Large Retail Employers With Los Angeles Workforce May Soon Face Additional Restrictions And Expenses
On September 13, 2022, the Fair Work Week Ordinance advanced out of committee and will move forward toward likely City Council approval. If it passes, any retail business with over 300 employees, globally, will face increased challenges for scheduling its City of Los Angeles workforce. Such employers will be required to provide work schedules to their employees at least 14 days in advance and will be subject to increased employment costs for any needed changes. Employee advocates argue that the ordinance will provide more stability to employees over schedule fluctuations. While an employer may change the schedule, employees will have the right to decline any hours that were not included in the schedule and any consent to a schedule change must be in writing. Moreover, the ordinance will require “Predictability Pay” or additional sums to be paid when a schedule is changed, including 50% of the pay for time that is reduced from the posted schedule. And, when it comes to scheduling, employers will not be permitted to compel employees to find coverage if the employee will miss a scheduled shift.
In addition, the ordinance will also require that employees scheduled to work on shifts that are less than 10 hours apart to receive 1.5 times their regular hourly rate for the second shift. In other words, an employee that is scheduled to “close” one day and “open” the next day may be eligible for such payment. And, employers will be required to offer additional hours to current employees before hiring new employees, temporary workers or independent contractors. All of these new restrictions are accompanied by posting and recordkeeping requirements. And, not only will a lack of compliance subject employers to penalties of up to $500 per violation but employees will be able to enforce the ordinance with a private right of action and an award of attorneys’ fees in litigation.