Predictive scheduling laws: A city & state guide for employers

Predictive scheduling laws also known as “fair workweek laws” have been increasing in importance in the United States over the last decade. Currently, Oregon is the only state with state-wide fair scheduling laws but several other states have local ordinances in major cities like New York City, Los Angeles, and Chicago. Many cities across the country are bolstering their predictability pay ordinances and plan to expand these practices even as some states have banned these ordinances entirely. 

As predictive scheduling becomes an important aspect of workforce management, businesses need to be aware that fair scheduling laws differ from city to city and state to state, and change from year to year. It’s incumbent upon companies—especially those that operate in many locations—to stay informed and be prepared rather than get caught in a compliance infraction. 

What are predictive scheduling laws?

Fair workweek laws require employers to provide employees with schedules in advance, usually with two weeks notice. If schedules change, they’re required to provide employees with predictability pay and/or incur penalties. 

Predictive scheduling laws mostly apply to businesses in the retail, food, and hospitality industries. Companies which employ minimum wage workers tend to be most subject to abrupt employee scheduling changes. 

Instituted to provide employees with predictability in their work schedules and better work-life balance, the first fair workweek law was passed in San Francisco in 2014, with the city’s "Formula Retail Employee Rights Ordinances.” Oregon upped the ante in 2017 with the first and only state-wide predictive scheduling law.

Among other employee protections like notifying employees of potential on-call shifts and giving existing employees the chance to take on more hours before hiring new staff, fair scheduling laws help prevent “clopening” shifts—when an employee is scheduled for back-to-back closing and opening shifts—which often leads to sleep deprivation, burnout, and decreased productivity. 

States with predictive scheduling laws

Predictive scheduling laws have been passed within the following states but Oregon is the only one to make fair workweek laws apply statewide. 

• California
• New York
• Oregon
• Illinois
• Washington
• Pennsylvania

Although most new state employment laws tend to be adopted by other states, that has not been the case with predictive scheduling laws. But many other states have considered enacting them, including Connecticut, Illinois, Maine, Michigan, Minnesota, New Jersey, North Carolina and Rhode Island. 

As more of these employee availability laws take effect, it’s a good idea for employers to keep an eye on their state government’s website for new bills and other ordinance updates. Also, employers might want to know that the following states have prohibited their local governments from enacting fair workweek laws:

• Alabama
• Arkansas
• Florida
• Georgia
• Indiana
• Iowa
• Kansas
• Michigan
• Ohio
• Tennessee
• Wisconsin

Cities with predictive scheduling laws

More cities than states have adopted fair workweek laws, especially in urban and densely populated areas. These include: 

• Chicago, IL
• Evanston, IL
• San Francisco, CA
• Emeryville, CA
• Berkeley, CA
• Los Angeles, CA
• Seattle, WA
• Philadelphia, PA
• New York, NY
• All cities in Oregon

Why are predictive scheduling laws important for employers?

Employers benefit from fair workweek laws in many ways. Although implementation of employee availability laws makes managing a workforce more complicated, employers reap rewards from better supporting their workers. Benefits include:

• Reduced turnover: employees are more likely to stay with a job with more predictability in work hours and more protections against last-minute employee scheduling
• Improved employee morale: employees are happier when they have a better work-life balance.
• Better employer reputation: an employer who provides a good work experience benefits from positive reviews which can lead to better employee candidates. 
• Increased productivity and engagement: employees that are rested and have control over their schedules are more productive. 
• Increased sales: a more engaged staff leads to better customer service and increased sales. 

Some of the potential risks of non-compliance with predictive scheduling laws include: 

• Penalties and fines: employers can face large fines and penalties for violating fair workweek laws, as detailed in the chart in the previous section.
• Legal fees: companies may incur legal fees to defend against lawsuits. 
• Operational disruption: employers may experience lost productivity while resolving compliance issues.  
• Business disruption: companies may be unable to get loans or face higher insurance premiums due to a history of non-compliance with fair workweek laws.
• Damage to an employer’s reputation: businesses may lose the trust of their customers and employees.

How to stay compliant with predictive scheduling laws

Predictive scheduling laws often introduce a host of new requirements which may be hard to implement. However, most of them are based on effective time and labor management. 

To better prepare for staying compliant with employee availability laws, an employer would benefit from consolidating employee information and automating manual work. Here are some tips:

• Invest in scheduling software: employee scheduling software can make complex calculations and administrative tasks easier and oftentimes, automatic.
• Establish clear, fair employee scheduling policies: when all employees understand the rules and feel supported by them, they can abide by them.  
• Offer manager training: managers trained in fair scheduling laws are able to stay on top of enforcement and compliance. 
• Regularly review and update compliance practices: make sure you are in compliance with current laws and regulations to avoid being hit with a costly fine or lawsuit

Employee scheduling made easy with Rippling

Rippling’s scheduling software makes it easy for employers to stay compliant with predictive scheduling laws. By integrating employee scheduling with time tracking, payroll, and compliance management on a single platform, Rippling eliminates manual work, ensures compliance with labor laws, and provides real-time visibility into labor costs.

Features like automated employee scheduling, compliance alerts, and real-time reporting help employers manage complex predictive scheduling regulations, meet legal requirements and reduce the possibility of manual error. 

Predictive scheduling laws FAQs

What is a predictive schedule?

A work schedule is set a mandated period of time before the scheduled shift occurs which gives employees predictability in their work hours.

What are the benefits of predictive scheduling for employers?

The main benefit is providing your employees with more predictability in employee scheduling and better work-life balance. In return, an employer will experience less employee turnover, more employee engagement, smoother operation, more sales, and a better reputation as an employer. 

What is unfair employee scheduling?

On-call or last minute employee scheduling that doesn’t provide employees with predictability in their work hours and decreases work-life balance. It also includes “clopening” which is scheduling an employee for a closing shift followed by an opening shift which doesn’t give employees sufficient time to rest between shifts. 

How far in advance should you know your employee schedule?

Most cities abide by the two-week advance notice rule for notifying employees of their work hours. 

How much notice does an employer have to give for an employee scheduling change?

It varies by city and state but in general, when an employer changes the work schedule after it is set, they must provide “predictability pay” for the employee whose scheduled shift has been changed. This varies from one hour per scheduled shift to 1.5x the employee’s standard rate of pay. Some employers must pay a penalty for employee scheduling changes that can range from $50 per day to $1000.

This blog is based on information available to Rippling as of October 18, 2024.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.