Attention Philadelphia Employers – Mayor Signs Two New Employment Laws

Fair WorkweekThe City of Philadelphia has recently passed two pieces of legislation that will raise the minimum wage for city workers and city contractor employees and ensure fair hours for Philadelphia workers. The goal is to give Philadelphians a chance to improve the quality of their family’s lives by providing them with stable employment and steady work schedules.

21st Century Minimum Wage Standard
On December 20, 2018, Mayor Jim Kenney signed the 21st Century Minimum Wage Ordinance (File #180846) that will raise the minimum wage for all Philadelphia government workers, contractors, and subcontractors. The minimum wage will increase as follows:

  • $13.25 on July 1, 2019
  • $13.75 on July 1, 2020
  • $14.25 on July 1, 2021
  • $15.00 on July 1, 2022

After July 1, 2023, the minimum wage will continue to increase pursuant to a calculation based on the Consumer Price Index for all Urban Consumers.

The law applies to new, renewed, and amended contracts with the City of Philadelphia. As stated in the text of the law, a contract includes any contract, lease, license, concession agreement, franchise agreement or agreement for financial aid.

Fair Workweek Employment Standards
Under the Fair Workweek Employment Standards Ordinance (File #180649-A), employers in the retail, hospitality, and food industries with 250 or more employees and 30 or more locations nationally will be required to provide reasonable notice of schedules. Effective January 1, 2020, employers must provide new employees with a written, good-faith estimate of their work schedules, which must contain:

  • the average number of work hours the employee can expect to work each week over a typical 90-day period;
  • whether the employee can expect to work on-call shifts; and
  • a subset of days and times the employee can typically expect to work.

New hires will be allowed to make schedule requests (i.e., requesting certain hours, days, or locations of work). Employers must physically or electronically post all work schedules of covered employees at least 10 days prior to the start of the scheduled period. Starting January 1, 2021, employers must release work schedules at least 14 days prior to the start of the scheduled period. Employers must provide notice of any proposed changes to the work schedule prior to the change taking effect. The written work schedule must be revised within 24 hours of making the change. When an employer adds time to a work shift or changes the date, time, and/or location of the shift, with no loss of hours to the employee, the employer will be required to pay one additional hour at the employee’s regular rate of pay. If the employee does not work scheduled hours because hours are subtracted from a regular/on-call shift or cancelled, the employer is required to pay “no less than one-half times” the employee’s regular hourly rate for the missed hours.

The Fair Workweek Employment Standards also requires employers to offer new work shifts to existing employees before hiring through temporary services or staffing agencies. Employers must provide written notice of available work shifts for at least 72 hours, unless a shorter period is necessary. If no employees express interest within this period, only then may the employers hire new employees. Employers must post a notice of rights and privileges under the law that the City of Philadelphia is expected to create in conspicuous and accessible places.

CPC will continue to follow the new legislation, and provide new updates. Make sure to visit our blog soon!

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