Today, November 29, 2022, the Los Angeles City Council passed the Fair Work Week Ordinance on the second reading. The ordinance now goes to the mayor for final approval. If approved by the mayor, it will take effect on April 1, 2023.

Covered Employers

Under the ordinance, covered employers are defined as those businesses identified as a retail business under the North American Industry Classification System (NAICS) and employ 300 employees globally. Individuals employed through staffing agencies, and employees of certain subsidiaries and franchises count towards the 300-person total.

Covered Employees

Anyone working in the City of Los Angeles two hours or more per week for a covered employer and who is entitled to minimum wage under the state Labor Code and Wage Orders is covered by the new ordinance.

Obligations of Covered Employers

The ordinance sets forth specific requirements for covered employers in the handling of scheduling practices and procedures. The following is an overview of some of the requirements:

• Covered employers shall provide each new employee before hiring a written good faith estimate of the employee’s work schedule.

• Covered employers shall provide a written good faith estimate of the employee’s schedule within 10 days of an employee’s request.

• Employees have a right to request a preference for certain hours, times, or locations of work. Covered employers may accept or decline requests, provided the employer notifies the employee in writing of the reason for any denial.

• Covered employers shall provide an employee with written notice of the employee’s schedule at least 14 calendar days before the start of the work period.

• Before hiring a new employee, covered employers shall first offer the work to current employees.

• An employer shall not schedule an employee to work a shift that starts less than 10 hours from the employee’s last shift without written consent. Covered employers shall pay an employee a premium of time and a half for each shift not separated by at least 10 hours.

• Covered employers shall post notice informing employees of their rights under the ordinance.

Predictability Pay

Under the new ordinance, employers shall provide predictability pay when a covered employee has agreed to a change in their work schedule after the advance notice requirements under the ordinance. The employee is entitled to one additional hour of pay at their regular rate for each change to a scheduled date, time, or location that does not result in a loss of time to the employee or does not result in additional work time that exceeds 15 minutes. An employee is entitled to one-half of the employee’s regular rate of pay for the time the employee does not work if the employer reduced the employee’s work time listed by at least 15 minutes.

Penalties and Right to Cure

Employees will be required to give employers written notice of any alleged violations and an opportunity to cure them before filing a claim with the City of Los Angeles. Employers will have 15 calendar days to cure alleged violations after notice.

The City of Los Angeles can recover up to $500 per violation per employee.