Fair Workweek rules take effect in LA on July 1: What retail employers need to know

On April 23, 2024, the Los Angeles County Board of Supervisors voted to adopt a Fair Workweek Ordinance that imposes new scheduling requirements on large retail employers operating in unincorporated areas of the county. Set to take effect on July 1, 2025, the ordinance aims to improve schedule predictability and work-life balance for hourly employees and closely aligns with similar rules already in place in the City of Los Angeles since April 2023.

Who is covered?

The ordinance applies to retail employers who:

 Employ 300 or more employees globally, including through staffing agencies or franchise networks, and

 Operate in the unincorporated areas of Los Angeles County, where employees work at least two hours per week.

 These new rules, however, do not currently apply to employers operating exclusively in incorporated cities within the county, like Pasadena and Long Beach, or to businesses in the restaurant or hospitality industries.

Key provisions

1. Advance notice of work schedules: Employers must provide employees with written work schedules at least 14 calendar days in advance. These may be distributed electronically, in person, or posted at the workplace.

2. Predictability pay: If an employer modifies the schedule after the 14-day notice period:

o Adding or shifting work hours: one additional hour of pay at the employee's regular rate for each change

o Reducing or cancelling hours: payment of half the regular rate for the hours lost

3. Good-faith estimate of work schedule: Upon hiring, employers must provide a written good-faith estimate of the employee's expected work schedule. This estimate must also be updated within 10 days of a request from a current employee.

4. Rest between shifts: Employers must provide at least 10 hours of rest between shifts. If an employee consents to work during this window, the employer must compensate at 1.5 times the employee's regular rate for the entire shift.

5. Right to decline schedule changes: Employees have the right to decline any shift changes made with less than 14 days' notice, without retaliation.

6. Offer of additional hours to existing employees: Before hiring new workers, employers must first offer additional available hours to existing part-time employees.

Documentation and enforcement

Employers must maintain records of work schedules, employee consent forms, predictability pay, and good-faith estimates for at least three years. Violations may result in penalties, fines, and restitution, enforced by the Los Angeles County Department of Consumer and Business Affairs.

Steps employers should take now

Retailers operating in unincorporated areas of Los Angeles County should begin preparations well in advance of the ordinance's effective date by taking the following steps:

 Evaluate current scheduling and timekeeping systems

 Review staffing and shift assignment procedures

 Implement internal processes to comply with notice and pay requirements

 Train HR and supervisory staff on new employee rights and employer responsibilities

Anticipating broader application

While the current scope is limited to large retailers, the Board of Supervisors has signaled interest in expanding the ordinance to other industries, including food service. Employers should monitor further developments and consult legal counsel for compliance strategies.