In recent years, predictive scheduling laws have become an increasingly important aspect of workforce management, particularly for employers in industries with variable hours and shift-based work. These laws are designed to provide employees with greater stability and predictability in their work schedules, while also ensuring fair treatment in the workplace. For employers, understanding and complying with these regulations is crucial for maintaining legal compliance and fostering a positive work environment.
Today’s guide aims to provide employers with a comprehensive overview of predictive scheduling laws in the U.S., offering practical insights to help navigate these requirements effectively.
What Is Predictive Scheduling?
Predictive scheduling refers to laws and regulations that require employers to provide employees with advance notice of their work schedules. The primary aim of these laws is to create more predictable and stable working conditions for employees. This is particularly important in industries like retail, hospitality, and food service, where fluctuating hours are common.
Under predictive scheduling laws, employers are typically required to give employees their work schedules within a specific time frame. This often ranges from several days to two weeks in advance. Additionally, these laws often impose penalties on employers for making last-minute changes to an employee’s schedule, such as adding or canceling shifts without proper notice.
Essentially, the purpose of predictive scheduling is to help employees better manage their personal lives, reduce the stress associated with unpredictable work hours, and ensure they have a fair opportunity to plan around their job responsibilities. For employers, compliance with these laws not only helps avoid legal penalties but also contributes to a more satisfied and engaged workforce.
Which Industries Does Predictive Scheduling Impact the Most?
Predictive scheduling is particularly relevant to industries with variable hours and shift-based work. In these industries, employees often face uncertainty regarding their work schedules. Predictive scheduling laws address this issue by requiring employers to provide advance notice of work schedules, offering employees more stability and predictability.
In environments with variable hours and shift-based work, such as retail, hospitality, and healthcare, employees may be required to work different shifts from week to week or even day to day. Without proper notice, these changes can disrupt employees’ personal lives, making it difficult to arrange childcare, pursue education, or even manage other part-time jobs. Predictive scheduling aims to mitigate these challenges by ensuring that employees are informed of their schedules in advance, allowing them to plan accordingly.
For employers in these industries, understanding predictive scheduling is crucial for maintaining compliance with labor laws and supporting a more consistent and motivated workforce. This alignment helps create a better balance between operational flexibility and employee well-being.
Federal Predictive Scheduling Laws
The Fair Labor Standards Act (FLSA) sets federal standards for minimum wage and overtime pay, but it does not include any provisions for predictive scheduling. This means that, under federal law, employers can generally change employees’ work schedules without prior notice or consent, provided they comply with contracted hours and adhere to overtime regulations for non-exempt workers.
Despite the above, several states and cities have recognized the challenges of unpredictable scheduling and have enacted their own laws requiring advance notice and compensation for last-minute schedule changes. As a result, it’s important to read up on the laws in your state and city in case you operate in a location with specific predictive scheduling regulations. You also need to keep in mind any collective bargaining agreements that may require you to provide advance scheduling notice.
State Predictive Scheduling Laws
As we just mentioned, predictive scheduling laws are implemented at the state and local levels, with several jurisdictions enacting their own laws to address the issue of unpredictable work schedules. These local laws vary in their specifics but generally require employers to provide advance notice of work schedules, compensate employees for last-minute schedule changes, and offer additional hours to current employees before hiring new staff.
So, which states have predictive scheduling laws? Let’s explore.
California
California has made significant strides in implementing predictive scheduling laws to enhance workplace fairness, particularly in cities like San Francisco, Emeryville, and Berkeley. While predictive scheduling laws in California are not statewide, these local ordinances have set important precedents.
San Francisco was the first city in the U.S. to adopt predictive scheduling laws with its Retail Workers Bill of Rights in 2014. This ordinance applies to retail chains and certain fast-food establishments with 20 or more locations worldwide. Under this local law, employers in San Francisco must provide work schedules at least two weeks in advance. If any changes occur with less than seven days’ notice, employees are entitled to “predictability pay,” which compensates them for the inconvenience.
Emeryville followed suit in 2017 with its Fair Workweek Ordinance. This law applies to retail and fast-food companies with 56 or more employees around the world and requires schedules to be posted 14 days in advance. Similar to San Francisco’s ordinance, it mandates compensation for last-minute changes.
Finally, Berkeley also passed a Fair Workweek Ordinance in 2019, which mirrors the requirements found in San Francisco and Emeryville.
Illinois
Illinois has taken significant steps in terms of predictive scheduling with the implementation of a Fair Workweek Ordinance in Chicago. Effective July 1, 2020, this ordinance applies to large employers in specific industries, including building services, healthcare, hotels, manufacturing, restaurants, retail, and warehouse services. The law mandates that covered employers provide employees with their work schedules at least 10 days in advance. This notice period increased to 14 days in 2022.
Under Chicago’s Fair Workweek Ordinance, if employers make changes to the schedule with less than the required notice, they must compensate employees with “predictability pay.” This compensation generally includes one hour of pay at the employee’s regular rate for each shift that is altered with less notice. Moreover, the ordinance requires employers to offer additional work hours to existing employees before hiring new staff, ensuring that current employees have the opportunity to secure more stable and consistent work.
New York
New York has implemented some of the most comprehensive predictive scheduling laws in the United States, particularly through the Fair Workweek Law in New York City. This law specifically targets the retail and fast-food industries. It mandates that employers provide employees with their work schedules at least 14 days in advance. If employers make schedule changes with less than this required notice, they must offer “predictability pay” to compensate employees for last-minute alterations.
In addition to schedule notice requirements, the Fair Workweek Law includes provisions that prohibit “on-call” scheduling for retail employees. This means that retail employers cannot require workers to work on short notice without committing to a scheduled shift. Fast-food employers must also offer additional hours to existing employees before hiring new staff. This ensures that current workers have the opportunity to work more hours if they desire.
While there is no statewide predictive scheduling law in New York, the regulations in New York City set a significant precedent and are among the most stringent in the nation.
Oregon
Oregon is a pioneer in predictive scheduling, as it is the first state in the U.S. to enact a statewide law regulating employee work schedules. The Oregon Fair Workweek Act applies to large employers in the retail, hospitality, and food service industries that have 500 or more employees worldwide.
Under this law, employers must provide employees with their work schedules at least 14 days in advance (this figure increased from 7 days in 2020). If employers make changes to the schedule with less than the required notice, they must compensate employees with “predictability pay.” This is typically one hour of pay at the employee’s regular rate for each shift change without sufficient notice.
The law also includes provisions that require employers to offer additional work hours to existing part-time employees before hiring new staff. Moreover, employers cannot schedule employees for shifts that are too close together, a practice often referred to as “clopening,” unless the employee consents to it.
Oregon’s statewide approach to predictive scheduling sets a robust standard, emphasizing fairness and stability in work schedules across key industries.
Pennsylvania
Although Pennsylvania does not have a statewide predictive scheduling law yet, there is a growing movement in favor of it, particularly in urban areas where unpredictable work schedules are a significant concern for employees. This growing movement is being driven by labor groups and workers’ rights organizations in the state.
Most notably, Philadelphia is currently considering the implementation of fair workweek practices. The city council has proposed legislation similar to those enacted in other major cities (as we saw above). Although a formal predictive scheduling law is yet to be passed, the proposed regulations would likely target large employers in industries such as retail and hospitality, requiring them to provide employees with advance notice of their schedules and compensating workers for last-minute changes.
Washington
Finally, Washington state has emerged as a leader in implementing predictive scheduling laws, particularly through the Secure Scheduling Ordinance in Seattle, which is one of the most comprehensive regulations of its kind in the U.S. Effective since July 1, 2017, this ordinance targets large employers in the retail and fast-food industries with 500 or more employees globally, as well as full-service restaurants with 500 or more employees and 40 or more locations worldwide.
Under the Seattle Secure Scheduling Ordinance, employers must provide employees with their work schedules at least 14 days in advance. If changes are made within this two-week window, employers must compensate employees with “predictability pay,” generally amounting to one hour of pay at the employee’s regular rate for each shift change made with less than the required notice.
In addition, Seattle’s ordinance includes provisions to protect workers from being scheduled for shifts that are too close together (unless the employee consents to it). Employers must also offer additional work hours to current employees before hiring new staff.
Why It’s Important to Inform Employees of Shift Changes
Although not all cities and states have predictive scheduling laws, it’s still important to inform employees of shift changes in advance. Why? Because clear communication builds trust and respect and helps you foster a more positive work environment. It allows employees to plan their personal lives and manage commitments (such as childcare or education). It also reduces stress associated with last-minute changes. Additionally, when employees know their schedules in advance, they are more likely to be engaged, motivated and productive at work.
Advance notice of shift changes also helps to avoid misunderstandings and reduces the likelihood of absenteeism or turnover, which can be costly for businesses. Even in regions without formal predictive scheduling laws, adopting scheduling best practices reflects a commitment to employee well-being. It can also enhance your company’s reputation as a fair and responsible employer. Moreover, consistent and fair scheduling practices can boost employee morale and lead to higher employee satisfaction. This, in turn, fosters loyalty and long-term retention, which ultimately benefits the organization as a whole.
Essentially, keeping employees informed about their work schedules is not just a legal requirement in certain states and cities; it’s a strategic tool for building a strong, loyal and motivated workforce.
How to Track Working Hours
Regardless of whether you have to comply with local predictive scheduling laws, it’s important to accurately track employee working hours. Accurate tracking helps you provide advance notice of schedules and avoid penalties for last-minute changes. It’s also essential for compensating your workers fairly. Plus, time tracking helps you monitor work patterns, preventing excessive hours, and avoiding burnout. By maintaining clear records, you can foster transparency and trust with your employees. This, in turn, helps you build a more satisfied and productive workforce.
Managers have several tools at their disposal for tracking employee working hours. Time-tracking software offers real-time insights into employee attendance and hours worked, ensuring compliance with labor laws. Time card apps allow employees to clock in and out easily, while timesheet software provides a detailed overview of hours logged.
Another essential tool in terms of compliance with predictive scheduling laws is shift management software. This solution helps you schedule shifts efficiently and you can usually integrate the software with other systems to streamline the entire process.
By using these tools, your managers can maintain accurate records, manage labor costs, and ensure that employees are working within the agreed-upon schedules.
Factorial’s Scheduling & Time-Tracking Solutions
And there you have it! Hopefully, today’s post has helped you understand everything you need to know about predictive scheduling laws in the U.S. All that remains now is to ensure that your business complies with legal requirements. And the best way to do this is to use the right tools and technology to track working hours and schedule employee shifts.
Factorial’s time management software has all the tools you need for this. With Factorial, managers can easily create and modify work schedules, ensuring that employees receive timely updates about their shifts. Managers can also benefit from the shift management tool, which allows them to assign shifts, handle last-minute changes, and offer additional hours to current employees, all within a few clicks.
The software also includes automatic time tracking, which records when employees start and finish their shifts. This feature, which relies on an electronic time card, minimizes errors and ensures that employees are paid accurately for the hours they work.
Ultimately, Factorial’s tools are designed to simplify the administrative aspects of workforce management, making it easier for businesses to keep accurate records and maintain compliance with predictive scheduling laws. By using our solution, you can improve communication with your employees, reduce scheduling conflicts, and foster a more organized and engaged workforce.
