What You Need to Know About Predictive Scheduling and the Law
Predictive scheduling offers hourly workers more predictability in their work schedules.
Predictive scheduling is when employers provide employees with their work schedules in advance.
Oregon and six cities (Emeryville, California; Chicago; New York; Philadelphia; San Francisco; and Seattle) currently have predictive scheduling laws.
Businesses in the food service, retail, and hospitality industries, where on-call scheduling is common, are just some of those affected by the new laws.
This article is for employers and managers who want to legally implement a predictive scheduling policy.
In the hospitality industry and with retail businesses and quick-service restaurants especially, on-call scheduling has been the norm, making it difficult for employees to anticipate pay, establish a healthy work-life balance or even determine the number of hours they are likely to work each week.
In response to these difficulties, many cities are adopting a new type of law known as predictive scheduling, which requires an employer to notify an employee of their work schedule in advance. While these laws are designed to provide employees with a "good faith" estimate of their upcoming schedule, they pose new challenges for business owners.
Here's what you need to know about predictive scheduling, the law, and how you can implement a program that benefits both your employees and your business.
What is predictive scheduling?
Predictive scheduling is when an employer provides an employee with their schedule in advance. For employee schedules that frequently fluctuate, part-time employees who do not work full workweeks, or anyone who works for an hourly wage, predictive scheduling can help establish a predictable schedule and help employees better estimate their expected pay for a weekly or monthly period.
Predictive scheduling is largely a response to the challenges associated with on-call scheduling, a workforce management method that availed hourly workers when needed to accommodate influxes of customers at irregular times. On-call scheduling offered business owners flexibility, but at the expense of predictable employee schedules.
In the past few years, predictive scheduling laws and regulations have become more common, especially in industries where part-time jobs and minimum wage positions are prominent.
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How does predictive scheduling impact the employee?
Any employee who has been subject to an unpredictable work schedule knows how difficult it can be. Without any stable pay or a structured work-life balance, employees are often unable to schedule important things around work, such as child care or medical appointments.
Predictive scheduling legislation seeks to ameliorate these challenges by giving employees a window into their upcoming work schedule, either by banning on-call scheduling altogether, requiring employers to give employees their schedules a week or two in advance, or offering compensation for on-call shifts that never materialize.
"[Predictive scheduling] laws give hourly employees fair opportunities and the ability to achieve an unprecedented work-life balance," said Steven Power, president of RollKall Technologies and former global president of Deputy. "By knowing their schedule beforehand, employees have more control for how to plan their lives. This is especially necessary for workers with family and other ongoing commitments. Predictability leads to employee retention and can be a boon for talent recruitment."
Key takeaway: Predictive scheduling gives employees their work schedule in advance. It also compensates workers if their scheduled shift changes at the last minute.
Predictive scheduling and the law
Many cities and more than a dozen states have proposed regulations around predictive scheduling or are considering legislation that would create a predictive scheduling policy. As an employer, it is your responsibility to comply with local and state regulations. Failure to do so could lead to financial penalties and lawsuits. [Interested in time and attendance software for your small business? Check out our best picks and reviews.]
States and cities where predictive scheduling laws apply
Currently, Oregon is the only state that has statewide laws regarding predictive scheduling. There, employees have the right to a 14-day scheduling notice, "good faith" scheduling estimates upon hiring, and the right to refuse shifts scheduled within 10 hours of each other (or time-and-a-half payment if accepted). This applies to companies with at least 500 employees operating in the hospitality, food service and retail industries.
Besides Oregon, six cities have enacted predictive scheduling laws, including:
Emeryville, California: Employees have the right to a 14-day scheduling notice and compensation for late employee schedule changes. Employers are required to pay employees time and a half if two shifts are scheduled within 11 hours of each other (for every hour within that 11-hour window). This applies to companies operating in retail and fast-food industries, with 20 or more employees locally and 56 or more employees worldwide.
Chicago, Illinois: Employees working in healthcare, hotels, manufacturing, building services, retail and food service, earning $26 per hour or less (or less than $50,000 per year) have the right to a 10-day scheduling notice and compensation for late employee schedule changes. This applies to employers with at least 100 employees, nonprofits with more than 250 employees, and restaurants with more than 250 employees and 30 locations.
New York City, New York: Fast food companies with 30 or more U.S. locations are required to have good faith scheduling estimates upon hiring new employees, provide a 14-day scheduling notice, immediately notify employees about canceled shifts, and compensate employees for late changes. Retail employers with 20 or more sellers must post schedules at least 72 hours prior to any shift and can't implement on-call shifts.
Philadelphia, Pennsylvania: Employees have the right to a 14-day scheduling notice, compensation for late schedule changes, and the right to refuse shifts scheduled within nine hours of each other. (If the worker agrees to work within this nine-hour time period, the employer must obtain their consent in writing and compensate the employee $40 for each shift.) This applies to companies with more than 30 locations and 250 employees.
San Francisco, California: Employees have the right to a 14-day scheduling notice and "good faith" scheduling estimates for each month. This applies to retail stores with 40 or more locations worldwide.
Seattle, Washington: Employees have the right to a 14-day scheduling notice, "good faith" scheduling estimates for each month, and the right to refuse shifts scheduled within 10 hours of each other (or time-and-a-half payment if accepted). This applies to food-service businesses with at least 500 employees worldwide.
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