The City of Los Angeles’ Fair Work Week Ordinance will take effect on April 1, 2023. The Ordinance, which was unanimously passed by the Los Angeles City Council in November 2022, requires retail employers in the City of Los Angeles to provide employees at least 14 days’ advance notice of their work schedules and to compensate employees in the event of certain schedule changes. You can read our prior blog article on the Los Angeles Fair Work Week Ordinance here.
The City of Los Angeles Office of Wage Standards recently published a Frequently Asked Questions (FAQ) addressing the City of Los Angeles’ Fair Work Week Ordinance. This blog highlights information clarified in the FAQs.
Which Employers Are Covered Under the Ordinance?
Employers identified as a retail business by the North American Industry Classification System within retail trade categories 44-45, with 300 or more employees globally, and that exercise control (directly or indirectly) over the wages, hours or working conditions of any employee are subject to the Ordinance.
What Does ‘Regular Rate of Pay’ Mean Under the Ordinance?
Employers must provide employees with “predictability pay” for some employer-initiated schedule changes or canceled shifts made with less than 14 days’ notice, including but not limited to an increase in hours that exceeds 15 minutes; a reduction of hours by at least 15 minutes; and a change to the date, time, or location of a shift. “Predictability pay” is calculated on an hourly basis at the employee’s regular rate of pay. The regular rate of pay under the Ordinance for “predictability pay” or premium pay is calculated in the same manner as the regular rate of pay when calculating overtime premiums.
Does the Ordinance Apply to Employers Whose Business Is Located Outside of the City of Los Angeles but Whose Employees Perform Work Within City Boundaries?
The Ordinance applies to employees who perform at least two hours of work in a particular week within the City of Los Angeles, regardless of where an employer is located.
What Is a ‘Good Faith’ Estimate of a Work Schedule?
Employers are required to provide workers with a good faith estimate of their work schedule before hiring and within 10 days of a current employee’s request.
The good faith estimate should include:
- The estimated number of hours that the worker will be expected to work;
- The days of the week the worker can expect to work, or the days of the week the worker will not be expected to work;
- The times or shifts the worker can expect to work;
- The location the worker will be expected to work; and
- Whether the worker can expect to work on-call shifts.
Can Employees Work Multiple Shifts on the Same Day?
Employers may schedule workers for multiple shifts on the same workday. However, employers are required to give employees at least 10 hours of rest between shifts unless the employee gives written consent to be scheduled for a shift that begins less than 10 hours after the conclusion of the previous shift. When an employee works a shift that is less than 10 hours after their previous shift, they are entitled to time and a half for all hours in the second shift.
Are There Monetary Penalties and Fines?
An employer who violates the Ordinance is subject to penalties and administrative fines. However, penalties and/or fines will not be enforced by the City of Los Angeles for violations occurring before September 28, 2023.
In light of the Ordinance going into effect on April 1, 2023, covered retail employers should examine their scheduling practices to ensure compliance with the Ordinance and seek legal advice from experienced employment counsel.