Changes to the S.F. Formula Retail Employee Rights Ordinances

Seyfarth Shaw LLP

(Photo) SF StreetAs our loyal CalPecs blog readers know, in November 2014, San Francisco passed two ordinances—“Hours and Retention Protections for Formula Retail Employees” and “Fair Scheduling and Treatment of Formula Retail Employees”—colloquially known, together, as the “San Francisco Retail Workers’ Bill of Rights.”  (Our most recent update and a recent Management Alert can be found here and here, respectively.)  On July 7, 2015, the S.F. Board of Supes proved that the Bill of Rights is a living document by passing an amendment to the SF Workers’ Bill of Rights on the final reading.

Most significantly, the amendment changes the definition of employers covered by the ordinances.  The amendment also modifies some of the requirements imposed on employers and clarifies some open enforcement issues.  The Office of Labor Standards Enforcement (“OLSE”) has posted information about the amendment here and here, and the text of the amendment here. In short:

  • Covered Employers: The amendment increases from 20 to 40 the number of retail sales establishments—throughout the world—that a business must have for the ordinances to apply.
  • Enforcement—Grace Period, of Sorts: From July 3, 2015 (the operative date of the ordinances) to October 2015, the OLSE will only issue warnings and notices to correct to employers who have violated the ordinances.
  • Notice Requirement: Employers can now notify employees of offers of additional hours by posting a notice in a “conspicuous location in the workplace where notices to Employees are customarily posted.”  Moreover, employers are now “encouraged” to post the electronic notice on their internal web in a conspicuous location.” [1]
  • Three Days to Accept Additional Hours: Part-time employees must have at least three days to accept additional hours offered.
  • Predictability Pay: Employers must provide “predictability pay” to all employees scheduled to work on-call shifts if the employer modifies the scheduling of that shift with less than seven-days’ notice.
  • Waiver Through Collective Bargaining: The amendment allows collective bargaining agreements (“CBAs”) covering employees of formula retail establishments (or employees of property service contractors) to waive the protections of the ordinances, if the waiver is expressly included in the negotiated CBA.

Stay tuned for the latest on any further modification or clarification to the S.F. Workers’ Bill of Rights as useful information becomes available. 

Edited by Colleen M. Regan

[1] The required notice will likely be changed to reflect these most recent changes.  A copy of the current notice that all employers are required to post is available here.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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