about 25 years ago as researchers began studying the prevalence and effects of irregular scheduling practices. Studies highlighted how unpredictable schedules could lead to financial instability, difficulties with childcare and other challenges for workers.
Later, advocacy groups, labor unions and workers’ rights organizations campaigned for legislation to address unpredictable scheduling practices. They argued that fair scheduling laws were necessary to protect workers’ rights and promote work-life balance.
In 2014, San Francisco became the first city to pass a predictive scheduling law, the Retail Workers Bill of Rights. That law required retail employers to provide workers with schedules at least two weeks in advance and pay extra for last-minute schedule changes.
After that, momentum for Fair Workweek legislation grew. Fair Workweek laws are now in place in New York City, San Francisco, Seattle, Chicago, Philadelphia and Oregon, and other places are considering them.
The COVID-19 pandemic highlighted the importance of stable work schedules, as many workers faced increased uncertainty due to economic disruptions and shifting demand for goods and services.
Now, advocates continue to push for stronger protections and broader coverage, while businesses raise concerns about compliance costs and operational challenges. Violations of these laws may result in fines, but they also carry the potential for class action lawsuits that can lead to multi-million-dollar settlements.
Because of that risk factor, it is important that retailers pay attention to these laws, figure out how to comply with them, make changes to existing scheduling practices and confer with legal counsel to avoid the risk of class action litigation.
Fair Workweek laws generally share common provisions that may include:
- Advance notice: Employers should provide employees with 10 to 14 days of advance notice about their work schedules.
- Predictability pay: If schedule changes happen within certain time frames, employees may be entitled to additional pay.
- Right to rest: If shifts are scheduled too close to one another, employees may be entitled to decline shifts.
- Access to hours: Fair Workweek laws may require employers to offer work hours to existing employees before offering them to new staff.
- Equal treatment: The laws prohibit employers from showing favoritism to certain employees over others when it comes to assigning hours or shifts.
Owners of retail businesses may find compliance with Fair Workweek laws to be challenging. Some of those challenges may include:
- Scheduling: Retail businesses are often fast-paced, making it difficult to establish predictable schedules.
- Technology: Companies may need to invest in scheduling software to accurately track hours, manage schedules and communicate with workers.
- Training: Management members may require training to efficiently implement Fair Workweek laws.
- Monitoring: Employers must carefully monitor scheduling and promptly address potential violations.
To navigate Fair Workweek laws successfully, retailers can adopt the following best practices:
- Plan ahead: Invest time in creating schedules well in advance to provide employees with sufficient notice and minimize the need for last-minute changes.
- Utilize technology: Leverage scheduling software and other technological tools to streamline the scheduling process, track employee hours and communicate schedule updates effectively.
- Train managers and staff: Educate managers and staff about Fair Workweek laws, including rights and obligations. Provide training sessions and resources to insure understanding and compliance.
- Monitor and adjust: Regularly review scheduling practices to identify any areas of noncompliance and make adjustments as needed. Stay informed about changes to Fair Workweek laws and update policies accordingly.
- Prioritize communication: Maintain open lines of communication with employees regarding their schedules, preferences, and any changes or adjustments. Encourage feedback and address concerns promptly.
Fair Workweek laws represent a significant shift in labor regulations aimed at promoting fairness and stability for workers in the retail industry. While compliance may present challenges, good planning and communication, as well as a commitment to best practices, can help retail managers navigate these regulations successfully.
By prioritizing schedule predictability and employee well-being, retail businesses can comply with Fair Workweek laws while fostering a positive work environment and enhancing business performance.
George Morrison is a shareholder in Buchanan Ingersoll & Rooney’s Labor Employment section. He counsels companies of all sizes on such traditional employment matters as wage and hour, class and collective actions, predictive scheduling laws (also referred to as secure scheduling or fair workweek laws), multiple jurisdiction litigation involving federal, state and local employment laws, due diligence involving stock sales and mergers, covenants, non-compete agreements, personnel policies and layoffs.
