Monday, June 26, 2017

More Cities Enact Fair Workweek Requirements

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PNN: Fair Workweek Laws

Recently, New York City and Emeryville, California, enacted “Fair Workweek” ordinances that will set scheduling requirements for employers in certain industries. Scheduling ordinances have previously been enacted in Seattle and San Francisco. It is important for payroll professionals to be aware of these ordinances, as more cities and possibly states start to pass them. Some key elements of the ordinances in each city are explained below.

New York City
Several bills were enacted together and are collectively called “Fair Workweek” legislation. Effective November 26, 2017, there are requirements for retail employers and fast food employers [Bill Nos. 1384-2016, 1387-2016, 1388-2016, 1395-2016, 1396-2016, L. 2017].

• Retail employers
Covered retail employers include those with 20 or more employees at one or more stores in New York City. The practice of on-call scheduling is banned, and employers are prohibited from canceling an employee’s shift or requiring an employee to come to work with less than 72 hours’ notice.

• Fast food employers
A fast food establishment is defined, in part, as one that is part of a chain of more than 30 or more establishments nationally. If changes are made to the schedule, the employer must pay schedule premiums to the employee ranging from $10 to $75 for each change to the work schedule. The amount depends on how much notice is given (less than 14 days, 7 days, or 24 hours), whether hours are added or subtracted to a shift, and whether a shift is changed or canceled. The employer is required to pay the schedule change premiums at the same time the employer pays the employee wages owed for the work performed during that workweek and must be separately noted on the pay statement. The premiums are not due under certain circumstances.

Emeryville, CA
The Fair Workweek Ordinance is effective July 1, 2017. Covered employers include retail firms with 56 or more employees globally, and fast food firms with 56 or more employees globally and 20 or more employees in Emeryville. The ordinance will require employers to provide good faith estimates of work schedules and allow employees to request modifications to the schedule. Employers must provide notice of any change to the schedule. Employees have the right to decline any previously unscheduled hours if less than 14 days’ notice is provided. Compensation is required if the employee works the changed schedule:

• If the changes are made with less than 14 days but at least 24 hours’ notice, one hour of predictability pay is required.

• If the changes are made with less than 24 hours’ notice, four hours or the number of hours in the scheduled shift, whichever is less, of predictability pay is owed [Ordinance No. 16-007, L. 2017].

Read PayState Update to learn more about the “Fair Workweek” ordinances.