Understanding Los Angeles Retail Fair Work Week Ordinance

On November 29 last year, the L.A. Retail Fair Work Week Ordinance was passed. The ordinance then went to the mayor and was approved and set to take effect in April 2023. Generally, this law aims to increase predictability in work schedules in L.A.’s retail industry. The law provides requirements that employers must meet when dealing with scheduling and providing employees with schedules. The law also requires employers to provide predictability pay for some employer-initiated schedule changes. This article discusses who is covered under the Retail Fair Work Week Ordinance, the obligations of covered employers, and the penalties for violating the law.

Who is Covered Under the Retail Fair Work Week Ordinance?

The L.A. Retail Fair Work Week Ordinance applies to employers who run businesses that are considered retail businesses in the NAICS. The law applies to employers with three hundred or more employees worldwide who have power over the employees’ working conditions, wages, or hours. Employees hired through staffing agencies also count towards the three hundred-employee total.

When it comes to employees, the law applies to any person working in L.A. for at least two hours per week for a covered employer unless the employer can prove that the worker is a bona fide independent contractor. 

What are the Obligations of Covered Employers?

Under the Retail Fair Work Week Ordinance, there are several requirements businesses are required to meet when handling scheduling and providing employees with work schedules. The following are some of these requirements;

• Giving all employees a written good faith estimate of their work schedule. Estimates must include, among other things;
  • An approximate number of hours the employer needs the employee to work each week,
  • The days the employee is expected to work.
  • The times or shifts the employee will work,
  • The locations of work.
• Giving a written good-faith estimate of a work schedule within 10 days after an employee requests it.
• Providing an employee with written notice of their work schedule at least two weeks before the beginning of the work period.
• Giving work to current employees first before hiring new employees.
• Posting notices informing employees of their rights under the ordinance.

The law also gives employees the right to request a preference for some hours, location of work, or times. However, an employer is not obligated to accept such a request.

Predictability Pay

Under the new law, when an employee agrees to an alteration in their schedule, an employer is required to provide predictable pay. Generally, in such a case, an employee is entitled to an extra hour of pay at their usual rate for each change resulting in at most 15 minutes of extra work. If work time is reduced by at least 15 minutes, an employee should receive half of their regular pay rate for the time they do not work.

Penalties for Violating the Ordinance

If an employer violates the Retail Fair Work Week Ordinance, an employee can file a claim with the City of Los Angeles, which can recover up to $500 per violation per employee.

Contact a California Employment Lawyer

Contact a California employment lawyer if you have any queries about the Los Angeles Fair Work Week Ordinance.