Key Takeaways

• The Fair Work Week Ordinance is a law that aims to increase predictability in work schedules in L.A.’s retail industry, which will go into effect on April 1, 2023.
• The ordinance defines an employer as any retail business (including certain subsidiaries and franchises) with more than 300 employees globally, including individuals employed through staffing agencies.
• Every employer must post the city’s forthcoming notice to inform employees of these rights at the work site. The city may adopt additional regulations to enforce the ordinance before it goes into effect on April 1.

Late last year, the Los Angeles City Council passed the Fair Work Week Ordinance, aiming to increase predictability in work schedules in L.A.’s retail industry. The ordinance will require certain retail employers operating in the city provide written work schedules 14 days in advance, provide predictability pay for certain employer-initiated schedule changes, offer additional work to current employees before bringing on new workers, and fulfill a whole lot of documentation and record-keeping requirements. L.A. retailers should ensure their scheduling and staffing practices will comply with the ordinance when it goes into effect on April 1, 2023.

Who Is Covered by the Ordinance?

• Employers: The ordinance defines an employer as any retail business (including certain subsidiaries and franchises) with more than 300 employees globally, including individuals employed through staffing agencies. In addition, an employer must be identified as a retail business in the North American Industry Classification System (NAICS) in retail trade categories 44 through 45 (i.e., establishments primarily engaged in retailing merchandise and rendering services incidental to the sale). Staffing agencies serving the retail industry are likely not covered by the ordinance, as such businesses are typically classified under NAICS category 56.
• Employees: The ordinance presumes anyone working in the city at least two hours per week for a covered employer is an employee unless the employer demonstrates that the worker is a bona fide independent contractor.  

Good-Faith Scheduling Estimates and Advance Written Notice

The ordinance will require employers to provide scheduling estimates and advance notice of work schedules (including on-call and standby shift schedules) as follows: 

• Scheduling Estimate and Notice Before Hire: Employers must provide a written good-faith estimate of work schedules as well as a notice of rights under the ordinance before hire.
• 10 Days to Comply with Employee Request: Employers must provide a written good-faith estimate of future schedules within 10 days of an employee’s request. If there is a substantial deviation from the estimate later on, the employer must have a documented business reason for the change. 
• Employees’ Right to Request Changes: Employees have the right to request a preference for certain hours, times or locations. Employers may accept or deny requests, provided they notify the employee in writing of the reason for any denial. 
• Two-Week Advance Notice of Work Schedules: Employers must provide work schedules to their employees at least 14 days in advance by either posting them or transmitting them electronically (or another means reasonably calculated to provide notice). Employers must provide written notice of any employer-initiated changes that occur after the advance notice period. 
• Employees’ Right to Decline Change: If an employer changes the schedule, employees can decline any hours not included in the original schedule. If the employee voluntarily accepts the change, such acceptance must be made in writing. 

Posting of Additional Work Before Bringing on New Workers

Before hiring new employees or bringing on contractors or temporary workers, an employer must offer work to current qualified employees if such work would not result in overtime. The offer must be conspicuously posted in the workplace for at least 72 hours before hiring a new employee unless all employees confirm they are not interested in the new hours, in which case, the employer can immediately proceed to fulfill its staffing requirements. 

Predictability Pay

The ordinance requires employers to pay one hour of predictability pay, at the regular rate of pay, for each employer-initiated change in the scheduled time, date or location that (1) does not result in a loss of scheduled time or (2) adds more than 15 minutes of additional work. If the employer reduces an employee’s scheduled time by 15 minutes or more, then the employer must pay half the regular rate of pay for all scheduled time not worked. However, predictability pay is not required under the following circumstances:

• The employee requests the schedule change.
• The employee voluntarily accepted the schedule change due to another employee’s absence or unanticipated customer need.
• The employee accepted additional hours in response to the employer offering additional work hours before hiring new workers.
• Hours are reduced as a result of the employee’s violation of law or the employer’s policies.
• The employer’s operations are compromised pursuant to law or force majeure.

Employees Cannot Be Required to Find Coverage

Employers cannot compel employees to find coverage if they miss a scheduled shift. 

At Least 10 Hours of Rest

Shifts cannot be scheduled less than 10 hours apart – for example, an employee who is scheduled to close one day and open the next one – without the employee’s written consent. If an employee consents, they must receive premium pay at 1.5 times their regular hourly rate for the second shift. 

Three-Year Record-keeping Requirements

Covered employers must keep for three years a record of all writings required above for both current and former employees, including:

• Work schedules for all employees.
• Copies of written offers to employees for additional work hours and written responses from employees. 
• Written correspondence between the employer and employees about work schedule changes, including requests, approvals and denials. 
• Good-faith estimates of hours provided to new and existing employees. 
• Any other records that may be required to demonstrate compliance. 

Posting

Every employer must post the city’s forthcoming notice to inform employees of these rights at the work site. Posters must be in English, Spanish, Chinese (Cantonese and Mandarin), Hindi, Vietnamese, Tagalog, Korean, Japanese, Thai, Armenian, Russian, Farsi and any other language spoken by at least 5 percent of employees at the work site. 

The city may adopt additional regulations to enforce the ordinance before it goes into effect on April 1. We will be closely monitoring any developments and will provide additional updates as appropriate.

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