An employer does not need to offer such hours to covered employees if the employee is not qualified to perform the work or if doing so would require the employee to be paid at a premium (. Try some practice questions! Likewise, manufacturing employers that have a large order cancelled or delayed, healthcare employers dealing with an unexpected increase in the need for healthcare providers, and venues with canceled banquets or ticketed events, may also be exempted from the additional compensation requirements. "The laws operate from the premise that employers should not be able to externalize the costs of scheduling changes to their hourly workers.". }); if($('.container-footer').length > 1){ Such documentation may include written agreements to modify schedules, written schedules, offers of hours of work to existing staff and responses to such offers. 1, Chapter 1-25-020. Prevailing employees can recover compensation for damages sustained (which is not limited to payment of the predictability pay), as well as costs, attorneys’ fees and expert witness fees. var currentUrl = window.location.href.toLowerCase(); How can employers prepare for the ordinance? The Formula Retail Employee Rights Ordinance took effect in July 2015 and mandates that retail and chain restaurants provide two weeks’ notice of work schedules and provide “predictability pay” if schedules change with less than seven days’ notice. Like other employment regulations, predictive scheduling requirements are not uniform—they vary by state and municipality. Indeed, the primary purpose of such laws is to afford employees more stability, predictability, input and flexibility with their work schedules. An employer may change a posted schedule up to the deadline (10 or 14 days in advance of the first day of the new schedule) without penalty. Even the health care industry is covered, though the law grants health care employers with some flexibility in emergency circumstances to ensure care will not be interrupted. 2 See Definitions Section, Municipal Code of Chicago, Tit. Predictive scheduling laws started surfacing several years ago. Employers should also review their new-hire documentation and record-retention practices to ensure compliance with the Ordinance’s advance notice and record-keeping requirements. A charge must be filed within two years of the alleged violation. Also, restaurants must have at least 30 global locations for the law to apply. Join hundreds of workplace leaders in Washington, D.C. and virtually March 22-24, 2021. While the draft legislation exempted employers in only certain industries, the final ordinance has been modified to list specifically those industries that are covered. • Theory behind these laws = uncertainty in scheduling and last-minute scheduling changes wreak havoc on employees’ ability to plan, hold second jobs, or attend school. Please purchase a SHRM membership before saving bookmarks. These new laws stipulate that employees must receive their work schedules in advance. Predictive Scheduling in Chicago Expected to affect hundreds of thousands of workers, Chicago’s ordinance is primarily aimed at large employers. Mayor Lori Lightfoot's office called it the most expansive predictable scheduling ordinance in the country. Covered employees who self-schedule or who work for a venue that regularly hosts ticketed events are not covered by these advance notice provisions. Fair Scheduling Requirements Pose Compliance Challenges for Retail, Restaurant and Other Employers, Philadelphia’s “Fair Workweek” Ordinance Will Impose Scheduling and Hiring Restrictions on Large Retail, Hospitality and Food Service Establishments, Seattle City Council Approves Secure Scheduling Ordinance, New York City Enacts Laws Limiting Employers' Flexibility To Staff Employees, New Oregon Law Imposes Scheduling and Working Hours Obligations on Employers, What's All the Fuss About? An employer must permit covered employees to decline previously unscheduled hours if they have not received the advance notice outlined above. Employers must maintain, for up to three years, records of each employee’s name, hours worked, pay rate, and other documentation necessary to demonstrate compliance with all aspects of the ordinance. Chicago's new predictable scheduling law, effective July 1, 2020, requires employers to notify low-income workers of changes to their schedules and applies to … Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. The Chicago City Council approved the “Chicago Fair Workweek Ordinance” on July 24, 2019. Prior Notice of Schedules. What is predictive scheduling? The Department will conduct an investigation, including seeking information from the employer. Predictive scheduling laws force employers to end “on-call” scheduling and penalize employers for last minute schedule changes. It may also be useful to begin tracking which events or occurrences typically make it difficult to prepare a schedule 10 days in advance, or result in the need to change schedules on short notice. Workplace Harassment & Discrimination Laws It applies to businesses with more than 100 employees globally, 50 of whom must be covered employees. Fair Workweek laws (FWW), which are being passed across the country, require predictable scheduling practices for certain service and hospitality employees. As predictive scheduling expands to more cities and states, the pressure will only increase to get in tune with local laws while attracting and retaining the best talent. An employer must offer existing covered employees more hours or shifts prior to hiring additional staff. Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney. States that have adopted predictive scheduling laws also include New York, California, Washington and Illinois, as well as several others. General Data Protection Regulation (GDPR), Littler Restructuring Assessment Solution, Who Could Have Predicted? If an employer alters a worker's schedule later than 10 days in advance (or 14 days as of 2022)-, it must pay workers for an extra hour of pay in addition to their regular compensation. Currently, Oregon is the only state with a law in place, and it applies to employers in the retail, hospitality and fast food industries. Chicago is the Latest City to Enact a Predictive Scheduling Law. "It institutes significant new protections for hundreds of thousands of workers so we are still supportive of the overall ordinance.". The Ordinance does not go into effect until July 2020, so employers may consider using the next year to gradually put practices into effect that would make the transition go more smoothly at that time. Overview of new labor laws in Illinois and Chicago taking effect in 2018: predictive scheduling rules, sick leave, and minimum wage increases. Employers determined to have engaged in retaliation will be subject to a fine of $1,000. Trib., July 24, 2019. Employers must provide covered employees a copy of their records relating to this Ordinance upon reasonable request. Employers are prohibited from retaliating against an employee for exercising any right under the Ordinance, including reporting or testifying about any violation, or requesting changes to their working arrangement. Predictable Scheduling Laws May Be Coming to Illinois Soon While many new laws have entered into effect in Illinois at the start of 2018, none of them brought about substantial change to the state of Illinois’ employment laws. Provide employee schedules at least 2 weeks in advance; 2. Any changes require the employer to pay an affected worker between one and four hours of additional pay, depending on how last-minute the change was. Essentially, predictive scheduling requires employers to provide employees with their work schedules ahead of time. Notably, “restaurants” means businesses licensed to sell food in Chicago that have at least 30 locations and 250 employees globally, and also excludes business with no more than three locations in Chicago owned by a single employer and operating under a sole franchise. New York City’s law will take effect November 2017.San Francisco employers must: 1. All are targeted to the retail and food service/fast food industries: 1. By Shawn D. Fabian on July 31, 2019. Employers that fail to comply with the Ordinance’s other requirements are subject to fines of $300-$500 for each “offense.” Each day a covered employee’s rights are affected counts as a separate offense. What Employers Can Do If Workers Refuse a COVID-19 Vaccination, IRS Announces 2021 Limits for HSAs and High-Deductible Health Plans, Performance Management: Designing & Implementing Effective Systems, Apprenticeship Expansion Passes House Committee, Philadelphia’s Salary-History Ban Takes Effect Sept. 1, Supreme Court Won't Resolve Pay Discrimination Dispute Over Salary History. Predictive scheduling laws may also impact on … • San Francisco (effective July 2015) was the first to pass a law of this kind. Before proceeding to court, however, a covered employee must first file a charge with the Department of Business Affairs and Consumer Protection. The following cities also have predictive scheduling laws on the books. The Ordinance, which includes predictable scheduling provisions, will dramatically affect workweek scheduling … The purported goal of the Ordinance is to provide predictability, flexible schedules, and financial stability to Chicago hourly workers. Significantly, as with the June 2018 proposed Ordinance, the final Ordinance provides that the Ordinance’s requirements may be “waived in a bona fide collective bargaining agreement, but only if the waiver is set forth explicitly in such agreement in clear and unambiguous terms.”3. Predictive scheduling laws were designed to give workers less uncertainty over their schedules. Covered employees also have a private right of action for violation of the ordinance. Members may download one copy of our sample forms and templates for your personal use within your organization. During negotiations over the bill, employer groups secured language limiting coverage to hourly workers earning less than $26 per hour and salaried workers earning less than $50,000 annually. By contrast, Georgia and Tennessee have passed laws prohibiting their cities from enacting predictable scheduling laws. While predictive scheduling legislation varies … “Covered industries” are: building services, healthcare, hotels, manufacturing, restaurants, retail, and warehouse services, as those terms are defined in the Ordinance. If a covered employee’s schedule changed within the 10 (or 14) days, the employer must provide the employee with one additional hour of pay for each changed shift as “predictability pay.” This includes when the schedule change adds extra hours, changes the date or time of the scheduled work with no loss of hours, or cancels or subtracts hours from an on-call shift with less than 24 hours’ notice. For example, schedule changes required by failure of public utilities, acts of nature, or war, or agreed to or requested by the covered employee, will not trigger the requirement for extra compensation. But industry groups won some concessions during negotiations over the ordinance, including the definition of covered employers and employees. Please log in as a SHRM member before saving bookmarks. The Ordinance will require employers covered by the Ordinance to provide advance notice of work schedules to their covered employees, and to pay additional wages if posted schedules are changed within a certain time period. 2021 Programs Now Available! The Ordinance goes into effect on July 1, 2020. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item. View key toolkits, policies, research and more on HR topics that matter to you. Mike O’Halloran, NFIB’s Maryland and Delaware State Director, is also working to prevent predictive scheduling laws. In addition, restaurants must have at least 30 locations globally, meaning most small restaurants are exempt. The Ordinance borrows from similar ordinances adopted in other major cities such as New York, San Francisco and Seattle. The Fair Workweek Ordinance requires certain employers to provide workers with predictable work schedules and compensation for changes. Every law passed is different, and the categories of workers they cover can vary in each location. If covered employees agree to work a shift beginning less than 10 hours after the end of a shift, they will be paid at a rate of 1.25 times their regular rate for the entire shift. Covered employees can decline to work scheduled hours occurring less than 10 hours following the end of a shift. Please confirm that you want to proceed with deleting bookmark. The law applies only to a business with at least 100 employees globally, 50 of whom must be employees covered by the law (see the discussion of the definition of "employee" below). Extra pay is not required in all instances of a schedule change within the 10-day window. Unionized employers should consider negotiating a waiver of rights under the Ordinance into their collective bargaining agreements at the next opportunity. Predictive scheduling laws have come into effect in cities including Philadelphia, Chicago and San Francisco. Cannabis Regulation and Tax Act. Wonder how you might do on a SHRM-CP or SHRM-SCP exam? Make no changes to the employee schedule with less than seven days notice; changes made past that … Since then, and after intense lobbying by those representing both employers and employees, the Ordinance has been revised in several respects, resulting in an ordinance described as “a compromise between representatives from labor and business.”1. On July 24, 2019, the Chicago City Council passed the most sweeping predictive scheduling ordinance in the country to date. For example, in New York City the law covers all fast food workers. A measure that would require Chicago employers to schedule workers two weeks in advance and pay them for last-minute changes would pose serious problems for hospitals, the Illinois … Illinois has rung in the new year with 253 new laws – many of which directly impact Illinois employers. The Ordinance will require employers covered by the Ordinance to provide advance notice of work schedules to their covered employees, and to pay additional wages if posted schedules … The Ordinance was first proposed to the Chicago City Council in June 2017. Members can get help with HR questions via phone, chat or email. Please log in as a SHRM member. An employer must post a notice of rights under the Ordinance in a visible area of the workplace and provide each new covered employee written notification of his or her rights upon hire. If a covered employees’ hours were cancelled or reduced with less than 24 hours’ notice, a covered employee is entitled to pay in the amount of one-half times the covered employee’s regular rate of pay for hours that are not worked as a result of the change. Seattle’s Secure Scheduling Ordinance and Emeryville and California’s Fair Workweek Ordinances took effect July of this year. The law also includes new provisions for employer notice and timekeeping requirements. "We would have preferred to see all hourly employees covered, but we understand this is a first step forward," said Jake Lewis, a spokesman for the Chicago Federation of Labor. Predictive scheduling refers to a patchwork of different state and municipal laws mandating hiring, scheduling, and document retention practices for certain employers. An “employer” is defined as an entity that employs 100 or more employees (or 250 or more employees if a non-profit corporation), 50 of whom are covered employees, and is primarily engaged in a covered industry. The ordinance, which the Chicago City Council and Lightfoot approved unanimously July 24, will be officially enacted at the next city council meeting, which is scheduled for Sept. 18, a mayor's office spokesperson said. Predictive scheduling laws are just one among many areas – see minimum wage increases and paid leave allowances for others – that will transform the future of work. “Covered employees” are employees (as opposed to contractors), or temporary workers if the workers are on assignment with an employer for 420 hours in an 18-month period, who (a) perform the majority of their work within the City of Chicago; (b) perform the majority of their work in a “covered industry”; and (c) earn less than $50,000 a year, for salaried employees, or less than $26 an hour, for hourly employees. (At the moment, O’Halloran says predictive scheduling laws have not yet been passed in either state.) Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Employees are covered by the ordinance if they work in one of seven “covered” industries (Building Services, Healthcare, Hotels, Manufacturing, Restaurants, Retail, and Warehouse Services), they make less than $26/hour or $50,000/year, and the employer has at … if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { Chicago Mayor Lori Lightfoot is expected to sign into law the City Council’s recently passed Chicago Fair Workweek Ordinance (the “Ordinance”). New York City 3. $("span.current-site").html("SHRM MENA "); Expand your toolbox with the tools and techniques needed to fix your organization’s unique needs. While the Ordinance specifically states that the good-faith projection of a covered employee’s days, hours, and shifts of work for the first 90 days of employment is not a contract, employers should ensure their new-hire paperwork explicitly disclaims the creation of any contractual obligations. “As often as possible, we bring our member stories to legislatures and provide testimony in person,” O’Halloran says. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); San Francisco 4. Employers should also ensure that managers are trained on the Ordinance’s requirements for posting and making changes to schedules and on the ordinance’s non-discrimination and retaliation provisions. Oregon became the first state to pass a fair scheduling law. Emeryville, CA 2. Please enable scripts and reload this page. We've gathered articles on the predictable scheduling, including the new law, from SHRM Online and other trusted media outlets. ​Chicago's new predictable scheduling law, effective July 1, 2020, requires employers to notify low-income workers of changes to their schedules and applies to a wide variety of industries. Once the Department has closed an investigation, the covered employee may file a lawsuit. Predictive Scheduling: Chicago’s Fair Workweek Ordinance goes into effect on July 1, 2020 and requires certain employers to provide predictive scheduling for certain employees. Predictive Scheduling: Chicago’s Fair Workweek Ordinance goes into effect on July 1, 2020 and requires certain employers to provide predictive scheduling for … Chicago’s New Scheduling Law Applies to Many Workplaces. $("span.current-site").html("SHRM China "); The Ordinance also requires employers to offer additional hours to existing employees before hiring new employees. } In San Francisco, employers must post schedules at least two weeks in advance. Employers should prepare their management and human resources personnel for potential changes to the workplace as a result of these new laws. What If FFCRA Expires at the End of the Year? } This definition was one of the mostly hotly debated pieces of the legislation, and has changed substantially since the June 2018 proposed ordinance. Predictable scheduling laws address concerns about hourly workers who must juggle other responsibilities—such as child care and a second job—with their employer's demands, according to Benjamin O'Glasser, an attorney with Bullard Law in Portland, Ore. Oregon enacted the first statewide predictable scheduling law in 2017. These laws … When an employer cancels a shift or reduces hours with less than 24 hours' notice, it will have to pay a worker at least 50 percent of that person's regular pay rate for any scheduled hours. San Francisco Was First to Enact Predictable Scheduling Ordinance. 1, Chapter 1-25-030. 3 Municipal Code of Chicago, Tit. Extra pay must be given to employees if the employer changes the schedule after the posted schedule. $('.container-footer').first().hide(); The minimum compensation requirement is scheduled to increase annually based on the increase in the Consumer Price Index.2. Employees must be provided with their schedules (and all changes) at … ​Find news & resources on specialized workplace topics. }. In an authored article for the Cook County Record, Chicago partner Jessica Causgrove outlines the changes behind the Fair Workweek and predictive scheduling laws and provides a detailed overview of the status in Illinois. If the company discriminates or retaliates against an employee for exercising a right under the law, the business will be fined $1,000. Employers are challenged by the varying predictable scheduling laws in different cities. Your employer must pay you a penalty if they change your schedule without advance notice. On January 1, 2020, Illinois became the 11th state to legalize … Let SHRM Education guide your way. There are several state and local jurisdictions with predictive scheduling laws that could be triggered by a COVID-19 furlough, including California (Berkeley, Emeryville, and San Francisco only), Chicago, Illinois (effective July 1, 2020), Oregon, Philadelphia, Pennsylvania (effective April 1, 2020), and Seattle, Washington. You may be trying to access this site from a secured browser on the server. Employers must post the employee schedule in advance, somewhere between 7 to 14 days. In New York City, certain employers must post schedules 72 hours in advance, with any subsequent changes prohibited. Such information can help managers develop strategies for anticipating staffing needs or reacting to such events in ways that reduce the need to change schedules in the future. San Francisco was the first to enact scheduling regulations with its Formula Retail Employee Rights Ordinance in 2014. Violations of the ordinance will cost employers between $300 and $500 for each offense. For example, managers can begin creating and posting employee schedules further in advance. The Chicago City Council just approved what is likely the most expansive predictive scheduling law in the country. Business and labor groups came together with Chicago Mayor Lori Lightfoot’s staff and the city council to negotiate, draft, and approve the Chicago Fair Workweek Ordinance. Predictive scheduling laws also require employers to provide new employees with a “good faith” estimate of the amount of shifts the employee will work per month, including the expected dates and lengths of the shifts. It covers not just the hotel and retail industry, but also building services, manufacturing, restaurants and warehouse services. July 26, 2019. Oregon is currently the only state with a predictive scheduling law, and it affects employers in the retail, hospitality, and food service industries that have at least 500 employees. Since then, in addition to Oregon, New York City and Chicago, predictable scheduling laws have been passed in Seattle and Philadelphia. Chicago's ordinance will not protect all employees. However, recently passed laws cover a range of scheduling and pay-related issues, including: Four years ago, San Francisco was the first U.S. city to enact a predictable scheduling law. $(document).ready(function () { Such laws may also eliminate on-call scheduling — when employers make workers call in shortly before their work shift starts to see if they need to report to work that day. Non-union employers should review whether they are covered by the Ordinance and, if so, begin taking steps to ensure compliance. 1 Alexia Elejalde-Ruiz, City Council approves Chicago’s ‘fair workweek’ ordinance: Now many workers must get two weeks’ notice of their schedules, Chi. The Chicago City Council approved the “Chicago Fair Workweek Ordinance” on July 24, 2019. An employer must provide covered employees with written notice of work hours no later than 10 days before the first day of any new schedule (as of July 1, 2022, this notice must be provided 14 days before any new schedule) by posting the schedule in a conspicuous place at the workplace, or using the usual methods of communication (or both), and, by electronic means upon request. An Overview of Fair Scheduling Requirements, and a Few Tips for Staying on Top of Them All. You have successfully saved this page as a bookmark. This ordinance requires covered employers to provide covered employees with notice of their work schedule at least ten days in advance. Seattle In addition, a pair of major American cities will se… Need help with a specific HR issue like coronavirus or FLSA? Your session has expired. Predictive scheduling laws have added a new wrinkle to wage and hour compliance, but as with many areas of employment law, the requirements vary between states and localities. 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