Introduction
The City of Los Angeles Fair Work Week Ordinance (FWWO) is being implemented to provide workers of large retail businesses with stable and predictable schedules, additional opportunities to work, and other employment protections. The Ordinance will go into effect on April 1, 2023 with an initial grace period of 180 days focused on employer education and outreach. Full enforcement of the FWWO, including fines and penalties, will begin on September 28, 2023.
Who is covered by the Ordinance?
A covered Employer has 300 or more employees globally, and is identified as a retail business in the North American Industry Classification System (NAICS). In addition, the Employer must exercise control over the wages, hours or working conditions of any Employee. Workers employed through temporary services, staffing agencies, subsidiaries and certain franchises count toward the 300 global employee threshold.
An Employee is any individual who in any particular week performs at least two (2) hours of work within the geographic boundaries of the City of Los Angeles for a covered Employer and is entitled to earn the California minimum wage. This Employee is covered by the FWWO regardless of immigration status or employment status whether the Employee is full-time, part-time, seasonal, or temporary.
Employer Requirements
Under the FWWO, covered Employers are required to:
- Provide all Employees with a good faith estimate of their future Work Schedules:
- For new Employees, the estimate must be provided before hiring.
- For current Employees, the estimate must be provided within ten (10) days of an Employee’s request.
- If an Employee’s actual work hours substantially deviate from the estimate, Employers must have a documented, legitimate, business reason that was unknown at the time of the estimate, to substantiate the deviation.
- Engage with Employees on their preferences for certain times, hours, or locations for their Work Schedule. Employers may accept or decline requests, but the reason for a denial must be provided to Employees in writing.
- Provide Employees advance notice of their Work Schedules at least 14 calendar days before the start of a work period, by posting the schedule in an accessible location or by electronically transmitting the schedule.
- If an Employer makes changes to an Employee’s Work Schedule with less than 14 days notice, the Employer must provide the Employee with written notice of those changes.
- Employees have the right to decline certain changes to their Work Schedule that are made with less than 14 days notice. If an Employee voluntarily consents to the changes, the consent must be in writing
- Provide Predictability Pay for certain Employer-initiated changes to Work Schedules made with less than 14 days’ notice from the start of the work period, as set forth in the chart below. Note: Certain conditions may exempt Employers from having to provide Predictability Pay. See LAMC Ch. XVIII Art. 5 Sec. 185.06.B for the full list of exemptions.
Predictability Pay Schedule
Employer-initiated Change | Predictability Pay |
---|---|
Increase in hours that exceeds 15 minutes | One (1) hour at the Employee’s regular rate of pay |
Change to the date, time, or location | One (1) hour at the Employee’s regular rate of pay for each change |
Reduction of hours by at least 15 minutes | Hours not worked at one-half the Employee’s regular rate of pay |
On-call shift, when the employer does not call the employee to perform work | Hours not worked at one-half the Employee’s regular rate of pay |
- Offer additional work hours to current Employees before hiring new Employees. Before hiring new Employees, Employers must give current Employees 72 hours’ written notice of the availability of additional work hours if:
- one or more current Employees are qualified to do the work, and
- additional work hours would not result in the payment of overtime.
- Provide Rest Between Shifts: Employers must obtain an Employee’s written consent before scheduling any "clopening" Shift. This is when Employees are scheduled to work a closing Shift that begins on one workday followed by an opening Shift the next workday. If the second Shift starts less than ten (10) hours after the end of the previous Shift, Employers must pay Employees time and a half for the Shift following the insufficient rest period.
- Allow Employees to miss shifts without finding coverage, if the Employee is unable to work for a reason protected by law.
- Post the Office of Wage Standards notice in a conspicuous place at any workplace or job site in English and any other language spoken by at least five percent (5%) of the Employees at the workplace or job site.
- Retain documentation of the following types of records for at least three (3) years:
- Work Schedules,
- Copies of written offers and responses for additional work hours,
- Written correspondence about Work Schedule changes,
- Good faith estimates of Work Schedules, and
- Any other records that may be required to comply with the FWWO.
Administrative Penalties and Fines for Violations
Employers who violate the Fair Work Week Ordinance (FWWO) may have to pay restitution and penalties to each Employee whose rights have been violated. Employers may also be liable to the City for a penalty of up to $50 per day that Predictability Pay is unlawfully withheld and additional administrative fines for other violations of the FWWO. For a complete list of penalties and administrative fines, please see LAMC Ch. XVIII Art. 8 Sec. 188.07 and 188.08.
Each and every day that a violation exists constitutes a separate and distinct violation. Any subsequent violation of the same provision by the same Employer within three years may result in a 50% increase in the maximum administrative fine allowed.
Employee Rights
If you are an Employee of a covered Employer (retail businesses with over 300 global employees), you have the following rights under the Fair Work Week Ordinance (FWWO).
You may be entitled to… | Details |
---|---|
A Good Faith Estimate of your Work Schedule | Employers must provide you with a Good Faith Estimate of your Work Schedule in writing before hiring (new Employees) and within ten (10) days of your request (current Employees). If your actual work hours substantially deviate from this estimate, the Employer must substantiate this deviation. |
Fourteen (14) days’ advance notice of your Work Schedule | Employers must provide your Work Schedule at least 14 calendar days in advance. The schedule must be posted in an area accessible to Employees or transmitted electronically. |
Protections from certain schedule changes after the advance notice period | You have the right to decline certain changes made to your Work Schedule with less than 14 days’ notice. If you choose to accept schedule changes, you may be eligible for additional compensation known as Predictability Pay. See the Predictability Pay Schedule for more details. |
Opportunities for additional work hours | Before hiring a new Employee, Employers must offer additional work hours to current Employees if they are qualified and if it would not result in overtime pay. |
Rest between shifts | Employers should not schedule you for a "clopening" Shift. This is when you are scheduled for a closing Shift that begins on one workday followed by an opening Shift the next workday. You need to provide written consent to work the clopening Shift where the second Shift starts less than ten (10) hours from when your last Shift ended. If you choose to accept such a Shift, then you must be paid a premium of time and a half for the second Shift not separated by ten (10) hours. |
Requests for certain schedule preferences | You have the right to request preferences in your Work Schedule. Although the Employer may decline your request, reasons for denials must be provided to you in writing. |
Protections for missing work Shifts | You are not required to find coverage for a Shift where you are unable to work for reasons protected by the law. |
Protection from retaliation | You have the right to exercise your rights under the FWWO without experiencing retaliation. |
Potential Remedies Available to Employees
Employees may be entitled to restitution and additional penalties for any violations of the Fair Work Week Ordinance (FWWO).
An Employee may file a complaint with the Office of Wage Standards (OWS) so long as the following takes place:
- The Employee provides written notice to the Employer of the FWWO violations. The notice should name the provisions of the ordinance alleged to have been violated and provide facts to support the alleged violations; and
- The Employer does not take action to cure the named violations within 15 calendar days from receipt of the written notice.
This is a summary of certain provisions of the Fair Work Week Ordinance (FWWO). For complete requirements of the FWWO, please refer to LAMC Ch. XVIII Art. 5 Sec. 185 and Art. 8 Sec. 188.