Requiring employers to provide employees with firm work schedules is a trend making headlines. This summer, Seattle, WA will join other cities such as Emeryville, CA, San Francisco, CA, and San Jose, CA, in ushering a new law that will require big employers to provide employees with stable work schedules and the option to work additional hours before new workers can be hired.
Secure Scheduling Ordinance
Seattle’s Secure Scheduling Ordinance, which goes into effect July 1, 2017, is perhaps the most comprehensive of the predictive-scheduling laws. It applies to retailers, fast-food establishments and restaurant chains with 500 or more employees. It requires employers to provide annual estimates of work hours, post work schedules 14 days in advance, consider employees’ scheduling preferences, offer additional, available hours of work to existing employees before hiring new employees, and compensate employees for last-minute changes.
Proposed Rules
Seattle is in the process of developing administrative rules to implement the Ordinance. The proposed rules provide guidance regarding “significant changes” in estimated and posted work schedules. The proposed rules also describe how employers inform employees of additional hours and the effect of schedule changes on employee compensation.
- Bona Fide Business Reason – The proposed rules clarify that a bona fide business reason for declining an employee’s request for work schedule preferences includes a schedule change that would require the employer to pay additional compensation.
- Good Faith Estimate of Hours – Under the Ordinance, employers must revise the estimate of the number of hours provided to each employee once every year and when the employer anticipates a “significant change” to the work schedule. The proposed rules clarify that a “significant change” to the work schedule occurs when “there is a difference of at least 30% between the good faith estimate and the median number of hours in the written work schedules.”
- Interactive Process – The proposed rules state that when an employee needs to make a significant change from the good faith estimate, the employer must initiate the required “interactive process” with the employee to discuss the change within one week of learning of the change and to complete the process within three weeks. The proposed rules also suggest a methodical approach to the interactive process.
- Employee Coverage – The proposed rules clarify that the Ordinance does not cover employees who work in hourly administrative or professional, non-customer facing positions (e.g. human resources, payroll, and receptionist positions).
- Compensation for Schedule Changes – The Ordinance requires payment of a premium, in addition to wages earned, for schedule changes that occur after the 14-day notice period.
- 15-Minute Grace Period– The proposed rules clarify that no premium pay is due for schedule changes that are less than 15 minutes.
- Exceptions to Additional Compensation – The proposed rules clarify that when additional hours are offered by a “mass communication” or an “in-person” group communication, an employee who knows the additional hours can be declined and voluntarily consents to the work is not entitled to the pay premium.
Summary
While the proposed rules contain several provisions that are favorable to employers, the rules are also certain to increase the administrative burden on employers. Employers will be required to post an official notice of the law in the workplace in English and the primary language spoken by employees in the workplace. Employers that fail to comply with each element of the law face steep fines and possible legal action.